Changes to Corporations Act Support Immigration and Economic Growth

Proposed amendments to the Corporations Act that would make it easier for international graduates and entrepreneurs to establish businesses and create jobs in Newfoundland and Labrador, received second reading in the House of Assembly today.

Bill 18 is an important step toward the addition of two new categories in the Newfoundland and Labrador Provincial Nominee Program (NLPNP), broadening the ability of individuals in these categories to incorporate businesses. The introduction of new categories is a commitment of The Way Forward on Immigration to Newfoundland and Labrador, the province’s collaborative, partnership-driven immigration action plan.

Currently, the act requires at least 25 per cent of the directors of a corporation to be resident Canadians. This requirement promotes Canadian participation in corporate decision making, fosters compliance and enforcement of legal obligations and reduces the potential for fraud, negligence and flight risk. The amendments will extend the definition of resident Canadian to include those who will be approved and participating in the NLPNP as International Entrepreneurs and International Graduate Entrepreneurs.

The NLPNP operates under the Canada-Newfoundland and Labrador Immigration Agreement (2016). The creation of new categories is governed by the agreement, and is currently being pursued in collaboration with the Federal Government.

These amendments to the Corporations Act deliver on commitments in The Way Forward to strengthen the province’s economic foundation. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at thewayforward.gov.nl.ca.

Quotes

“We all have a role to play in increasing immigration to Newfoundland and Labrador and we welcome diversity and multiculturalism. Allowing participants of the Provincial Nominee Program to incorporate their businesses will attract newcomers who choose to settle right here in our province where they can build a brighter future for themselves and our communities.”
Honourable Sherry Gambin-Walsh
Minister of Service NL

“These amendments to the Corporations Act will make Newfoundland and Labrador an even more attractive destination of choice for international graduates and entrepreneurs. Making it easier for them to establish businesses and create jobs in this province aids our government’s efforts through The Way Forward to grow our workforce and economy. We look forward to finalizing our discussions with the Federal Government and establishing the new categories this summer.”
Honourable Al Hawkins
Minister of Advanced Education, Skills and Labour

Learn more
Bill 18 – An Act to Amend the Corporations Act

Live Here, Work Here, Belong Here – An Immigration Action Plan for Newfoundland and Labrador

The Way Forward – A Stronger Economic Foundation