The Toronto Star is now focusing on the glitchy launch of the Ontario Business Registry (OBR) in their article Doug Ford’s glitchy online business registry has major law firms telling clients to avoid Ontario. The byline is “Premier Doug Ford’s new online business registry is so rife with “system shutdowns, technical glitches and substantive problems” that major law firms are advising clients to register out-of-province, the Star has learned.”
The article notes:
In a searing letter to Government and Consumer Services Minister Ross Romano, the Bay Street pillars warn the month-old Ontario Business Registry “is negatively impacting our firms, clients and service providers” and is “having a chilling effect on doing business in Ontario in general.”
The 12-page missive is a blow to Ford’s much-ballyhooed “open for business” push because all companies and not-for-profit corporations must register to incorporate or to dissolve here.
“We represent hundreds of thousands of entities trying to carry on business in Ontario,” the law firms wrote Friday.
“The system shutdowns, technical glitches and substantive problems associated with the new OBR are causing significant disruption, delaying transactions and adding significant costs for businesses,” they continued.
“Given our collective OBR experiences to date, we have no confidence or assurances that year-end registrations and filings — the busiest time of the year for our law firms — can be completed without putting entire transactions at risk.”
Because of that, many firms “are now recommending to their lawyers and clients that the creation or use of Ontario entities in corporate transactions be avoided if possible, and that the use of federal entities or other provincial jurisdictions are being recommended in order to not jeopardize the successful completion of many year-end transactions.”
I just had an opportunity to read the letter and it is a detailed 12 page, often point form note on many inadequacies in the OBR. In almost 60 bullet points the letter raises a multitude of concerns with the OBR. Interesting that a number of prominent law firms are complaining about problems with the OBR and how this could be very problematic for some. We have expressed our disappointment with the OBR and also some aspects of the new Ontario Not-for-Profit Corporations Act (ONCA) which was launched on the same day.
The CBC also covered the problems in an article entitled Ontario’s new online business registry rife with ‘system shutdowns, technical glitches,’ lawyers say.
We have been working with Ontario non-profit corporations over the last 8 years to move or continue to the Federal legislation under the Canada Not-for-profit Corporations Act (“CNCA”). We continue working with entities to undertake this process and those who have moved to Federal are not having to deal with the circus in Ontario. For others who are stuck in Ontario and cannot move, or who are gluttons for punishment, we will help you make changes to your governing documents so that they comply with ONCA and continue operating in the Ontario non-profit corporate law environment.
If your group needs assistance with ONCA, you can retain our law firm.