Every BC company must have at least one director. A director is a person who has been appointed by the owners (shareholders) of the BC company to handle the business and affairs of the company on behalf of those owners. Very often the directors of a BC company are also the owners, who have appointed themselves to the role of director. In order for a person to act as a director he or she must meet the qualifications of directors of British Columbia companies.
Is there any Limit on the Number of Directors a BC Company May Have
The Business Corporations Act (British Columbia) which governs BC companies provides that every private BC company must have at least one director and every public BC company must have a minimum of three directors, although all BC companies can have as many directors as they wish.
Persons Disqualified to Act as Directors of a BC Company
If the individual who wishes to act as a director of a BC company falls under any of the following restrictions that person cannot act as a director of a BC company:
- Is under the age of 18 years;
- Has been found by a court, in Canada or elsewhere, to be incapable of managing the individual’s own affairs;
- Is an undischarged bankrupt; or
- Has been convicted in or out of BC of an offence in connection with the promotion, formation or management of a corporation or unincorporated business, or of an offence involving fraud.
Section 124 of the Act does provide for some exemptions with respect to these restrictions for those who may be interested.
Resident Canadian Requirement Does not apply to Directors of BC Companies – Directors do not Need to Live in Canada
Many provinces and territories in Canada have a resident Canadian requirement which provides that a certain number of directors of a company must be “resident Canadians”.
The requirement for a director of a BC company to be a resident Canadian does not exist. This is good news for Canadians who live abroad and wish to maintain a business in Canada. It is also good news for those individuals who are living outside of Canada and wish to open a business in Canada but would not be able to move to Canada.
Does a BC Director Need to be a Shareholder
A BC director can be a shareholder but there is no legal requirement for him to hold shares in the company.
BC Directors Must Consent to Act
The BC incorporation statute provides that all directors must consent to act as directors of a BC company. The directors of a BC company must consent either in advance of or at the same time of their election to the board.