How to add or remove a director in small business corporation?
Allan Madan, CA
When an Ontario corporation wants to remove a director from the board or add a new director to the board, Form 1 called Notice of Change by an Ontario Corporation needs to be filed with the Ministry of Government Services. It is important that Form 1 be filed within 15 days of the change.
Furthermore, a shareholder’s resolution should be drafted and approved by the majority of the shareholders to add a director. When a director is resigning (or fired), a resolution of resignation must be passed. These resolutions should be placed in the company’s minute book for record keeping and the director’s register (also in the minute book) should be updated.
It’s also important that you update your accountant so they can update Schedule 546 (part of the T2 Corporate tax return).
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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