Every corporation established under the Business Corporations Act in British Columbia (the Act) is required to file an annual report with BC Registry Services and appoint an auditor under Part 7 of the Act. However, the audit requirement may be set aside if all shareholders of the company resolve by an annual unanimous resolution to waive the appointment of an auditor.
Practice Management Tip
Confirming with your client, and perhaps obtaining a management representation, that the directors have met their fiduciary duties by ensuring the company has remained in good standing and is in compliance with the requirements of the Business Corporations Act is good client service. For clients who have not complied with these annual corporate filings, refer them to their corporate lawyer.
Keep in mind that preparing resolutions, maintaining corporate records, completing incorporation documents, or preparing annual filings fall within the definition of practising law as set out in the Legal Profession Act. This means CPAs are not able to perform such services unless they are also members of the Law Society of British Columbia.