The annual return is an important part of corporate governance
Running a business here in Alberta comes with certain paperwork requirements. Corporations must keep meticulous records as part of their corporate governance, and most of those records remain internal. However, corporations are also required to file an annual return with a Corporate Registry service provider here in the province.
Failing to file the annual return with the province could result in the administrative dissolution of an Alberta corporation. Each year, the corporation will receive a remainder notice around one month prior to its anniversary date. In addition to other information, the annual return must include certain information about the corporation’s top five shareholders.
The corporation will be required to provide the names, addresses and voting share percentages of these individuals each year. This information is required even if the individuals and the other information does not change from year to year. In order for the return to be accepted, it must meet with certain legal requirements.
Even if the corporation is from another province, an annual return is required. However, if a corporation’s home province is Saskatchewan or British Columbia, it does not have to meet this requirement. Of course, this is just one legal requirement that a corporation must keep up with each year.
Corporate governance encompasses a variety of tasks designed to keep a corporation in compliance with the current best practices and legislation. The filing of an annual return is just one part of this process, but it is an important one. The last thing a company needs is to receive a notification that it is or will be administratively dissolved for failing to file one document.