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Auditing the Audit Requirement - March 2010

March 2010

Most jurisdictions in Canada require the unanimous consent of all shareholders, including nonvoting shareholders, in order for a nondistributing corporation to dispense with an audit. The requirement is absolute and mandatory — there are no other exemptions or qualifications. The public policy rationale behind the rule is laudable; however, the implementation in practice can be austere. It is time to revisit the universal audit requirement as it applies to nondistributing corporations. Published in the March 2010 issue of Canadian Lawyer as part of Bryan Haynes' regular column.

How Sustainable is the Government of Canada's Current Fiscal Plan?

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