A director has overall responsibility for the corporation. Collectively, the directors are called the Board of Directors.

A director is appointed by the shareholder(s) of the corporation.

Eligibility Requirements

A director must:

  • be at least 18 years old,

  • not have been declared mentally incapable by a court in Canada or in another country,

  • be an individual (a corporation cannot be a director), and

  • not be bankrupt.

Residency Requirements

For federal, Ontario, and Alberta corporations, 25% of the directors must be 'resident Canadians'. This means that if a corporation only has one director, then that director must be a 'resident Canadian'. 

'Resident Canadian' means an individual who is

  • a Canadian citizen who ordinarily lives in Canada, or

  • a Permanent Resident who ordinarily lives in Canada.

In British Columbia, there is no residency requirement. Anyone can incorporate a business in BC so long as they have an address in the province where they can receive mail.

Personal Liability

Directors remain liable for a few things going forward:

  1. Unpaid employee wages [up to six months if certain pre-conditions are met and the company can't pay].

  2. Taxes and remittances [like CPP, EI] owed to the government.

  3. Committing an illegal act or fraud.

Did this answer your question?