Bill 78 on transparency of syndicates: are you ready?

March 3, 2023 – On June 8, 2021, the National Assembly of Québec assented the Act mainly to improve the transparency of enterprises (Bill 78). This Bill makes amendments to the Act respecting the legal publicity of enterprises. New responsibilities have been entrusted to the Enterprise registrar. On 31 March 2023, this new legislative framework will enter into force and introduce new obligations relating to the publication of information by registrants, including syndicates of co-owners. The Government of Quebec has thus improved the information available at the Registre des entreprises du Québec (the "REQ"), while improving corporate transparency, strengthening public protection and contributing to efforts to fight tax evasion, money laundering and corruption.

Identification documents                                                                                                

From now on, syndicates of co-owners mustprovide a copy of a personnal identification (ID) for current directors declared to the REQ as proof of their identity  and declare their date of birth.  This obligation also applies to any new elected or appointed director.

Acceptable identification

The personnal identification (ID) must be unexpired and issued by a government authority. A copy of the identity document sent to the REQ must be legible. For the REQ, this is a way to ensure the accuracy of the surname, first name and date of birth of the directors of a syndicate of co-owners. 

Only the identity documents mentioned below, having a surname, first name and date of birth, are accepted:

• Passport;
• Driver's or learner's license;l
• Health insurance card;
• Canadian Permanent Resident Card;
• Immigration document issued by the Government of Canada;
• Official identification documents for military, police or diplomats stationed in Canada;
• Secure Certificate of Indian Status;
• Quebec birth certificate;
• Identification issued by a Canadian province or Canadian territory that includes a date of birth.

Send a copy of an identity document

The way in which a copy of an identity document can be transmitted differs depending on whether the syndicate is already registered in the enterprise register, newly incorporated, or has failled to register.

1. If the syndicate of co-owners is already registered in the register of companies.

The syndicate representative must consult the REQ website in the On line Office  section to declare the information using an annual updating declaration or a current updating declaration. The copy of the identity document must be transferred to the REQ by the end of the filing period of your company's annual updating declaration.

2. If the syndicate of co-owners is not registered in the register of companies or in default of having been registered.

The representative of the syndicate must declare the information at the time of filing his declaration of registration  or reregister declaration.

WHAT YOU SHOULD KNOW ! The copy of the directors' identity document will be kept until the date of registration of the syndicate of co-owners or the filing of the declaration of updating in the syndicate's file. It will then be destroyed.

WHAT TO KEEP IN MIND : The date of birth of a director will not be displayed in public view, while all other information will appear publicly in the REQ.

WARNING ! A syndicate of co-owners that does not comply with its obligations to disclose the director's identification commits an offence. He is subject to administrative or penal penalties, penalties of up to $20,000 depending on the case. However, these fines are doubled in the event of a repeat offence.