At Bader Law, our experience managing complex property cases is further exemplified by our deep understanding of the regulatory and legislative frameworks governing such matters.
In a recent successful property reclamation case, our approach was based on the Business Corporations Act (BCA) and the Forfeited Corporate Property Act, 2015 (FCPA), which are crucial in determining the fate of assets post-corporation dissolution.
Understanding Legislative Mandates
The BCA stipulates that upon dissolution, a corporation’s assets, including real estate, are presumed to be forfeited to the Crown. Even though property records might still list the dissolved corporation as the owner, the actual legal status of the property post-dissolution is governed by the FCPA. This legislation dictates that real property owned by a dissolved corporation reverts to the Crown unless actions are taken to recover it.
Strategic Application Process for Property Revival
Application under Section 241(9):
A revival application is necessary within 20 years of dissolution as per section 241(12) of the BCA. It involves submitting articles of revival (s 241(13)). Upon approval, the Director issues a certificate of revival (s 241(14)), which is sometimes a precursor to reclaiming the property rights.
Critical Three-Year Time Limitation:
Under the FCPA, sections 241(10) and (11) highlight the importance of the three-year period post-dissolution for reviving property rights. This timeframe is critical and requires prompt action to avoid permanent forfeiture.
Recovery of Forfeited Property under FCPA (Section 26):
Relief from Forfeiture: Section 26(1) allows for restoring forfeited corporate property to applicants who can establish a pre-existing legal or moral claim.
Timing of Application: Applicants must act swiftly, as applications for relief must be submitted before the earliest of 10 years after forfeiture, the Minister’s disposal of the property, or its use by the Crown for its purposes (s 26(2)).
Exceptional Circumstances: If compelling reasons exist that prevented an application within the 10-year window, section 26(3) allows for these to be considered, potentially extending the opportunity for application.
Form and Considerations for Application: The application must adhere to prescribed regulations (s 26(4)), and the Minister’s considerations for property disposal include debts, encumbrances, taxes, and the nature of the claim, among other factors, as outlined in section 26(6).
Excellence in Navigating Complex Property Reclamation: Bader Law’s Proven Approach
At Bader Law, our recent successful navigation of a complex relief from forfeiture application underscores the high level of expertise and meticulous care our firm brings to every case. This challenging case involved reclaiming a significant property inadvertently forfeited to the Crown through the dissolution of a corporation.
Comprehensive Process and Strategic Execution
Initial Review and Assessment—Our process begins with a detailed examination of the property’s historical context and the reasons behind its forfeiture. Understanding the implications of the corporate dissolution and establishing our client’s legal standing regarding the property are crucial first steps.
Gathering Essential Documents – Our team compiles a complete book of relevant documentation, including historical corporate records such as Articles of Incorporation, Shareholders’ Agreements, Minute Books, and financial statements, alongside evidence of ongoing property management and tax payments. This meticulous documentation is fundamental to our approach, ensuring that the claim to the property is supported by documentary evidence, thereby enhancing the robustness of our client’s claim.
Preparing the Application—We ensure that the application for relief from forfeiture is detailed to meet all requirements outlined in the Forfeited Corporate Property Act, 2015 and the Business Corporations Act. This step ensures that all required information is included.
Submitting the Application and Fee – We adhere strictly to the Ontario Ministry Government and Consumer Services’ guidelines and submit the application in full compliance with all procedural requirements.
Maintaining Regular Communication and Follow-Up – We engage continuously with the Ministry representatives, ensuring that requests for additional information are promptly addressed and the application moves forward without delay.
Review and Decision – The Ministry conducts a detailed examination of all supporting documentation, affirming the legal basis for the claim and our clients’ demonstrated ongoing property management and financial responsibility. Our proactive and open communication strategy facilitates a smooth review process.
Direct Transfer of the Property Title – Following a successful review, the Ministry issues a decision that allows the direct transfer of the property title back to our clients, bypassing the need for corporate revival and simplifying the reclamation process. This outcome preserves the property’s value for our clients and ensures their continued beneficial use.
Why Choose Bader Law?
This case highlights the quality of our team and the thoroughness of the Bader Law process. Our lawyers are well-versed in the nuances of property law and corporate structure and are deeply committed to our client’s success. Our transparent communication and collaborative team dynamics ensure our clients are well informed and actively involved in their legal journey.
At Bader Law, we are dedicated to continuous learning and professional development, keeping our team at the forefront of legal advancements and regulatory changes. Our strategic legal action and client-centric service set us apart, making us a preferred choice for clients facing complex property and corporate legal issues.
Mississauga and Oakville Property Lawyers
For more information on how we can assist you with your legal needs or to learn more about our services, follow our LinkedIn page, contact us online, or call 289-652-9092. Let us help you navigate your legal challenges with the same diligence and expertise demonstrated in our previous successful cases. We look forward to speaking with you.