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British Columbia - Legal Aspects of Doing Business in North America - 2nd Edition

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British Columbia




Borden Ladner Gervais, LLP

Vancouver, British Columbia, Canada




Introduction

The Province of British Columbia is Canada’s western-most Province bordering on the

Pacific Ocean. The capital city is Victoria, while the City of Vancouver is the business

center and largest city in the Province.




Constitutional power in Canada rests with Parliamentary Governmentmodeled on the

English system but with parliamentary power divided between the Federal and Provincial

Governments. Federal laws are made in the Parliament of Canada in Ottawa, Canada, and

Provincial laws for British Columbia are made in the British Columbia Legislative

Assembly. The courts established by the Federal and British Columbia law are:




• The Provincial Court, which has three divisions: Criminal, Family, and Small Claims;

• The Supreme Court, which has general jurisdiction over all actions arising in British

Columbia and hears some appeals from Provincial Court decisions; and

• The Court of Appeal, which hears appeals from the Supreme Court. Appeals from the

Court ofAppealmay be taken to the SupremeCourt ofCanada inOttawa onlywith leave.

Federal Courts of Canada are discussed elsewhere.Within its own constitutional jurisdiction,

the British Columbia Legislative Assembly makes the laws. Municipal and Civil

Governments in British Columbia derive their authority solely from the Legislative

Assembly.




Requirements for a Foreign Enterprise to Do Business




Any business operating in British Columbia comes under the jurisdiction of all levels of

government—Federal, Provincial,Regional, andMunicipal—depending upon the nature

and location of the particular activities. Federally, the InvestmentCanadaAct promotes and

incidentally controls foreign investment in Canada. It requires review of acquisitions of

control of existing Canadian businesses with assets of Cdn $5 million or more with two

exceptions, namely,where theCanadian business is acquired indirectly through the acquisition

of a foreign corporation with a Canadian subsidiary, the acquisition is only reviewable

if the Canadian business represents more than 50 per cent of the whole amount or amounts

to Cdn $50 million or more; and, where the Canadian business relates to Canada’s cultural

heritage or national identity or is involved in certain other sectors, then a review can be

required even if the assets are belowCdn $5million. In the case of certain other investments

in Canada by non-Canadians, a notice must be given informing Investment Canada of the

investment, but no review is required or possible. Note that higher limits apply to investors

Borden Ladner Gervais, LLP Vancouver, British Columbia, Canada


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