The Ministry of Infrastructure (MOI) has proposed a new management framework for forfeited corporate property. The goals of this framework are to (i) reduce the number of properties that are forfeited to the Crown (which may occur when an Ontario incorporated corporation is dissolved while still owning property); (ii) return forfeited corporate property to productive use in a timely and efficient manner; (iii) increase corporate accountability for costs associated with forfeited property; and (iv) provide greater transparency and certainty in the management and disposition of forfeited corporate property.
The proposed framework would enable the provincial government to impose legacy cleanup costs on anyone who was a director or officer of a corporation in its last two years before dissolution. According to the MOI, this would help avoid the high costs the government incurs in managing forfeited corporate properties that often have environmental, health or safety issues, among others.
The MOI is seeking comments on its proposal by December 21, 2012. For further information, please see the MOI website.
Jeff Gracer (Partner at Sive, Paget & Riesel, New York)