Annual financial statements (CBCA s. 155)

A share buyer may ask for the statements shareholders last received. Section 155(1)(a) calls for comparative statements covering the period ending not more than six months before the meeting, and the immediately preceding financial year. Under s. 155(2) the earlier year’s statements may be omitted if the reason is set out in the statements or a note.

Related sections to know

• Section 156: on application, the Director may exempt a corporation from s. 155 if it reasonably believes the detriment to the corporation outweighs the benefit to shareholders (or, for a distributing corporation, the public)
• Section 158(1): the directors must approve the statements, evidenced by one or more directors’ signatures
• Section 159: copies go to each shareholder at least twenty-one days before the meeting (or before a resolution in lieu of it is signed), except one who has declined in writing

What to check or ask

Ask for the signed statements, the auditor’s report if there is one, and any exemption order. BDC lists the balance sheet, income statement, cash flow statement and statement of retained earnings as financial statements; see which are included. This entry covers the CBCA only. See also what buyers look for in your financial statements.