Steps to Growth Capital Self-Study GuideStep 5

5.7 What Legal and Regulatory Issues to Consider

Legal and Regulatory Issues

When you seek debt or equity financing, you may be subject to certain legal and regulatory requirements that govern, among other things, the nature, format and content of your investment proposal. Before contacting potential investors, seek legal advice to ensure you are in compliance with all the legal and regulatory requirements that may affect you in raising financing.

Securities Regulation in Canada

In Canada, securities regulation is governed by provincial jurisdiction. So each province has legislation pertaining to securities-related matters. That means you'll need to determine how your province's specific securities legislation affects your financing proposal. Consider seeking independent legal advice.

For instance, in Ontario, you may be exempted from providing a prospectus. This exemption comes under the seed capital exemption or private placement exemption of the Ontario Securities Act.

For a discussion of the legal issues, assumptions and implications to you, your company and potential investors, review the Legal and Regulatory Overview.

Provincial Securities Commissions

Securities legislation is administered by the authority designated in the applicable securities act.

Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan have securities commissions. In the remaining provinces, a designated official administers the acts.

Refer to Provincial Securities Commission — Contact Information for the addresses of the authorities administering the respective acts.

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