Why the syndicate should be registered?

Registration

The relevant information of co-ownerships must be declared with the “Registraire des entreprises du Québec” (the Québec Enterprises Registrar).

This declaration is intended to render accessible  essential information, either to the public or enterprises that deal with the syndicate of co-owners. Furthermore, at the start-up of a syndicate, the Board of Directors must file – usually by the provisional administrator – a declaration of registration in virtue of the Act respecting the legal publicity of enterprises. This must be done at the latest 60 days after the publication of the declaration of co-ownership in the Land Register.

 Information concerning the syndicate

The following information must be declared:

  • The name and address of the domicile of the syndicate;
  • The address of the elected domicile along with the name of the person mandated to receive the documents of the legal person;
  • Any other name that the syndicate uses and under which it identifies itself in the pursuit of its activities;
  • The number of salaried employees working in Québec;
  • The information of the person to contact in the event the “Registraire des entreprises” (the Enterprises Registrar) needs additional information to treat a demand
  • If applicable, the name and address of the administrator of the property of others, generally  the manager, its function along with the term of his  mandate;
  • The name and address of the person signing the demand.

Information concerning the members of the Board of Directors

The information related to the composition of the Board of Directors must be declared, for instance:

  • The name and residential address of each  director;
  • The term of their mandate along with their present function ;
  • The name and address of the officers who are not members of the Board of Directors.

Processing the request

After receiving   the request, the Registrar examines it and reviews (more particularly) the conformity of the information therein. If the request is accurate and complete and the fees paid, he registers the syndicate and gives it a “numéro d'entreprise du Québec (NEQ)” (a Québec Enterprise Number). Then, the declaration of registration is filed in the register under the same “NEQ”.

Updating the information

Once registered, the syndicate has the obligation to keep the information in the register of enterprises up to date, such as if its situation changes or if it wishes to modify the information in its file. The updating is carried out with one of the following documents:

The annual updating declaration:

  • This declaration is intended to keep up to date, annually, the information declared to the “Registraire des entreprises” (the Enterprises Registrar).

The current updating declaration:

  • This declaration is intended, more particularly, to update the information declared to the “Registraire des entreprises” (the Enterprises Registrar) at the occasion of a change (for example: a change of directors following a general meeting) occurring during the year.

The corrective updating declaration:

  • This declaration is intended to rectify information already declared and filed in the “Registraire des entreprises” (the Enterprises Registrar). It may be used to add missing information, or to withdraw or rectify incomplete or inaccurate information. This rectification has a retroactive effect.

Neglecting updating the declaration of registration has consequences.

If the annual updating declaration is filed after the prescribed delays, a late filing penalty may be requested (fines varying from $1000 to $10 000). Furthermore, the registration may be cancelled ex officio by the “Registraire des entreprises” (the Enterprises Registrar) in the case where a syndicate is found to have failed filing two consecutive annual updating declarations.

The “Registraire des entreprises” (the Enterprises Registrar) can also proceed with the ex officio cancellation of the registration of any syndicate, if the latter does not respond to an updating demand requested by the Registrar. The syndicate, who is cancelled, could, amongst other consequences, lose the faculty to exercise its rights and recourses before the Courts.

 WHAT YOU SHOULD KNOW !  Eventhough the syndicate is created with the registration of the declaration of co-ownership, it must nevertheless be registered with the “Registraire des entreprises” (the Enterprises Registrar). Furthermore, it must pay each year the annual filing fee of the updating declaration

WHAT TO KEEP IN MIND ! The declaration of registration must include the information relative to the name, the domicile and date of creation of the syndicate, along with the identity of its directors.

 WARNING ! The syndicate has the obligation to notify any change in the composition of the Board of Directors during the year.

 

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