In many respects, Canada’s corporate and securities law systems lack the clarity needed to attract global investment.Nathan Denette/The Canadian Press

William Hourigan is a justice of the Court of Appeal for Ontario. Jordana Borzellino is a lawyer in Ontario. The following is adapted from a forthcoming article in the Supreme Court Law Review.

Canadian political and business leaders are engaged in an unprecedented rethink of the national economy. If we are to successfully adapt to the harsh realities of the current geopolitical moment, it will be necessary to force bold reform in a variety of economic domains, from interprovincial trade to resource extraction. To date, one major problem has escaped scrutiny: the ways in which Canadian corporate and securities laws act as a barrier to domestic and foreign investment in our economy.

Law has a vital role to play in ensuring economic health. When applicable rules and frameworks are clear, those subject to the law can effectively order their affairs. A primary purpose of corporate law is to create legal certainty, thereby spurring investment. Thus, healthy corporate and securities law regimes will not only address problematic behaviour, but will also set clear, predictable rules and allow businesses to make long-term investments in a jurisdiction.

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