Key Takeaways
- MVDA looks at officers’, directors’ and interested persons’ conduct and finances (s. 6(1)(d)).
- Child care revocation can rest on failures by employees, officers or directors (CCEYA, s. 23(2)).
- Pharmacy corporations must have a majority of directors who are pharmacists (DPRA, s. 142).
- Cannabis knock-on rules can affect every store (CLA, s. 12).
Where the Risk Comes From
Several statutes look through the corporation. The child care director can propose revocation where the licensee, its employees, officers, directors or controlling persons failed to comply with the law (CCEYA, s. 23(2)(a)). Pharmacy ownership is restricted: no corporation may own or operate a pharmacy unless most of its directors are pharmacists (DPRA, s. 142(1)).
Managing It
- Screen key people before appointment.
- Have a plan for removing a person from control if necessary.
- Keep compliance systems documented, so you can show the problem was individual, not systemic.
Frequently Asked Questions
If we remove the person, does the problem go away?
It can help significantly, especially if documented, but the regulator will look at the business’s systems too.
Does this apply to franchises?
Each licensed entity is assessed under its statute. Check who the licensee and controlling persons are.
Sources
Statutory references are to the provisions listed below, as consolidated on e-Laws when this page was prepared.
- Motor Vehicle Dealers Act, 2002, s. 6 — Checked November 10, 2026.
- Child Care and Early Years Act, 2014, s. 23 — Checked November 10, 2026.
- Drug and Pharmacies Regulation Act, s. 142 — Checked November 10, 2026.
- Cannabis Licence Act, 2018, s. 12 — Checked November 10, 2026.