Corporate personhood, as set out by s.30 of the Business Corporations Act is unequivocally a controversial concept. Although it is clear that corporations require certain legal protections in order to be able to function effectively, the desirability of conveying the rights of “an individual with full capacity” upon an artificial construct animated by humans for the predominant purpose of earning a profit is questionable to say the least. After all, surely the rights granted to “individuals of full capacity” were specifically crafted so as to be appropriate for human beings, making the application of these same rights to a decidedly different type of entity difficult, and perhaps even intolerable. These tensions are clearly demonstrated by the selective application of rights enshrined in the Charter of Rights and Freedoms to corporations, and take on an added importance when considered in the context of limited liability, and the spectre of individuals using corporations as a shield for illegal or improper business dealings.
However, despite the questions raised by the current Canadian model of corporate personhood, the alternatives seem to be, at the very least, equally problematic. Any attempt to enumerate an exhaustive list of rights to be accorded specifically to corporations will likely lead to either ambiguity or inflexibility. Any attempt to provide an exhaustive list of rights to be accorded to corporations would likely either be worded so vaguely as to be incapable of definite ascertainment, or would clear and precise but risk being rendered obsolete by innovations, whether they be technological, financial, or social. Finally, even if these problems could be overcome, the international competitive disadvantage which would be the likely result of Canada adopting a significantly different conception of corporate personhood could have grave consequences on the Canadian economy. The most effective way to eliminate this concern would be some level of international cooperation in reform efforts, but this seems implausible considering the power wielded by corporations across the globe and the vested interest of the current elite in maintaining the status quo.
