Financial disclosure

Financial disclosure is the provision of financial information about a person or business to another party, such as financial statements, liabilities and material contracts. In business, it most often arises in due diligence for share or asset purchases, financings and investments, where the information supports representations and warranties in the deal documents.

How BC law treats it

Disclosure obligations in BC are specific rather than general: tax filings, continuous disclosure for reporting issuers under securities law, financial statements for shareholders under the BCBCA, and disclosure obligations in particular contracts or regulated sectors. In a private transaction, the scope of disclosure is mostly set by the agreement.

What it means for your business

A seller should prepare accurate financial records before going to market, as inaccurate information can lead to warranty claims after closing.

Risks and common mistakes

Inaccurate or incomplete disclosure can expose a seller to claims for misrepresentation or breach of warranty.

Fulcrum's mergers and acquisitions lawyers can help with these issues.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.