Governance
Governance, in the business context, means corporate governance: the system by which a company is directed and controlled. It covers the roles of directors, officers and shareholders, how decisions are made and recorded, and the policies that ensure accountability. For a BC company, governance is set by statute, the company's articles and any shareholders agreement.
How BC law treats it
Under the BCBCA, directors must manage or supervise the management of the company's business and affairs (s. 136) and must act honestly and in good faith with a view to the best interests of the company, with the care, diligence and skill of a reasonably prudent person (s. 142).
What it means for your business
Keeping proper minutes and resolutions and following the articles makes decisions easier to defend if challenged.
Risks and common mistakes
Informal decision making that ignores the articles or the shareholders agreement can lead to disputes over whether decisions are valid.
For the full explanation, see our entry on Corporate governance.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
