Gariepy and Chriss – Tax Court of Canada finds that unsigned directors’ resignations were effectual

Boyle J found that written resignations of corporate directors were effective (so as to start the two-year time limitation for directors’ liability under s. 227.1 running) notwithstanding that the lawyers never provided the resignation forms to the directors for signature. (This may bear on other written instruments such as elections made on a non-prescribed form.)

He further found that where there was a reasonable belief that a director had resigned, that would constitute a due diligence defence for her failure thereafter to do anything about source deductions even if her resignation instead had been ineffectual.

Neal Armstrong. Summaries of Gariepy and Chriss v. The Queen, 2014 TCC 254 under s. 227.1(4) and s. 227.1(3).