Affiliations
Affiliation is a factor that can impact which producer/steward reports on designated packaging and paper materials supplied to consumers in each province. Affiliates are entities that control a producer/steward, are controlled by a producer/steward, or are controlled by an entity that also controls a producer/steward, the meanings of which are defined by the Canada Business Corporations Act and each province's individual Act.
When assessing their obligations in a province, producers/stewards must take into account any divisions or affiliated entities, such as parent companies, subsidiaries or sister companies, as they will impact your residency, obligation and exemption status in the province.
The information below contains the definitions and implications of affiliation for each province. If you have questions with respect to determining your affiliates, please contact our Customer Relations producer onboarding team at 1-877-667-2626.
Circular Materials is pleased to assist producers/stewards in understanding their affiliation status and help to guide producers/stewards through various obligation requirements; however, it is ultimately the producer’s/steward’s responsibility to understand their obligations in each province.
Producers should seek confirmation from Divert NS regarding how affiliation affects their obligation and exemption status. Divert NS has been appointed by the provincial government to administer and oversee the new packaging and paper EPR program. It is the producer’s responsibility to ensure Divert NS is made aware of their affiliations with other companies so it can accurately assess the producer’s obligations.
The New Brunswick Stewardship Plan for Packaging and Paper, developed by Circular Materials in New Brunswick, which was approved by Recycle NB in 2023, defines affiliation in accordance with the Business Corporations Act (New Brunswick) section 1(2). This Act may be amended from time to time.
Affiliation is defined as “one body corporate is affiliated with another body corporate if one of them is the subsidiary of the other or both are subsidiaries of the same body corporate or each of them is controlled by the same person; and if two bodies corporate are affiliated with the same body corporate at the same time, they shall be deemed to be affiliated with each other.”
If a parent company has a permanent establishment in the province, it extends residency to its subsidiaries, regardless of whether the subsidiaries have residence in that province. The subsidiaries therefore become obligated for all materials they supply into the province directly and indirectly.
Parent companies will not gain residency in a province through their subsidiaries. Sister companies cannot gain residency in a province through each other.
When considering if your organization qualifies for a small business exemption, be sure to consider and include any affiliates. Affiliates of a parent company must report under the parent’s account. This means that their combined revenue and tonnage must be calculated to see if they qualify for any exemptions.
Affiliates will only qualify for exemptions if the quantity of materials supplied and the revenue generated by the account, in aggregate, is less than the small business limit in New Brunswick.
Please make sure that this list of affiliates is kept up to date, and that any changes to the list of affiliates be reflected in your annual reports.
Producers should seek confirmation from the Resource Productivity and Recovery Authority (RPRA) regarding how affiliation affects their obligation and exemption status. RPRA is the regulator mandated by the Government of Ontario to enforce the province's circular economy laws. It is the producer’s responsibility to ensure RPRA is made aware of their affiliations with other companies so they can accurately assess the producer’s obligations.
Multi-Material Stewardship Manitoba defines “Affiliate” in its Rules as follows:
“Affiliate” means that one Steward shall be deemed to be affiliated with another Steward if:
- (a) one Steward is the subsidiary of the other Steward; or
- (b) both Stewards are subsidiaries of the same corporation; or
- (c) each Steward is ultimately controlled by the same corporation.
If a parent company has a permanent establishment in Manitoba, it extends residency to its subsidiaries, regardless of whether the subsidiaries have residence in that province. The subsidiaries therefore become obligated for all materials they supply into Manitoba directly and indirectly.
Parent companies will not gain residency in Manitoba through their subsidiaries. Sister companies cannot gain residency in Manitoba through each other.
When considering if your organization qualifies for a small business exemption, be sure to consider and include any affiliates. Affiliates of a parent company must report under the parent’s account. This means that their combined revenue and tonnage must be calculated to see if they qualify for any exemptions.
Affiliates will only qualify for exemptions if the quantity of materials supplied and the revenue generated by the account, in aggregate, is less than the small business limit in Manitoba.
Please make sure that this list of affiliates is kept up to date, and that any changes to the list of affiliates be reflected in your annual reports.
SK Recycles defines affiliation in accordance with the Business Corporations Act (Saskatchewan) section 2. This Act may be amended from time to time.
An affiliate is defined as a "Steward that controls another Steward or is controlled by an entity that also controls a Steward."
If a parent company has a permanent establishment in Canada, it extends residency to its subsidiaries, regardless of whether the subsidiaries have residence in that province. The subsidiaries therefore become obligated for all materials they supply into Saskatchewan directly and indirectly.
Parent companies will not gain residency in Saskatchewan through their subsidiaries. Sister companies cannot gain residency in Saskatchewan through each other.
When considering if your organization qualifies for a small business exemption, be sure to consider and include any affiliates. Affiliates of a parent company must report under the parent’s account. This means that their combined revenue and tonnage must be calculated to see if they qualify for any exemptions.
Affiliates will only qualify for exemptions if the quantity of materials supplied and the revenue generated by the account, in aggregate, is less than the small business limit in Saskatchewan.
Please make sure that this list of affiliates is kept up to date, and that any changes to the list of affiliates be reflected in your annual reports.
Producers should seek confirmation from the Alberta Recycling Management Authority (ARMA) regarding how affiliation affects their obligation and exemption statuses. ARMA is responsible for the administration and oversight of the Extended Producer Responsibility Regulation for Single-use Products, Packaging, and Paper Products (PPP). It is the producer’s responsibility to ensure ARMA is made aware of their affiliations with other companies so that they can accurately assess the producer’s obligations.
Recycle BC defines affiliation in accordance with the Business Corporations Act (British Columbia) (section 2). This Act may be amended from time to time.
An affiliate is defined as a “Producer that controls another Producer or is controlled by an entity that also controls a Producer.”
If a parent company has a permanent establishment in British Columbia, it extends residency to its subsidiaries, regardless of whether the subsidiaries have residence in that province. The subsidiaries therefore become obligated for all materials they supply into British Columbia directly and indirectly.
Parent companies will not gain residency in British Columbia through their subsidiaries. Sister companies cannot gain residency in British Columbia through each other.
When considering if your organization qualifies for a small business exemption, be sure to include any affiliates. Affiliates of a parent company must report under the parent’s account. This means that their combined revenue and tonnage must be calculated to see if they qualify for any exemptions.
Affiliates will only qualify for exemptions if the quantity of materials supplied and the revenue generated by the account, in aggregate, is less than the small business limit in British Columbia.
Please make sure that this list of affiliates is kept up to date, and that any changes to the list of affiliates be reflected in your annual reports.