Clean slate: Purchaser not bound by poor WCB record of company it acquired

June 04, 2017 0 COMMENTS

by Hannah Roskey

When contemplating acquiring the assets of a company in Canada, the purchaser will engage in extensive due diligence to ensure it is making a sound investment. These searches almost always include inquiries with the Workers’ Compensation Board (WCB) in the relevant province.

A poor result, with outstanding claims and high premiums, might send the transaction sideways. However, a recent decision of the Appeals Commission for Alberta Workers’ Compensation suggests that a purchaser may avoid the consequences of a mediocre WCB record altogether and wipe the slate clean.

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