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Discover our guide Doing Business in Québec

Discover our guide Doing Business in Québec

A comprehensive, practical resource for any company hoping to thrive in Quebec’s competitive and regulated business landscape.

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  • Financing Quebec’s Energy Transition: Unlocking the Potential of Flow-Through Shares

    Quebec has set ambitious energy transition and industrial decarbonization targets. The shift to greener practices has to be taken in a context where our energy consumption could rapidly grow under the combined effect of a number of factors, such as the reindustrialization of our economy, population growth, transport electrification and the potential for artificial intelligence to consume vast amounts of energy. Investing in the development of energy infrastructure is therefore critically important, as an abundance of energy is key to economic prosperity. The problem is that public finances are already stretched to the limit with the need to renovate our aging infrastructure, among other things. Encouraging private equity investment is thus vital, and tax incentives can be very effective in this respect. The American example In 2022, the United States passed its Inflation Reduction Act (IRA), with the goal of stimulating investment in the renewable energy sector, in particular. More specifically, the IRA altered or created a number of tax credits to encourage private investment.1 Over the past two years, US businesses have announced a total of almost US$276 billion in new investments in clean energy generation and the capturing or elimination of carbon dioxide and other forms of industrial decarbonization, an increase of 34% on the two years previous.2 The IRA is effective in that it takes the respective situations of various energy sector stakeholders into account in a creative, flexible and pragmatic way, especially where taxation is involved. Energy project promoters often have to wait many years for their projects to generate income and profits, even though the banks and other investment funds they solicit financing from can be presumed to be operating profitable businesses. The tax losses that occur in the years during which such projects are designed and built are therefore of little interest to developers, but of immediate interest to investors. And so, a tax equity market has emerged, in which businesses subject to taxes can invest in the shares of entities set up to develop such projects so as to benefit from tax credits and faster depreciation. Typically, the entity that cashes in the investment and develops the project distributes 99% of income, losses and tax credits to investors until a predetermined return is achieved. Once that return is achieved, the investor’s share of the benefits decreases, and the developer has the option of buying out the investor’s residual share. The IRA has transformed how federal clean energy tax credits are monetized, and it is now possible to buy and sell such credits without having to make a long-term investment. For businesses, this new way of doing things is an additional and attractive way to participate in the growing tax credit market.3 In 2023, the volume of the tax equity market for American projects was around US$20 to 21 billion, up about US$18 billion from the previous year.4 It appears that the trend will continue. It is estimated that the value of the current market, which is particularly attractive to banks, is set to double to US$50 billion a year by 2025.5 The equivalent of flow-through shares The Quebec and Canadian tax deductions mechanism that most closely resembles the US tax equity market is probably flow-through shares. Through these, businesses in the mining and renewable energy sectors can transfer their mining exploration expenses and other expenses—specifically designated as eligible—to investors, who can then deduct them from their own taxable incomes.6 These businesses can thus issue shares at a higher price than they would receive for common shares to finance their exploration and development operations. Investors are willing to pay a higher price in return for the tax deductions afforded by the eligible expenses incurred by the issuing businesses, which can amount to a maximum of 120% of the equity invested in the shares.7 Investors can also claim a 15% or 30% federal tax credit. However, because tax incentives cannot be transferred, our mechanism is more rigid than the American one, and it can only be applied to mineral exploration and development expenses and certain specific expenditures related to renewable energy and energy conservation projects, such as electricity generation using renewable sources like wind, solar energy and geothermal energy.8 With ambition and innovation comes the need to take action Quebec could draw inspiration from the IRA to increase the attractiveness of flow-through shares and broaden their scope of application, thereby creating a new tool to finance the energy transition. The renewable energy sector is similar to the mining sector in many respects, not least in terms of the considerable amount of capital required to build the infrastructure needed to operate a mine or energy generation facility. The flow-through share mechanism, which is well-established and popular with investors,9 could be just as successful in our energy transition context. Making such incentives easier to transfer would also drive the emergence of a market similar to the US tax equity market. A number of Québec flagship companies, such as Hydro-Québec,10 Innergex11 and Boralex,12 are also very ambitious when it comes to developing large-scale energy projects. They face major financing challenges, as do those in the industrial decarbonization and infrastructure renewal sectors. Innovation is necessary to meet these challenges and make the transition to a more sustainable, but just as prosperous, world, and to do so in good time.13 Link Rhodium Group and MIT’s Center for Energy and Environmental Policy Research (CEEPR), Clean Investment Monitor, link Brandon Hill, How to take advantage of tax credit transferability though the Inflation Reduction Act, Thomson Reuters Institute, April 16, 2024, link Allison Good, Renewables project finance to keep pace in 2024, but tax equity rule looms, S&P Global, January 12, 2024, link Lesley Hunter and Mason Vliet, The Risk Profile of Renewable Energy Tax Equity Investments, American Council on Renewable Energy, December 2023, link Link, page in French only Link Link Prospectors & Developers Association of Canada, Flow-through shares & the mineral exploration tax credit explained, link Link Link Link The authors would like to acknowledge the participation and the work done by Sophie Poirier in this publication

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  • The elected domicile appearing in the Québec Enterprise Register cannot provide a basis for the Superior Court’s territorial jurisdiction within the meaning of article 41(3) of the Code of Civil Proce

    Introduction On July 11, 2024, the Court of Appeal1 rendered a decision that, for the first time, addresses the question of whether the elected domicile appearing in the Québec Enterprise Register (the “REQ”), established under the Act respecting the legal publicity of enterprises,2 can provide a basis for the Superior Court’s territorial jurisdiction within the meaning of article 41(3) of the Code of Civil Procedure.3 Upholding the decision rendered by the Superior Court,4 the Court of Appeal answered that it cannot. The Facts On April 25, 2023, Promark Electronics Inc. and Electrical Components International Inc. (collectively, “Promark”) filed a claim for damages against Bombardier Recreational Products Inc. (“BRP”) in the judicial district of Montréal, alleging that a letter of agreement had been terminated and related purchase orders cancelled. On June 22, 2023, BRP raised a declinatory exception asking the court to issue an order transferring the case to the judicial district of Bedford, where its head office is located. Promark argued that filing its claim in the judicial district of Montréal was warranted because of BRP’s elected domicile indicated in the REQ, which corresponded to the office of its counsel located in Montréal. On September 5, 2023, the Honourable Tiziana Di Donato, J.S.C. (the “Judge”) allowed BRP’s declinatory exception and issued an order referring the case to the judicial district of Bedford. On November 10, 2023, the Honourable Stephen W. Hamilton, J.C.A., granted leave to appeal the Judge’s decision, indicating that the courts have never settled the question of whether the domicile elected under section 33 ALPE is sufficient to make paragraph 3 of article 41 of the C.C.P. apply. He added that it appeared to him that the lower courts had rendered contradictory judgments in this regard.5 The Trial Judgement The Judge began by pointing out that, generally, for a purely personal action, the judicial district of the defendant’s domicile is the natural forum (article 41(1) C.C.P.) and that, in the case of a corporation, the domicile would be that of its head office. The Judge further clarified this principle by explaining that, where more than one judicial district has jurisdiction, the plaintiff may institute its proceedings before another court having territorial jurisdiction (article 42 C.C.P.), provided that it establishes that it is entitled to make such an election. In support of its contestation to the declinatory exception, Promark argued that it was entitled to institute the proceedings in the judicial district of Montréal because BRP had elected its domicile under the ALPE, and that, consequently, that district constituted an “elected domicile” under article 41(3) C.C.P., which reads as follows: So far as public order permits, the court of the defendant’s elected domicile, or the court designated by an agreement between the parties other than a contract adhesion, also has territorial jurisdiction. [Our emphasis] To render her decision, the Judge determined that article 41(3) C.C.Q. should be interpreted using modern rules of statutory interpretation, adding in particular that it is useful to refer to prior provisions of a law to ascertain the legislature’s intent. The Judge thus revisited the legislative history of article 41 C.C.P., affirming that it essentially restates the prior law, in particular article 68 of the former Code of Civil Procedure, CQLR c. C-25, which provided in paragraph 1, subparagraph 1 that “. . . a purely personal action may be instituted: (1) [b]efore the court of the defendant’s real domicile or, in the cases contemplated by article 83 of the Civil Code, before that of his elected domicile.” Although paragraph 3 of article 41 C.C.P. no longer specifically refers to article 83 of the Civil Code of Québec (the “C.C.Q.”)6 the Judge, following an interpretive analysis, found that said article still applies to determine whether a party has elected domicile, and stressed the fact that the election of domicile must be express and unequivocal. The Judge added that election of domicile is the exception and must be interpreted restrictively.  As for the scope of an election of domicile under the ALPE, the Judge pointed out that subsection 33(1) ALPE indicates that a business may elect domicile and appoint a person to “receive documents for the purposes of this Act.” Article 98(5) ALPE also indicates that the domicile elected by a business under the ALPE is intended to inform third parties of the address where the business wishes to receive documents “for the purposes of this Act.” The Judge was thus of the opinion that sections 33(1) and 98(5) ALPE, as drafted, cannot have the scope that Promark seeks to ascribe to them, as they are clear and they do not need to be interpreted. In the case of an election of domicile under the ALPE, the purpose of the election is to provide an address where documents can be sent to the business, unless there is specific evidence to the contrary. For these reasons, the Judge allowed the declinatory exception and referred the case to the judicial district of Bedford. The Judgement on Appeal From the outset, the Court of Appeal confirmed that the Judge did not commit a reviewable error: (1) the domicile elected for purposes of attributing territorial jurisdiction under article 41 (3) C.C.P. is the domicile designated by the parties for the execution of their agreement within the meaning of article 83 C.C.Q., and (2) the domicile elected under the ALPE is elected for the purposes of applying the ALPE (para. 23). The Court of Appeal is of the opinion that the Judge’s decision is consistent with what the legislature had prescribed in article 68 of the former Code of Civil Procedure and upholds stability in the law, which is particularly important in matters of jurisdiction. After analyzing the parliamentary debates surrounding the enactment of article 41 C.C.P. and the Commentaires de la ministre de la justice, the Court indicated that there is a presumption of the survival of the existing legal rule and that, contrary to what the appellants claimed, the wording of article 41 C.C.P. and articles 33 and 98 ALPE do not give the courts territorial jurisdiction other than that of the defendant’s domicile. The removal of the reference to article 83 C.C.Q. in article 41 C.C.P. does not constitute a clear indication of the legislature’s intent to set aside the requirements of article 83 C.C.Q., under which, for the purposes of determining territorial jurisdiction, the parties must establish the elected domicile in their agreement. On that basis, the Court of Appeal dismissed the appeal without costs and confirmed the Judge’s reasoning that territorial jurisdiction of the courts under article 41(3) C.C.P. is established based on the election of domicile made under article 83 C.C.Q., and not on the election of domicile made by a corporation under the ALPE, whereby a business elects a domicile for the purposes of the application of that law. Conclusion This case serves as a reminder that the C.C.Q. establishes the general law in our province. It is therefore important to refer to it when interpreting other laws enacted by the Quebec legislature. Because the legislature is “deemed to know its legislative fabric as well as the existing law,”7 the Court cannot interpret a given law—such as the ALPE—in a way that would amend a substantive statutory provision of general application—in this case, the C.C.Q.—where there is no clearly expressed intention to that effect. Promark Electronics Inc. c. Bombardier Recreational Products Inc., 2024 QCCA 906 CQLR, c. P-44.1 (the “ALPE”) CQLR, c. C-25.01 (the “C.C.P.”) Promark Electronics Inc. c. Bombardier Recreational Products Inc., 2023 QCCS 3405 Promark Electronics Inc. c. Bombardier Recreational Products Inc., 2023 QCCA 1427, para. 8 83. “The parties to a juridical act may, in writing, elect domicile with a view to the execution of the act or the exercise of the rights arising from it. Election of domicile is not presumed.” Promark Electronics Inc. c. Bombardier Recreational Products Inc., 2024 QCCA 906, para. 24

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  1. Lavery welcomes a new partner to the Labour and Employment Law group

    Lavery is pleased to welcome Marc Ouellet as a partner to our Labour and Employment Law group. Mr. Ouellet has over twenty years of experience in all aspects of labour and employment law, particularly in the areas of labour standards, human rights, duty of loyalty, and restrictive employment clauses. Throughout his career, he has gained experience working for both private companies and law firms and has advised numerous clients in disputes involving termination of employment, in addition to assisting with collective and individual negotiations. "Marc has built solid expertise across a wide range of industries, from transportation to financial institutions. He enjoys offering actionable insights grounded in his clients' business realities and has a strong ability to understand and address their operational concerns. He will support our Labour and Employment Law team serving our Quebec clients and foreign companies doing business in Quebec," said Benoit Brouillette, Head of Practice for the Labour and Employment Law group. "I am thrilled to be joining Lavery, a reputable firm that has established a strong track record of excellence in both Quebec and Canada. The firm's Labour and Employment Law team has demonstrated not only great depth, but great synergy as well. I look forward to leveraging my skills and expertise to support Lavery's clients," said Marc Ouellet. About Lavery Lavery is the leading independent law firm in Quebec. Its more than 200 professionals, based in Montréal, Quebec, Sherbrooke and Trois-Rivières, work every day to offer a full range of legal services to organizations doing business in Quebec. Recognized by the most prestigious legal directories, Lavery professionals are at the heart of what is happening in the business world and are actively involved in their communities. The firm's expertise is frequently sought after by numerous national and international partners to provide support in cases under Quebec jurisdiction.

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  2. André Vautour Appointed Chair of World Services Group (WSG)

    Lavery is pleased to announce that its partner André Vautour has been named Chair of World Services Group (WSG) for 2024–2025. World Services Group is the most prominent global network of independent law firms that provides an exclusive setting and platform to connect its members to other legal firms among the most elite firms and their multinational clients worldwide. Additionally, WSG provides cross industry access to a select few investment banking and accounting firms creating more expansive opportunities to service clients. This appointment reflects Lavery's commitment to providing its clients with access to the top-tier legal services offered by WSG members in over 150 countries and territories. André Vautour's appointment is also a sign of the firm's ambition to be the gold-standard in Quebec and to continue collaborating with international law firms on cases involving the province. "As the only Quebec law firm within WSG, I recognize how important access to such a global network is for our clients. Since we're an independent firm, we have the flexibility to direct our clients to the lawyers possessing the best legal expertise in foreign jurisdictions. The represents a major competitive advantage, as this expertise drives from these lawyers' deep knowledge of the business realities in their respective jurisdiction. The WSG network not only supports Lavery's strategic objectives but creates new opportunities and offers a value-added service for our clients," says André Vautour. In his one-year term in this new role, André will work with WSG board members and management on several priority areas, with the goal of increasing the participation and commitment of WSG member firms to WSG's activities.

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  3. Lavery's expertise recognized by Chambers Canada 2025

    We are pleased to announce that Lavery has once again been recognized in the 2025 edition of Chambers Canada in the following sectors: Corporate/Commercial: Québec - Band 1 - Highly Regarded Employment and Labour: Québec - Band 2 Energy and Natural Resources: Mining: Mines – Nationwide - Band 3 Intellectual Property: Nationwide - Band 4 These recognitions are further demonstration of the expertise and quality of legal services that characterize Lavery’s professionals. Nine lawyers have been recognized as leaders in their respective areas of practice in the 2025 edition of the Chambers Canada guide. Areas of expertise in which they are recognized: René Branchaud : Energy and Natural Resources: Mining (Nationwide, Band 5) Brittany Carson : Employment and Labour (Québec, Up and Coming) Edith Jacques : Corporate/Commercial (Québec, Band 5) Nicolas Gagnon : Construction (Nationwide, Band 3) Marie-Hélène Jolicoeur : Employment and Labour (Québec, Up and Coming) Guy Lavoie : Employment and Labour (Québec, Band 2) Martin Pichette : Insurance: Dispute Resolution (Québec, Band 4) Sébastien Vézina : Energy and Natural Resources: Mining (Nationwide, Band 5) Camille Rioux : Employment and Labour (Québec, Associates to watch) About Chambers Since 1990, Chambers and Partners' ranks the best law firms and lawyers across 200 jurisdictions throughout the world. The lawyers and law firms profiled in Chambers Canada are selected following through a rigorous process of research and interviews with a broad spectrum of lawyers and their clients. The final selection is based on clearly defined criteria such as the quality of client service, legal expertise, and commercial astuteness. About Lavery Lavery is the leading independent law firm in Quebec. Its more than 200 professionals, based in Montréal, Quebec, Sherbrooke and Trois-Rivières, work every day to offer a full range of legal services to organizations doing business in Quebec. Recognized by the most prestigious legal directories, Lavery professionals are at the heart of what is happening in the business world and are actively involved in their communities. The firm’s expertise is frequently sought after by numerous national and international partners to provide support in cases under Quebec jurisdiction.

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  4. The Best Lawyers in Canada 2025 recognize 88 lawyers of Lavery

    Lavery is pleased to announce that 88 of its lawyers have been recognized as leaders in their respective fields of expertise by The Best Lawyers in Canada 2025. The ranking is based entirely on peer recognition and rewards the professional performance of the country's top lawyers. The following lawyers also received the Lawyer of the Year award in the 2025 edition of The Best Lawyers in Canada: Isabelle Jomphe: Intellectual Property Law Myriam Lavallée : Labour and Employment Law Consult the complete list of Lavery's lawyers and their fields of expertise: Geneviève Beaudin : Employee Benefits Law Josianne Beaudry : Mergers and Acquisitions Law / Mining Law / Securities Law Geneviève Bergeron : Intellectual Property Law Laurence Bich-Carrière : Class Action Litigation / Contruction Law / Corporate and Commercial Litigation / Product Liability Law Dominic Boivert : Insurance Law Luc R. Borduas : Corporate Law / Mergers and Acquisitions Law Daniel Bouchard : Environmental Law René Branchaud : Mining Law / Natural Resources Law / Securities Law Étienne Brassard : Equipment Finance Law / Mergers and Acquisitions Law / Project Finance Law / Real Estate Law Jules Brière : Aboriginal Law / Indigenous Practice / Administrative and Public Law / Health Care Law Myriam Brixi : Class Action Litigation / Product Liability Law Benoit Brouillette : Labour and Employment Law Marie-Claude Cantin : Construction Law / Insurance Law Brittany Carson : Labour and Employment Law André Champagne : Corporate Law / Mergers and Acquisitions Law Chantal Desjardins : Intellectual Property Law Jean-Sébastien Desroches : Corporate Law / Mergers and Acquisitions Law Raymond Doray : Administrative and Public Law / Defamation and Media Law / Privacy and Data Security Law Christian Dumoulin : Mergers and Acquisitions Law Alain Y. Dussault : Intellectual Property Law Isabelle Duval : Family Law Ali El Haskouri : Banking and Finance Law Philippe Frère : Administrative and Public Law Simon Gagné : Labour and Employment Law Nicolas Gagnon : Construction Law Richard Gaudreault : Labour and Employment Law Julie Gauvreau : Biotechnology and Life Sciences Practice / Intellectual Property Law Marc-André Godin : Commercial Leasing Law / Real Estate Law Caroline Harnois : Family Law / Family Law Mediation / Trusts and Estates Marie-Josée Hétu : Labour and Employment Law Édith Jacques : Corporate Law / Energy Law / Natural Resources Law Marie-Hélène Jolicoeur : Labour and Employment Law Isabelle Jomphe : Advertising and Marketing Law / Intellectual Property Law Nicolas Joubert : Labour and Employment Law Guillaume Laberge : Administrative and Public Law Jonathan Lacoste-Jobin : Insurance Law Awatif Lakhdar : Family Law Marc-André Landry : Alternative Dispute Resolution / Class Action Litigation / Construction Law / Corporate and Commercial Litigation / Product Liability Law Éric Lavallée : Technology Law Myriam Lavallée : Labour and Employment Law Guy Lavoie : Labour and Employment Law / Workers' Compensation Law Jean Legault : Banking and Finance Law / Insolvency and Financial Restructuring Law Carl Lessard : Labour and Employment Law / Workers' Compensation Law Josiane L'Heureux : Labour and Employment Law Hugh Mansfield : Intellectual Property Law Zeïneb Mellouli : Labour and Employment Law / Workers' Compensation Law Isabelle P. Mercure : Trusts and Estates / Tax Law Patrick A. Molinari : Health Care Law Luc Pariseau : Tax Law / Trusts and Estates Ariane Pasquier : Labour and Employment Law Hubert Pepin : Labour and Employment Law Martin Pichette : Insurance Law / Professional Malpractice Law / Corporate and Commercial Litigation Élisabeth Pinard : Family Law / Family Law Mediation François Renaud : Banking and Finance Law / Structured Finance Law Marc Rochefort : Securities Law Yves Rocheleau : Corporate Law Judith Rochette : Alternative Dispute Resolution / Insurance Law / Professional Malpractice Law Ian Rose FCIArb : Class Action Litigation / Director and Officer Liability Practice / Insurance Law Ouassim Tadlaoui : Construction Law / Insolvency and Financial Restructuring Law David Tournier : Banking and Finance Law Vincent Towner : Commercial Leasing Law André Vautour : Corporate Governance Practice / Corporate Law / Energy Law / Information Technology Law / Intellectual Property Law / Private Funds Law / Technology Law / Venture Capital Law Bruno Verdon : Corporate and Commercial Litigation Sébastien Vézina : Mergers and Acquisitions Law / Mining Law / Sports Law Yanick Vlasak :  Banking and Finance Law / Corporate and Commercial Litigation / Insolvency and Financial Restructuring Law Jonathan Warin : Insolvency and Financial Restructuring Law   We are pleased to highlight our rising stars, who also distinguished themselves in this directory in the Ones To Watch category: Romeo Aguilar Perez : Labour and Employment Law (Ones To Watch) Anne-Marie Asselin : Labour and Employment Law (Ones To Watch) Rosemarie Bhérer Bouffard : Labour and Employment Law (Ones To Watch) Marc-André Bouchard : Construction Law (Ones To Watch) Céleste Brouillard-Ross : Construction Law / Corporate and Commercial Litigation (Ones To Watch) Karl Chabot : Construction Law / Corporate and Commercial Litigation (Ones To Watch) Justine Chaput : Labour and Employment Law (Ones To Watch) Julien Ducharme : Corporate Law / Mergers and Acquisitions Law (Ones To Watch) James Duffy : Intellectual Property Law (Ones To Watch) Joseph Gualdieri : Mergers and Acquisitions Law (Ones To Watch) Katerina Kostopoulos : Corporate Law (Ones To Watch) Joël Larouche : Corporate and Commercial Litigation (Ones To Watch) Despina Mandilaras : Construction Law / Corporate and Commercial Litigation (Ones To Watch) Jean-François Maurice : Corporate Law (Ones To Watch) Jessica Parent : Labour and Employment Law (Ones To Watch) Audrey Pelletier : Tax Law (Ones To Watch) Alexandre Pinard : Labour and Employment Law (Ones To Watch) Camille Rioux : Labour and Employment Law (Ones To Watch) Sophie Roy : Insurance Law (Ones To Watch) Chantal Saint-Onge : Corporate and Commercial Litigation (Ones To Watch) Bernard Trang : Banking and Finance Law / Project Finance Law (Ones To Watch) Mylène Vallières : Mergers and Acquisitions Law / Securities Law (Ones To Watch) These recognitions are further demonstration of the expertise and quality of legal services that characterize Lavery’s professionals.  

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