The inaugural Canadian ESOP Conference convened in Toronto in September 1991, attracting 150 participants, including attendees from the United States and United Kingdom. This event marked the beginning of sustained advocacy efforts, with Phillips dedicating the subsequent decade primarily to lobbying the federal government for comprehensive ESOP legislation. The organization’s advocacy efforts included engagement with two successive senators and culminated in a twenty-minute meeting with the Finance Minister in a corridor of the Houses of Parliament, though these efforts did not yield immediate legislative success.

During this period, the organization adopted the motto “ESOPs—good for business and good for Canada,” which was printed on compact, accordion-fold information brochures distributed in both official languages. The annual conferences evolved into a series of seminars and speaking engagements held biannually across multiple Canadian cities, building awareness and understanding of employee ownership principles.

The organization’s educational efforts culminated in the publication of Phillips’s first book, “Employee Share Ownership Plans Canada,” in 2001, followed by the annual conferences transitioning to a broader series of educational initiatives.

In June 2015, the Association underwent significant renewal under an energetic new board of directors, recommitting to its foundational mandate through the successful Canadian Employee Ownership Conference held in Winnipeg. This conference attracted a new audience and motivated fresh volunteers, establishing an annual tradition that subsequently rotated through various Canadian cities including Kelowna, Gatineau, Edmonton, and Toronto.
Phillips published his second book, “ESOPs in Canada,” in 2015, further solidifying the knowledge base for employee ownership in the country.

In 2018, the organization transitioned from a complimentary membership model to a paid membership structure This strategic shift generated a new revenue stream, streamlined member communications, enhanced networking opportunities among members and service providers, and expanded the volunteer base.
In parallel the Canadian Employee Ownership Coalition (CEOC) was established in January 2023, specifically focused on lobbying for new employee ownership legislation at the federal level.
In December 2023, the ESOP Association Canada underwent a significant rebranding, adopting the new name “Employee Ownership Canada” to better reflect its expanded mandate and vision for various forms of employee ownership beyond traditional ESOPs.

The advocacy efforts of the CEOC achieved a landmark success in June 2024 with the introduction of comprehensive Employee Ownership Trust (EOT) legislation through Bill C-59, the Fall Economic Statement Implementation Act, 2023, which received Royal Assent on June 20, 2024. This legislation established detailed rules under the Income Tax Act to facilitate employee ownership of small and medium-sized Canadian businesses, effective January 1, 2024.
The new legislation includes a significant tax incentive: the first $10 million in capital gains realized on the sale of a business to a qualifying EOT is exempt from taxation for transactions occurring afterJanuary 1, 2024, but is set to expire December 31, 2026.
In July 2024, Employee Ownership Canada merged with the CEOC, consolidating advocacy and educational efforts under a unified organizational structure to maximize impact and efficiency.
The legislative framework achieved its first practical implementation in January 2025 when Grantbook, a Toronto-based strategic consultancy serving the philanthropic sector, became majority-owned by Canada’s first Employee Ownership Trust. This historic transaction, involving approximately 50 employees, demonstrated the viability of the new EOT structure and established a precedent for future employee ownership transitions.
The momentum continued in September 2025 with the announcement that Taproot Community Support Services, based in Maple Ridge, BC, had completed its transition to employee ownership through an EOT structure. This landmark transaction made Taproot Canada’s largest employee-owned trust to date, impacting 750 employees across British Columbia, Alberta, and Ontario. Previously owned by approximately 30 longtime and former employees, Taproot’s transition to 100% employee ownership through the trust represents a significant milestone in demonstrating the scalability and broader applicability of the EOT model. Finance Minister François-Philippe Champagne praised the transaction as “a game changer” and highlighted it as a perfect example of how EOTs can empower employees while ensuring business continuity for essential community services.

As advocaes, EOC encouraged the Canadian government to make the $10M capital gains tax exemption permanent and was successful in April of 2026. We are always working to increase awareness and adoption of employee ownership models across Canada and remove barriers for businesses interested in pursuing these options.

The success of the EOT legislation, modeled after proven frameworks in the United Kingdom and United States, positions Canada at the forefront of the global employee ownership movement. With several additional EOT transactions reportedly in development, Employee Ownership Canada remains committed to supporting business owners, employees, and professional advisors in understanding and implementing these innovative ownership structures that benefit workers, preserve business legacies, and strengthen local economies