RE: NR may become fewerI know that the legislation applies to reporting issuers with a substantial connection to Ontario. So, I believe that the company does not have to be incorporated in Ontario, but that the fact that many investors are from Ontario is enough to make it liable under the legislation. Also, I'm not sure if claims would be limited to Ontario investors. Those outside the province may be able to join in.
The worry among corporations, directors, officers, and corporate lawyers, is that the legislation will open up the floodgates for investor class-action suits against companies. The main mechanism which will prevent this, however, is the requirement that potential plaintiffs essentially seek permission from the court to bring a legal action.
I'm not sure how the BC legislation differs.