Yes, this new Canada Corporations Non Profit Act has got teeth. Below is one of five items that you do need to know, keep watching this blog for the other four……………..
Five Reasons Why You Can’t Ignore the new Canada Not-for-profit Corporations Act
By Richard Bridge
Richard Bridge is a lawyer based in Nova Scotia’s Annapolis Valley. His primary area of practice is charity and non-profit law. He is the author of a CSAE ebook on this topic: Making Sense of the New Canada Not-for-Profit Corporations Act.
If you are a board member or a senior staff person at one of the approximately 19,000 non-profit organizations and charities in Canada that are federally incorporated, you need to become familiar with the new Canada Not-for-profit Corporations Act (“the new Act”). Visit Industry Canada’s website for the complete Act.
The new Act replaces Part II of the Canada Corporations Act, the old and inadequate legislation that has been in place since 1917. The new Act was approved by Parliament and received Royal Assent on June 23, 2009 and will be in force on October 17, 2011.
Here, in summary form, are five of many practical reasons for you to get to know the new Act.
1. Comply or be dissolved
The first and most dramatic reason you must not ignore the new Act is that failure to complete the formal steps to continue under the new Act will result in the dissolution of your organization. You will have three years from the date the new Act comes into force to submit articles of continuance to the federal government. Guidance on how to takes these steps can be found in the new Act, the related Regulations, in support material that will be posted on the Corporations Canada website, and in various other online articles and resources.
