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The new Canada Not-for-Profit Corporations Act is now in force and governs federally incorporated not-for-profit corporations including key changes in the rights and duties of federally incorporated not-for-profit corporations and their members and directors.
The new Canada Not-for-Profit Corporations Act replaces Part II of the Canada Business Corporations Act which previously governed federally incorporated not-for-profit corporations.
Existing federally incorporated not-for-profit corporations are required to transition to the new statute by October 17, 2014. A not-for-profit corporation which fails to transition to the new legislation by that deadline will be considered inactive and subsequently dissolved. To continue under the new Canada Not-for-Profit Corporations Act, a corporation’s Letters Patent and by-laws will be replaced by articles of continuance and new by-laws drafted in accordance with the new statute. Further information and a Transition Guide can be found on Industry Canada’s website available here.
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