Friday, February 25, 2005

Legislation Watch - Bill C-21: Canada Not-for-Profit Corporations Act

Something to monitor if you are involved with any federally-registered not-for-profits (there are 18,000 or so in Canada). I sit on the Board of a major literacy organization in Toronto and also on the executive of the local chapter of a librarians' professional association.

In late November, the Minister of Industry introduced the bill to modernize governance rules for the sector. Bill C-21 is intended to replace Parts II and III of the Canada Corporations Act, largely unchanged since 1917.

The proposed legislation:
  • streamlines the incorporation process by allowing for incorporation by way of right (now, the Minister has to approve letters patent)
  • introduces a new explicit standard of care for directors and new rules and defences for director liability
  • allows corporations to avail themselves of certain technological advances, such as teleconference meetings
  • provides better remedies for ordinary members to enforce their rights

The bill is in committee hearings right now. The Library Parliament has a lot of useful background information on the legislation.

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posted by Michel-Adrien at 9:18 pm


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