So, the Ontario government is taking another step toward implementing the Ontario Not-for-Profit Corporations Act. It has introduced, Bill 85, An Act to amend various companies statutes and to amend other statutes consequential to the Not-for-Profit Corporations Act, 2010, which would make amendments to several existing laws that are necessary before the Not-for-Profit Corporations Act can come into force. Bill 85 received its first reading in the legislature in June.
If passed, the Companies Statute Law Amendment Act, 2013 (short title of Bill 85) will make significant amendments to the Ontario Not-for-Profit Corporations Act (ONCA) itself, as well as the following laws:
- Business Corporations Act
- Business Names Act
- Corporations Act
- Corporations Information Act
- Extra-Provincial Corporations Act
- Limited Partnerships Act
It will also make minor amendments to 79 other acts consequential to the ONCA.
The amendments to the Not-for-Profit Corporations Act are perhaps the most important, as they change the way that Act functions, in particular giving more power to the director appointed to administer the Act. For instance, at the moment, the ONCA classifies non-charitable corporations that receive more than $10,000 in a financial year from certain public sources as “public benefit corporations,” which are subject to the same rules as charitable corporations. The amendments would allow the director to prescribe another amount (e.g., by regulation) that would qualify a non-charitable corporation as a public benefit corporation. A number of these changes would allow the government to modify the rules without having to amend the Act itself.
The government says the ONCA, along with its proposed amendments, will “increase accountability and transparency for not-for-profit corporations and…make it easier for them to operate and do business in today’s marketplace.”
We’ll keep you informed on the status of Bill 85, and we look forward to seeing the eventual regulations to implement the Ontario Not-for-Profit Corporations Act.
First Reference Editor