The new provisions of Ontario Regulation 112/18 that amends O. Reg. 4/01 (Approved Acts of Executors and Trustees) under the Charities Accounting Act modify the existing Ontario common law rule that prohibited a charity from making payments to a director (or any person related to him/her) for any reason (other than reimbursement of expenses) without first obtaining a court order.
On November 14th, Bill 154 received Royal Assent. As noted previously, this omnibus bill made changes to the Corporations Act (Ontario), to social investment provisions in the Charities Accounting Act (Ontario), and other statutes. Some of the more significant changes to the Not-For-Profit Corporations Act, 2010 (“ONCA”) are reported here, none of which are in force today but will be when ONCA comes into force. As you may recall, ONCA was passed in 2010, but it will only come into force on a day to be named. The government plans to bring the ONCA in force in early 2020.
Directors simply cannot benefit from the property of a charity whether registered or not, either directly or indirectly. This article explains why and details recent amendments to Ontario's rules to allow charities to pay directors for goods and services rendered.
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