There are increasing pressures on not-for-profit boards to implement effective governance practices. The growth in the sector and the increase in financial, cybersecurity, and other risk factors have fuelled pressures on not-for-profits to be more accountable to its members, donors and other stakeholders.
The relationship between non-profit members and directors is sometimes akin to the relationship between parents and their newly-licensed teen-aged drivers. The key to the family car grants the teenager new freedoms, but sometimes, a parent’s only option is to reclaim the key. Members elect or appoint directors, delegating to them the power to manage the corporation. Corporate statutes and by-laws restrict the ability of members to participate in the management of the corporation once the directors hold the reins. Often, the only way for members to effect changes that the board opposes, is to reclaim the reins, by removing existing directors and appointing more amenable ones. http://canlii.ca/t/gh81g" target="_blank">Vaughan Community Health Centre Corporation v Annibale (2015 ONSC 2559 (CanLII)), recently examined the roles of members and directors, and the importance of adhering to corporate by-laws and statutes.
Volunteers and unpaid interns are not covered by the Employment Standards Act, 2000 (“ESA”) and therefore are not subject to minimum wage and other requirements of the legislation. However, on September 30, 2014, the Ministry of Labour released the results of its recent blitz where it was determined that a number of unpaid interns in various sectors of the economy were actually employees covered by the ESA, and accordingly, entitled to minimum wages, vacation pay and other protections afforded to employees under the ESA. While the Ministry of Labour did not specifically target charities and non-profits in this blitz, there are many lessons to be learned due to the large number of volunteers and unpaid interns working in these sectors.
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