After more than a decade, the provincial government has finally announced a date to bring the Ontario Not-for-Profit Corporations Act (“ONCA”) into force: October 19, 2021. The enactment of the not-for-profit legislation, which was initially passed in 2010, was extended last year to the end of 2021. Had the government not enacted the legislation this year, it would have expired.
The enactment of ONCA comes with the launch of a new Ontario Business Registry, which will allow not-for-profit corporations to complete over 90 transactions online such as registrations and filings. The province’s current paper-based system is painstaking, often taking weeks or months to complete a transaction. The range of digital services offered by the new registry are a welcome change.
Recall that the government had removed key sections from ONCA related to powers of non-voting members at the end of 2020. Previously, non-voting members were able to vote on fundamental changes to a corporation such as changes to the conditions of membership; the amalgamation with other corporations; the continuance of the corporation to another jurisdiction; and the sale, lease or exchange of property of the corporation. ONCA provisions were excluded so that non-voting members no longer have these additional powers.
Once ONCA comes into force, not-for-profit corporations will have three years to transition to the new legislation. We would, however, encourage corporations to review their governing documents as soon as possible to ensure compliance with ONCA.
For more, read the province’s news release here and sign up for updates on the Ontario Business Registry at www.ontario.ca/page/ontario-business-registry.
PooranLaw has been assisting many not-for-profits and charities with the transition to ONCA. If you require legal assistance, we encourage you to reach out to your regular PooranLaw lawyer, or any member of our team. Continue to check our Insights page for developments related to ONCA.
Note: This article provides general information only and does not constitute, and should not be relied upon as, legal advice or opinion. PooranLaw Professional Corporation holds the copyright to this article and the article and its contents may not be copied or reproduced in any form, in whole or in part, without the express permission of PooranLaw Professional Corporation.
