Not-for-Profit Corporations Act receives royal assent
The Not-for-Profit Corporations Act passed third reading in the Ontario legislature and received royal assent on October 25, when the lieutenant-governor approved the bill on behalf of the Queen.
The act is meant to provide a modern, legal framework for Ontario’s non-profit sector. The purpose of the new legislation is to: enhance corporate governance and accountability; simplify the incorporation process; give more rights to members; better protect directors and officers from personal liability; and allow not-for-profit organizations to engage in commercial activities when revenues are used in support of their not-for-profit purposes.
The act was developed based on consultations across Ontario, including three consultation papers, a web advisory panel and regional workshops in Ottawa, London, Toronto and Thunder Bay.
For more information about the Not-for-Profit Corporations Act, go to www.ontla.on.ca. See also the press release, “Ontario’s Proposed Not-for-Profit Corporations Act,” Ministry of Consumer Services, October 19, 2010, available at news.ontario.ca.