On January 2, 2018, the Ontario Government website regarding “Rules for not-for-profit and charitable corporations” was amended to notify that the Ontario Not-for-profit Corporations Act (“ONCA”) is targeted to come into force in “early 2020”. This announcement comes on the heels of changes to the Cutting Unnecessary Red Tape Act, 2017 which took effect on November 17, 2017 and amended the Ontario Corporations Act, among other statutes. Several of those changes, which has paved the way for the ONCA, were discussed here. In addition, we previously discussed the ONCA on this blog here and here.
There will be a two-year notice period before the ONCA will come into force, as well as a three-year transition period for organizations to transition. As such, not-for-profit corporations incorporated under Ontario legislation should be advised that they will likely need to be fully transitioned by 2023.
In order to transition, organizations will need to review and amend their corporate governance documents to bring them into compliance with the ONCA and its regulations. Organizations may wish to take this opportunity to speak with their lawyer regarding whether it would be appropriate to transition federally under the Canada Not-for-Profit Corporations Act (“CNCA”) is appropriate. Organizations should not hastily start transitioning, as no specific date has been identified as to when the ONCA will come into force.
Noteworthy is provided for general information purposes and does not constitute legal or professional advice. Every organization’s circumstances are unique. Before acting on the basis of information contained in this blog, readers should consult with a qualified lawyer for advice specific to their situation.