{"id":36861,"date":"2023-07-14T15:19:11","date_gmt":"2023-07-14T19:19:11","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=36861"},"modified":"2023-07-14T15:19:13","modified_gmt":"2023-07-14T19:19:13","slug":"amendments-to-the-ontario-not-for-profit-corporations-act","status":"publish","type":"post","link":"https:\/\/www.cccc.org\/news_blogs\/legal\/2023\/07\/14\/amendments-to-the-ontario-not-for-profit-corporations-act\/","title":{"rendered":"Amendments to the Ontario Not for Profit Corporations Act"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Amendments to ONCA<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are new amendments to the Ontario <em><a href=\"https:\/\/canlii.ca\/t\/55hbq\" target=\"_blank\" rel=\"noreferrer noopener\">Not-for-Profit Corporations Act<\/a><\/em> (ONCA) that will be effective October 1, 2023.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Legislation Amending ONCA<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The amendments come from <a href=\"https:\/\/www.ola.org\/sites\/default\/files\/node-files\/bill\/document\/pdf\/2023\/2023-06\/b091ra_e.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Bill 91, Less Red Tape, Stronger economy Act, 2023<\/a> (\u201cRed Tape Act\u201d) which the Ontario government recently passed. Schedule 22 lists the ONCA-specific changes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Changes to ONCA<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The changes to ONCA include:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Meeting Notices for Members or Directors<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If the meeting is electronic, the notice does not have to specify the place of meeting.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Director meeting \u2013 ONCA s 34(3.1), Red Tape Act s 3(1)<\/li>\n\n\n\n<li>Member meeting \u2013 ONCA s 55(1.1), Red Tape Act s 5(1)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If the meeting is electronic, the notice must include instructions for attending, participating, and, if applicable, voting.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Director meeting \u2013 ONCA ss 32(5), 34 (3.2), Red Tape Act ss 2(2), 3(1)<\/li>\n\n\n\n<li>Member meeting \u2013 ONCA s 55(1.2), Red Tape Act s 5(1)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Meetings of members of directors<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If the meeting is adjourned without notice, the time, place (if applicable) and instructions for attending and participating in the continued meeting (if applicable) must be announced at the time of adjournment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meeting can be held either electronically or by a combination of in-person and electronic means but the articles or by-laws can limit how the meetings may be held and specify applicable requirements.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Director meeting \u2013 ONCA s 34(6)-(10), Red Tape Act s 3(2)<\/li>\n\n\n\n<li>Member meeting \u2013 ONCA s 53(4)-(8), Red Tape Act s 4<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Voting by members can be entirely electronic or in combination with in-person voting unless articles or by-laws expressly provide otherwise.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Member voting \u2013 ONCA s 58, Red Tape Act ss 6, 7<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Electronic member meetings must allow attendees to reasonably participate.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Member meeting \u2013 ONCA s 53(4)-(8), Red Tape Act s 4<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Electronic director meetings must allow attendees to communicate with one another simultaneously and instantaneously.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Director meeting \u2013 ONCA s 34(6)-(10), Red Tape Act s 3(2)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Inspecting or examining records<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This can be done remotely and digital copies can be made, but there can be no charge for the digital inspection and\/or copying.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Director inspection &#8211; ONCA ss 94(3), (4), Red Tape Act s 10<\/li>\n\n\n\n<li><span style=\"color: initial;\">Member, member\u2019s lawyer or corporate creditor inspection \u2013 ONCA ss 95(1.1), (1.2), Red Tape Act s 11<\/span><\/li>\n\n\n\n<li><span style=\"color: initial;\">Applicant inspection of member register \u2013 ONCA ss 96(1.1), (2,2), Red Tape Act s 12<\/span><\/li>\n\n\n\n<li><span style=\"color: initial;\">Director, member or creditor inspection of consent \u2013 ONCA ss 97 (2.1), (2,2), Re Tape Act s 13<\/span><\/li>\n\n\n\n<li>Member or lawyer examine financial statements \u2013 98(2.1), (2,2), Red Tape Act s 14<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Registers and records<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Registers and other records can be prepared and maintained in any form as long as they can be accurately reported in a reasonable time.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Records \u2013 ONCA s 100(1). Red Tape Act s 15<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Special COVID rules no longer in effect<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ONCA Part XVI, Schedule 1, Part XVII, Red Tape Act s 17<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">ONCA Reminders<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">ONCA <a href=\"https:\/\/www.cccc.org\/news_blogs\/legal\/2021\/08\/19\/finally-ontario-not-for-profit-corporations-act-comes-into-force-october-19\/\" target=\"_blank\" rel=\"noreferrer noopener\">came into force on October 19, 2021<\/a> and charities previously governed under the <em>Corporations Act<\/em> have <a href=\"https:\/\/www.ontario.ca\/page\/rules-not-profit-and-charitable-corporations#section-1\">three years to transition to ONCA<\/a> (October 19, 2024).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re looking for more information, you can check out Ontario\u2019s recommended <a href=\"https:\/\/www.ontario.ca\/page\/not-profit-corporations-act-2010-transition-considerations\" target=\"_blank\" rel=\"noreferrer noopener\">transition considerations<\/a> or <a href=\"https:\/\/www.ontario.ca\/page\/guide-not-profit-corporations-act-2010\" target=\"_blank\" rel=\"noreferrer noopener\">plain language Guide to the Not-for-Profit Corporations Act<\/a>. \u00a0There are some <a href=\"https:\/\/www.ontario.ca\/page\/not-profit-corporations-act-2010-transition-considerations\" target=\"_blank\" rel=\"noreferrer noopener\">standard steps<\/a> that these charities should undertake (and soon!) if not already started, including a review of letters patent (and any supplementary letters patent), by-laws, director and officer sections, member sections, and borrowing powers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your charity does not go through a transition process, the provisions in ONCA will apply to your charity by default, which could create confusion and make effective governance difficult for your directors. While there is still time with more than a year to go, if you haven\u2019t started the process you should do so as soon as possible!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amendments to ONCA There are new amendments to the Ontario Not-for-Profit Corporations Act (ONCA) that will be effective October 1, 2023. The Legislation Amending ONCA The amendments come from Bill 91, Less Red Tape, Stronger economy Act, 2023 (\u201cRed Tape Act\u201d) which the Ontario government recently passed. Schedule 22 lists&#8230; <a href=\"https:\/\/www.cccc.org\/news_blogs\/legal\/2023\/07\/14\/amendments-to-the-ontario-not-for-profit-corporations-act\/\" class=\"linkbutton\">More<\/a><\/p>\n","protected":false},"author":10,"featured_media":36862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ts_fic_featured_image_caption":"Four colourful pens (yellow, orange, purple, blue) laying on an open, lined notebook; Photo by <a href=\"https:\/\/unsplash.com\/@jessicalewiscreative?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText\">Jessica Lewis<\/a> on <a href=\"https:\/\/unsplash.com\/photos\/s55xuIpXMlA?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText\">Unsplash<\/a>   ","footnotes":""},"categories":[137],"tags":[204,506,216,207,283],"series":[],"class_list":["post-36861","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-charity","tag-charity-law","tag-corporate-governance","tag-ontario","tag-ontario-not-for-profit-corporations-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Amendments to the Ontario Not for Profit Corporations Act - CCCC Blogs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cccc.org\/news_blogs\/legal\/2023\/07\/14\/amendments-to-the-ontario-not-for-profit-corporations-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amendments to the Ontario Not for Profit Corporations Act - CCCC Blogs\" \/>\n<meta property=\"og:description\" content=\"Amendments to ONCA There are new amendments to the Ontario Not-for-Profit Corporations Act (ONCA) that will be effective October 1, 2023. 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