Canada Not-for-Profit Corporations Act Proclaimed in Force

October 12, 2011

The new Canada Not-for-Profit Corporations Act will come into force on October 17, 2011.  All federally incorporated non-share capital corporations will be required to transition under the new legislation within three years of the in-force date, that is, by October 17, 2014. We have previously reported on the new Act, and the requirement to transition, in the January 2011 edition of this Newsletter.

It is important that all federally incorporated non-profit corporations take note of this deadline, as failure to transition under the new Act within the three-year deadline will result in the dissolution of the corporation.

Corporations considering federal incorporation under the current federal Canada Corporations Act should also note the in-force date of the new legislation. As set out on Industry Canada’s website, the last day for submitting an application for incorporation under the CCA is October 16, 2011. Like all corporations incorporated under the CCA, newly incorporated CCA corporations will be required to transition under the new Act within three years of the in-force date of the new Act. Corporations contemplating federal incorporation may therefore wish to wait until the new Act is in force so that they can incorporate under the new legislation and avoid the need to transition later.

As previously reported, federal Special Act corporations will automatically be subject to certain provisions of the new Act and will have the option of transitioning under the CNCA so that the whole of the new legislation applies.

Industry Canada’s website contains information on incorporation and corporate maintenance under the new Act, as well as on the transition process for corporations continuing under the new legislation.

Miller Thomson’s Charities and Not-for-Profit lawyers can assist organizations in transitioning under the new Act.


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