ONCA Delayed Until 2016

July 2014 | Andrew Valentine

The Ontario government has confirmed that the Not-for-Profit Corporations Act (ONCA) is not expected to be in force until 2016.

The ONCA was passed by the Ontario Legislature in 2010 and will come into force on a day to be named by proclamation.  The government has confirmed that two steps must be completed before the ONCA can be proclaimed in force.  First, certain technical amendments to the legislation must be passed.  Second, the government must upgrade its technology to accommodate the new Act and its changes.

Bill 85 was introduced by the Legislature in 2013 and included technical amendments to the ONCA.  However, this Bill died when a provincial election was called in 2014.  These amendments will need to be re-introduced and passed before the ONCA can be proclaimed in force.  Given this issue, as well as the technological updates that remain, the government has indicated that the ONCA is unlikely to be in force before 2016.

Most non-profit corporations incorporated in Ontario will be subject to the ONCA once it is in force.  After the ONCA comes into force, corporations will have a three-year transition period to bring their governing documents and bylaws into compliance with the new legislation.

We will continue to keep readers updated as the ONCA progresses.

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