New federal legislation that streamlines the regulatory burden on Canada's not-for-profit is ready to become law. Bill C-4, the Canada Not-for-Profit Corporations Act, passed Third Reading in the Senate and received Royal Assent. The federal government states that the act will enable organizations to incorporate faster and improve their financial accountability, clarify the roles and responsibilities of directors and officers, and enhance the protection of members' rights. The new Act will replace the Canada Corporations Act of 1917.
Here are some highlights of the new Act and the full announcement is available online.
The new Act:
* Changes to financial reporting: organizations are defined as either soliciting or non-soliciting, and this category, combined with the organization's size determines the type of financial reporting and who has to have access to the reports
* Sets out standards of care for Directors and Officers, similar to the Canada Business Corporations Act, and provides a "due diligence" defence against potential liabilities
* Enhances and protects members' rights including access to financial information and membership lists (with restrictions)
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