Not-for-Profit Corporations Act delayed
Add to this delay the looming threat of an election and a timely proclamation becomes even less likely. The earliest that ONCA can be proclaimed is six months after the Companies Statue Law Amendment Act receives Royal Assent, potentially pushing the proclamation date to January 2016.
The proposed amendments are substantially administrative. However, there are a few that are important to nonprofit housing providers. The new rules for voting rights of non-voting classes of members would not come into effect until the end of the three year transition period. That timeline will give non-profits ample time to redefine their membership if needed. Similarly, clauses in your Articles of Incorporation and by-laws that are in conflict with ONCA will not be considered invalid until the end of the transition period.
The Ministry of Consumer Services has prepared tools to help not-for-profit corporations with the transition, available now on its website:
- transition checklist (www.bit.ly/1fKu7jx)
- list of frequently asked questions (www.bit.ly/1j8BN6Y)
- draft default bylaw (www.bit.ly/1d4I1SI)
The government has also released a plain language guide (www.bit.ly/OFdu2y) explaining the ONCA and its requirements.
Don’t procrastinate! There’s lots to do to prepare
Don’t let delays at Queen’s Park sap your momentum! For example, you can use the delay to:
- Review your board structure
Consider amending your articles to include a minimum or maximum number of directors instead of a fixed number.
- Update your membership categories
Do you have multiple membership classes? Should you? Update your articles to reflect your needs and remember – under ONCA all members will be able to vote on some decisions.
- Revise your conflict of interest provisions for directors to comply with ONCA