Election further delays ONCA implementation
When the provincial election was called last month, several bills that were in the queue to be debated or acclaimed to law were abandoned when the legislature was dissolved. This includes the Fair Minimum Wage Act, the Child Care Modernization Act and, in particular, amendments to the Ontario Not- For-Profit Corporations Act. The latter, now in limbo, would have had a direct impact on non-profit housing providers.
The Ontario Not-for-Profit Corporations Act, 2010 (ONCA) was passed in 2010 but has not come into force. Bill 85, which contained sought-after amendments to the ONCA, reached second reading in May, but “died on the paper” when the election was called. Bill 85 is therefore null and void, and a new bill will have to be introduced in the next legislature in order for ONCA to be proclaimed.
If Bill 85 had passed, its amendments would have delayed the extension of voting rights to the nonvoting members of an organization for a minimum of three years after the ONCA came into force.
Bill 85 also clarified an obtuse element of the ONCA by specifying that an organization’s corporate constating documents, letters patent, by-laws, and special resolutions that existed before the ONCA was applied will continue to hold validity until the conclusion of the transition period (three years after the ONCA comes into force).
Finally, Bill 85 included the provision that the $10,000 amount for defining non-charitable public benefit corporations detailed in the ONCA could be subject to revision under new regulations in the future.
A detailed description of the provisions of the ONCA is available here: http://bit.ly/onca14.