Author Box
Articles Categories
All Categories
Articles Resources

Overview of the Canada Not-For-Profit Corporations Act

February 07, 2012 | Comments: 0 | Views: 146

Recently, a new law called the Canada Not-For-Profit Corporations Act ("CNPCA") came into effect aimed at eliminating unnecessary regulation and providing flexibility to the not-for-profit sector. The new legislation modernizes the corporate governance of not-for-profit corporations by promoting accountability, transparency and efficiency.

The Act in its entirety is lengthy and detailed so not-for-profits will have up to 3 years to transition into compliance. Below is a list of some of the Act's more important provisions that may affect you and your not-for-profit.


The process of incorporation has become more streamlined under the new Act making it faster and more efficient. Instead of submitting the letters patent and by-laws for review, incorporations now occur "as of right" upon submission of the signed articles of incorporation.


Before the Act was implemented Industry Canada required incorporating not-for-profits to prepare and submit by-laws governing corporate matters to be reviewed and approved at the time of incorporation.Under the new legislation it is no longer necessary to draft and submit by-laws with the application for articles of incorporation. The new Act requires by-laws that deal with member issues only.


Members' rights are enhanced under the new Act. The new rights include:the right to submit a notice of proposal to request said proposal to be discussed during a members meeting; the right to request a meeting at any time; the right for non-voting members to vote separately from voting members on matters that impact membership rights; and the right to access corporate records to monitor board compliance.


A director's liability and standard of care are protected by the "due diligence" defence as understood in the common law duty of acting in honest and good faith.In this legislation specific liabilities are given to directors concerning payment and distribution to members, debt obligations, and wages payable to employees.However, directors who meet the standard of care are protected from liabilities through the "due diligence" defence under the new Act.

Financial Accountability:

The Act divides not-for-profit corporations into soliciting and non-soliciting corporations, which are subject to different regulations depending on which category your not-for-profit falls under.Your gross revenues are also dependent upon the rules and requirements for reporting under the new legislation.

To facilitate the change, Industry Canada will not charge initial filing fees related to transitioning from the CCA to the NFP Act. To view the Act in its entirety, please click here. - Click. You're Incorporated.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Corporations Act




Industry Canada


Non Profit


Not For Profit









Thus, you can apply for the negligence compensation under such circumstances in order to recover your loss, Negligence Claims, Negligence compensation Involvedness of Negligence Claims. The court

By: Simon Liva l Legal > Personal Injury l December 13, 2012 lViews: 292

If a lawyer is not able to devote enough time to your case then your defense is likely to suffer. Moreover specialization in one stream or other of defense is important so that the attorney can

By: Simon Liva l Legal > Criminal Law l December 12, 2012 lViews: 429

Filing a business bankruptcy can be a complex and critical task, but you have several options. You can consult your bankruptcy attorney to know which among those options is right for you.This is a

By: Harvard McIntosh l Legal > Corporations LLC l December 11, 2012 lViews: 235

You can always check for the treatments that are covered. This is because there are some policies which do not give you claims if you meet any kind of head injury.You can always check for the

By: Simon Liva l Legal > Personal Injury l November 05, 2012 lViews: 241

In Colorado, you have many Personal Injury Lawyers to choose from. When you choose the Law Offices of Andrew C. Bubb you instantly put years of experience and legal know how in your corner. Attorney

By: Dilshad l Legal > Personal Injury l October 25, 2012 lViews: 389

If you have been charged with a crime, speak with Boulder criminal defense attorney Steven Louth immediately to protect your rights. Steven Louth is a criminal defense attorney and criminal trial

By: Dilshad l Legal > Personal Injury l October 18, 2012 lViews: 244

Filing a business bankruptcy can be a complex and critical task, but you have several options. You can consult your bankruptcy attorney to know which among those options is right for you.This is a

By: Harvard McIntoshl Legal > Corporations LLCl December 11, 2012 lViews: 235

Limited Liability Companies are great options for small groups of people who desire to start a company. Learn the basics about LLCs before meeting with your local business attorney.

By: Aloysius Aucoinl Legal > Corporations LLCl April 25, 2012 lViews: 168

Setting up your own corporation in the state of California is not easy. There are steps to follow when you want to incorporate in California. This article will give you an overview on the things you

By: Julius Zadamczykl Legal > Corporations LLCl April 16, 2012 lViews: 179

Premium attorneys are charging over $1,000 an hour. Now is a good time to consider outsourcing your electronic discovery and document review work.

By: Jonathan Eastonl Legal > Corporations LLCl April 16, 2012 lViews: 169

When you start a new business it is a dream come true. Your dream can become a nightmare if you do not follow the small business laws precisely to the letter. The only way for you to be sure that you

By: Kenneth Braxtonl Legal > Corporations LLCl April 11, 2012 lViews: 168

Starting and running a small business not only takes business savvy, but also some legal knowledge. There are classes available that can teach you about possible legal issues, but even those can't

By: William Perry Fisher IIl Legal > Corporations LLCl April 10, 2012 lViews: 163

Bill C-28, Canada's anti-spam legislation, was recently passed and will come into effect later this year. While its intended target is deceptive forms of spam, Canadian small and medium sized

By: Lionel Perezl Legal > Cyber Lawl February 28, 2012 lViews: 249

Registration of a trademark is proof of ownership and therefore a key way of protecting a trademark from misuse and imitation. Registration is not obligatory but is recommended because it is a way of

By: Lionel Perezl Legal > Trademarksl February 13, 2012 lViews: 233