While it might seem easy, it is startling to see how much trouble directors get into as a result of ineffective resignations. The purpose of this short article is to explain why it is important for directors to resign clearly and effectively and how they can do that.
A corporation incorporated or continued under the Canada Not-for-profit Corporations Act must establish a registered office. What is the purpose of the registered office requirement?
What truly differentiates a not-for-profit ("NFP") corporation from a for-profit business corporation?
The Canada Not-for-profit Corporations Act provides that religious corporations enjoy an exemption from court-ordered liquidations, derivative actions and oppression proceedings if:
There are both similarities and differences between the financing techniques and options open to not-for-profit corporations and for-profit business corporations. Notably, NFP corporations cannot raise funds by issuing shares, as an NFP corporation is a corporation without share capital. Other differences and similarities are discussed below.
The Canada Not-for-profit Corporations Act provides for three different thresholds for decision-making by members:
The separate legal personality of a for-profit corporation has long been recognized as giving its shareholders limited liability. But is this also the case for the members of not-for-profit corporations?
Here is a lexicon of commonly used terms in the field of not-for-profit law.
There are both legal and practical considerations to take into account in determining the optimal size of the board of directors. The legal parameters under the Canada Not-for-profit Corporations Act will be set out first, followed by some practical considerations for choosing the ideal board size within the permitted legal limits.
Ex officio directors, often found in legacy not-for-profit corporations, are prohibited by the Canada Not-for-profit Corporations Act.
A key to understanding the regulatory regime under the Canada Not-for-profit Corporations Act is to recognize that it differentiates among certain not-for-profit ("NFP") corporations and accords modest differential treatment depending on the defining characteristics of the corporation. In particular, the Act recognizes three types of federal NFP corporations:
The Canada Not-for-profit Corporations Act requires a corporation to maintain the following records and registers at the corporation's registered office (or any other place in Canada designated by the directors):
The purpose of this post is to briefly explain how the Canada Not-for-profit Corporations Act ("CNCA") treats the capacities and powers of a corporation and what restrictions apply.
What follows is the final part of a two-part discussion on the content of articles of incorporation (Form 4001) under the Canada Not-for-profit Corporations Act ("CNCA"). Part I addresses the mandatory elements of the articles (namely, Boxes 1-4, 7 and 9). Part II addresses optional provisions (namely, Boxes 5, 6 and 8).
What follows is Part I of a two-part discussion on the content of articles of incorporation (Form 4001) under the Canada Not-for-profit Corporations Act ("CNCA"). Part I addresses the mandatory elements of the articles. Part II address various optional provisions.
Under the Canada Not-for-profit Corporations Act all members (whether voting or non-voting) have the right to obtain the following information from the corporation: