As we have reported before Industry Canada has sent out over 16,000 notices of pending dissolution to about 6000 CCA corporations. Typically Industry Canada sends such notice to the registered office and each director. However, if Industry Canada knows that the address is not correct they will not send out a notice to that address. Industry Canada was holding back sending notices to groups that have recently filed or are registered charities. However, in order to tie off the CCA, Industry Canada has to have removed all CCA corporations. Industry Canada a few weeks ago confirmed that its goal is to provide by September 2015 notices to all other remaining CCA corporations including registered charities.
Apparently there are about 2000-3000 registered charities that have still not completed the continuance. It is vital that these organizations move quickly or if they are dissolved they will eventually lose their charitable status. If you require assistance in this process please let us know.
What can you do if you have not continued?
1) Check the corporate profile report on Industry Canada’s website to see if your corporation is showing a "Status - Active - Dissolution Pending (Failure to transition)" or the normal warning about "Governing Legislation -Canada Corporations Act - Part II - See Important Note" which reminds you to continue and notes "This corporation must transition to the Canada Not-for-profit Corporations Act or it will be dissolved for failure to transition".
2) Check the address that Industry Canada has on file at https://strategis.ic.gc.ca/app/scr/cc/CorporationsCanada/fdrlCrpSrch.html?locale=en_CA. If the address at the Industry Canada website is not up to date then send an email with the correct address. Industry Canada will keep the address that is emailed to them on file. Sending an email does not formally change the registered office address of the CCA corporation. It only changes the mailing addresses to which correspondence may be sent. Industry Canada will accept any address even a post office box even though that is not their preference.
3) If you receive a notice of pending dissolution then you should make sure that if you want your CCA corporation to avoid dissolution that you either prepare the necessary documents to effect a continuance or you retain a lawyer to assist with the process. After you receive a notice of pending dissolution you can request an extension but remember that eventually Industry Canada will stop giving out extensions as they want clean up the CCA.
4) If you have not received a notice of pending dissolution but you are still under the CCA expect that you will receive it within the next 6 months.
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.