I recently received updated numbers from Industry Canada on the CNCA. they show some progress but a lot more needs to be done.
Here is what Industry Canada told me:
How many CCA corporations have moved over to the new CNCA?
1502 Continuance Transitions
How many provincial corporations have been imported into the CNCA?
27 Import Continuances
How many federal corporations have transferred out?
How many new incorporations have there been under the new CNCA?
Here are some thoughts. The 1502 continuances is getting higher but there are ostensibly 13-19,000 federal CCA corporations. So in the next year and 2 months there are going to have to be a large number of continuances or there could be a significant number of dissolutions (unless there is an extension of the time, although IC has not indicated that there will be any extension).
In terms of import continuances it is interesting to see that 27 organizations have moved from their incorporating jurisdiction, presumably provincial corporations, to federal. We have worked on a number of Ontario continuances to Federal as organizations seems to be leaving Ontario for the certainty and efficiency of the CNCA. Also 1 has left federal, which is interesting as some commentators who did not like the CNCA had predicted an exodus of Federal corporations. Clearly this has not yet happened. I would argue that the CNCA has been warmly received as it is a vast improvement over the old CCA.
It is also not surprising that there have been 2375 incorporations under the CNCA. At the moment in Ontario with the uncertainty surrounding the ONCA I am generally discouraging organizations from setting up under the OCA as they will probably need to make further changes over the next few years when the ONCA comes into force. It is easier to just go straight to Federal for most.
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.