ONCA delayed again - implementation no earlier than January 2014

March 28, 2013 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, Canadian Charity Law, New corporate non-profit acts

The following text is from the Ontario government website: “ONCA is targeted to come into effect no earlier than January, 2014. Existing not-for-profit corporations will have a three-year transition period once ONCA is in effect.  Community Legal Education Ontario (CLEO) will provide support to not-for-profit corporations as they make the transition to ONCA.”  Therefore, the July 1, 2012 target date has been delayed by at least 6 months.  Also the Ontario government is noting that CLEO will be providing support but no details have been provided at this time.

Here is a link to the Ontario government page:
http://www.sse.gov.on.ca/mcs/en/Pages/not_for_profit.aspx

Here is a note I received from the Ontario government:

“Sent to you on behalf of David Brezer, Director of the Consumer Policy & Liaison Branch, Ministry of Consumer Services.


I am writing to provide you with an update on the implementation status of the new Not-for-Profit Corporations Act, 2010 (ONCA).

The government will delay proclamation of ONCA to provide additional time for not-for-profit corporations to prepare for transition.  The Act is now targeted to be proclaimed no earlier than January 2014.  An update on proclamation will be made available on the Ministry’s website at: http://www.sse.gov.on.ca/mcs/en/Pages/Not_For_Profit.aspx. 

I am pleased to advise that the Minister of Consumer Services has approved a grant to Community Legal Education Ontario (CLEO) to develop and deliver a program that will build awareness about ONCA and provide a variety of supports to not-for-profit corporations as they make the transition to the new Act.  This grant is being funded through contributions by the Ministry of Consumer Services, the Ministry of Citizenship and Immigration, and the Ministry of Tourism, Culture and Sport.

In addition to the grant to CLEO, MCS and the Ministry of Government Services are continuing to finalize tools to support implementation (e.g., plain language guide, draft default by-law, electronic toolkit).  Additional tools (e.g., transition checklist) and information can be found on MCS’ website.
 
The government is committed to reviewing the Act following proclamation based on experience in the sector, including the issues that the Ontario Nonprofit Network has raised on behalf of its members.  The government is exploring the possibility of holding back from proclamation the provisions of the Act giving voting rights to non-voting members in certain limited circumstances, which is a key sector concern.  Where the case for amendments to improve the Act is made, the Ministry will seek to bring reforms forward for consideration. 

We would appreciate your help in communicating these developments to the not-for-profit sector.  Thank you for your continued support.

Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Charity Lawyer Mark Blumberg

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.

mark@blumbergs.ca
416.361.1982
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