New Federal Canada Not-for-profit Corporations Act Receives Royal Assent June 23, 2009

The new Canada Not-for-profit Corporations Act has just received royal assent on June 23, 2009.  The act has yet to be proclaimed in force and it will come into force on a day or days to be fixed by order of the Governor in Council.  It is difficult to know when the bill will come into force. It could be 3-6 months or it could be a year or more.  Industry Canada will have a lot of work to do with the regulations, forms, fees etc.  Once the act comes into force current Canada Corporations Act corporations will have 3 years to continue into the new act assuming that no change or extension is made to the act.  There will be a lot of material prepared by non-profit associations as well as professional advisors and others to assist CCA corporations with the transition.  It makes little sense for most CCA non-profits to start worrying about this act until there is greater clarity and more time has elapsed. 

Also, as more material is prepared by Industry Canada, non-profit associations and others it will be easier to grapple with the issues.  If a CCA corporation is a charity and wants something to worry about now they may want to spend some time on the CRA website to try to understand whether the charity is complying with its obligations under the Income Tax Act.  Also you may find my article Top Ten Charity Law Issues helpful at http://www.globalphilanthropy.ca/images/uploads/Top_Ten_Canadian_charity_law_issues.pdf

Here is some information on the bill including the full text: http://www2.parl.gc.ca/Sites/LOP/LEGISINFO/index.asp?Language=E&query=5653&List=toc&Session=22