The in-force date of Ontario’s Not-for-Profit Corporations Act, 2010 (the “New Act”) has been further delayed.
The Ministry of Government and Consumer Services recently announced that it will now provide 24 months’ notice before the New Act is proclaimed into force. Not-for-profit corporations will then have a period of three years to transition to the New Act. Since the New Act has not yet been proclaimed into force, this means that it will be at least five more years before it is fully implemented.
Until such time as the New Act comes into force, non-share capital corporations incorporated in Ontario will continue to be governed by the Corporations Act (Ontario). Notwithstanding the delays in implementation of the New Act, as a governance best practice, we continue to recommend that corporations review and/or update their by-laws every 2-4 years to ensure that the by-laws reflect the prevailing law, governance best practice and the current practices of the organization. Where appropriate, certain amendments, such as to the membership structure, may be implemented in anticipation of the New Act.