Readers of this blog who are in some manner associated with federal non-profit corporations will likely already be aware that a new federal non-profit corporate statute, the Canada Not-for-profit Corporations Act or “CNCA”, was proclaimed into force on October 17, 2011.
The CNCA does not automatically apply to existing federal non-profit corporations currently governed by Part II of the Canada Corporations Act or the “CCA”. CCA corporations will continue to be governed by the CCA until they continue under the CNCA – a process that must be completed within three years of the date that the CNCA was proclaimed into force – or October 17, 2014. As a result, the continuance deadline for such corporations is already less than a year away.
Corporations that fail to meet the October 17, 2014 deadline face potential dissolution by Corporations Canada. Any corporations that are registered charities that are dissolved by Corporations Canada for missing the deadline also risk losing their registered charity status under the Income Tax Act (Canada). As a result, steps should be taken by any corporations that have not yet continued under the CNCA to do so as soon as possible.
Corporations Canada has a helpful transition website that sets out in more detail what the process of continuance under the CNCA entails.