6 Spring 2014 Doing Business in AtlAntic cAnADA
By Alanna Waberski, Sarah Almon and Kimberly Bungay
A
s of October 17, 2014, existing
not-for-profi t corporations incor-
porated under Part II of the Can-
ada Corporations Act (the "Old
Act") are required to be continued
under the new Canada Not for
Profi t Corporations Act (the "New Act") or face the
possibility of automatic administrative dissolution.
For those corporations that are also registered char-
ities, dissolution could mean the revocation of regis-
tration as a charity which could result in substantial
tax penalties, and thus there are serious implications
for the failure to continue under the New Act.
features of the new act In general, the New Act
has been modernized to conform with modern busi-
ness corporation statutes. The New Act provides a
clear set of rules that govern the internal affairs of
corporations under its jurisdiction including clear
and coherent statements of member rights, rules re-
garding members and directors meetings, and pro-
vides specifi c rules regarding fundamental changes
the new
canada
not-for-profit
corporations act
