Blog Post: ONCA is Almost Here!

Deina Warren — Fri, 15 Oct 2021 20:09:52 +0000

On October 19 the Ontario Not-for-Profit Corporations Act (“ONCA”) comes into force.

ONCA

This is a reminder that ONCA will come into force in just a few days. As we mentioned in our previous ONCA blog post, there are a few key components you should know about.

Terminology: all Ontario corporations that are registered charities are called public benefit corporations

Directors: there is a minimum of 3 and charities can have either a fixed number or a range

Members: membership classes must be in the articles; membership conditions must be in the bylaws; greater member access to financial records

Audits: there is a lowered threshold for requiring audited financial statements; can substitute a review engagement with an extraordinary resolution with annual revenues of less than $500,000

Directors: sets out a statutory duty of care and a due diligence and good faith reliance defence; specific requirements to report a conflict of interest

Transition: You have three years to transition to the new ONCA rules, so there is still lots of time to make any necessary changes.

For more, check out our ONCA Resource Page in the Knowledge Base.

If you rely on the Not-For-Profit Incorporator’s Handbook, be cautious as it hasn’t yet been updated in light of ONCA.

Ontario Business Registry

ONCA’s coming into force coincides with the launch of the new Ontario Business Registry (OBR). The OBR will facilitate 90+ different transactions, including registering new corporations and dissolving existing ones. The new Registry system means that “for the first time ever, Ontario not-for-profit corporations will be able to access an online government system for registrations and filings, saving them time and reducing duplication of paperwork.” If you don’t already have one set up, you’ll need your ONe-key ID and ServiceOntario account information to access the OBR.

NO TRANSACTIONS OCTOBER 18

The current Ontario Business Information System will be taken offline to migrate data into the new OBR. On October 18, you should be able to do searches in the old system but won’t be able to do any transactions, like new incorporations.

COMPANY KEY

If your organization is already incorporated you will need a Company Key to access your organization’s profile in the OBR. This is your charity’s PIN for the OBR system. When the OBR goes live on Tuesday October 19, you’ll be able to request your Company Key using the “Company Key request form” at Ontario.ca/BusinessRegistry

It’s important that you check your registered office address to make sure it’s up to date. Your Company Key will be mailed to that address.

ANNUAL RETURNS

As we explained in an earlier blog post, corporations whose annual returns were due May 15, 2021 – October 18, 2021 were exempt. Once OBR launches on October 19, corporations with an annual return due on or after October 19 must file their annual returns.

Ontario Public Guardian & Trustee

You might be wondering what’s happening with the Ontario Public Guardian and Trustee (OPGT) and its role in light of the Ontario Business Registry. The OPGT has published a short FAQ document posted below to clarify its involvement.

20211015-PGT-ONCA-QA-OCT-2021 Download