{"id":32418,"date":"2021-08-19T17:58:38","date_gmt":"2021-08-19T21:58:38","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=32418"},"modified":"2022-05-06T16:06:35","modified_gmt":"2022-05-06T20:06:35","slug":"finally-ontario-not-for-profit-corporations-act-comes-into-force-october-19","status":"publish","type":"post","link":"https:\/\/cccc.org\/news_blogs\/legal\/2021\/08\/19\/finally-ontario-not-for-profit-corporations-act-comes-into-force-october-19\/","title":{"rendered":"FINALLY! Ontario Not-for-Profit Corporations Act comes into force October 19"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">After more than 11 years, the Ontario <em>Not-for-Profit Corporations Act<\/em> (\u201c<em>ONCA<\/em>\u201d) will finally come into force on October 19, 2021!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">ONCA COMES INTO FORCE<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As noted in <a href=\"https:\/\/news.ontario.ca\/en\/release\/1000749\/province-launches-new-modern-ontario-business-registry\" target=\"_blank\" rel=\"noreferrer noopener\">Ontario\u2019s news release<\/a>, ONCA will &#8220;provide a modern legislative framework for Ontario\u2019s not-for-profit corporations. The legislation will significantly reduce the bureaucratic burden on not-for-profit corporations, moving from paper-based filings to digital services and providing them with enhanced flexibility.&#8221; <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is great \u2013 and long anticipated &#8211; news for Ontario charities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It coincides with the launch of Ontario\u2019s new Business Registry. The Registry will facilitate 90+ different transactions, including registering new corporations and dissolving existing ones. The new Registry system <a href=\"https:\/\/news.ontario.ca\/en\/release\/1000749\/province-launches-new-modern-ontario-business-registry\" target=\"_blank\" rel=\"noreferrer noopener\">means that<\/a> &#8220;for the first time ever, Ontario not-for-profit corporations will be able to access on online government system for registrations and filings saving time and reducing duplicate paperwork.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, starting October 19, the <a href=\"https:\/\/www.cccc.org\/news_blogs\/noteworthy\/2021\/06\/18\/update-ontario-annual-information-returns-business-registry\/\" target=\"_blank\" rel=\"noreferrer noopener\">annual <em>Corporations Information Act <\/em>filing<\/a> will be processed through the Registry. From May 15 until the Registry launches, corporations are exempt from that filing requirement, if the return is due during that period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can <a href=\"https:\/\/mailchi.mp\/ontario.ca\/business-registry-setup\" target=\"_blank\" rel=\"noreferrer noopener\">sign up with Service Ontario<\/a> to receive email updates with information about how to access the registry.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A FEW KEY COMPONENTS<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While there\u2019s more in ONCA than the list below, there are some key components you should know about.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Terminology: <\/strong>all Ontario corporations that are registered charities are called public benefit corporations<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Directors:<\/strong> there is a minimum of 3 and charities can have either a fixed number or a range<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Members: <\/strong>membership classes must be in the articles; membership conditions must be in the bylaws; greater member access to financial records<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Audits:<\/strong> 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<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Directors:<\/strong> sets out a statutory duty of care and a due diligence and good faith reliance defence; specific requirements to report a conflict of interest<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Transition:<\/strong> You\u2019ll still have three years to transition to the new ONCA rules, so there is still lots of time to make any necessary changes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ll keep you updated as more information becomes available. In the meantime, we\u2019ve got a list of resources below if you want to learn more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">DID YOU KNOW?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.cccc.org\/accreditation\" target=\"_blank\" rel=\"noreferrer noopener\">CCCC Accreditation<\/a> is possible for small to mid-size charities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under ONCA, Ontario charities with annual revenues less than $500,000 can opt for a review engagement instead of an audit. If that\u2019s your charity, you can now be eligible for CCCC Accreditation with a review engagement! This is great news for charities that haven&#8217;t pursued Accreditation because of the audit requirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can find out more in our <a href=\"https:\/\/www.cccc.org\/documents\/membership\/accreditation_program_brochure.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">CCCC Accreditation brochure<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">WANT TO KNOW MORE?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You can check out these resources if you want to know more about ONCA.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Ontario Government<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ontario.ca\/page\/rules-not-profit-and-charitable-corporations\" target=\"_blank\" rel=\"noreferrer noopener\">Rules For Not-For-Profit &amp; Charitable Corporations<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ontario.ca\/page\/not-profit-corporations-act-%20default-organizational-law\" target=\"_blank\" rel=\"noreferrer noopener\">Sample Organizational Bylaw<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ontario.ca\/page\/guide-not-profit-corporations-%20act-2010\" target=\"_blank\" rel=\"noreferrer noopener\">Plain Language Guide To ONCA<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ontario.ca\/page\/not-profit-corporations-act-transition-considerations\" target=\"_blank\" rel=\"noreferrer noopener\">Transition Considerations<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ontario.ca\/laws\/statute\/10n15\" target=\"_blank\" rel=\"noreferrer noopener\">ONCA Legislation<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ontario.ca\/laws\/regulation\/r21394\" target=\"_blank\" rel=\"noreferrer noopener\">ONCA Regulations<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><br><strong>CCCC<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">January 2020: <a href=\"https:\/\/www.cccc.org\/news_blogs\/noteworthy\/2020\/01\/13\/beyond-early-2020-for-ontarios-not-for-profit-corporations-act\/\" target=\"_blank\" rel=\"noreferrer noopener\">Beyond Early 2020<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">January 2018: <a href=\"https:\/\/www.cccc.org\/news_blogs\/noteworthy\/2018\/01\/12\/onca-targeted-for-2020\/\" target=\"_blank\" rel=\"noreferrer noopener\">ONCA Targeted for 2020<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">November 2017: <a href=\"https:\/\/www.cccc.org\/kbm\/Content\/law\/horizons\/horizons-2017-11-november-577987745.htm\" target=\"_blank\" rel=\"noreferrer noopener\">Ontario&#8217;s Corporations Act Receives Refresh as Interim Measures Before ONCA<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">October 2015: <a href=\"https:\/\/www.cccc.org\/news_blogs\/noteworthy\/2015\/10\/19\/onca-proclamation-delayed-again\/\" target=\"_blank\" rel=\"noreferrer noopener\">ONCA Proclamation Delayed Again<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">September 2013: <a href=\"https:\/\/www.cccc.org\/news_blogs\/noteworthy\/2013\/09\/10\/getting-ready-for-the-onca-an-update\/\" target=\"_blank\" rel=\"noreferrer noopener\">Getting Ready for ONCA<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After more than 11 years, the Ontario Not-for-Profit Corporations Act (\u201cONCA\u201d) will finally come into force on October 19, 2021! ONCA COMES INTO FORCE As noted in Ontario\u2019s news release, ONCA will &#8220;provide a modern legislative framework for Ontario\u2019s not-for-profit corporations. The legislation will significantly reduce the bureaucratic burden on&#8230; <a href=\"https:\/\/cccc.org\/news_blogs\/legal\/2021\/08\/19\/finally-ontario-not-for-profit-corporations-act-comes-into-force-october-19\/\" class=\"linkbutton\">More<\/a><\/p>\n","protected":false},"author":10,"featured_media":32419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ts_fic_featured_image_caption":"","footnotes":""},"categories":[169],"tags":[240,284,207,283,429],"series":[],"class_list":["post-32418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-legislation","tag-charities","tag-legislation","tag-ontario","tag-ontario-not-for-profit-corporations-act","tag-regulation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FINALLY! 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