Don’t miss the deadline to complete your non-profit’s ONCA transition

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Are you involved in an Ontario not-for-profit or charity? Has your organization transitioned its governing documents to comply with the new Ontario Not-for-Profit Corporations Act (the “ONCA”)?

As of Oct. 19, 2021, all not-for-profit organizations incorporated in Ontario have until Oct. 18, 2024 to become compliant with the ONCA. To do so, you need to review your By-laws and Articles of Incorporation to ensure that the mandatory provisions of the ONCA are contained within.

If you do not complete a transition before the deadline, your organization will not be dissolved or fined, but your organization will be deemed to be automatically governed by the provisions of the ONCA. This can create serious issues for your organization in the future. For example, the default rule under the ONCA for quorum at a members meeting is a majority of all members entitled to vote a meeting, which for some larger organizations with attendance issues, can create litigious risk when its discovered later in time that resolutions were passed without proper quorum being in place.

As such, it is prudent for all relevant organizations to take action to ensure that you complete your transition before the October deadline. There are resources available online to help assist, but it is important that those updating your organization’s documents are knowledgeable not only on the ONCA, but any other relevant legislation. If a DIY transition is too daunting for you or your organization, the lawyers at Ross & McBride are happy to assist you in completing your ONCA transition.

This article was originally published by The Hamilton Spectator.