The Not-for-Profit Corporations Act -
The Reform Objectives

The main goal of reform was to create a new statute dedicated to not-for-profit corporations that is easier to understand and makes it easier for not-for-profit corporations to operate.

The current Corporations Act is cumbersome and antiquated and does not adequately meet the needs of Ontario’s not-for-profit sector. The original version of the Corporations Act was enacted in 1907 with the last major revision in 1953.

The new legislation is structured on four guiding principles: transparency and accountability; flexibility and permissiveness; responsiveness and efficiency; and fairness.

Upon Proclamation the Act will:

  • enhance corporate governance and accountability
  • simplify the incorporation process
  • give more rights to members
  • better protect directors and officers from personal liability.

 

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