The new Canada Not-for-profit Corporations Act (NFP Act) was proclaimed in force last October and all federally-incorporated non-share capital corporations must sit up and take notice. On Thursday, April 12, the Book and Periodical Council is holding a seminar on the NFP Act and its impact specifically on small publishing organizations.
The NFP Act modernizes the law to promote accountability, transparency, and good corporate governance, to clarify directors’ duty of care and to provide for member rights and remedies. But existing organizations must start now to bring their current constitutions – Letters Patent and by-laws – into compliance. Every such organization must file “Articles of Continuance” and enact new by-laws to “continue” under the new NFP Act. Failure to do so before October 14, 2014 will result in involuntary dissolution. Don’t be dissolute! Your organization will need to thoroughly review its membership structure and by-laws. The time to start this process is now.