Canada brought into force a new Not-for-profit Corporations Act (NFP Act) in October, 2011. The NFP Act establishes a new set of rules for federally incorporated not-for-profit corporations in Canada. These new rules will replace Part II of the Canada Corporations Act (old Act), the law that has governed federal corporations for nearly a century. All federal not-for-profit corporations – which includes the National Initiative for the Care of the Elderly (NICE) – are required to transition to this new act by October 17, 2014.
The transition process involves replacing the corporation’s letters patent, supplementary letters patent (if any) and by-laws with new charter documents. These charter documents set out the primary rules governing the corporation. Information about the new act and its requirements can be found at http://www.ic.gc.ca/eic/site/
The Transition Guide provided to support this process states that the benefits of the NFP Act for corporations include: a clear set of rules that govern the internal affairs of federal not-for-profit organizations, less red tape with simplified processes, more flexibility to make fundamental changes, such as amalgamations, that were not permitted under the old Act, and a more objective standard for directors in carrying out their duties and responsibilities that will reassure individuals who decide to be on a board of directors.
View the NICE Transition Documents