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Government Announces the Introduction
of New Legislation
Governing Federal Not-For-Profit
OTTAWA, November 15, 2004 — The
Honourable David L. Emerson, Minister of Industry, today
introduced new legislation to govern federally incorporated
The proposed new Canada Not-for-Profit
Corporations Act will replace Parts II and III of the
Canada Corporations Act with a leading-edge, modern
corporate governance framework for not-for-profit
organizations incorporating at the federal level. The
proposed legislative changes will strengthen and clarify the
corporate governance rules so that not-for-profit
corporations have the necessary tools to meet the challenges
of the future.
"A new Canada Not-For-Profit Corporations
Act will help ensure the long-term strength and vitality
of voluntary organizations and social economy enterprises,"
said Minister Emerson. "The introduction of this legislation
fulfills the government's commitment in the Speech from the
Throne to foster the social economy, in particular the
legion of not-for-profit activities and enterprises that
harness civic energies to address social needs, whether they
are international, national or local."
The new Act also follows on the government's
commitment to a smart regulation agenda, which will simplify
and streamline the regulatory burden on enterprises.
Two rounds of national consultations have
yielded a strong endorsement for a new statute. The new Act
will promote the development of well-governed federally
incorporated organizations. It will be among the most modern
statutes of its kind, demonstrating the government's
continued commitment to world-class corporate law. The law
will be flexible enough to meet the needs of large and small
organizations while providing the accountability and
transparency necessary to maintain public trust and
confidence in the not-for-profit sector.
The proposed Canada Not-for-Profit
Corporations Act will build on the well-developed
standards of corporate governance that are found in the
Canada Business Corporations Act. It will reduce regulatory
burden on the not-for-profit sector and the government;
improve financial accountability; clarify the roles and
responsibilities of directors and officers; and enhance and
protect the rights of members.
Some 18,000 not-for-profit corporations and
corporations without share capital are incorporated
federally. A broad range of corporations stand to benefit
from the new Act, including health and community-based
organizations, environmental organizations, cultural and
heritage societies, national charities, major religious
organizations, mutual benefit clubs, and some transportation
service providers such as airports.
For additional information, please contact:
Office of the Honourable David L. Emerson
Minister of Industry