Removing red tape for charities

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In a nutshell

The CBA’s Charities and Not-for-Profit Law Section largely supports the federal government’s proposed amendments to Canada’s federal business law frameworks but has some recommendations specifically for amendments to the Canada Not-for-profit Corporations Act (CNCA).

Key recommendations

The CBA makes new recommendations and reiterates proposals outlined in its 2023 submission on the same subject. A few of these recommendations include:

1. Virtual and hybrid meetings should be available by default, but corporations should not be required to facilitate virtual participation in meetings that would otherwise be in person.
2. The term of office of active directors should expire at the next annual meeting of members. The term should not expire at a special meeting held for a different purpose.
3. To become a director of a society, other than a first director, an individual must be elected or appointed to that office in accordance with the bylaws.
4. Mandatory audits should be removed from the CNCA and members who wish to appoint a public accountant or require an audit or review engagement be given the statutory right to vote for these options, either at a meeting or through by-laws.

Why this matters

The CBA and its members across Canada are the most experienced and knowledgeable group in the use and interpretation of the CNCA on a day-to-day basis and can add significant value to the content of the draft legislation if allowed to review it prior to its tabling in Parliament.

Read the full submission.