Bill C-4 (Historical)

Canada Not-for-profit Corporations Act

An Act respecting not-for-profit corporations and certain other corporations

This enactment establishes a framework for the governance of not-for-profit corporations and other corporations without share capital, mainly based on the Canada Business Corporations Act.
The enactment replaces the “letters patent” system of incorporation by an “as of right” system of incorporation. The current requirement for ministerial review of letters patent and by-laws prior to incorporation is replaced by the granting of incorporation upon the sending of required information and payment of a fee.
The enactment provides for modern corporate governance standards, including the rights, powers, duties and liabilities of directors and officers, along with related defences, and financial accountability and disclosure requirements.
The enactment sets out the capacity and powers of a corporation as a natural person, including its right to buy and sell property, make investments, borrow funds and issue debt obligations.
The enactment sets out the rights of members, including the right to vote at a meeting of members, call a special meeting of members, advance proposals for consideration at meetings of members and access corporate records.
The enactment provides requirements for financial review by a public accountant and financial disclosure based on whether a corporation has solicited funds and its level of annual revenue.
The enactment gives the Director powers of administration, including the power to make inquiries related to compliance and to access key corporate documents such as financial statements and membership lists.
The enactment includes remedies for members and other interested persons to address the conduct of a corporation that is oppressive or unfairly prejudicial to or unfairly disregards the interests of any creditor, director, officer or member.
The enactment provides procedures for the amalgamation, continuance, liquidation and dissolution of a corporation and other fundamental corporate changes. The continuance provisions govern the continuance of bodies incorporated under other Acts and provide a power for the Governor in Council to require a federal body corporate without share capital to apply for continuance under the enactment or be dissolved.
The enactment modernizes the legal regime that applies to corporations without share capital created by special Acts of Parliament by providing that those corporations are natural persons, requiring the holding of an annual meeting and the sending of an annual return, and regulating a change of a corporation’s name and its dissolution.
The enactment gives corporations with share capital created by special Acts of Parliament and subject to Part IV of the Canada Corporations Act six months to apply for continuance under the Canada Business Corporations Act or be dissolved.
The enactment makes a number of consequential amendments to other federal Acts. It provides for a phased repeal of the Canada Corporations Act as corporations cease being subject to the Parts of that Act.

Canada Not-for-profit Corporations Act

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

Mr. Speaker, I have not heard that the Government of Canada or Industry Canada came to consult not-for-profit organizations in Quebec. I do know that the former program that recognized not-for-profit organizations under the Liberal government was tossed aside by the Conservative government.

I do not believe that organizations in Quebec are very interested in this bill. First, they are used to coming under the Government of Quebec. They know they will go to the Government of Canada for a number so that they can issue income tax receipts. In Quebec, not-for-profit organizations will not turn directly to the federal government. As a result, they likely did not hear about these consultations. I am close to my organizations and I never heard about them either. Maybe there were consultations in the rest of Canada.

The way not-for-profit organizations are organized in Quebec is very different from the way they are organized in the rest of Canada. We are ahead of the curve and used to doing our own thing, coming under the Government of Quebec and not expecting anything from the federal government. It has never been present, except in the previous legislation where organizations could get a grant. It took three weeks to a month to fill out a 50-page application and get a grant of no more than $1,000 to $5,000.

In answer to my colleague's question, I do not recall any consultations in Quebec.

[The Deputy Speaker, Andrew Scheer]

Is the House ready for the question?

[Some hon. members]

Question.

[The Deputy Speaker, Andrew Scheer]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

[An hon. member]

On division.

[The Deputy Speaker, Andrew Scheer]

I declare the motion carried. Accordingly, the bill stands referred to the Standing Committee on Industry, Science and Technology.

(Motion agreed to, bill read the second time and referred to a committee)