Yes, but you could ask Ms. Kirby for a clarification, because I am not...
In order to transfer from one system to the other, the corporations that are currently incorporated under federal law must be able to continue to exist under the new system. This type of provision, which states that an entity may not incorporate unless it meets certain conditions, will create this transition problem.
Among some 19,000 currently incorporated non-profit corporations, many could find themselves in a situation where they did not meet the requirements, or would have to prove that they meet them, and would thus become orphan entities to which no system would apply. They could not be transferred to a provincial system because the current act does not allow it. Nor would provincial legislation allow it.
Which brings us to the scenario suggested by Ms. Kirby. That is the practical concern that such a provision raises.