Tuesday, November 1, 2011
In Non-profits Worried New Law Will Hurt Smaller Agencies, the Globe and Mail reports that new legislation (previously blogged here) expanding the voting rights of members of Canadian nonprofits and imposing new filing obligations will challenge many nonprofits operating in Canada, especially smaller organizations. According to the article,
The law requires all federally registered non-profits to file new governing bylaws and other legal documents to Industry Canada by Oct. 17, 2014. It also gives members of non-profits new rights that are akin to the rights of shareholders of private corporations, including the ability to force motions for a vote, demand certain documents or trigger legal proceedings.
Supporters of the legislation view heightened accountability to members as healthy. But others express concern that the law conveys disproportionate power and influence on members relative to that wielded by other stakeholders.