In recognition of the many roles non-profit corporations play in the province, the Government of Saskatchewan introduced The Non-profit Corporations Act, 2022 (the “New Act”) to replace The Non-profit Corporations Act , 1995. The New Act comes into force on March 12, 2023.
The goal of the New Act is to modernize laws for non-profit corporations to reflect current practices, eliminate archaic language and regulations, streamline administrative processes and promote the use of cutting-edge technologies. Below, we’ve highlighted some of the integral changes in the New Act and offered some practical tips.
Some of the key changes in the New Act include:
- Changes to the requirements and qualifications of directors.
- Streamlining requirements for notices and filings.
- Clarifying the requirements and qualifications of auditors and reviewers, and reducing the thresholds for when organizations need to appoint an auditor or conduct a review.
- Updating outdated rules and language.
- Updating corporate registry provisions.
- Changes to acceptable names for organizations.
- Broader permissions for use of electronic communications.
- Reducing requirements for amending a restriction on the activities of a charitable corporation.
- New provisions for extra-provincial corporations.
What you can do to get ready
Corporations should speak with their lawyers about reviewing their articles, board composition and bylaws to be compliant with the New Act. Corporations should also take advantage of the flexibility offered by the provisions of the New Act, such as considering whether they can resolve not to appoint an auditor or conduct a review under the lower thresholds.
You can download our guide for more information about these changes.
The lawyers at MLT Aikins have wide-ranging experience advising non-profit corporations on a variety of matters and would be pleased to help you prepare for the changes that will come when the New Act takes effect. To learn more, contact Kristél Kriel or Erin Bokshowan.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.