Canada Not-for-profit Corporations Act (S.C. 2009, c. 23)

Act current to 2019-03-27 and last amended on 2018-05-01. Previous Versions

PART 11Financial Disclosure (continued)

Marginal note:Application for exemption

 On the application of a corporation, the Director may exempt the corporation, on any terms that the Director thinks fit, from any requirement in this Part if the Director reasonably believes that the detriment that may be caused to the corporation by the requirement outweighs its benefit to the members or, in the case of a soliciting corporation, the public.

Marginal note:Consolidated statements

  •  (1) A corporation shall keep at its registered office a copy of the financial statements of each of its subsidiaries and of each body corporate the accounts of which are consolidated in the financial statements of the corporation.

  • Marginal note:Examination

    (2) Members of a corporation and their personal representatives may on request examine the statements referred to in subsection (1) during the corporation’s usual business hours and make copies or take extracts free of charge.

  • Marginal note:Barring examination

    (3) On the application of a corporation made within the prescribed period after a request to examine under subsection (2), a court may, if it is satisfied that the examination would be detrimental to the corporation or a subsidiary, bar the right to examine and make any further order that it thinks fit.

  • Marginal note:Notice to Director

    (4) A corporation shall give the Director and the person asking to examine under subsection (2) notice of an application under subsection (3), and the Director and the person may appear and be heard in person or by counsel.

Marginal note:Copies to members

  •  (1) A corporation, within the prescribed period, shall send a copy or summary of the documents referred to in subsection 172(1) or a copy of a publication of the corporation reproducing the information contained in the documents or summary to each member, other than a member who, in writing, declines to receive such documentation. A corporation that sends a summary to a member shall also inform that member of the procedure for obtaining a copy of the documents free of charge.

  • Marginal note:Notice

    (2) A corporation, instead of sending the documentation referred to in subsection (1), may, if the by-laws so provide, give members notice in the manner referred to in section 162 that the documents referred to in subsection 172(1) are available at the registered office of the corporation and that any member may, on request, obtain a copy free of charge at the office or by prepaid mail.

Marginal note:Copies to Director

  •  (1) A soliciting corporation shall send a copy of the documents referred to in subsection 172(1) to the Director

    • (a) not less than the prescribed period before each annual meeting of members, or without delay after a resolution referred to in paragraph 166(1)(b) is signed; and

    • (b) in any event within the prescribed period after the preceding annual meeting should have been held or a resolution in lieu of the meeting should have been signed, but no later than the prescribed period after the end of the corporation’s preceding financial year.

  • Marginal note:Subsidiary corporation exception

    (2) A subsidiary corporation is not required to comply with this section if

    • (a) the financial statements of its holding corporation are in consolidated or combined form and include the accounts of the subsidiary; and

    • (b) the consolidated or combined financial statements of the holding corporation are included in the documents sent to the Director by the holding corporation in compliance with this section.

Marginal note:Copies to Director

 A corporation shall, at the request of the Director, furnish the Director with a copy of the documents referred to in subsection 172(1).

Marginal note:Approval of financial statements

  •  (1) The directors of a corporation shall approve the financial statements referred to in section 172 and the approval shall be evidenced by the manual signature of one or more directors or a facsimile of the signatures reproduced in the statements.

  • Marginal note:Condition precedent

    (2) A corporation shall not issue, publish or circulate copies of the financial statements referred to in section 172 unless the financial statements are

    • (a) approved and signed in accordance with subsection (1); and

    • (b) accompanied by the report of the public accountant of the corporation, if any.

PART 12Public Accountant

Definition of designated corporation

 In this Part, designated corporation means

  • (a) a soliciting corporation that has gross annual revenues for its last completed financial year that are equal to or less than the prescribed amount or that is deemed to have such revenues under paragraph 190(a); and

  • (b) a non-soliciting corporation that has gross annual revenues for its last completed financial year that are equal to or less than the prescribed amount.

Marginal note:Qualification of public accountant

  •  (1) In order to be a public accountant of a corporation, a person shall

    • (a) be a member in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province;

    • (b) meet any qualifications under an enactment of a province for performing any duty that the person is required to perform under sections 188 to 191; and

    • (c) subject to subsection (6), be independent of the corporation, its affiliates, or the directors or officers of the corporation or its affiliates.

  • Marginal note:Independence

    (2) For the purposes of this section,

    • (a) independence is a question of fact; and

    • (b) a person is deemed not to be independent if that person or their business partner

      • (i) is a business partner, a director, an officer or an employee of the corporation or any of its affiliates, or is a business partner of any director, officer or employee of the corporation or any of its affiliates,

      • (ii) beneficially owns or controls, directly or indirectly, a material interest in the debt obligations of the corporation or any of its affiliates, or

      • (iii) has been a receiver, receiver-manager, sequestrator, liquidator or trustee in bankruptcy of the corporation or any of its affiliates within two years before the person’s proposed appointment as public accountant of the corporation.

  • Marginal note:Business partners

    (3) For the purposes of subsection (2), a person’s business partner includes a shareholder or member of that person.

  • Marginal note:Duty to resign

    (4) A public accountant who becomes disqualified under this section shall, subject to subsection (6), resign immediately after becoming aware of the disqualification.

  • Marginal note:Disqualification order

    (5) On the application of an interested person, a court may make an order declaring a public accountant to be disqualified under this section and the office of public accountant to be vacant.

  • Marginal note:Relieving order

    (6) On the application of an interested person, a court may, if it is satisfied that the order would not unfairly prejudice the members of the corporation, make an order on any terms that it thinks fit relieving a public accountant from meeting any requirement under subsection (1). The order may have retroactive effect.

Marginal note:Appointment of public accountant

  •  (1) Subject to section 182, members of a corporation shall, by ordinary resolution, at each annual meeting, appoint a public accountant to hold office until the close of the next annual meeting.

  • Marginal note:Eligibility

    (2) A public accountant appointed under section 127 is eligible for appointment under subsection (1).

  • Marginal note:Incumbent public accountant

    (3) If a public accountant is not appointed at a meeting of members and if no resolution is taken under section 182, the incumbent public accountant continues in office until a successor is appointed.

  • Marginal note:Remuneration

    (4) The remuneration of a public accountant may be fixed by ordinary resolution of the members or, if not so fixed, shall be fixed by the directors.

Marginal note:Dispensing with public accountant

  •  (1) Members of a designated corporation may resolve not to appoint a public accountant, but the resolution is not valid unless all the members entitled to vote at an annual meeting of members consent to the resolution.

  • Marginal note:Validity of resolution

    (2) The resolution is valid until the following annual meeting of members.

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