If your organization has not yet continued under the Canada Not-for-profit Corporations Act and needs to do so, you should review Industry Canada's posting on "How to Avoid Common Deficiencies in Form 4031 – Articles of Continuance (transition)" before you submit your application. The posting sets out some common reasons why Industry Canada returns Articles of Continuance to the applicant. They include:
- Failing to set out the full legal name;
- Forgetting to attach a NUANS Name Search Report if you are requesting a new corporate name;
- Not indicating the purpose of the corporation;
- Not specifying the classes or groups of members of the corporation (e.g., it is unacceptable to state that the directors will decide at their first meeting); and
- Not including a statement on how the corporation will deal with any property that may remain upon liquidation.
Keep in mind that not-for-profits governed by the Canada Corporations Act need to continue by October 17, 2014 and that the continuance needs members' approval. So if you haven't started the process yet, now is the time!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
