Not-for-profit corporations in Ontario are again reminded of the looming deadline to transition under the Ontario Not-for-Profit Corporations Act, 2019 (the "ONCA"), which is fast approaching on October 18, 2024. Corporations have now had nearly three years to undertake the optional transition process by amending their letters patent (by adopting articles of amendment) and adopting ONCA-compliant by-laws. For those that do not undertake the transition, any provisions in their letters patent, supplementary letters patent, by-laws, and special resolutions that are inconsistent with the ONCA (subject to a few exceptions) will be deemed to be amended to comply with the ONCA as of October 19, 2024. For further details on ONCA transitions, please see the August 2024 Charity & NFP Law Update.
Proposed Amendments to Regulation 16 under Ontario's Agricultural and Horticultural Organizations Act
Proposed amendments to Regulation 16 under the Agricultural and Horticultural Organizations Act (the "AHOA") were posted in Ontario's Regulatory Registry on August 30, 2024. By way of background, Bill 139, Less Red Tape, More Common Sense Act, 2023, which received Royal Assent on December 4, 2023, will introduce amendments to the AHOA allowing payments to directors, officers or members of agricultural or horticultural societies for services performed in capacities other than their official duties, and enabling less onerous financial reviews. These amendments will be brought into force on a day to be named by proclamation of the Lieutenant Governor.
Following this, new regulatory amendments have been proposed to Regulation 16 under the AHOA which
the Ministry is now proposing regulatory amendments to Regulation 16 under the AHOA to do the following: (a) There will be new sections 10 and 11 to provide details on the proposed options allowed for financial review and reporting for agricultural and horticultural organizations. In this regard, agricultural and horticultural societies and agricultural associations whose annual revenue is $500,000 or less can conduct an informal financial review and provide a financial review certificate rather than conduct formal audits. However, those organizations whose annual revenue is more than $500,000 will still be required to provide audited financial statements. (b) There will be a new subsection 6(2) to allow for a one-time $1,500 grant, which will be made when a horticultural society reaches its 100th anniversary. The grant will be applied retroactively for those horticultural societies that have already reached their 100th anniversary.
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