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Difference between revisions of "What the New Societies Act Means for Existing Societies"
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What the New Societies Act Means for Existing Societies (view source)
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{{DEMOWARNING}}{{REVIEWEDPLS | reviewer = [[Mary Childs]], [[Michael Blatchford]] and [[Steve Carey]] |date= November 2016}} | {{DEMOWARNING}}{{REVIEWEDPLS | reviewer = [[Mary Childs]], [[Michael Blatchford]] and [[Steve Carey]] |date= November 2016}} | ||
{{Transitioning an Existing Society TOC}}A new law governing how non-profit societies in British Columbia are created and run came into effect on November 28, 2016. This section covers 5 key ways the new [http://www.bclaws.ca/civix/document/id/complete/statreg/15018_01 ''Societies Act''] affects existing societies. | {{Transitioning an Existing Society TOC}}A new law governing how non-profit societies in British Columbia are created and run came into effect on November 28, 2016. This section covers 5 key ways the new [http://www.bclaws.ca/civix/document/id/complete/statreg/15018_01 ''Societies Act''] affects existing societies. | ||
{{PLSTipsbox | |||
| text = '''3 things you absolutely must know about transition''' | |||
'''3 things you absolutely must know about transition''' | |||
* The new rules apply to your society as of November 28, 2016 whether or not your society has "transitioned". | * The new rules apply to your society as of November 28, 2016 whether or not your society has "transitioned". | ||
* Any existing bylaw of your society that is inconsistent with the new Act has no effect; the matter is governed by the new Act. | * Any existing bylaw of your society that is inconsistent with the new Act has no effect; the matter is governed by the new Act. | ||
* Meeting the basic requirements to transition is a straightforward process that takes a couple of hours - but transitioning is an excellent opportunity to put your society's house in order by reviewing your existing bylaws and governance. | * Meeting the basic requirements to transition is a straightforward process that takes a couple of hours - but transitioning is an excellent opportunity to put your society's house in order by reviewing your existing bylaws and governance. | ||
}} | |||
== You need to "transition", but the new Act applies right away == | == You need to "transition", but the new Act applies right away == | ||
| Line 70: | Line 68: | ||
* community care facility service providers | * community care facility service providers | ||
{| | {{PLSTipsbox | ||
| text = Some societies have unalterable provisions in their constitution in order to preserve the charitable status of the society. If you have any doubt about whether making changes to previously unalterable provisions will adversely affect the society�s charitable status, you should seek legal advice. | |||
}} | |||
== Your society's bylaws should be reviewed for compliance with the new Act == | == Your society's bylaws should be reviewed for compliance with the new Act == | ||
| Line 82: | Line 81: | ||
As well, the new Act presents opportunities for societies to adopt bylaw changes in areas where the new law offers increased flexibility. The section "[http://www.publiclegaled.bc.ca/societies/reviewing-your-societys-existing-bylaws/ Reviewing your society's existing bylaws]" discusses options in conducting a bylaw review and key clauses to consider in the review. | As well, the new Act presents opportunities for societies to adopt bylaw changes in areas where the new law offers increased flexibility. The section "[http://www.publiclegaled.bc.ca/societies/reviewing-your-societys-existing-bylaws/ Reviewing your society's existing bylaws]" discusses options in conducting a bylaw review and key clauses to consider in the review. | ||
{| | {{PLSTipsbox | ||
| text = One option available to societies in transitioning under the new ''Societies Act'' is to adopt a new set of bylaws entirely. The new set could be the model bylaws found in [http://www.canlii.org/en/bc/laws/regu/bc-reg-216-2015/latest/bc-reg-216-2015.html#Schedule_1__24312 Schedule 1 of the Societies Regulation], with or without amendments. These model bylaws contain basic clauses that align with the new Act. See the section on "Reviewing your existing bylaws" for more on the [http://www.publiclegaled.bc.ca/societies/reviewing-your-societys-existing-bylaws/#model model bylaws]. | |||
}} | |||
== You need to decide whether to become a member-funded society == | == You need to decide whether to become a member-funded society == | ||
| Line 97: | Line 95: | ||
As well, member-funded societies have more flexibility in their governance structure and can distribute their assets to their members on dissolution. | As well, member-funded societies have more flexibility in their governance structure and can distribute their assets to their members on dissolution. | ||
{| | {| | ||
|- | |- | ||
| '''Item''' | | '''Item''' | ||
| '''Member-funded society''' | | '''Member-funded society''' | ||
| '''Other societies''' | | '''Other societies''' | ||
|- | |- | ||
| '''Number of directors''' | | '''Number of directors''' | ||
| 1 director is sufficient | | 1 director is sufficient | ||
| At least 3 directors | | At least 3 directors | ||
|- | |- | ||
| '''Residency of directors''' | | '''Residency of directors''' | ||
| No residency requirement | | No residency requirement | ||
| 1 director must be resident in BC | | 1 director must be resident in BC | ||
|- | |- | ||
| '''Composition of board of directors''' | | '''Composition of board of directors''' | ||
| No restrictions on number of directors employed or contracted by society | | No restrictions on number of directors employed or contracted by society | ||
| Majority of directors must not be employed or under contract with society (effective in 2018) | | Majority of directors must not be employed or under contract with society (effective in 2018) | ||
|- | |- | ||
| '''Distribution of assets on dissolution''' | | '''Distribution of assets on dissolution''' | ||
| Assets can go to members | | Assets can go to members | ||
| Assets can only go to certain types of qualifying societies or registered charities | | Assets can only go to certain types of qualifying societies or registered charities | ||
|- | |- | ||
| '''Conversion to a company''' | | '''Conversion to a company''' | ||
| Can be converted to a company | | Can be converted to a company | ||
| Line 137: | Line 135: | ||
If a society decides that it meets the two-part qualification test and is eligible to be a member-funded society, it must determine whether or not it wishes to be designated as one. A significant issue is that a member-funded society '''cannot be a registered charity'''. | If a society decides that it meets the two-part qualification test and is eligible to be a member-funded society, it must determine whether or not it wishes to be designated as one. A significant issue is that a member-funded society '''cannot be a registered charity'''. | ||
{| | {{PLSTipsbox | ||
| text = Use the [http://www.cra-arc.gc.ca/chrts-gvng/lstngs/menu-eng.html Charities Listings search] to find organizations that are or have been registered as a charity with the Canada Revenue Agency. | |||
}} | |||
Other issues to consider include: | Other issues to consider include: | ||
