2,553
edits
Difference between revisions of "10 Changes in the New Societies Act You Should Know About"
From Clicklaw Wikibooks
10 Changes in the New Societies Act You Should Know About (view source)
Revision as of 06:13, 30 November 2016
, 06:13, 30 November 2016no edit summary
| Line 98: | Line 98: | ||
As well, societies must now keep records of any disclosures by directors or senior managers of a conflict of interest. | As well, societies must now keep records of any disclosures by directors or senior managers of a conflict of interest. | ||
==9. Changes are coming in 2018 relating to who can be a director== | |||
Changes that take effect for pre-existing societies in November 2018 affect the qualifications to be a director of a non-profit in BC. Under the new Act, a director must be at least 18 years old, unless the bylaws expressly allow directors who are age 16 or 17. If the bylaws allow directors who are age 16 or 17, the majority of the society’s directors must be age 18 or over. | |||
As well, a director of a society '''cannot''': | |||
* be declared incapable by a court, | |||
* be an undischarged bankrupt, or | |||
* have been convicted of fraud or certain other criminal offences within last 5 years (unless they received a pardon). | |||
These are ongoing requirements. If a director becomes disqualified, he or she must resign. It is an offence for a non-qualified person to act as director. | |||
'''These provisions don’t come into effect for pre-existing societies until November 28, 2018. | |||
''' | |||
==10. Changes are coming in 2018 that affect whether directors can be paid== | |||
Also coming into effect in 2018 for pre-existing societies is a provision that a society must not remunerate a director for being a director unless the bylaws expressly permit. Remuneration is money or other compensation paid for work or services performed – in this case, the work of being a director. | |||
Reimbursement of a director for reasonable expenses is permitted, unless the bylaws restrict reimbursement. | |||
Subject to the conflict of interest rules, a director can be paid to be an employee of or contractor to the society. However, at all times a majority of directors must not be getting paid as employees or contractors. | |||
Finally, another provision coming into effect in 2018 for pre-existing societies is a requirement that a director must consent to act as a director. The consent can either be by signing a written consent or by being present at a meeting where the appointment or election was made and not refusing to be a director. | |||
{{PLSTipsbox | |||
| text = Even though the requirement that a director must consent to act doesn’t come into force until 2018, many societies are introducing a consent to act form beforehand. On the form, you can also set out the qualifications for directors that come into effect in 2018, and have the director self-certify that they meet those qualifications. | |||
}} | |||
{{Transitioning an Existing Society Navbox}} | {{Transitioning an Existing Society Navbox}} | ||
