Difference between revisions of "Non-Profit Directors (Societies Act FAQs)"

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These requirements are not exhaustive and the bylaws of a society may set out more requirements. If a director ceases to be qualified, the director must resign promptly.
These requirements are not exhaustive and the bylaws of a society may set out more requirements. If a director ceases to be qualified, the director must resign promptly.
Every Society should start using a Consent to Act as Director form to ensure that every Director has indicated whether or not they are qualified An example can be found on the Law for Non Profits website.


==We want to have a director who is 16 or 17 years old. How do we do this?==
==We want to have a director who is 16 or 17 years old. How do we do this?==

Revision as of 15:35, 21 September 2016

What are the minimum qualifications for directors?

  1. Directors have to be at least 18 years of age.
  2. Directors cannot have been found by any court to be
    • incapable of managing their own affairs;
    • be an undischarged bankrupt; or
    • be convicted of an offence in connection with promotion, formation or management of a corporation or unincorporated entity, or of an offence involving fraud (subject to exceptions under section 44 of the new Societies Act).

These requirements are not exhaustive and the bylaws of a society may set out more requirements. If a director ceases to be qualified, the director must resign promptly.

Every Society should start using a Consent to Act as Director form to ensure that every Director has indicated whether or not they are qualified An example can be found on the Law for Non Profits website.

We want to have a director who is 16 or 17 years old. How do we do this?

Societies wishing to have a director of 16 or 17 years of age may follow the regulations in the Societies Act to do so.

What is a senior manager?

A senior manager is any individual that is appointed by the directors to exercise their authority and manage the activities or internal affairs of the society. Senior managers can be an employee, contractor or volunteer, so long as they exercise decision-making authority. Senior managers are subject to a duty to disclose conflicts of interest. If they happen to also be a director, they are subject to the same duties as directors as well.

We are a church. Can the priest/minister/pastor be a member of the Board?

People employed by or under contract with the Board of Directors can sit on a society’s board as long as the majority of the board is not employed by or under contract with the society. Any society with these practices should have a conflict of interest policy in place to guide directors.

What is the difference between a director and an officer?

A director is a person in charge of managing, or supervising the management of the activities and internal affairs of a society. Directors are elected or appointed subject to the bylaws. Officers are those directors who have specific roles under the Society Act. They are president, VP, secretary, and treasurer. They are often referred to as the executive.

Can we remunerate our directors?

Under the new Societies Act, the society is allowed to remunerate directors so long as its bylaws provide authorization for this. However, most funders do not permit directors to be remunerated.

What does remuneration mean?

Remuneration means money paid to someone for the work or service that person has done for the society.

What is a conflict of interest?

A conflict of interest is a situation in which an individual or organization is involved in multiple interests that are incompatible, where acting upon one interest could compromise another. In the legal context, this term is used to describe a situation in which a person has a duty to act in the best interests of an organization or party, yet they have other interests that conflict with that duty.

What is an ex-officio director (unofficial director)?

An ex-officio director is a person who is a director “by reason of their office” rather than by being elected or appointed to the position. This means that this person’s director position is due to their power or influence. Ex-officio directors can hold the same rights as other directors. The specific rights for ex-officio directors may vary from organization to organization, and can be clarified by writing them in the organization’s bylaws.


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