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Difference between revisions of "Transition (Societies Act FAQs)"
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Transition (Societies Act FAQs) (view source)
Revision as of 18:26, 13 May 2021
, 18:26, 13 May 2021→Overview of the Societies Act
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*Every non-profit in BC will have two years to electronically file a transition application consisting of their constitution, bylaws, a statement of directors and their registered office, all as they existed before the new Act comes into force. | *Every non-profit in BC will have two years to electronically file a transition application consisting of their constitution, bylaws, a statement of directors and their registered office, all as they existed before the new Act comes into force. | ||
*It is important that every non-profit ensure that the statement of directors and their registered office is up to date prior to transitioning. | *It is important that every non-profit ensure that the statement of directors and their registered office is up to date prior to transitioning. | ||
*If a non-profit’s information is incorrect at the time of transition, the non-profit will be required to make a separate filing after their transition is complete | *If a non-profit’s information is incorrect at the time of transition, the non-profit will be required to make a separate filing after their transition is complete. | ||
*It is also important that all annual reports are up to date in the annual reporting filings. Any non-profit whose annual reports are not up to date will not be able to transition. | *It is also important that all annual reports are up to date in the annual reporting filings. Any non-profit whose annual reports are not up to date will not be able to transition. | ||
*This transition application will require non-profits to make changes to their current constitution and bylaws, as well as re-file those documents in electronic format with the Corporate Registry. | *This transition application will require non-profits to make changes to their current constitution and bylaws, as well as re-file those documents in electronic format with the Corporate Registry. | ||
*Major change to the constitution is to remove any provisions outside the name and purposes of the non-profit | *Major change to the constitution is to remove any provisions outside the name and purposes of the non-profit. | ||
*Special provisions will now have to be moved to the bylaws | *Special provisions will now have to be moved to the bylaws | ||
*To make these changes, a non-profit will not be required to pass a special resolution at their AGM. Non-profits will be permitted to move these provisions for the transition application | *To make these changes, a non-profit will not be required to pass a special resolution at their AGM. Non-profits will be permitted to move these provisions for the transition application. | ||
*When moving unalterable provisions out of the constitution, these provisions must be identified as "previously unalterable." Once a non-profit has transitioned, these unalterables can be changed by following the new Act's bylaw amendment procedures. | *When moving unalterable provisions out of the constitution, these provisions must be identified as "previously unalterable." Once a non-profit has transitioned, these unalterables can be changed by following the new Act's bylaw amendment procedures. | ||
*Non-profits should be wary of adopting the new Model Bylaws provided in Schedule 1 of the new Act without considering its implications and possible modifications. | *Non-profits should be wary of adopting the new Model Bylaws provided in Schedule 1 of the new Act without considering its implications and possible modifications. | ||
*It is not necessary to adopt the new Model Bylaws | *It is not necessary to adopt the new Model Bylaws. | ||
*There are many differences from the old Schedule B Bylaws that could cause issues for certain non-profits. | *There are many differences from the old Schedule B Bylaws that could cause issues for certain non-profits. | ||
*For example, the quorum requirement in the Model Bylaws is 3 members or 10% of the membership, whichever is greater. For non-profits with a large membership base, this could be very problematic. As the new Act only requires 3 members for quorum, we recommend reading the new Model Bylaws carefully before adopting, and making necessary changes. | *For example, the quorum requirement in the Model Bylaws is 3 members or 10% of the membership, whichever is greater. For non-profits with a large membership base, this could be very problematic. As the new Act only requires 3 members for quorum, we recommend reading the new Model Bylaws carefully before adopting, and making necessary changes. | ||