Does the New Ontario Not-For-Profit Legislation Apply to Condominium Corporations?
In October 2010 the Ontario government introduced new corporate legislation to govern not-for-profit corporations in Ontario called the Not-for-profit Corporations Act, 2010 (the “ONCA”). While the ONCA is not yet in force, we are often asked what types of corporations the ONCA will apply to. For the purposes of this post, the question is: will the ONCA apply to condominium corporations in Ontario?
The short answer is no. The ONCA will replace the Corporations Act (Ontario) and the corporations that the Corporations Act currently governs. Condominium corporations in Ontario are incorporated under and governed by the Condominium Act, 1998.
Subsection 5(3) of the Condominium Act, 1998 says specifically that the Corporations Act does not apply to condominium corporations. As a result, because the ONCA will replace the Corporations Act, the ONCA will not apply to condominium corporations.
On June 5, 2013, a bill was introduced into the Ontario legislature called the Companies Statute Law Amendment Act, 2013 (“Bill 85”). One of the purposes of Bill 85 is to make consequential amendments to Ontario legislation that includes mention of the Corporations Act. When Bill 85 receives royal assent, the pieces of Ontario legislation that are included in Bill 85 will be amended as set out in Bill 85. The Condominium Act, 1998 will be affected by Bill 85, but only to substitute reference of the ONCA in subsection 5(3) of the Condominium Act, 1998 with the current reference to the Corporations Act. Specifically, Bill 85, as currently drafted, reads as follows:
Subsection 5(3) of the Condominium Act, 1998 is amended by striking out “The Corporations Act” at the beginning and substituting “The Not-for-Profit Corporations Act, 2010”.
Condominium corporations in Ontario are governed by the Condominium Act, 1998; the corporate legislation that governs not-for-profit corporations in Ontario does not apply to condominium corporations in Ontario.
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