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–In contrast, Canada
Not-for-Profit Corporations Act (“CNCA”)
and Ontario Not-for-Profit Corporations Act (“ONCA”) will mirror the
objective standard provided for under the
CBCA and OBCA
–As such, like most business corporate
statutes, the CNCA and ONCA set out
this objective standard as the duty to
exercise the “care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances”
§Known as the
“Business Judgment Rule”, the rule
protects directors and senior officers against hindsight and second guessing by creditors and other stakeholders
§i.e. The court
will defer to the expertise of the directors
and will not interfere with reasonable business
decisions
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