www.carters.ca
www.charitylaw.ca
F.STATUTORY LIABILITIES
1.Liability
for Improper Payments to Members, Directors and Officers
•Directors who
vote for or consent to a resolution authorizing
a payment or distribution to a member, director
or officer or a payment of an indemnity contrary
to the act, are jointly and severally liable to restore any money or other property to the corporation
•If a director
satisfied a judgment, that director is entitled
to recover from the other directors who also voted for or consented to the unlawful act
•While both the
CNCA and ONCA provide the authority for
directors to fix the remuneration of directors, officers and employees, this is in contradiction to the common law which prohibits the payment of remuneration or other benefits to directors of charities for all services, unless court approval is first obtained
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