www.carters.ca
www.charitylaw.ca
3.Derivative
Action
•The NFP
legislation allows for a complainant to apply to the court for an order granting them leave to bring an action in the name of and on behalf of the corporation or any of its subsidiaries, or to intervene in an action for the purpose of prosecuting, defending or discontinuing the action on its behalf
•Under both
Acts, complainants have to give at least 14 days notice to the directors of their intention to apply to the court and be acting in good faith, and it must be in the interests of the corporation that the action be brought, prosecuted, defended or discontinued
•Both Acts also
provide that leave may not be granted if the
corporation is a “religious corporation” (see below)
18