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•Under the ONCA,
the derivative action is not available
as a remedy in the case of a “religious corporation”
•However, the
ONCA does not require that the director’s
decision be based on a tenet of faith held by the members and that it was reasonable to base such a decision on a tenet of faith
•Therefore, it
appears that the ability of directors to rely
on the “religious corporation” exemption for derivative actions under the ONCA is not as onerous as under the CNCA
•Neither the
CNCA nor the ONCA provide a definition for
“religious corporation” so it remains to be seen how this section will be interpreted
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