www.carters.ca
www.charitylaw.ca
3.Common
Law Override with Regards to Charities
•Notwithstanding
what is set out in corporate legislation, charitable corporations are subject to a common law override
•At common law,
directors of charities are akin to trustees of
charitable property and therefore cannot receive
any benefit from the charity without court approval
•As such, simply
disclosing a conflict of interest and not voting is not enough
•If the charity
is going to proceed with a proposed arrangement
with a director, then the director would need
to resign
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