Nov 2018 Charity & NFP Law Update
Charities and other not-for-profit corporations incorporated under the Ontario Corporations Act (the “Act”) are reminded that as of December 10, 2018 they are required to keep at their head office a register of their ownership interests in real property in Ontario. According to subsection 300.1(2) of the Act, the register must identify each property and show the date it was acquired and, if applicable, the date it was disposed of. Subsection 300.1(3) of the Act requires the following supporting documents to be kept with the register: a copy of any deeds, transfers or similar documents that contain certain information with respect to each property listed in the register, including the municipal address, if any; the registry or land titles division and the property identifier number (PIN); the legal description; and the assessment roll number, if any.
The register must be available for inspection during normal business hours by the members of the corporation and by creditors or their agents or legal representatives and any of them may make extracts therefrom.
These new provisions in the Act were made pursuant to the Forfeited Corporate Property Act, which came into effect on December 10, 2016. They were made to assist the Crown in locating land that reverts to the Crown if a corporation is dissolved while owning land. Corporations are expected to be compliant with these new provisions by December 10, 2018, failing which they and their directors and officers could face fines.