The Federal government has prepared “Draft Legislative Proposals Regarding Time Limits and Other Periods in Circumstances Due to COVID-19“.   These proposals cover a number of different acts and provide extensions.   For charities and non-profits, for example, it affects the Canada Not-for-profit Corporations Act (“CNCA”).

If these proposals come into effect they would:

  • delay of calling a shareholders meeting (CBCA 133(1)) and members meeting (CNCA 160(1)); and
  • adjust the time frame for the annual financial statements to be presented to shareholders/members at the annual meeting (CBCA 155(1) and CNCA 172(1)).

A legislative proposal like this was always considered to be the ideal solution.   Corporations Canada had provided a simplified method for non-profits under the CNCA to request an extension of the time for providing members with financial statements and the calling of the AGM.  See our article on May 11, 2020 Corporations Canada provides simple way for non-profits and charities under the CNCA to extend time for financial disclosure and AGM. and our May 13, 2020 article on COVID-19 and AGMs for Federal non-profit corporations under the Canada Not-for-profit Corporations Act (“CNCA”)

However, the flexibility to extend these deadlines on a case by case basis in the CNCA did not even exist in some legislation.    It seems more efficient to provide a blanket extension for providing financial statements to members and holding AGMs.