Institute Intervenes on Not-for-Profit Corporations Bill

Bill 65, the Ontario government’s proposed Not-for-Profit Corporations Act, was introduced in the Legislature on  May 12, 2010. Now before the Standing Committee on Social Policy following Second Reading, this legislation is intended to “enhance corporate governance and accountability; simplify the incorporation process; give more rights to members; and better protect directors and officers from personal liability” respecting Ontario’s 46,000 not-for-profit corporations, according to the Ministry of Consumer Services.

However, a review of the legislation by Institute staff revealed several key concerns. Among them, Bill 65 would:

• constitute an additional and unnecessary layer of regulation for the profession
• impair the Institute’s ability to effectively regulate in the public interest through bylaws
• create conflicts between the public accounting standards established by the Public Accountants Council under the Public Accounting Act, 2004 and those that could be prescribed under the new not-for-profit corporations legislation
• prohibit a member of the Institute from acting as its auditor, and
• hamper the Institute’s ability to deal with cases involving professional misconduct

View the complete transcript of the Institute’s August 23 presentation to the Committee here.

The proposed legislation itself can be reviewed at http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&Intranet=&BillID=2347

The Institute awaits the Committee’s and government’s decision on how to proceed following this intervention, and we will advise members as developments warrant.

Printed on Mon, May 21, 2012 - 3:9:23 EDT
http://www.icao.on.ca/Public/Bill65/1009page11899.aspx

© 2012 Institute of Chartered Accountants of Ontario