Ontario government passes emergency order allowing virtual meetings and AGM extensions for non profits (but not for co-ops)

Courtesy of “The latest news + updates from Iler Campbell LLP”

by Claudia Pedrero

Last week the provincial government passed an emergency order giving Ontario non profits some much needed flexibility during this challenging time.

Unfortunately, this order does not extend to Ontario co operative corporations, so organizations governed by the Co operative Corporations Act need to adhere to the rules in that legislation and their by laws on when and how to hold meetings. The housing co-op world is still recommending as they did in the March 24 communique from CHFT.

The government passed an emergency order under section 7.1(2) of the Corporations Act that temporarily suspends various sections of that legislation and substitutes the following new rules that affect non profits:

Electronic members’ meetings and board meetings

The emergency order will allow Ontario non profits to hold members’ meetings and board meetings electronically (for example via conference call or video call), even if the organization’s governing documents, by laws and rules don’t explicitly allow this.

The general rule for holding meetings electronically is that all attendees need to be able to participate concurrently. In other words, people need to be able to hear each other and communicate freely.

Organizations holding meetings electronically should make sure that the platform they use is secure, especially if some of the information discussed at the meeting is confidential.