Industry Canada released draft regulations for the the new Federal non-profit act.

There is a “Notice from the Director” which gives some context to the problems that the draft regulations are hoping to address.

The CCA has not substantially changed since 1917. It is antiquated and lacks modern corporate governance rules. Its financial disclosure provisions are weak, the duties and responsibilities of directors are ill defined, it does not provide a proper defence against liability, and the ability of members to scrutinize the activities of the corporation is limited. Several issues, including remedies and internal governance, are not addressed directly in the Act, but through administrative policies established by Corporations Canada

In response, An Act respecting not-for-profit corporations and certain other corporations (Bill C-4), which received Royal Assent June 23, 2009, will create the Canada Not-for-profit Corporations Act (NFP Act) to address the issues identified above with respect to the CCA. The new NFP Act contains leading edge provisions and will be modern framework legislation. These proposed regulations are needed in order to bring the NFP Act into force.

The rest of the overview is equally to-the-point. It’s brief and interesting to read. I’m looking forward to finding out about any weak points from voices in the sector.

There is a consultation process on the proposed regulations. Comments are due by October 1, 2010.