Non‐Profit Sectors
- Canada has one of the largest and most vibrant nonprofit and voluntary sectors in the world.
- It accounts for 6.8 percent of the nation's gross domestic product (GDP) and employs 12 percent of Canada's economically active population.
- With the significant role nonprofit organizations play in Canadian life and the increasing demand for accountability in nonprofit organizations, more attention is being drawn to governance issues.
Thesis: Four Points for Non‐Profit Governance
- Good faith and best interests of the corporation parallel but are not identical to the tests articulated for profit corporations;
- Non‐profits are subject to corporate criminal liability which may be an ethical blind spot;
- There are risks of being a victim of fraud but also risks of non‐compliance on a corporate level;
- Matrix risk management is essential
Thesis: Four Points for Non‐Profit Governance
- Good faith and best interests of the corporation parallel but are not identical to the tests articulated for profit corporations;
Canada Not‐for‐profit Corporations Act (S.C. 2009, c. 23)
148 (1) Every director and officer of a corporation in exercising their powers and discharging their duties shall
(a) act honestly and in good faith with a view to the best interests of the corporation; and
(a) act honestly and in good faith with a view to the best interests of the corporation; and
(2) Every director and officer of a corporation shall comply with
(a) this Act and the regulations; and
(b) the articles, the by‐laws and any unanimous member agreement.
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