Federal not-for-profit corporations can now be dissolved without notice if flagged as a listed terrorist entity

Plain-language summary · AI-assisted · not legal advice

The Canada Not-for-profit Corporations Act has been amended to allow the federal Director to dissolve a not-for-profit corporation immediately—without the usual advance notice to the corporation or its directors, and without waiting for a prescribed period—if the Minister of Public Safety and Emergency Preparedness notifies the Director that the corporation is a "listed entity" under the Criminal Code's terrorism financing provisions. All other grounds for Director-initiated dissolution (e.g., inactivity, missing filings, lack of directors) continue to require prior notice and publication before a dissolution certificate is issued. Not-for-profit corporations should be aware that this new ground bypasses the procedural safeguards that apply in every other dissolution scenario. Organizations that believe they may be incorrectly listed should seek legal advice promptly, as dissolution can proceed without warning.

Who this affects: federally incorporated not-for-profit corporations · directors of not-for-profit corporations · organizations subject to Criminal Code listed-entity designation · compliance officers at not-for-profit organizations