They set out the rules for governing and operating the corporation. They can be modified at a later date as the needs of the corporation change. The NFP Act contains default provisions you can choose from.
You can also choose alternative provisions or create your own by-laws using the By-law builder: not-for-profit corporations. Changing by-laws Soon after incorporation, by-laws stating the rules for governing and operating the corporation should be passed see Next steps following incorporation.
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There are two ways of amending by-laws, depending on the subject matter of the changes see the links below. By-law amendments requiring special resolutions of the members By-law amendments requiring ordinary resolutions of the members By-laws will be changed and updated over time as the needs and the organization of the corporation change.
The following are the default steps for approving by-law changes that do not require special member approval see By-law amendments requiring special resolutions of the members. If you prefer a different process, these steps can be changed in your corporation's articles, in its by-laws or in a unanimous member agreement.
Step 1 — The board of directors initiates a change to a general by-law. The effective date of this change is the date it is approved by the directors. Step 2 — The by-law change is placed on the agenda for the next meeting of members.
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Step 3 — Members confirm the by-law change or they amend it and then confirm it by ordinary resolution. Step 4 — If the members reject the by-law adopted by the directors, the by-law change ceases to have effect on the date it is rejected by the members.
Alternatively, if the directors fail to submit the by-law change to the members at the next members meeting, the by-law change ceases to have effect on the date of the members meeting at which it should have been submitted to the members. In such cases, future by-law changes that have substantially the same effect as the one rejected or not submitted will not become effective on approval of the directors.
They only become come into effect when approved by the members. Step 5 — Within 12 months of the confirmation of the by-law changes by the members, a copy of the amended by-laws must be sent to Corporations Canada.
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By-law amendments requiring special resolutions of the members The following are the steps for approving by-law datings laws regarding general that address certain matters relating to membership in the corporation which require special approval refer to the paragraph under the steps by members: Step 1 — Initiate a change to a special by-law by a member proposal or by the board of directors.
Step 2 — Members approve the change or they amend it and then confirm it by special resolution.
If the subject matter of the special by-law amendment addresses exchanging, reclassifying or cancelling all or part of the memberships of a particular class, approval of the special by-law amendment will require a separate class vote refer to section 1 of the NFP Act. In a separate class vote, members of a class who do not otherwise have the right to vote are permitted to vote separately as a class see Rights and responsibilities of members.
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Step 3 — The by-law dating laws regarding general takes effect, as approved, on the date of the member approval. Step 4 — Within 12 months of the confirmation of the by-law changes by the members, a copy of the amended by-laws must be sent to Corporations Canada. The subject matter of special by-law amendments relates to a conditions required for being a member, b the designation of any class or group of members or adding, changing or removing any rights and conditions of any such class or group, c dividing any class or group of members into.