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Difference between revisions of "How to Dissolve a Non-Profit (Societies Act FAQs)"
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How to Dissolve a Non-Profit (Societies Act FAQs) (view source)
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===How do I dissolve a non-profit society?=== | ===How do I dissolve a non-profit society?=== | ||
Most dissolutions will happen voluntarily, at the request of the members. In order to dissolve, the following steps must be taken: | Most dissolutions will happen voluntarily, at the request of the members. In order to dissolve, the following steps must be taken: | ||
====Step One: Pass an Ordinary Resolution==== | |||
The non-profit’s members must pass an ordinary resolution at a members’ meeting (AGM or SGM) empowering the board to seek dissolution from the registry as soon as it is practical or at a certain date. If the bylaws do not specify the qualified recipient of the non-profit’s remaining assets upon dissolution, the members may also pass a resolution specifying the qualified recipient at this meeting. | |||
An example dissolution resolution | An example dissolution resolution could read: | ||
<blockquote>''Be it resolved that the board is empowered to seek dissolution of the society from the registry as soon as is practical.''</blockquote> | <blockquote>''Be it resolved that the board is empowered to seek dissolution of the society from the registry as soon as is practical.''</blockquote> | ||
====Step Two: Pay the Non-Profit's Liabilities==== | |||
Once the members’ ordinary resolution has been passed, the directors must pay or make arrangements to pay all the non-profit’s liabilities. | |||
====Step Three: Distribute Remaining Assets to Qualified Recipient==== | |||
After the liabilities have been paid, any remaining assets must be distributed to the qualified recipient listed in the non-profit’s bylaws. If the non-profit’s bylaws do not specify the qualified recipient, the remaining assets must be disbursed to a qualified resolution specified by a resolution of the members. If a resolution of the members is not possible, a resolution of the directors specifying the qualified recipient will suffice. | |||
====Step Four: Submit a Dissolution Request to the Registrar==== | |||
Once arrangements have been made to settle the non-profit’s liabilities and disburse the non-profit’s remaining assets, the directors must submit a request for dissolution to the Registrar. With the request for dissolution, the directors must provide a copy of the members’ ordinary resolution authorizing dissolution. The directors must also provide an affidavit sworn by at least two directors (or sworn by one director if there is only one director), declaring that to the best of their knowledge, the non-profit has no liabilities or has made adequate arrangements for the payment of the non-profit’s liabilities and that the remaining assets of the non-profit, if any, have been disbursed to the qualified recipient. | |||
===What is a qualified recipient?=== | ===What is a qualified recipient?=== | ||
