What Are the Key Changes to the Societies Act in British Columbia?

The Societies Act in British Columbia has undergone important changes that affect how charities and nonprofits operate in the province. These updates focus on improving transparency, governance, and flexibility for societies.

Key changes include new rules on membership structure, more detailed financial reporting, strengthened board responsibilities, and updated procedures for dissolution and fundraising.

We need to understand these amendments because they impact our legal obligations and daily operations. Organizations now have clearer guidelines on governance and must be more open with financial information.

This gives us a chance to improve accountability and build trust with members and the public.

Staying compliant with the updated Societies Act means reviewing our articles of incorporation and fundraising practices. We also need to ensure our boards follow the new requirements and that our societies follow the proper steps if dissolving.

Understanding these changes helps us run our organizations smoothly and within the law.

Overview of the Recent Amendments

The recent changes to the Societies Act in British Columbia bring updates on when the new rules apply, why these updates were made, and how they affect societies across the province. These points help us understand what steps are needed to comply and how society operations will shift moving forward.

Implementation Timeline

The amendments to the British Columbia Societies Act were introduced in stages. The first set started with Bill 19 in 2021.

Most important changes came into effect on May 4, 2023. This staged approach gave societies time to prepare for the new rules.

We have deadlines to meet, especially for updating documents like our articles of incorporation and bylaws. Timely compliance is critical to avoid legal issues.

The phased rollout allowed societies to adapt governance structures, membership rules, and financial reporting requirements gradually. This meant changes did not happen all at once.

These timelines mean we must prioritize reviewing internal policies soon. Knowing when specific amendments—such as membership flexibility or enhanced financial reporting—became mandatory is key to staying compliant.

Purpose of Legislative Updates

The main goal of updating the British Columbia Societies Act is to improve clarity, transparency, and accountability for societies. The previous law left some gaps and unclear points that created confusion for members and boards.

The amendments aim to streamline how societies operate by offering more flexible approaches to membership and governance. Societies may now choose to operate without members if that suits their structure better.

Greater financial transparency is another goal. Societies must now submit more detailed reports to the government, which must be accessible to the public.

This requirement builds trust with supporters and regulators by showing responsible management of funds. The changes also empower government oversight.

The registrar now has expanded authority to enforce compliance. Societies must be diligent in following the new rules to avoid penalties.

Impact on British Columbia Societies

The updated Societies Act affects nearly all British Columbia societies—especially charities and nonprofits. Membership rules have become more flexible, which can simplify governance or change how decisions are made if member participation was previously required.

Our boards of directors now have clearer duties. The law strengthens their role in financial oversight and organizational governance.

Board meetings and decision records must meet higher transparency standards. Financial reporting is more rigorous.

Societies must maintain accurate accounting and provide public access to reports. Fundraising practices have tighter controls requiring secure handling of donor information.

Changing how societies dissolve makes ending operations more structured. This ensures assets are distributed properly and creditors notified.

We need to review bylaws, update corporate records, and consult legal experts to adjust for these changes. The amendments demand ongoing attention but also aim to support stronger, more transparent societies.

Governance and Director Requirements

We must understand the updated rules for directors and senior managers under the Societies Act in British Columbia. These changes affect who can serve, how directors vote, and how long their terms last.

This ensures clearer governance and stronger accountability within societies.

Director Qualifications and Capacity

Directors and senior managers must meet certain qualifications under the new rules. Individuals previously deemed incapable of managing their affairs by a court may now be eligible to serve if the court later finds them capable.

This adjustment provides greater flexibility in board appointments.

We must also consider conflicts of interest. Directors or senior managers involved in conflicts don’t have to leave meetings if another director or more of them request their presence, as allowed by society bylaws.

This change supports smoother board operations while maintaining transparency.

Proxy Voting Limitations

Directors can no longer vote by proxy or through an alternate director. Even if society bylaws allow proxy or alternate voting, these provisions are now invalid.

All directors must vote in person or through unanimous written consent outside of meetings.

Member voting by proxy is still possible but only if society bylaws explicitly permit it. This restricts proxy use and ensures that voting is more directly controlled by members and directors.

We should review our bylaws to align with these rules.

Director Term Clarifications

A director’s term now officially ends immediately after the society’s next annual general meeting, unless the society bylaws say otherwise. This provides a clearer timeline for board turnover.

Boards can pass written resolutions signed by all directors, reducing the need for formal meetings on certain decisions. This allows us to act more efficiently while still adhering to governance rules.

It’s important to check our bylaws to see if they enable this practice.

Changes to Member Rights and Meetings

We need to be aware of key updates affecting how members participate in our societies. These changes impact voting rules, the way members receive notice of meetings, and how members can make proposals or request meetings.

Understanding these details helps us stay compliant and better participate in society governance.

Voting and Proxy Provisions for Members

Members can only vote by proxy if the society’s bylaws expressly allow it. This means proxy voting is not automatically permitted.

We must review our bylaws to confirm whether proxy voting is an option. If it is not in the bylaws, members cannot use proxies to vote at meetings.

Only minutes from formal general meetings must be kept now. Informal member meetings do not require record keeping.

This reduces administrative work but ensures records of important decisions are maintained.

General Meeting Notice Requirements

The way societies notify members about meetings has changed for those with 100 or more members. Notices can now be sent by email, published in a newspaper, or posted on the society’s website—if the bylaws permit it.

Notices must be in writing and include the meeting’s date, time, location, and any special resolutions to be discussed. If the meeting is electronic, the notice must also include instructions on how to attend and vote.

This ensures all members know how to participate effectively.

Expanded Member Proposals and Meeting Requisitions

Members can now submit proposals and requisitions up to 500 words, increased from 200 words. This gives members more space to clearly state their concerns or suggestions.

Proposals must include any special resolutions related to the topic. Members who submit a proposal are entitled to present it in person at the annual general meeting.

A proposal does not have to be considered if the same issue was dealt with at a recent meeting. This prevents repetition and focuses discussions on new topics.

Enhanced Record Keeping and Transparency

We must keep accurate and clear records to meet the new requirements. This includes limiting access to certain registers, updating director information promptly, and maintaining comprehensive corporate records.

These steps improve how we manage member and director data.

Register of Members Limitations and Access

The amendments tighten who can see the register of members. Only certain people or groups, such as members themselves or authorized officials, have the right to inspect this register.

We need to protect member privacy by restricting public access. Societies must keep the register secure and only share it with those who have a lawful right to view it.

The register must include up-to-date contact details and membership status. We should avoid disclosing information unnecessarily.

This change helps prevent misuse of member information.

Register of Directors Updates

We are required to keep the register of directors current. This means reporting changes quickly, including new directors joining or others leaving.

The register must show each director’s full name, contact information, and the dates they started or ended their service. Accuracy here is crucial for accountability.

We need to make sure this register is available for inspection by members and certain government bodies. We must still protect personal data as required by law.

Corporate Record Maintenance Obligations

It is now clearer what records societies must keep. We must maintain detailed minutes of meetings, financial reports, and all key governance documents.

These records must be kept at the society's registered office or another approved place. They should be organized and easy to access when needed for audits or inspections.

The role of the record keeper has become more defined. Someone must update and safeguard these documents.

This improves overall transparency and compliance with the act.

Disclosure and Financial Reporting

We must follow new rules that require more detail in our financial records and make key information easier to access. This means sharing clear data about payments to employees and contractors, and ensuring financial statements are available to the public when asked.

Disclosure of Employee and Contractor Remuneration

We are now required to disclose the amount paid to all employees, contractors, and directors. This includes salaries, wages, bonuses, and any other form of compensation.

The goal is to increase transparency around how public funds and donations are used.

Remuneration details must be included in our financial statements. This helps donors and the public understand how resources are allocated.

Keeping accurate records and reporting this information clearly is essential to comply with the updated Societies Act.

Financial Statement Accessibility

Under the updated rules, our financial statements must be made available to the public on request. This includes detailed income statements and balance sheets that reflect our financial position.

We must maintain proper documentation and ensure these reports are easy to access. Making financial statements accessible demonstrates accountability and builds trust with stakeholders, including donors, members, and government agencies.

Our financial reporting processes need to be reliable and transparent at all times.

Changes for Member-Funded Societies

We see important updates that adjust how member-funded societies handle specific gifts and protect their funding status. These changes allow societies more flexibility while maintaining clear rules for governance and transparency.

Testamentary Gifts and Dispositions

Member-funded societies can now receive testamentary gifts without risking their funding status. A testamentary gift is a transfer of property or money made through a will after a person’s death.

This update lets us accept these gifts from current or former society members, directors, senior managers, employees, or their relatives. Previously, receiving such gifts could jeopardize government funding.

Now this risk is removed, offering societies more opportunities for support.

This change helps societies plan better for the future by welcoming these gifts without fear of losing their member-funded status.

Status Protection Requirements

Member-funded societies are treated differently from charities or publicly-funded societies. To maintain their member-funded status, we must follow specific rules about funding sources and governance.

This status means less strict governance rules compared to other types.

The updated Act clarifies these rules and protects societies from losing their status if they accept certain types of support, like testamentary gifts. It ensures that societies remain independent and funded mainly by their members.

This safeguards what makes them unique under the law.

These requirements help societies balance open funding options while keeping control over their operations and compliance with the Act.

Practical Compliance Steps for Your Organization

If you are running a charity or nonprofit in British Columbia, it’s essential to stay updated on the laws that govern your organization. The Societies Act, which regulates societies (including charities and nonprofits) in BC, has undergone significant amendments. These changes affect the way organizations operate, their governance, and how they interact with the provincial government. Understanding these updates can ensure your organization remains compliant and avoids potential legal issues. In this article, we will break down the key changes to the Societies Act, highlighting how they affect charities and nonprofits in BC.

1. Changes to the Membership Rules

One of the most notable updates to the Societies Act involves changes to membership rules. Previously, societies were required to have members in order to be legally recognized. Now, organizations have more flexibility. While many societies still require membership, some may choose to operate without members.

For charities and nonprofits, this change allows greater flexibility in governance. For example, some organizations might find it easier to transition to a more streamlined structure, reducing the complexity of maintaining a membership base. However, if your charity or nonprofit relies on member participation for decision-making, this change may impact your operations.

2. Increased Transparency for Financial Reporting

The amended Societies Act places a stronger emphasis on financial transparency. Societies are now required to submit more detailed financial reports, including income statements and balance sheets, to the BC government. These reports must be available to the public upon request.

This increase in transparency is a positive step for accountability. Charities and nonprofits will need to ensure that their financial records are well-maintained and accessible to the public. While this may require additional effort in terms of accounting and reporting, it also demonstrates your organization’s commitment to transparency. It could also build trust with donors, volunteers, and the general public.

3. Board of Directors and Governance Changes

The amendments to the Societies Act introduce new provisions regarding the governance of societies, particularly regarding the board of directors. These changes aim to strengthen the role of the board in overseeing the organization’s activities.

Charities and nonprofits will need to review their governance practices. The amendments clarify the roles and responsibilities of board members, including ensuring proper oversight of the organization’s operations and financial health. This is an opportunity for charities and nonprofits to update their bylaws and ensure that board members are well-trained and informed.

Organizations should also ensure that board meetings are well-documented and that decision-making processes are transparent and in compliance with the new rules.

4. Changes to the Articles of Incorporation

Another important change under the Societies Act is the requirement for societies to update their articles of incorporation. The amendments make it clearer what information must be included in the articles and how they must be filed with the government.

For existing charities and nonprofits, this means reviewing your articles of incorporation to ensure they comply with the updated requirements. The articles must include key information about the organization’s purpose, governance structure, and membership (if applicable). Failure to update your articles could result in non-compliance, so it’s essential to take this step promptly.

5. Changes to Dissolution Procedures

The dissolution of a society has become more structured under the amended Societies Act. Societies must now follow specific procedures when dissolving, including notifying creditors and the BC government. In addition, any remaining assets must be distributed in accordance with the organization’s purpose.

For charities and nonprofits that may be considering dissolution, it is important to understand the new procedures. These changes aim to ensure that societies are dissolved in a transparent and fair manner. If your charity or nonprofit is considering dissolution, consulting with legal experts is essential to ensure that you follow the correct steps and comply with the law.

6. New Rules on Fundraising and Donations

The updated Societies Act also introduces new provisions related to fundraising and donations. These provisions include stricter rules regarding how societies can solicit donations and how funds must be handled.

Charities and nonprofits will need to ensure that their fundraising practices comply with the new rules. This may involve updating donation forms, revising fundraising strategies, and ensuring that donor information is handled securely. Organizations that rely on donations should be proactive in reviewing their fundraising processes and ensuring they align with the updated legal framework.

7. Expanded Powers of the Registrar

Under the new amendments, the registrar has been given more authority to oversee societies and enforce compliance with the Societies Act. This includes the ability to investigate potential breaches of the law and take enforcement actions when necessary.

While this change strengthens the ability of the government to ensure compliance, it also places more responsibility on charities and nonprofits to adhere to the rules. Organizations must stay informed about the legal requirements and ensure they are always operating within the scope of the law. The amendments to the Societies Act represent significant changes for charities and nonprofits in British Columbia. From membership rules to financial reporting, governance, and dissolution procedures, the updates aim to provide clearer, more transparent guidelines for organizations operating in the province.

To ensure your charity or nonprofit is fully compliant with the new rules, it’s recommended to consult with a Vancouver Charity Lawyer or British Columbia Nonprofit Lawyer. Staying on top of these changes will help protect your organization from legal issues and ensure it remains focused on its mission. By taking the necessary steps to comply with the amended Societies Act, you will not only strengthen your operations but also foster trust with your stakeholders.

Conclusion

If you manage a charity or nonprofit in British Columbia, staying up to date with the changes to the Societies Act is crucial. These amendments affect membership, financial reporting, governance, and more.

It’s important to make sure your organization complies with the new rules.

We invite you to contact B.I.G. Charity Law Group for guidance tailored to your needs. Reach us at dov.goldberg@charitylawgroup.ca or call 416-488-5888.

Visit CharityLawGroup.ca to learn more and schedule a FREE consultation to discuss your specific situation.

Taking steps now helps protect your organization’s future and maintain trust with donors, volunteers, and stakeholders. Let us help you navigate these updates with confidence and clarity.

Frequently Asked Questions

We address common questions related to the Societies Act and other laws that affect organizations in British Columbia. This includes understanding the purpose of the Societies Act, how to make changes to bylaws, and explanations of important terms like special resolution.

What are the proposed changes to the BC Land Act?

The BC Land Act governs land use and management. Proposed changes typically focus on updating land tenure rules and clarifying responsibilities for landowners and users.

These updates aim to improve land administration but are separate from the Societies Act.

What is the Societies Act in BC?

The Societies Act sets the rules for creating and running nonprofit groups in British Columbia. It covers membership, governance, and financial reporting.

The Act aims to ensure transparency and accountability for societies.

What are the social issues in British Columbia?

Social issues in BC include affordable housing, poverty, mental health, and Indigenous rights. Nonprofits and societies often work in these areas.

They must follow the Societies Act to maintain proper governance and legal compliance.

How do I change my society bylaws in BC?

To change society bylaws, members usually pass a special resolution during a meeting. After the meeting, the society files the amended bylaws with the BC Registrar of Societies.

We must follow specific steps to stay legally compliant.

How do you change strata bylaws in BC?

Strata bylaw changes require a 3/4 vote from owners in a general meeting. Some restrictions need a unanimous vote.

Strata changes must be filed with the Land Title Office. Strata rules differ from society bylaws but also include clear voting requirements.

What is a special resolution in the BC Societies Act?

A special resolution is a decision that at least two-thirds of members must approve at a meeting.

Members use special resolutions for significant changes, such as amending bylaws or dissolving the society.

This process ensures members strongly support major decisions.