Corporate Registry

Societies - Frequently Asked Questions

What are the advantages of incorporating a society?

  • The individuals who are involved in the corporation are not normally responsible for the legal and financial obligations of the corporation. (There are exceptions to this general rule.)
  • The corporation can own property in its corporate name. Should the membership of the corporation change, the legal ownership of the property lies with the corporation.
  • The corporation can start a legal action under its corporate name which is separate and apart from its members.
  • If an organization requires funding, some federal, territorial or private funding agencies require that it be incorporated.
  • The existence of a corporation does not depend on the continued involvement of its individual members or directors. The corporation exists until it is formally dissolved.

What are the disadvantages of incorporating a society?

  • It is more expensive to incorporate.
  • It is more complex to operate. There is more of an administrative burden in that, for example, an auditor may have to be appointed, and financial statements and notice of directors are required to be filed annually by all societies.
  • It is more expensive to operate.

Why do organizations incorporate?

  • To have a formal structure under which to operate;
  • To hold title to land;
  • To qualify for grants or funding;
  • To apply for a bingo or lottery license; and
  • To limit the personal liability of members.

Do I have to hire an accountant or lawyer to incorporate?

The Corporate Registry cannot provide advice about whether you should incorporate or what type of non-profit corporation would be best for you. You should contact a lawyer to discuss your legal concerns or an accountant to discuss your financial concerns.

I have been asked to be a director of a society.  Would I be personally responsible for any debts or liabilities of the society?

Click this link for a publication which provides some useful insights and outlines the rights, duties and practices to be followed by directors.

I have resigned as a director, but the society has not filed a notice of the change with the Registrar of Societies.  How can this change be made on the Registrar's records?

The change cannot be made on the Registrar's records until a new Notice of Directors is received from the Society.  However, if you submit a letter to the Registry notifying us of your resignation from the society, it will be placed on file.

 

How do I Dissolve a Society

Please refer to our Dissolution of a Society forms and Instructions.

If you have any concerns or comments about this publication, please contact Donn MacDougall, Registrar of Societies.