Information about legal compliance Societies Act for non-profits in British Columbia.
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Is it active ?
Yes
General Meeting
A general meeting is when members meet to discuss topics consequential to the overall direction of the non-profit. However, general meetings are not any meeting where members are present. The meeting must have been called for the stated purpose of holding a general meeting, and the notice requirements in section 77 of the Societies Act must be met.
Is your non-profit required to have an audit?
An audit is when your financial statements are reviewed by a third party to ensure they fairly and accurately represent the non-profit’s finances.
Audits are intended to help non-profits detect fraud.
Do your non-profit's financial statements disclose how much the non-profit remunerates its directors?
If a non-profit pays its directors for being a director (e.g. wages, honoraria, meeting fee), then the financial statements must disclose the amount. Directors cannot be remunerated unless the bylaws allow.
If the director is paid for services to the non-profit other than being a director, that also needs to be disclosed.
The non-profit can cover a director's expenses caused by being a director, such as travel to a meeting. That is considered reimbursement, not remuneration.
Does your non-profit know how to read financial statements?
Financial statements are a broad overview of the non-profit’s financial position, presented for member approval at each AGM.
Financial statements generally include four documents:
- Income Statement
- Balance Sheet (Statement of Financial Position)
- Statement of Cash Flows
- Equity Statement (Statement of Retained Earnings)
Does your non-profit file its Annual Report after every AGM?
An Annual Report states the date your non-profit held its Annual General Meeting.
Your non-profit must file an Annual Report every year, within 30 days after its AGM is held.
If your non-profit fails to file an Annual Report two years in a row, the Registrar may take steps to dissolve the non-profit.
Your non-profit must file an Annual Report through Societies Online. The fee for filing an Annual Report is $40.
Do your non-profit's bylaws require the use of Robert’s Rules of Order at meetings of members?
Robert's Rules of Order are a very popular set of rules for running meetings. If you've been at a meeting run by a chairperson that had moving, seconding, motions, and majority-rule votes, it's quite likely that meeting was run by Robert's Rules or a modified/simplified version of Robert's Rules.
If your non-profit's bylaws use the word “may” rather than “shall”, then your non-profit has more discretion on how to run the meeting. Most non-profits do not need to follow Robert’s Rules to have a productive meeting.
Does your non-profit's bylaws allow it to hold electronic meetings of members?
Electronic meetings are meetings where members use technology to participate in the meeting without being present in-person.
This includes telephone, internet video calls, and other methods of communication that allow all members to fully participate in the business of the meeting. Email, on the other hand, does not allow full participation.
Does your non-profit keep track of which members are eligible to vote at AGMs?
Your non-profit's bylaws may state that members are only eligible to vote when certain conditions are met.
For example, people usually aren’t allowed to vote if their membership has expired. Some non-profits only let members vote if they’ve been members for at least 30 days, are in good standing, or have paid membership dues.
If your non-profit has more than one class of members, it must have at least one class that is voting members.
Do your non-profit's bylaws allow notice of its AGM be given personally, by letter mail, and by email?
The best way to send AGM notices is the method that will be easy, flexible, and convenient.
For most non-profits, the most convenient method is email. However, your non-profit should give itself multiple options for more flexibility.
For non-profits with more than 250 members, it is also permitted (and may be easier) to post the AGM notice on its website. The best practice is to send an email and post on the website.