not-for-profit membership fees

[interlug-list]

On Fri, 2005-07-08 at 12:41, Chris F.A. Johnson wrote:
> On Fri, 8 Jul 2005 billt-lxSQFCZeNF4 at public.gmane.org wrote:
> 
> >  5) I would like to point out to everyone that you all live in
> > Canada, and any official organization in Canada who claims to have
> > members MUST have a non-zero membership fee, collected at least once
> > a year. You can complain about it to your member of parliament if
> > you don't like this arrangement.
> 
>      This is not true. The Toronto Free-Net, for example, is
>      incorporated as a not-for-profit corporation, and charges no
>      membership dues; in fact, its by-laws prohibit any such dues.

I asked a law student about the apparent conflict in the two above
quotes.  Perhaps billt you can clarify if there is a specific statute
that you refer to when mentioning 'official organization.'  Here is what
I got as a reply.  

"I had a look at the Canadian and Ontario Corporations Acts and
Regulations and found them essentially similar on the matter of
not-for-profit corporations generally.  

See:  
 
http://www.attorneygeneral.jus.gov.on.ca/english/family/pgt/nfpinc/default.asp 
 
for a general guideline of setting up a not for profit corporation in
Ontario, which appears to be the guiding area for a local organization. 
The relevant statute is the Ontario Corporations Act, part III: 
 
http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/90c38_e.htm 
 
Nothing in the Corporations Act demands that a membership fee must be
charged, or that if charged, it must be a "non zero" amount. 
 
If one were setting up a non profit corporation nationally, I suspect
that the Canada Corporations Act would apply.  I could find no reference
in this statute to any requirement for membership fees of any sort.   
 
Generally with non profit corporations it appears that the by laws must 
specify how membership will be granted and withdrawn, but it does not
appear that either the provincial or federal legislation mandates forms
of membership fees."  

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