Charities Accounting Act, R.S.O. 1990, c. C.10

• Jurisdiction: Ontario

Charities Accounting Act

R.S.O. 1990, chapter C.10

Consolidation Period: From November 14, 2017 to the e-Laws currency date.

Last amendment: 2017, c. 20, Sched. 2, s. 1, 2.

Notice of donation to be given to Public Guardian and Trustee

1 (1) Where, under the terms of a will or other instrument in writing, real or personal property or any right or interest in it or proceeds from it are given to or vested in a person as executor or trustee for a religious, educational, charitable or public purpose, or are to be applied by the person for any such purpose, the person shall give written notice to,

(a) the person, if any, designated in the will or other instrument as the beneficiary or as the person to receive the gift from the executor or trustee; and

(b) the Public Guardian and Trustee, in the case of an instrument other than a will. 2000, c. 26, Sched. A, s. 2 (1).

Charitable corporations, etc., brought within Act

(2) Any corporation incorporated for a religious, educational, charitable or public purpose shall be deemed to be a trustee within the meaning of this Act, its instrument of incorporation shall be deemed to be an instrument in writing within the meaning of this Act, and any real or personal property acquired by it shall be deemed to be property within the meaning of this Act. R.S.O. 1990, c. C.10, s. 1 (2).

Time for giving notice

(3) The notice shall be given, in the case of an instrument other than a will, within one month after it has been executed, and, in the case of a will, within the same period after the death of the testator. R.S.O. 1990, c. C.10, s. 1 (3).

Where notice not necessary

(4) No notice is necessary where the trust was completely executed before the 31st day of March, 1914, but the remaining sections of this Act nevertheless apply to every such trust. R.S.O. 1990, c. C.10, s. 1 (4).

Contents of notice

(5) The notice shall state the nature of the property coming into the possession or under the control of the executor or trustee. 1997, c. 23, s. 3 (2).

Copy of instrument

(6) The notice shall be accompanied by a copy of the will or other instrument; in the case of a notice under clause (1) (b), the Public Guardian and Trustee may require a notarial copy. 2000, c. 26, Sched. A, s. 2 (2).

Section Amendments with date in force (d/m/y)

1997, c. 23, s. 3 (2) - 28/11/1997

2000, c. 26, Sched. A, s. 2 (1, 2) - 06/12/2000

1.1 Repealed: 2009, c. 33, Sched. 2, s. 11 (1).

Section Amendments with date in force (d/m/y)

2001, c. 9, Sched. B, s. 3 - 29/06/2001

2002, c. 18, Sched. A, s. 2 - 29/06/2001

2009, c. 33, Sched. 2, s. 11 (1) - 15/12/2009

Executor or trustee to provide information

2 An executor or trustee to whom section 1 applies shall, if requested by the Public Guardian and Trustee, provide to the Public Guardian and Trustee particulars in writing respecting,

(a) the name and address of each executor or trustee of the estate or trust;

(b) the condition, disposition or other such particulars as requested of the property devised, bequeathed or given or which is in any way held by the executor or trustee; and

(c) any other matter relating to the administration or management of the estate or trust or any other property held by the executor or trustee, as requested. 2009, c. 33, Sched. 2, s. 11 (2).

Section Amendments with date in force (d/m/y)

1999, c. 12, Sched. B, s. 1 (1) - 22/12/1999

2000, c. 26, Sched. A, s. 2 (4) - 06/12/2000

2009, c. 33, Sched. 2, s. 11 (2) - 15/12/2009

Auditing accounts as to charitable legacies or grants

3 Whenever required so to do by the Public Guardian and Trustee, an executor or trustee shall submit the accounts of dealings with the property coming into the hands or under the control of the executor or trustee under the terms of the bequest or gift, to be passed and examined and audited by a judge of the Superior Court of Justice. R.S.O. 1990, c. C.10, s. 3; 1999, c. 12, Sched. B, s. 1 (1); 2000, c. 26, Sched. A, s. 2 (4).

Section Amendments with date in force (d/m/y)

1999, c. 12, Sched. B, s. 1 (1) - 22/12/1999

2000, c. 26, Sched. A, s. 2 (4) - 06/12/2000

Application to court where executor or trustee in default

4 If any such executor or trustee,

(a) refuses or neglects to comply with section 1, 2 or 3, or with any of the regulations made under this Act;

(b) is found to have misapplied or misappropriated any property or fund coming into the executor’s or trustee’s hands;

(c) has made any improper or unauthorized investment of any money forming part of the proceeds of any such property or fund; or

(d) is not applying any property, fund or money in the manner directed by the will or instrument,

a judge of the Superior Court of Justice upon the application of the Public Guardian and Trustee, may make an order,

(e) directing the executor or trustee to do forthwith or within the time stated in the order anything that the executor or trustee has refused or neglected to do in compliance with section 1, 2 or 3, or with the regulations made under this Act;

(f) requiring the executor or trustee to pay into court any funds in the executor’s or trustee’s hands and to assign and transfer to the Accountant of the Superior Court of Justice, or to a new trustee appointed under clause (g), any property or securities in the hands or under the control of the executor or trustee;

(g) removing such executor or trustee and appointing some other person to act in the executor’s or trustee’s stead;

(h) directing the issue of an attachment against the executor or trustee to the amount of any property or funds as to which the executor or trustee is in default;

(i) fixing the costs of the application and directing how and by whom they shall be payable;

(j) giving such directions as to the future investment, disposition and application of any such property, funds or money as the judge considers just and best calculated to carry out the intentions of the testator or donor;

(k) imposing a penalty by way of fine or imprisonment not exceeding twelve months upon the executor or trustee for any such default or misconduct or for disobedience to any order made under this section;

(l) appointing an executor or trustee in place of an executor or trustee who has died, or has ceased to act, or has been removed, or has gone out of Ontario, even if the will or other instrument creating the trust confers the power to make such an appointment upon another executor or trustee or upon any other person. R.S.O. 1990, c. C.10, s. 4; 1999, c. 12, Sched. B, s. 1 (1, 2); 2000, c. 26, Sched. A, s. 2 (4).

Section Amendments with date in force (d/m/y)

1999, c. 12, Sched. B, s. 1 (1, 2) - 22/12/1999

2000, c. 26, Sched. A, s. 2 (4) - 06/12/2000

Information, documents respecting entities

4.1 (1) If an executor or trustee to whom section 1 applies holds a substantial interest in an entity within the meaning of subsection (3), the Public Guardian and Trustee may inquire into the management or operation of the entity and into its relationship to the executor or trustee, and the entity or any director, officer, manager or trustee of the entity shall, if requested by the Public Guardian and Trustee, provide to the Public Guardian and Trustee such information or documents respecting the entity as the Public Guardian and Trustee specifies. 2009, c. 33, Sched. 2, s. 11 (3).

Same

(2) Without limiting the generality of subsection (1), the Public Guardian and Trustee may make a request under that subsection for,

(a) business records of the entity;

(b) information respecting the assets and liabilities of the entity;

(c) accounts of income and expenses for the entity;

(d) financial statements of the entity, including any statements made by an auditor with respect to the financial statements; and

(e) the particulars of any fees, salary or other remuneration paid to any person by the entity. 2009, c. 33, Sched. 2, s. 11 (3).

Substantial interest

(3) An executor or trustee holds a substantial interest in an entity if the following criteria are met:

1. In the case of an entity that is a corporation with share capital, the executor or trustee beneficially owns, controls or has direction over one of the following:

i. Shares of any class or series of voting shares of the corporation carrying more than 20 per cent of the voting rights attached to all of the outstanding voting shares of the corporation.

ii. Shares of the corporation representing more than 20 per cent of the shareholders’ equity of the corporation.

2. In the case of an entity that is a corporation without share capital, the executor or trustee beneficially owns, controls or has direction over membership in a class of membership of the corporation carrying more than 20 per cent of the voting rights attached to all of the outstanding voting membership interests of the corporation.

3. In the case of an entity that is a partnership, the executor or trustee beneficially owns, controls or has direction over a right to one of the following:

i. At least 20 per cent of the profits of the partnership.

ii. At least 20 per cent of the assets of the partnership on its dissolution.

4. In the case of an entity that is a trust, the executor or trustee beneficially holds an interest in the trust.

5. In the case of any other entity, the aggregate of any ownership interests into which the entity is divided, however designated, that are beneficially owned or controlled by the executor or trustee, or over which the executor or trustee exercises direction, exceeds 20 per cent of all the ownership interests into which the entity is divided. 2009, c. 33, Sched. 2, s. 11 (3).

Same

(4) For the purposes of subsection (3), the ownership, control or direction over a thing by the executor or trustee may be,

(a) direct or indirect; or

(b) alone or through one or more persons, entities or both. 2009, c. 33, Sched. 2, s. 11 (3).

Application to court

(5) On application by the Public...