Selected Issues Regarding the Liability of Directors and Officers of Charitable and Nonprofit Corporations

Introduction The state of the law in Ontario2 respecting the liability of directors and officers of charitable and nonprofit corporations3 is unsettled and unsatisfactory. On the one hand, the Public Guardian and Trustee (PGT) has taken a public position that would, for all intents and purposes, assimilate the role of directors and officers of charitable4…

Selected New Developments in the Liability of Directors and Officers of Charitable and Nonprofit Corporations

(1) Developments in Respect of the “Director-Trustee Dilemma” One of the issues that has plagued the area of charitable corporations law in Ontario is whether, and to what extent, the directors of such corporations are “trustees” of corporate assets. In a number of Ontario cases (discussed herein) courts have held that, at least for certain…