The Canadian Parliament has enacted (subject to the final stage of Royal Assent) significant changes to federal insolvency legislation, elevating the priority that must be provided to fund the deficit of a defined benefit pension plan when distributing debtor assets. Bill C-228, the Pension Protection Act (the “Act”), is an Act to amend the Bankruptcy and Insolvency Act (“BIA”), the Companies’ Creditors Arrangement Act (“CCAA”) and the Pension Benefits Standards Act, 1985.

We are asked from time to time to assist with the dissolution of an existing registered charity.  However, often we suggest to our clients that it might be better for them to either amalgamate the existing charity into another charity or keep it in existence but inactive.

There are various reasons why charities wish to dissolve.  Sometimes the problem that they were established to address has been solved.  Sometimes there is no leadership left to govern or manage the charity.  Other times the work once done by the charity has been taken over by another charity.