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Governance
Incorporation of Societies
Bylaws - the fundamental governing rules
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Needed components of bylaws
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Membership
Meetings
Government
Management & finances
Changes to bylaws
Resources & Links
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Checklist & examples
Discussion & questions?

If you are a society in Alberta, the expectation is that you will
GOVERN the organization in a democratic, efficient and effective way, according to your
BYLAWS AND POLICIES on behalf of the
PEOPLE YOU SERVE.

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Governance is all about relationships and how we organize ourselves to do work
Each of the 3 areas are needed for strong
& effective governance
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Fiduciary – define problems & reviews performance – oversight & authority
Strategic – solves problems & shapes strategies
Generative –frames problems & engages in sense-making – gives fresh perspective

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Good governance can be in 3 concepts;
Strategic
(logical)
Governance as Leadership
Generative
(expressive)
Fiduciary
(productive)

FOR NOT-FOR PROFIT ORGANIZATIONS
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Societies Act
Alberta Companies Act
The Canada Corporations Act
Other Special Statutes
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Cooperative Associations Act
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FCSS / Children’s Services Act
Agricultural Societies Act
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Religious Societies Land Act
Etc.
Private Act of Legislature

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Most not-for-profits in Alberta incorporate under the Societies Act
However Section 3 states:
“Five or more persons may become incorporated…or other useful purpose, but not for the purpose of carrying on a trade or business.”
Need application for incorporation and the
Bylaws for the society
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Application includes: Name of the Society
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Objects of the Society
Incorporators of the Society

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Under which Act is your organization incorporated?
What is your status under this Act?
Are you current with respect to any necessary filings?
Does your organization answer to any other governing bodies?
Are there any formal partnership agreements?
Does your organization have to meet licensing requirements?
Are you a chapter organization which answers to another governing body on a regional, provincial or national level? What are those levels and accountabilities?

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Bylaws are the fundamental governing rules and regulations of any society.
State how the society is to be governed and how the powers of the society are to be exercised.
Ground rules that the board uses to develop its structure, clarify roles, responsibilities and functions, and establish meeting and voting procedures.
May be called the Constitution, Charter, or Rules and Regulations or a combination of these terms.

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Definitions – glossary with terms and acronyms
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Draft carefully & use consistently
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Plain Language – short sentences with 1 idea and short paragraphs
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Numbering – Number each separate paragraph for reference

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1. Name of the Society*
2. Bylaws*
3. Definitions
4. Membership in the Society
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Terms of Admission*
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Rights of Obligation*
Conditions of Withdrawal*
Expulsion*
5. How to Draft Your Bylaws
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Mode and time of calling general and special meetings*
Quorum*
Rights of Voting*
6. Governance Structure of the Society
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The board of directors*
The executive
The committee
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Appointment and Removal*
Duties and Powers*
Remuneration*
7. Management and Financial Matters
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Registered office
Seal of the Society*
Financial records and books*
Minute books and other records*
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Borrowing powers*
Audit*
Indemnities
8. Amendments*
9. Dissolution*
*These are the minimum requirements of the Societies Act.

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Preamble – short paragraphs including the name & this document is the bylaws
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Name must have: one of the required words, a descriptive element, a distinctive element
Definitions – a glossary defining terms and acronyms
Objects of the society –drafted clearly and precisely as they define what the society has the power to do

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Membership Who the members are & how
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What their rights and duties are as members
Categories of members
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Examples often used: Voting Members, Honorary Members,
Affiliated Members, Junior Members, Life Members, Active
Members, Non-Voting Members, Associate Members, Senior
Members, Young Members, Full Members
Admission of members How does a person become a member?
Withdrawal of membership
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Voluntary
Expulsion or suspension
Membership Fees – who decides, when are they due, etc.
 not the amount
Rights & Obligations – of each category of members

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Annual General Meeting - AGM
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Section 25 of the Societies Act states:
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“25 A society shall hold an annual general meeting in
Alberta and shall present at that meeting a financial statement setting out its income, disbursements, assets and liabilities, audited and is signed by the society’s auditor.”
There is no right or wrong time to hold the AGM.
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What is the best time for your particular society?
The bylaws should allow the AGM to take place as long as four months after the end of the fiscal year. It can take that much time to prepare financial statements.

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Who calls the AGM? You must state who calls the AGM and who chooses its actual time and place.
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 board of directors usually calls the meeting or the executive or the president
Bylaws must specify the length of time required for notice.
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Be careful that the time is not too short.
You must give your members a minimum of 21 days’ notice for a special resolution.
You may notify members of the meeting using:
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A notice in a society newsletter
A notice published in newspapers
A notice may be circulated by e-mail
Posters placed in a location where most members gather
What is the AGM Agenda? - decide the business of the AGM
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Bylaws should include:
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A standard agenda for the AGM
Other agenda topics added by the board of directors
Other specific motions that any member has given notice of before the meeting is called

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Other Regular General Meetings
Special General Meeting
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Who can force the board to call a special general meeting?
What business can occur at this meeting?
What notice do members require?
What are the Procedural Rules for General meetings?
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What is the quorum for meetings?
Are the meetings open to the public?
Who chairs the meeting –usually the President
How does the meeting adjourn?
How does voting occur? Special structure? By proxy?
What majority is needed?
Does the President or chair vote?
What happens if a member dose not get notice of a meeting?

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When to hold meetings
Who call the meetings (& how)
Who votes
How the votes occur

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Body/bodies that govern between general meetings
Basic Structure –what type of board?
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Policy governing board
Administrative governing board
Board -"9(4)(d) The bylaws that accompany the application shall contain provisions for all of the following matters:
(d) the appointment and removal of directors and officers and their duties, powers and remuneration.”

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Board is required – may be called;
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Executive, council, board of governors, board of administrators etc.
The powers & duties of the board
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The Societies Act requires a meeting of all members to address certain important business. The matters are:
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Amending the bylaws (s. 15)
Amending the objects (s. 16)
Issuing debentures (s. 18)
Surrender of Certificate of Incorporation (s. 34)
Winding up (s. 35(1))
Board of directors can legally deal with all other matters, unless restricted in the bylaws

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What size is the board?
Who are the directors?
How do are they elected?
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Can a director be re-elected?
What are the terms for board members?
Other requirements for electing directors?
Can a director resign? Be removed?
How is a board vacancy filled?
How often does the board meet?
What rules govern the board meetings?

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May not need executive
If large society, no paid administrator, then board may be policy-making body and executive is management body
Consider;
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Is an executive committee needed?
What is the relationship between board & executive (& administrator)?
Define roles & responsibilities of executive an administrator

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Bylaw to allow the board to delegate powers to the executive committee
How large is the executive?
Who is on the executive?
What rules govern the meetings of the executive committee?

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Must have some officers
Minimum usually a president & secretary
What are the responsibilities and duties of each position?
How do we select the officers?
Can an officer resign? Be removed from office?
How do we fill a vacancy?

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Bylaws should state that the board has the power to set up committees
Can give the board power to assign functions, responsibilities, and powers
What are the permanent or standing committees?
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Executive
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Nominating
Membership
Finance or fundraising
Personnel etc.

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What are the relationships between committees & board or executive?
What are the duties of each committee
How do we form the committee?
How do we fill vacancies on committees?
What rules govern the meeting of the committees?

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Bylaws must describe important administrative, financial & management matters
Registered Office – choose the city/town only (not address)
Seal of the Society –shows authority
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Adopting a seal
Who controls it
How & when to use the seal
Who countersigns the seal

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Fiscal Year of the Society – any consecutive period of 365 days
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When is the AGM? Have a date reasonably close to AGM
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What are the fiscal years of major sponsors?
Is there a natural season?
What about finances & society’s books?
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Must keep books properly
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Who signs the checks?
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Who keeps the books
Who audits the books –Audit must be presented at AGM
What about contracts of the Society?

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What are the borrowing powers of the Society?
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May not borrow without bylaws
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This includes overdraft - so include some authority for the board to borrow small sums
Will board members be paid honorariums?
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Be careful about paying members for additional services
What about indemnity & protection for directors & officers?
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Not absolute protection
Should have adequate insurance protection too

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May need to make fundamental changes to its structure or bylaws occasionally
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The Societies Act has special requirements on bylaw changes:
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Amending the bylaws
Changing the objects
Issuing debentures
Surrendering the Certificate of Incorporation

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These changes must have the approval of the members
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Must be a special resolution at a Special
General Meeting called for that purpose or an
Annual General Meeting.
Must be at least 21 days’ notice to all members.
At least 75% of the members who vote at the meeting must approve the change.
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Your bylaws must state the procedure for amending the bylaws or the objects of the society.

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Re-drafting bylaws can be a simple or timeconsuming procedure;
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 has it been done on a regular basis?
are there are issues that cause conflict or contention among members?
What is the availability of the writing team?
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Changes require ratification by a majority vote of members, according to the quorum numbers identified in your filed bylaws
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And provided that notice of any proposed changes was forwarded to each member with the notice of meeting as specified in the filed bylaws.

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Once drafted, the change procedure will take twenty-one days or more. Additional fees may be required.
Bylaws must be dated and signed by the same 5 people who signed the application (if they are the original version), or by the people who are listed on the records as the duly elected directors.
Signatures must be witnessed (signature and address).
Bylaws, including amendments, do not come into effect until the Registrar has received them, reviewed them, approved them and stamped them “filed” and returned the stamped copy to the organization. This can take up to six weeks.

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City of Calgary – Recreation Coordinators
Alberta Culture & Community Spirit,
Community Development, kim.rowe@gov.ab.ca
Board Development Program, http://culture.alberta.ca/bdp/default.aspx
Drafting & Revising Bylaws – PDF workbook http://culture.alberta.ca/bdp/workbooks/
Drafting_%20Revising09.pdf

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City of Calgary – Recreation Coordinators
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Alberta Culture & Community Spirit,
Community Development http://culture.alberta.ca/communitydevelopment/default.aspx
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CentrePoint for Non-Profit Management http://www.thecentrepoint.ca/today/index.html

How to Incorporate a Not-For-Profit Society (Alberta)
How to Register a Charitable Organization (Alberta) http://www.servicealberta.ca/900.cfm
http://www.servicealberta.ca/661.cfm
How to Register a Charity (Government of Canada - Canada Revenue Agency) http://www.cra-arc.gc.ca/tx/chrts/menu-eng.html
Registering A Charity for Income Tax Purposes (Handbook) 1-800-267-2384 for toll-free calls (English); http://www.cra-arc.gc.ca/E/pub/tg/t4063/t4063-e.html
Societies Act http://www.qp.gov.ab.ca/documents/acts/S14.CFM
Societies Regulation http://www.qp.gov.ab.ca/documents/regs/2000_122.cfm
Keeping Records (Canada Revenue Agency) http://www.cra-arc.gc.ca/E/pub/tg/rc4409/rc4409-e.html
Board Development Information Bulletins http://culture.alberta.ca/bdp/bulletins.aspx
Voluntary Sector Publications (Insurance etc.) http://www.culture.alberta.ca/voluntarysector/publications.aspx
Service Alberta – Corporate Registries http://www.servicealberta.ca/Corporate_Registries.cfm
Corporate Link is Corporate Registry's automated telephone information service. The link provides information via Corporate Link Codes on Alberta and extra-provincially registered corporations, trade names, partnerships, limited partnerships, and non-profit organizations. Telephone number:
780-427-2311 Edmonton, Alberta, Canada (AB RITE line 310-0000)
Resource Centre for Voluntary Organizations http://www.rcvo.org/