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Ontario hopes to moderate charity rule requiring court order for director payments

Wednesday, September 20, 2017 @ 10:16 AM | By Jeremy Burke

The Ontario government published a draft amendment to O. Reg 4/01 (Approved Acts of Executors and Trustees) under the Charities Accounting Act on July 10, 2017. If passed, the amendment would modify the Ontario common-law rule that currently bars a charity from compensating a director (or any person related to him/her) for any reason, other than reimbursement of expenses, without first obtaining a court order.

It is easy to appreciate how fiduciary law — and the shameful actions of a few unscrupulous charity operators — could...