Exemptions – officers
Corporations can ask for exemptions from requirements about:
- the maximum number of directors
- terms of appointment for directors
- related party benefits.
Maximum number of directors
A corporation must have no more than 12 directors.
The Registrar can exempt a corporation from this requirement.
The corporation’s rule book must state how many directors the corporation can have according to the exemption.
Terms of appointment
A director must not be appointed for more than 2 years.
The Registrar can exempt a corporation from this requirement.
Corporations should keep in mind that exemptions can be provided for time limited periods and can be varied or revoked.
When exempt, a corporation’s directors can serve for more than 2 years without needing to be reappointed by members.
The corporation’s rule book must state how long directors’ terms can be according to the exemption.
Related party benefits
The CATSI Act says:
- how members must approve giving a financial benefit to someone related to the corporation
- how long after approval the benefit must be given.
The Registrar can exempt a corporation from these requirements.
