The Revision of Investment Powers of Charities - Legislation adopted in Ontario last year under Bill 25 (the Red Tape Reduction Act, 1998) introduced important changes to the Ontario Trustee Act which significantly altered the investment practices of trustees of charitable trusts and also affects directors of charitable corporations, including governors of community colleges and hospital trustees. Under Bill 25, trustees are now permitted to invest trust funds in a wider variety of investment vehicles than before (including mutual funds). On the other hand, it is now mandatory for a trustee to develop and follow an investment plan.

type Not-for-Profit Law Alert - Spring 2000