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Act within your purposes
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Prince Edward Island stands fully covered: its own filings and guidance stand in the books beside the federal ones.
A society is formed for the purposes its constitution names, and its money is spent on those purposes.
A company without share capital is formed for the objects its letters patent name, without pecuniary gain to its members. Binds: Prince Edward Island companies without share capital (Part II of the Companies Act).
The law’s own words
“… grant a charter to any three or more persons … a body corporate and politic, without share capital, for the purpose of carrying on in Prince Edward Island, without pecuniary gain to its members, objects of a patriotic, religious, philanthropic, charitable, scientific, artistic, social, professional or sporting character, or the like.”
Companies Act (Prince Edward Island), s. 89 · Read it at Prince Edward Island · Verified 2026-11-08
“the word “shareholder” means a member of such corporation … “shares” or “shares in the capital stock” mean membership dues or fees”
Companies Act (Prince Edward Island), s. 91(2) · Read it at Prince Edward Island · Verified 2026-11-08
“The shareholders of the company shall not as such be held responsible for any act, default or liability whatsoever of the company, or for any engagement, claim, payment, loss, injury, transaction, matter or thing whatsoever relating to or connected with the company, beyond the unpaid amount of their respective shares in the capital stock thereof.”
Companies Act (Prince Edward Island), s. 57 · Read it at Prince Edward Island · Verified 2026-11-08
“No company shall use any of its funds in the purchase of the stock of any other corporation unless expressly authorized by bylaw confirmed at a general meeting.”
Companies Act (Prince Edward Island), s. 61 · Read it at Prince Edward Island · Verified 2026-11-08
“Any real or personal property of a company that has not been disposed of at the time of the forfeiture of its charter under section 72 or the surrender of its charter or the dissolution of the company, as the case may be, is forfeited to the Crown.”
Companies Act (Prince Edward Island), s. 75 · Read it at Prince Edward Island · Verified 2026-11-08
“The charter of a company incorporated under this Part or by private Act of the legislature may be surrendered if the company proves to the satisfaction of the Director (a) that it has no assets or that any assets owned by it immediately prior to the application for leave to surrender its charter have been divided rateably amongst its shareholders; and either (i) that it has no debts, liabilities or obligations, or”
Companies Act (Prince Edward Island), s. 74(1) · Read it at Prince Edward Island · Verified 2026-11-08
“that the debts, liabilities or other obligations of the company have been duly provided for or protected or that the creditors of the company or other persons having interests in such debts, liabilities or other obligations consent; and (b) that the company has given notice of the application for leave to surrender by publishing the same once in the Gazette and once in a newspaper published at or as near as may be to the place where the company has its head office.”
Companies Act (Prince Edward Island), s. 74(1) · Read it at Prince Edward Island · Verified 2026-11-08