2. (1) A corporation that operates or proposes to operate a day nursery may be approved under section 6 of the Act if, (a) it is a corporation without share capital, Part III of the Corporations Act applies to it and the matters set out in subsection (2) are embodied in its letters patent; (b) it is a corporation without share capital having objects of a charitable nature and it is incorporated under a general or special Act of the Parliament of Canada; (c) the Co-operative Corporations Act applies to it and its articles provide that the corporation shall be carried on without the purpose of gain for its members and that any profits or other accretions to the corporation shall be used in promoting its objects; or (d) it is a corporation without share capital having objects of a charitable nature and Part III of the Corporations Act applies to it.  O. Reg. 708/92, s. 2; O. Reg. 17/94, s. 1 (1). (2) For the purposes of clause (1) (a), the following matters shall be embodied in the corporation’s letters patent: 1. The corporation shall have at least five directors. 2. No employee of the corporation may be a director of it. 3. The corporation shall not purchase goods or services from any director, officer or person related to a director or officer of the corporation unless there is only one available source of the goods or services within a reasonable distance of the day nursery. 4. The corporation shall not sell goods or services, other than child care services, to any director, officer or person related to a director or officer of the corporation. 5. The corporation shall not lend money to or borrow money from any director, officer or person related to a director or officer of the corporation. 6. The corporation shall not rent property to or from any director, officer or person related to a director or officer of the corporation. 7. The corporation shall not engage in any other transaction which may directly or indirectly confer a financial benefit on one of its directors. 8. The directors of the corporation shall serve as directors without remuneration but may be reimbursed for reasonable expenses incurred in the performance of their duties. 9. No director of the corporation shall directly or indirectly receive any form of money or money’s worth as a result of his or her position as director. 10. Upon dissolution of the corporation and after payment of all of its debts and liabilities, the remaining property of the corporation shall be distributed or disposed of only to charitable or non-profit organizations which provide child care, which are beneficial to the community and which operate solely in Ontario.  O. Reg. 708/92, s. 2; O. Reg. 17/94, s. 1 (2); O. Reg. 505/06, s. 2. (3) For the purposes of paragraphs 3, 4 and 5 of subsection (2), a person is related to a director or officer if, (a) the person is married to the director or officer; (b) the person is living in a conjugal relationship outside marriage with the director or officer; (c) the person is the son or daughter or mother or father of the director or officer; (d) the person is a relative of the director or officer and they have the same home; (e) the person is a corporation and voting securities in the corporation that together carry more than 10 per cent of the voting rights attached to all voting securities of the corporation outstanding at the time are beneficially owned directly or indirectly by any combination of, (i) the director or officer, (ii) any of the persons referred to in clauses (a) to (d), and (iii) the partner or the employer of the director or officer.  O. Reg. 708/92, s. 2; O. Reg. 38/00, s. 2; O. Reg. 287/05, s. 2. Organization and Management