Disqualification and Removal of Directors or Senior Officers
Meaning of “senior officer”
441.01 In sections 441.1 and 441.2, “senior officer” means the chief executive officer, secretary, treasurer, controller of an association or any other officer reporting directly to the association’s board of directors or chief executive officer.
- 2001, c. 9, s. 332.
441.1 (1) This section applies only in respect of an association
(a) that has been notified by the Superintendent that this section applies to it where the association is subject to measures designed to maintain or improve its safety and soundness, which measures
(i) have been specified by the Superintendent by way of conditions or limitations in respect of the order approving the commencement and carrying on of the association’s business, or
(ii) are contained in a prudential agreement entered into under section 438.1 or an undertaking given by the association to the Superintendent; or
(b) that is the subject of a direction made under section 439 or an order made under subsection 409(3).
Marginal note:Information to be provided
(2) An association shall provide the Superintendent with the name of
(a) each person who has been nominated for election or appointment as a member of its board of directors, and
(b) each person who has been selected by the association for appointment as a senior officer,
together with such other information about the background, business record and experience of the person as the Superintendent may require.
Marginal note:When information to be provided
(3) The information required by subsection (2) shall be provided to the Superintendent at least thirty days prior to the date or proposed date of the election or appointment or within such shorter period as the Superintendent may allow.
(4) If the Superintendent is of the opinion that, on the basis of the competence, business record, experience, conduct or character of a person, he or she is not suitable to hold that position, the Superintendent may, by order, disqualify the person from being elected or appointed as a director of an association or from being appointed as a senior officer.
Marginal note:Risk of prejudice
(4.1) In forming an opinion under subsection (4), the Superintendent must consider whether the interests of the depositors and creditors of the association would likely be prejudiced if the person were to take office or continue to hold office, as the case may be.
Marginal note:Representations may be made
(5) The Superintendent must in writing notify the person concerned and the association of any action that the Superintendent proposes to take under subsection (4) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
(6) Where an order has been made under subsection (4) disqualifying a person from being elected or appointed to a position, the person shall not be, and the association shall not permit the person to be, elected or appointed to the position.
- 1996, c. 6, s. 59;
- 2001, c. 9, s. 333.
- Date modified: