Budget Implementation Act, 2005 (S.C. 2005, c. 30)
Full Document:
Assented to 2005-06-29
R.S., c. F-11Amendments to the Financial Administration Act
Marginal note:2001, c. 11, s. 6(1), c. 34, par. 16(c)(E); 2002, c. 17, par. 14(c)
35. Subsection 85(1) of the Financial Administration Act is replaced by the following:
Marginal note:Exempted Crown corporations
85. (1) Divisions I to IV do not apply to the Bank of Canada or the Canada Pension Plan Investment Board.
Marginal note:Exempted Crown corporations
(1.1) Divisions I to IV, except for sections 131 to 148, do not apply to the Canada Council for the Arts, the Canadian Broadcasting Corporation, Telefilm Canada, the International Development Research Centre or the National Arts Centre Corporation.
36. (1) Subsections 134(1) and (2) of the Act are replaced by the following:
Marginal note:Appointment of auditor
134. (1) Subject to subsection (2), the auditor of a Crown corporation shall be appointed annually by the Governor in Council, after the appropriate Minister has consulted the board of directors of the corporation, and may be removed at any time by the Governor in Council, after the appropriate Minister has consulted the board.
Marginal note:Auditor General
(2) The Auditor General of Canada shall be appointed by the Governor in Council as the auditor, or a joint auditor, of each Crown corporation, unless the Auditor General waives the requirement of being so appointed.
(2) Subsections 134(4) to (7) of the Act are replaced by the following:
Marginal note:Criteria for appointment
(5) The Governor in Council may make regulations prescribing the criteria to be applied in selecting an auditor for appointment pursuant to subsection (1).
Marginal note:Re-appointment
(6) An auditor of a Crown corporation is eligible for re-appointment on the expiration of the auditor’s appointment.
Marginal note:Continuation in office
(7) Notwithstanding subsection (1), if an auditor of a Crown corporation is not appointed to take office on the expiration of the appointment of an incumbent auditor, the incumbent auditor continues in office until a successor is appointed.
37. Sections 135 to 137 of the Act are replaced by the following:
Marginal note:Persons not eligible
135. (1) A person is disqualified from being appointed or re-appointed or continuing as an auditor of a Crown corporation pursuant to section 134 if that person is not independent of the corporation, any of its affiliates, or the directors or officers of the corporation or any of its affiliates.
Marginal note:Independence
(2) For the purposes of this section,
(a) independence is a question of fact; and
(b) a person is deemed not to be independent if that person or any of that person’s business partners
(i) is a business partner, director, officer or employee of the Crown corporation or any of its affiliates, or a business partner of any director, officer or employee of the corporation or any of its affiliates,
(ii) beneficially owns or controls, directly or indirectly through a trustee, legal representative, agent or other intermediary, a material interest in the shares or debt of the Crown corporation or any of its affiliates, or
(iii) has been a receiver, receiver-manager, liquidator or trustee in bankruptcy of the Crown corporation or any of its affiliates within two years of the person’s proposed appointment as auditor of the corporation.
Marginal note:Resignation
(3) An auditor of a Crown corporation who becomes disqualified under this section shall resign immediately after becoming aware of the disqualification.
Marginal note:Qualifications preserved
136. Nothing in sections 134 and 135 shall be construed as empowering the appointment, re-appointment or continuation in office as an auditor of a Crown corporation of any person who does not meet any qualifications for such appointment, re-appointment or continuation established by any other Act of Parliament.
Marginal note:Resignation
137. A resignation of an auditor of a Crown corporation becomes effective at the time the corporation receives a written resignation from the auditor or at the time specified in the resignation, whichever is later.
38. Sections 140 and 141 of the Act are replaced by the following:
Marginal note:Special report to appropriate Minister
140. Where the examiner of a parent Crown corporation, or a wholly-owned subsidiary of a parent Crown corporation, is of the opinion that the report under subsection 139(1) contains information that should be brought to the attention of the appropriate Minister, the examiner shall, after consultation with the board of directors of the corporation, or with the boards of the subsidiary and corporation, as the case may be, report that information to the Minister and furnish the board or boards with a copy of the report.
Marginal note:Special report to Parliament
141. Where the examiner of a parent Crown corporation, or a wholly-owned subsidiary of a parent Crown corporation, is of the opinion that the report under subsection 139(1) contains information that should be brought to the attention of Parliament, the examiner shall, after consultation with the appropriate Minister and the board of directors of the corporation, or with the boards of the subsidiary and corporation, as the case may be, prepare a report on that information for inclusion in the next annual report of the corporation and furnish the board or boards, the appropriate Minister and the Auditor General of Canada with copies of the report.
39. Subsections 142(1) to (3) of the Act are replaced by the following:
Marginal note:Examiner
142. (1) Subject to subsection (2), a special examination referred to in section 138 shall be carried out by the auditor of a Crown corporation.
Marginal note:Examiner
(2) Where, in the opinion of the Governor in Council, a person other than the auditor of a Crown corporation should carry out a special examination, the Governor in Council may, after the appropriate Minister has consulted the board of directors of the corporation, appoint an auditor who is qualified for the purpose to carry out the examination in lieu of the auditor of the corporation and may, after the appropriate Minister has consulted the board, remove that qualified auditor at any time.
Marginal note:1991, c. 24, s. 43
40. Section 146 of the Act is replaced by the following:
Marginal note:Qualified privilege
146. Any oral or written statement or report made under this Part or the regulations by the auditor or a former auditor, or the examiner or a former examiner, of a Crown corporation has qualified privilege.
Consequential Amendments
1991, c. 11Broadcasting Act
41. Subsections 60(1) to (6) of the Broadcasting Act are repealed.
42. Sections 62 to 69 of the Act are repealed.
43. Paragraphs 71(3)(a) and (b) of the Act are replaced by the following:
(a) the financial statements of the Corporation referred to in subsection 131(4) of the Financial Administration Act,
(b) the annual auditor’s report referred to in section 132 of the Financial Administration Act,
R.S., c. 10Canada Post Corporation Act
Marginal note:1993, c. 44, s. 31
44. Section 33 of the Canada Post Corporation Act is repealed.
1991, c. 8Canadian Race Relations Foundation Act
45. Subsection 17(3) of the Canadian Race Relations Foundation Act is replaced by the following:
Marginal note:Financial Administration Act
(3) Part X of the Financial Administration Act, except for sections 131 to 148, does not apply to the Foundation.
46. Subsection 25(2) of the Act is repealed.
1999, c. 34Public Sector Pension Investment Board Act
47. Subsection 3(6) of the Public Sector Pension Investment Board Act is replaced by the following:
Marginal note:Financial Administration Act
(6) Part X of the Financial Administration Act, except for sections 132 to 147, does not apply to the Board. For the purposes of those sections, any reference to section 131 of that Act shall be read as a reference to section 35 of this Act.
Marginal note:Reports and special examination
(7) Any report or information in respect of the Board that is provided to the Minister under sections 132 to 147 of the Financial Administration Act shall also be provided to the Minister of National Defence and the Solicitor General of Canada. The Minister may only require a special examination under subsection 138(2) of that Act after consultation with those Ministers.
48. The heading before section 36 and sections 36 to 46 of the Act are repealed.
49. (1) Paragraph 48(4)(b) of the Act is replaced by the following:
(b) the annual auditor’s report referred to in section 132 of the Financial Administration Act;
(2) Paragraph 48(4)(i) of the Act is replaced by the following:
(i) a report of any special examination referred to in subsection 139(1) of the Financial Administration Act; and
Coordinating Amendments
Marginal note:Bill C-6
50. If Bill C-6, introduced in the 1st session of the 38th Parliament and entitled the Department of Public Safety and Emergency Preparedness Act (the “other Act”), receives royal assent, then, on the later of the coming into force of section 1 of the other Act and section 47 of this Act, subsection 3(7) of the Public Sector Pension Investment Board Act is replaced by the following:
Marginal note:Reports and special examination
(7) Any report or information in respect of the Board that is provided to the Minister under sections 132 to 147 of the Financial Administration Act shall also be provided to the Minister of National Defence and the Minister of Public Safety and Emergency Preparedness. The Minister may only require a special examination under subsection 138(2) of that Act if the Minister has consulted with those Ministers.
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