Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)

Payment in Relation to Infrastructure

Marginal note:Maximum payment of $2,200,000,000

130 Despite section 161 of the Keeping Canada’s Economy and Jobs Growing Act, as amended by section 233 of the Economic Action Plan 2013 Act, No. 1, there may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Infrastructure and Communities or the Minister of State (Indigenous Services), in accordance with terms and conditions approved by the Treasury Board, in addition to the sum referred to in that section 161, a sum not exceeding $2,200,000,000 to provinces, territories, municipalities, municipal associations, provincial, territorial and municipal entities and First Nations for the purpose of municipal, regional and First Nations infrastructure.

Federation of Canadian Municipalities

Marginal note:Maximum payment of $950,000,000

• 131 (1) There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Natural Resources, in accordance with the terms and conditions provided for in the agreement referred to in subsection (2), a sum not exceeding $950,000,000 to the Federation of Canadian Municipalities for the purpose of providing funding to the Green Municipal Fund.

• Marginal note:Terms and conditions

  (2) The Minister of Natural Resources may, with the approval of the Treasury Board, at any time, including before this section comes into force, enter into an agreement with the Federation of Canadian Municipalities respecting the terms and conditions applicable to the making of the payment referred to in subsection (1) and its use.

• Marginal note:Maximum payment of $60,000,000

  (3) There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Infrastructure and Communities, in accordance with the terms and conditions provided for in the agreement referred to in subsection (4), a sum not exceeding $60,000,000 to the Federation of Canadian Municipalities for the purpose of providing funding to the Asset Management Fund.

• Marginal note:Terms and conditions

  (4) The Minister of Infrastructure and Communities may, with the approval of the Treasury Board, at any time, including before this section comes into force, enter into an agreement with the Federation of Canadian Municipalities respecting the terms and conditions applicable to the making of the payment referred to in subsection (3) and its use.

Shock Trauma Air Rescue Service

Marginal note:Maximum payment of $65,000,000

• 132 (1) There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Public Safety and Emergency Preparedness, in accordance with the terms and conditions provided for in the agreement referred to in subsection (2), a sum not exceeding $65,000,000 to the Shock Trauma Air Rescue Service for the acquisition of new emergency ambulance helicopters.

• Marginal note:Terms and conditions

  (2) The Minister of Public Safety and Emergency Preparedness may, with the approval of the Treasury Board, at any time, including before this section comes into force, enter into an agreement with the Shock Trauma Air Rescue Service respecting the terms and conditions applicable to the making of the payment referred to in subsection (1) and its use.

DIVISION 5Enhancing Retirement Security

R.S., c. B-3; 1992, c. 27, s. 2Bankruptcy and Insolvency Act

133 The Bankruptcy and Insolvency Act is amended by adding the following after section 4.1:

Marginal note:2005, c. 47, s. 57(1); 2007, c. 36, s. 32(1)

134 Paragraph 67(1)(b.3) of the Act is replaced by the following:

Marginal note:1997, c. 12, s. 82(1)

• 135 (1) Subsection 101(1) of the Act is replaced by the following:

  Marginal note:Inquiry into dividends, redemption of shares or compensation

  • 101 (1) When a corporation that is bankrupt has paid a dividend, other than a stock dividend, redeemed or purchased for cancellation any of the shares of the capital stock of the corporation or has paid termination pay, severance pay or incentive benefits or other benefits to a director, an officer or any person who manages or supervises the management of business and affairs of the corporation within the period beginning on the day that is one year before the date of the initial bankruptcy event and ending on the date of the bankruptcy, both dates included, the court may, on the application of the trustee, inquire into the transaction to ascertain whether it occurred at a time when the corporation was insolvent or whether it rendered the corporation insolvent.

• (2) Section 101 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Judgment against directors — compensation

    (2.01) If a transaction referred to in subsection (1) has occurred, the court may give judgment to the trustee against the directors of the corporation, jointly and severally, or solidarily, in the amount of the termination pay, severance pay or incentive benefits or other benefits, with interest on the amount, that has not been paid to the corporation if the court finds that

    • (a) the payment

      • (i) occurred at a time when the corporation was insolvent or rendered the corporation insolvent,

      • (ii) was conspicuously over the fair market value of the consideration received by the corporation, and

      • (iii) was made outside the ordinary course of business; and

    • (b) the directors did not have reasonable grounds to believe that the payment

      • (i) occurred at a time when the corporation was not insolvent or would not render the corporation insolvent,

      • (ii) was not conspicuously over the fair market value of the consideration received by the corporation, and

      • (iii) was made in the ordinary course of business.

• Marginal note:1997, c. 12, s. 82(1)

  (3) The portion of subsection 101(2.1) of the English version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Criteria

    (2.1) In making a determination under paragraph (2)(b) or (2.01)(b), the court shall consider whether the directors acted as prudent and diligent persons would have acted in the same circumstances and whether the directors in good faith relied on

• (4) Section 101 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Directors exonerated by law — compensation

    (3.1) A judgment under subsection (2.01) shall not be entered against or be binding on a director who had, in accordance with any applicable law governing the operation of the corporation, protested against the payment of termination pay, severance pay or incentive benefits or other benefits and had exonerated himself or herself under that law from any resulting liability.

• (5) Section 101 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Onus of proof — directors

    (5.1) For the purposes of subsection (2.01), a director has the onus of proving any of the following:

    • (a) that the payment

      • (i) occurred at a time when the corporation was not insolvent or did not render the corporation insolvent,

      • (ii) was not conspicuously over the fair market value of the consideration received by the corporation, or

      • (iii) was made in the ordinary course of business; or

    • (b) that the director had reasonable grounds to believe that the payment

      • (i) occurred at a time when the corporation was not insolvent or would not render the corporation insolvent,

      • (ii) was not conspicuously over the fair market value of the consideration received by the corporation, or

      • (iii) was made in the ordinary course of business.

R.S., c. C-36Companies’ Creditors Arrangement Act

136 The Companies’ Creditors Arrangement Act is amended by adding the following after section 11:

Marginal note:2005, c. 47, s. 128

137 The portion of subsection 11.02(1) of the Act before paragraph (a) is replaced by the following:

138 Section 11.2 of the Act is amended by adding the following after subsection (4):

139 The Act is amended by adding the following after section 11.8:

140 The Act is amended by adding the following before the heading “Claims” before section 19:

R.S., c. C-44; 1994, c. 24, s. 1(F)Canada Business Corporations Act

141 Section 122 of the Canada Business Corporations Act is amended by adding the following after subsection (1):

142 The Act is amended by adding the following after section 125:

• 143 (1) The Act is amended by adding the following after section 172:

  PART XIV.1Disclosure Relating to Diversity

  Marginal note:Diversity in corporations

  172.1 The directors of a prescribed corporation shall place before the shareholders, at every annual meeting, the prescribed information respecting diversity among the directors and “members of senior management” as defined by regulation.

  Marginal note:Information to shareholders

  • 172.2 (1) The corporation shall provide the information referred to in section 172.1 to each shareholder, except to a shareholder who has informed the corporation in writing that they do not want to receive that information, by sending the information along with the notice referred to in subsection 135(1) or by making the information available along with a proxy circular referred to in subsection 150(1).

  • Marginal note:Information to Director

    (2) The corporation shall concurrently send the information referred to in section 172.1 to the Director.

• (2) The heading before section 172.1 of the Act is replaced by the following:

  Disclosure Relating to Diversity, Well-being and Remuneration

• (3) Section 172.2 of the Act is replaced by the following:

  Marginal note:Information respecting well-being

  172.2 The directors of a prescribed corporation shall place before the shareholders, at every annual meeting, the prescribed information respecting the well-being of employees, retirees and pensioners.

  Marginal note:Recovery of benefits

  172.3 The directors of a prescribed corporation shall place before the shareholders, at every annual meeting, the prescribed information respecting the recovery of incentive benefits or other benefits, which is included in the remuneration referred to in section 125, paid to directors and employees of the corporation who are “members of senior management” as defined by regulation.

  Marginal note:Approach on remuneration

  • 172.4 (1) The directors of a prescribed corporation shall place before the shareholders, at every annual meeting, the approach with respect to remuneration referred to in section 125.1.

  • Marginal note:Non-binding vote

    (2) The shareholders are to vote on the approach placed before them by the directors under subsection (1). The results are not binding on the corporation.

  • Marginal note:Disclosure of results

    (3) The corporation shall disclose the results of the vote to the shareholders.

  Marginal note:Information to shareholders

  • 172.5 (1) The corporation shall provide the information referred to in sections 172.1 to 172.4 to each shareholder, except to a shareholder who has informed the corporation in writing that they do not want to receive that information, by sending the information along with the notice referred to in subsection 135(1) or by making the information available along with a proxy circular referred to in subsection 150(1).

  • Marginal note:Information to Director

    (2) The corporation shall concurrently send the information referred to in sections 172.1 to 172.4 to the Director.