PART 3Financial Matters (continued)
Annual Financial Statements (continued)
39 (1) For the purposes of paragraph 37(3)(c) of the Act, the remuneration threshold applicable to officers and employees of a port authority or of a wholly-owned subsidiary of a port authority is $150,000. Beginning on January 1, 2000, the remuneration threshold is adjusted on January 1 of each year by the change in the consumer price index between the previous two years.
(2) The consumer price index for any year is the annual average all-items consumer price index for Canada (not seasonally adjusted) published by Statistics Canada in respect of that year.
Approval of Annual Financial Statements
40 (1) The board of directors of a port authority shall approve the annual financial statements referred to in paragraph 36(a) of the Act and the approval shall be evidenced by the signature of one or more directors.
(2) A port authority shall not issue, publish or circulate copies of the annual financial statements unless they are
Qualification of Auditor
(2) For the purposes of this section,
(a) independence is a question of fact; and
(b) a person is not independent if the person or the person’s business partner
(i) is a business partner, director, officer or employee of the port authority or a body corporate controlled by the port authority, or a business partner of a director, officer or employee of any of them,
(ii) has the beneficial ownership of, or directly or indirectly controls, a material interest in a borrowing of the port authority or a share or borrowing of a body corporate controlled by the port authority, or
(iii) has been a receiver, receiver-manager, liquidator or trustee in bankruptcy of the port authority or a body corporate controlled by the port authority within two years before the day on which the appointment as auditor would take effect.
(3) An auditor who becomes disqualified under this section shall, subject to subsection (5), resign without delay on becoming aware of the disqualification.
(4) An interested person may apply to a court for an order declaring an auditor to be disqualified under this section and the office of auditor to be vacant.
(5) An interested person may apply to a court for an order exempting an auditor from disqualification under this section and the court may, if it is satisfied that an exemption would not unfairly prejudice the port authority, make an exemption order on any terms that it thinks fit, which order may have retroactive effect.
Appointment of Auditor
(2) Despite paragraph (1)(b), if an auditor is not appointed before an annual meeting, the incumbent auditor continues in office until a successor is appointed.
(3) The port authority shall announce at the annual meeting the name of the auditor appointed to hold office beginning at the close of the meeting.
Remuneration of Auditor
43 The remuneration of the auditor of a port authority shall be fixed by the board of directors.
Vacancy in Office of Auditor
44 (1) If a vacancy occurs in the office of auditor of a port authority, the board of directors shall without delay appoint an auditor to fill the vacancy for the remainder of the term of the predecessor.
(2) If a vacancy occurs in the office of auditor and the board of directors does not appoint an auditor, a court may, on the application of an interested person, appoint and fix the remuneration of an auditor, who holds office until an auditor is appointed by the board of directors.
Removal of Auditor
45 The board of directors of a port authority may remove from office an auditor other than an auditor appointed by the Minister under subsection 43(2) of the Act or by a court.
Ceasing to Hold Office
(2) The resignation of an auditor becomes effective on the day on which a written resignation is received by the port authority or on the day specified in the resignation, whichever is later.
(b) receives a notice or otherwise learns of a meeting of the board of directors called for the purpose of removing the auditor; or
(c) receives a notice or otherwise learns of a meeting of the board of directors at which another person is to be appointed to fill the office of auditor, whether because of the resignation or removal of the incumbent auditor or because the term of office has expired or is about to expire.
(2) The port authority shall, in respect of the auditor’s written statement, as soon as possible after it is submitted,
(a) send a copy to the Minister and to its directors and chief executive officer and the proposed replacement auditor; and
(b) publish a notice in a major newspaper published or distributed in the municipalities where the port is situated setting out that the statement is available to the public at its registered office.
(3) No person shall accept an appointment or consent to be appointed as the auditor of a port authority if the person is replacing an auditor who has resigned or been removed or whose term of office has expired or is about to expire until the person has requested and received from that auditor a written statement of the circumstances and the reasons, in the auditor’s opinion, for the replacement.
(4) Despite subsection (3), a person otherwise qualified may accept an appointment or consent to be appointed as the auditor of a port authority if, within 15 days after making a request referred to in that subsection, the person does not receive a reply.
(5) Unless subsection (4) applies, the appointment as auditor of a port authority of a person who has not complied with subsection (3) is null and void.
Attendance at Annual Meeting
48 (1) The auditor of a port authority is entitled to receive notice of every annual meeting and, at the expense of the port authority, to attend and be heard at the meeting on matters relating to the duties of the auditor.
(2) If a director of a port authority gives written notice to the auditor or a former auditor of the port authority not less than 10 days before an annual meeting, the auditor or former auditor shall attend the meeting at the expense of the port authority and answer questions relating to the duties of the auditor.
(3) The director of a port authority who sends the notice referred to in subsection (2) shall send a copy of it concurrently to the port authority.
(4) An auditor or former auditor does not contravene subsection (2) unless the auditor knowingly fails to comply with the requirements of that subsection.
Examination and Report
49 (1) The auditor of a port authority shall make the examination that is in the auditor’s opinion necessary to enable reporting on the annual financial statements required to be presented at the annual meeting, except the financial statements or part of them that relates to the fiscal year referred to in subparagraph 36(a)(ii) of the Act.
(2) An auditor is not liable for relying reasonably on the report of an auditor of a subsidiary of the port authority the accounts of which are included in whole or in part in the financial statements of the port authority.
(3) For the purpose of subsection (2), reasonableness is a question of fact.
(4) Subsection (2) applies whether or not the financial statements of the port authority reported on by the auditor are in consolidated form.
50 The auditor of a port authority shall prepare the report referred to in paragraph 40(2)(b) in accordance with generally accepted auditing standards as set out in the CPA Canada Handbook, as amended from time to time.
- SOR/2016-66, s. 1
- Date modified: