Disqualification and Removal of Directors or Senior Officers
Meaning of “senior officer”
509.01 In sections 509.1 and 509.2, “senior officer” means the chief executive officer, secretary, treasurer or controller of a company or any other officer reporting directly to the company’s board of directors or chief executive officer.
- 2001, c. 9, s. 562.
509.1 (1) This section applies only in respect of a company
(a) that has been notified by the Superintendent that this section applies to it where the company 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 company’s business, or
(ii) are contained in a prudential agreement entered into under section 506.1 or an undertaking given by the company to the Superintendent; or
(b) that is the subject of a direction made under section 507 or an order made under subsection 473(3).
Marginal note:Information to be provided
(2) A company 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,
(b) each person who has been selected by the company for appointment as a senior officer, and
(c) each person who is newly elected as a director of the company at a meeting of shareholders and who was not proposed for election by anyone involved in the management of the company,
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
(a) 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; or
(b) in the case of a person referred to in paragraph (2)(c), within fifteen days after the date of the election of the person.
Marginal note:Disqualification or removal
(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
(a) in the case of a person referred to in paragraph (2)(a) or (b), disqualify the person from being elected or appointed as a director of a company or from being appointed as a senior officer; or
(b) in the case of a person referred to in paragraph (2)(c), remove the person from office as a director of the company.
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 company 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 company 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)
(a) disqualifying a person from being elected or appointed to a position, the person shall not be, and the company shall not permit the person to be, elected or appointed to the position; or
(b) removing a director from office, the person shall not continue to hold, and the company shall not permit the person to continue to hold, office as a director.
- 1996, c. 6, s. 126;
- 2001, c. 9, s. 563.
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