ARCHIVED — Vol. 146, No. 27 — July 7, 2012

Warning This Web page has been archived on the Web.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

Regulations Amending the Canadian Payments Association Election of Directors Regulations

Statutory authority

Canadian Payments Act

Sponsoring department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see Prospectus (Federal Credit Unions) Regulations.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 35(1) (see footnote a) of the Canadian Payments Act (see footnote b), proposes to make the annexed Regulations Amending the Canadian Payments Association Election of Directors Regulations.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part Ⅰ, and the date of publication of this notice, and be addressed to Lynn Hemmings, Senior Chief, Payments and Pensions, Department of Finance, L’Esplanade Laurier, 20th floor, 140 O’Connor Street, Ottawa, Ontario K1A 0G5 (tel.: 613-992-0553; fax: 613-943-8436; email: finlegis@fin.gc.ca).

Ottawa, June 19, 2012

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE CANADIAN PAYMENTS ASSOCIATION ELECTION OF DIRECTORS REGULATIONS

AMENDMENTS

1. Section 4 of the Canadian Payments Association Election of Directors Regulations (see footnote 1) is replaced by the following:

Number of directors per class

4. The number of directors to be elected in respect of each of the classes established under subsection 9(3) of the Act is as follows:

  • (a) six directors shall be elected by the members of the class described in paragraph 9(3)(a) of the Act;

  • (b) two directors shall be elected by the members of the class described in paragraph 9(3)(b) of the Act; and

  • (c) a total of four directors shall be elected by the members of the following classes, in accordance with sections 5 and 6:
    • (i) the class described in paragraph 9(3)(c) of the Act,

    • (ii) the class described in paragraph 9(3)(d) of the Act,

    • (iii) the class described in paragraph 9(3)(e) of the Act,

    • (iv) the class described in paragraph 9(3)(f) of the Act, and

    • (v) the class described in paragraph 9(3)(g) of the Act.

2. Subsection 5(2) of the Regulations is replaced by the following:

Deemed class membership

(2) If no class is deemed, under subsection (1), to be part of the class referred to in subparagraph 4(c)(v), the class from among those referred to in subparagraphs 4(c)(i) to (iv) whose members are entitled to cast the least number of votes is deemed to be part of the class referred to in subparagraph 4(c)(v). In the event of a tie between two or more classes for the least number of votes, the class with the fewest members is deemed to be part of the class referred to in subparagraph 4(c)(v).

3. Section 6 of the Regulations is replaced by the following:

Number of directors — four remaining classes

6. (1) If only one class is deemed, under section 5, to be part of the class referred to in subparagraph 4(c)(v), one director shall be elected by the members of each remaining class.

Number of directors — three remaining classes

(2) If two classes are deemed, under section 5, to be part of the class referred to in subparagraph 4(c)(v), two directors shall be elected by the members of the remaining class whose members are entitled to cast the greatest number of votes, and one director shall be elected by the members of each of the two other remaining classes. In the event of a tie between two or three classes for the greatest number of votes, two directors shall be elected by the members of the class with the most members.

Number of directors — two remaining classes

(3) If three classes are deemed, under section 5, to be part of the class referred to in subparagraph 4(c)(v), the number of directors to be elected by the members of each of the two remaining classes shall be determined as follows:

  • (a) one director shall be elected by the members of any class whose members are entitled to cast 25% or less of the total number of votes that the members of the two remaining classes are entitled to cast;

  • (b) two directors shall be elected by the members of any class whose members are entitled to cast more than 25% but less than 75% of the total number of votes that the members of the two remaining classes are entitled to cast; and

  • (c) three directors shall be elected by the members of any class whose members are entitled to cast at least 75% of the total number of votes that the members of the two remaining classes are entitled to cast.

Number of directors — one remaining class

(4) If four classes are deemed, under section 5, to be part of the class referred to in subparagraph 4(c)(v), four directors shall be elected by the members of that class.

4. Section 8 of the Regulations is replaced by the following:

Limitation for direct participants

8. (1) No more than four of the directors elected by the members of the class referred to in paragraph 4(a) may be directors, officers or employees of direct participants.

Exception

(2) Subsection (1) does not apply if the members of that class that are not direct participants present only one candidate for director. In that case, no more than five of the directors elected by the members of that class may be directors, officers or employees of direct participants.

Exception

(3) Subsection (1) does not apply if the members of that class that are not direct participants do not present a candidate for director.

5. Section 9 of the Regulations is replaced by the following:

Limitation for direct participants

9. (1) No more than two of the directors elected by members of the classes referred to in paragraph 4(c) may be directors, officers or employees of direct participants.

Exception

(2) Subsection (1) does not apply if the members of those classes that are not direct participants present only one candidate for director. In that case, no more than three of the directors elected by the members of those classes may be directors, officers or employees of direct participants.

Exception

(3) Subsection (1) does not apply if the members of those classes that are not direct participants do not present a candidate for director.

6. Paragraphs 11(2)(a) and (b) of the Regulations are replaced by the following:

  • (a) three members are directors elected by the members of the class referred to in paragraph 4(a);

  • (b) one member is a director elected by the members of the class referred to in paragraph 4(b);

COMING INTO FORCE

7. These Regulations come into force on the day on which section 207 of the Financial System Review Act, chapter 5 of the Statutes of Canada, 2012, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

[27-1-o]

Footnote a
S.C. 2001, c. 9, s. 243

Footnote b
R.S., c. C-21; S.C. 2001, c. 9, s. 218

Footnote 1
SOR/2002-215