Finance committee  I'm going to cover at the same time subdivision E, the Precious Metals Marking Act, and subdivision F, the Textile Labelling Act, because they're related measures. The proposed legislative amendment would expand the current regulatory authority in the act that allows for exempt

Finance committee  Thank you, Mr. Chair. The first issue in this bill concerns changes in insolvency. Licensed insolvency trustees must renew their licences and pay fees on December 31, annually. This deadline creates unnecessary administrative burden or pressure for many trustees, because it may

Finance committee  If a decision concerning the compensation of directors were challenged by a board, the board would be liable for that decision. It is possible, in an insolvency case, that the monitor might decide the decision runs counter to expectations regarding the board's liability. That c

Finance committee  I'm back for one more section. My apologies.

Finance committee  Thank you for that question. First, the provision on the duty to act in good faith would help align Canada's insolvency laws with recognized international best practices. Many countries, including the United States, the United Kingdom and Japan, have established the duty to act

Finance committee  In some cases, particularly in Quebec, the courts use the provision to correct the behaviour of a party in an insolvency case. Canadian courts may rely on other tools, but those in Quebec use this provision correctly to protect other parties affected by an insolvency proceeding.

Finance committee  The bill provides that, in an insolvency case, the court may verify the salaries and compensation of senior management, but also their stock options and social benefits. However, the court must exercise caution in using this provision. It is not possible to nullify the collecti

Finance committee  Stock options are included in directors' compensation, but the act currently contains other elements as well. Already, under the existing provisions of the act there is a look-back period that includes the ability for monitors in the courts to review shareholder buybacks, for

Finance committee  As with the other requirements applicable to organizations under the act, the usual process in this case is to specify the regulatory information that must be provided to shareholders annually. Last year, Bill C-25 added to the act the requirement that corporations disclose to s

Finance committee  Further to the bill, the approach involves all aspects of remuneration, including salary, benefits and so on. The bill makes it mandatory for directors to set out that approach.

Finance committee  By directors, I mean those on the board of directors.

Finance committee  Yes. In the other areas of responsibility where similar obligations are imposed on corporations, the approach is also addressed. Corporations have to adhere to certain standards in how they approach remuneration, including salary and benefits.

Finance committee  I'd answer that question in two ways. First, I think it's important to look at the relationship between pension solvency rules and insolvencies. I won't trump my finance department colleagues, but just to state what our approach is federally, we have extremely stringent pension f

Finance committee  That's right. We prevent that moral hazard. On the second part of your question, though, if you were to start that on a brand new basis—if I were starting a brand new pension tomorrow—I think you're potentially right that the economic incentive to a lender would be to ensure tha

Finance committee  The government received many submissions as part of the consultations, more than 4,000. Most of them were online submissions, many being form letters from organizations that had encouraged all their members to participate. A lot of people said it was important to change the orde