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LEGISLATIVE ASSEMBLY 

OF ONTARIO 

FIRST SESSION OF THE TWENTY-EIGHTH 
PARLIAMENT 

133897 



BILLS 



AS INTRODUCED IN THE HOUSE 

TOGETHER WITH 

REPRINTS AND THIRD READINGS 



SESSION 

FEBRUARY 1 4th to APRIL 1 1 th, 1 968 

and 
APRIL 22nd to JULY 23rd, 1968 



INDEX 



FIRST SESSION, TWENTY-EIGHTH PARLIAMENT 

February 14th to April 11th, 1968 

and 

April 22nd to July 23rd, 1968 



PUBLIC BJLLS 

A Bill No. 

Administration of Justice — Act to provide for 69 

Age Discrimination Act, 1966 — Act to amend 45 

Air Pollution Control Act, 1968 (Lapsed) 113 

1967 — Act to amend 160 

Airports — Act respecting the Establishment, Extension, Improvement and 

Maintenance of 52 

Art Gallery of Ontario Act — Act to amend 151 

Assessment Act — Act to amend 156 

B 

Blind Workmen's Compensation Act — Act to amend 57 

Brucellosis Act, 1965 — Act to amend 34 

Business Corporations Act, 1968 (Lapsed) 125 

Business Corporations Information Act, 1968 (Lapsed) 126 



Centennial Centre of Science and Technology Act, 1965 — Act to amend ... 65 

Charitable Institutions Act, 1962-63 — Act to amend 61 

Children's Institutions Act, 1962-63 — Act to amend 63 

Commissioner of the Legislature Act, 1968 (Lapsed) 10 

Community Centres Act — Act to amend 49 

Commuter Services Act, 1965 — Act to amend (Lapsed) Ill 

Conservation Authorities Act, 1968 36 

Consolidated Cheese Factories Act — Act to repeal 27 

Consumer Protection Act, 1966 — Act to amend 135 

Control of Air Pollution from Motor Vehicles — Act to provide for (Lapsed) 175 

Control of Fumes from Smelters — Act to provide for (Lapsed) 33 

Coroners Act — Act to amend • 70 

Corporations Act — Act to amend 107 

— Act to amend 153 

Corporations Tax Act — Act to amend 143 

County Courts Act — Act to amend 71 

[3] 



Bill No. 

County Judges Act— Act to amend 2 

— Act to amend ' l 

Crown Attorneys Act— Act to amend 73 

Crown Timber Act— Act to amend ltj " 

Crown Witnesses Act— Act to amend 75 

D 

Department of Agriculture and Food Act— Act to amend 102 

1 tepartment of Correctional Services Act, 1968 129 

Department of Education Act— Act to amend 166 

I department of Revenue— Act to establish 138 

Department of Trade and Development— Act to establish 11 

Division Courts Act — Act to amend 6 

— Act to amend 76 

Dog Tax and Live Stock and Poultry Protection Act— Act to amend 116 

Drainage Act, 1962-63— Act to amend 171 

E 

Elderly Persons' Housing Aid Act— Act to amend 15 

Employment Standards Act, 1968 130 

Evidence Act — Act to amend 43 

Executive Council Act — Act to amend 177 

Extra-Judicial Services Act — Act to amend 3 

F 

Family Benefits Act, 1966— Act to amend 46 

Farm Products Marketing Act — Act to amend 25 

Financial Administration Act — Act to amend 137 

Fire Departments Act — Act to amend 146 

Fire Marshals Act — Act to amend 83 

Forest Fires Prevention — Act respecting 97 

Forest Tree Pests — Act to provide for control of 95 

Fruit Packing Act — Act to repeal 29 

G 

Gasoline Tax Act — Act to amend 37 

General Welfare Assistance Act — Act to amend 47 

Geographic Names Board — Act to provide for 99 

H 

Highway Improvement Act — Act to amend 108 

Highway Traffic Act — Act to amend (Lapsed) 22 

— Act to amend (Lapsed) 30 

— Act to amend (Lapsed) 58 

—Act to amend (Lapsed) 87 

— Act to amend 119 



Bill No. 

Homes for the Aged and Rest Homes Act — Act to amend 85 

Homes for Retarded Persons Act — Act to amend 62 

Hospital Services Commission Act — Act to amend 121 

Hours of Work and Vacations with Pay Act — Act to amend (Lapsed) .... 21 

— Act to amend (Lapsed) .... 90 

Hunter Damage Compensation Act, 1962-63 — Act to amend 26 

I 

Impaired Drivers — Act respecting (Lapsed) 159 

Income Tax Act, 1961-62 — Act to amend 136 

Industrial Safety Act, 1964 — Act to amend 104 

— Act to amend 132 

Injured Animals Act — Act to repeal 20 

Insurance Act — Act to amend 60 

J 

Judicature Act — Act to amend 32 

— Act to amend (Lapsed) 56 

— Act to amend 80 

— Act to amend 103 

Jurors Act — Act to amend 74 

Justices of the Peace Act — Act to amend 77 

L 

Land Titles Act — Act to amend 78 

Legislative Assembly Act — Act to amend 176 

Legislative Assembly Retirement Allowances Act — Act to amend 178 

Line Fences Act — Act to amend 106 

Loan and Trust Corporations Act — Act to amend 59 

Local Roads Boards Act, 1964 — Act to amend 109 

Lord's Day (Ontario) Act, 1960-61 — Act to amend 41 

Act to amend 53 

M 

Marketing of Cattle for the Production of Beef — Act to amend 35 

Medical Act — Act to amend 123 

Medical Services Insurance Act, 1965 — Act to amend 94 

Mining Act — Act to amend 118 

— Act to amend (Lapsed) 148 

Minor's Protection Act — Act to amend 9 

Motorized Snow Vehicles- — Act respecting 88 

Motor Vehicle Accident Claims Act, 1961-62 — Act to amend 67 

Motor Vehicle Fuel Tax Act — Act to amend 38 

Municipal Act — Act to amend 24 

— Act to amend 155 

Municipality of Metropolitan Toronto Act — Act to amend 145 

Municipal Assistance Act — Act to amend 170 

Municipal Corporations Quieting Orders Act — Act to amend 54 

Municipal Unconditional Grants Act — Act to amend 154 



6 

O Bill No. 

Ontario Development Corporation Act, 1966— Act to amend 12 

Ontario Economic Council— Act to establish 51 

Ontario Human Rights Code, 1961-62— Act to amend 133 

Ontario Housing Corporation Act, 1964— Act to amend 13 

Ontario I~itx>ur-Management Arbitration Commission Act, 1968 142 

Ontario Municipal Employees Retirement System Act, 1961-62 

— Act to amend • "* 

Ontario Producers, Processors, Distributors and Consumers Food Council 

Act, 1962-63— Act to amend 86 

Ontario School Trustees' Council Act— Act to amend 163 

Ontario Universities Capital Aid Corporation Act, 1964— Act to amend. 127 



Partnerships Registration Act — Act to amend 79 

Pension Benefits Act, 1965— Act to amend 134 

Perpetuities Act — Act to amend 1 

Pharmacy Act — Act to amend 122 

Planning Act — Act to amend 89 

Police Act — Act to amend 147 

Pounds Act — Act to amend (Lapsed) 105 

Power Commission Act — Act to amend 158 

Prearranged Funeral Services Act, 1961-62 — Act to amend 8 

Private Hospitals Act — Act to amend 93 

Private Investigators and Security Guards Act, 1965 — Act to amend 7 

Probation Act — Act to amend 81 

Professional Engineers Act, 1968 — Act to amend (Withdrawn) 42 

Provincial Auctioneers Act — Act to amend (Lapsed) 19 

Provincial Courts and Judges — Act to provide for 64 

Provincial Parks Act — Act to amend 98 

Public Health Act — Act to amend 161 

Public Hospitals Act — Act to amend 92 

Public Lands Act — Act to amend 115 

Public Schools Act — Act to amend 165 

Public Service Act, 1961-62 — Act to amend 139 

Public 1'tilities Act— Act to amend (Lapsed) 23 

Public Vehicles Act — Act to amend 66 

R 

Race Tracks Tax Act — Act to amend 40 

Railway Act — Act to amend 68 

Railway Fire Charge Act — Act to amend 101 

Raising of Money on the Credit of the Consolidated Revenue Fund — Act to 

authorize 149 

Reduction of Municipal Taxes on Residential Property — Act to provide for. 91 

Regional Municipality of Ottawa-Carleton — Act to establish 112 

Registry Act — Act to amend 84 

Religious Institutions Act — Act to amend 5 

Royal ( )ntario Museum — Act respecting 152 



7 

S Bill No. 

Sandwich, Windsor and Amherstburg Railway Act, 1930 — Act to amend. . 31 

Schools Administration Act — Act to amend 140 

— Act to amend 172 

Secondary Schools and Boards of Education Act — Act to amend 44 

— Act to amend 120 

— Act to amend 141 

— Act to amend 167 

Securities Act, 1966 — Act to amend 50 

Seed Grain Subsidy Act — Act to repeal 28 

Separate Schools Act — Act to amend 168 

Sheridan Park Corporation Act, 1964 — Act to amend 14 

Sheriffs Act — Act to amend 82 

Steam Threshing Engines Act — Act to repeal 18 

Statute Labour Act — Act to amend 55 

Supply Act, 1968 179 

Surveys Act — Act to amend 114 

Tay — Act respecting The Northerly Boundary of Lot 19, Concession XIV 

in the Township of 96 

T 

Teachers' Superannuation Act — Act to amend 162 

Teaching Profession Act — Act to amend 164 

Territorial Division Act — Act to amend 169 

Threshing Machines Act — Act to repeal 17 

Time Act — Act to amend (Lapsed) 124 

Tobacco Tax Act, 1965— Act to amend 39 

Township of Charlottenburg — Act respecting 174 

Township of Red Lake — Act respecting 173 

Training Schools Act, 1965 — Act to amend (Lapsed) 110 

— Act to amend 128 

Transportation of Fowl Act — Act to repeal 16 

U 

Upholstered and Stuffed Articles Act, 1968 157 

V 

Vocational Rehabilitation Services Act, 1966 — Act to amend 48 

Voluntary Emergency Medical Services Act, 1968 (Lapsed) 117 

W 

Wages Act — Act to amend 4 

— Act to amend 131 

Workmen's Compensation Act — Act to amend 150 



8 

PRIVATE BILLS 

B 

Pr1 7 

Barrio, City of— Act respecting r * L ' 

Belleville, City of— Act respecting (Withdrawn) ™$ 

Bowinanville, Town of— Act respecting ™ l) 

Brockville Club— Act respecting (Withdrawn) ™ 7 



Canadian Order of Foresters— Act respecting Pr41 

Cardinal Insulation Limited— Act respecting Pl "32 

Carleton University and English Oblates of Eastern Canada 

— Act respecting * r49 

Chalk River, Village of— Act respecting Prl4 

E 

l.astview, City of— Act respecting Pr 40 

Ewart College — Act respecting (Lapsed) Pr46 

F 

Foresters, Canadian Order of — Act respecting (see Canadian) 

H 
Hamilton, City of— Act respecting Pr8 

I 

Imperial Sewing Machine Limited and Imperial Sewing Machine Company 

(Kitchener) Limited — Act respecting Pr43 

J 
Janbi Holdings Limited — Act respecting Pr51 

K 

Kingston, City of — Act respecting (Not reported) Pr7 

Kitchener, City of — Act respecting Pr30 



Lake of The Woods District Hospital — Act respecting Pr50 

London, Board of Education of the City of — Act respecting Pr38 

London, City of — Act respecting Pr22 

Lutheran Church-Missouri Synod — Act respecting Pr39 

N 

Nepean, Township of — Act respecting Pr26 

i Falls. City of Act respecting Pr29 



O Bill No. 

Ontario, County of — Act respecting Prl6 

Oshawa, City of — Act respecting Pr24 

Oshawa Young Women's Christian Association — Act respecting (Not 

Reported) Pr4 

Ottawa, City of — Act respecting Pr42 

Ottawa Separate School Board — Act respecting Pr9 

Ottawa and District, Community Foundation of — Act respecting Prl2 

Owen Sound Young Men's and Young Women's Christian Association 

— Act respecting (Not reported) Pr20 

P 

Palmerston, Town of — Act respecting Pr27 

Peel, County of — Act respecting Pr21 

Pelee, Township of — Act respecting Pr45 

Peterborough, City of — Act respecting Prll 

Peterborough, City of — Act respecting Prl3 

Point Edward, Village of — Act respecting (Not reported) Pr48 

Psychoanalysts — Act respecting (Withdrawn) Pr28 

R 

Rayside, Township of — Act respecting Pr31 

Renfrew, Board of the Combined Roman Catholic Separate Schools of 

— Act respecting Prl5 

Renfrew, County of — Act respecting Pr6 

S 

Sault Ste. Marie, City of — Act respecting Pr5 

Smiths Falls, Town of — Act respecting PrlO 

Sudbury, Laurentian University of — Act respecting (Withdrawn) Pr47 

T 

Thessalon, Town of — Act respecting (Not reported) Pr2 

Toronto, City of — Act respecting Pr33 

Toronto City Mission — Act respecting Pr44 

Toronto General Burying Grounds, Trustees of — Act respecting Prl8 

U 
United Church-Evangelical United Brethren — Act respecting (Withdrawn) Prl 

V 

Yaughan, Township of — Act respecting Pr23 

W 

Walbi Holdings Limited — Act respecting Pr52 

Welland, City of — Act respecting Pr35 

Welland, County of — Act respecting Pr34 

Windsor, City of — Act respecting Pr36 

Wool and Gift Shops (Toronto) Limited — Act respecting Pr25 



BILL 113 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Air Pollution Control Act, 1968 



Mr. Shulman 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory iNote 

This Bill is based upon the principles of a local law of the City of 
New York passed in 1966. 



113 



BILL 113 1968 



The Air Pollution Control Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, gtjwp™. 

(a) "Act" includes the regulations; 

(b) "air contaminant" means any particulate matter or 
any gas or any combination thereof, other than 
water vapour or natural air; 

(c) "bituminous coal" has the meaning given by the 
regulations ; 

(d) "combustion controller" means a control apparatus 
that automatically maintains the proper fuel-to-air 
ratio for optimum combustion of fuel; 

(e) "control apparatus" means any device that prevents 
or controls the emission of any air contaminant; 

(/) "Department" means the Department of Health; 

(g) "emission" means dispersion into the open air; 

(h) "equipment" means any device that is capable of 
causing the emission of an air contaminant into the 
open air, and includes a stack, conduit, flue, duct, 
vent or similar device connected or attached to, or 
serving equipment; 

(*) "equipment used in a manufacturing process" means 
any equipment in which the preponderance of the 
air contaminant emitted is caused by the manufac- 
turing process; 

113 



(j) "fuel-burning equipment" means any furnace, boiler, 
water heater, device, mechanism, stack, structure, 
oven, stove, kiln, still or other apparatus that is 
used in the process of burning fuel or a similar 
combustible material, other than a motor vehicle; 



R.8.O. I960, 
c. 98 



RAO. IMO 



Power* 
and duties 



(k) "gas" means a formless fluid that occupies space and 
that can be changed to a liquid or solid only by 
increased pressure with decreased or controlled tem- 
perature or by decreased temperature with increased 
or controlled pressure; 

(/) "local board" has the meaning given it in The De- 
partment of Municipal Affairs Act; 

(m) "motor vehicle" means any equipment that is 
propelled by an internal combustion engine in or 
upon which a person or material may be transported 
on the ground ; 

(n) "municipality" includes a metropolitan munici- 
pality ; 

(o) "particulate matter" means any liquid, other than 
water, or any solid that is so finely divided as to be 
capable of becoming wind-blown or being suspended 
in air; 

(p) "portable equipment" means any equipment that is 
designed to be transported from place to place for 
temporary operation ; 

(g) "professional engineer" means a person who is reg- 
istered or licensed under The Professional Engineers 
Act; 

(r) "regulations" means the regulations made under 
this Act; 

(s) "residual fuel oil" has the meaning given by the 
regulations; 

(t) "vapour" means any material in a gaseous state 
that is formed from a substance, usually a liquid, 
by an increase in temperature. 

2. Any of the powers conferred upon the Department and 
any of the duties imposed upon the Department by this Act 
may be exercised or performed, as the case may be, by the 
Minister of the Department or by any one or more' officials 
of the Department whom he may designate for the purpose. 

113 



3. No person shall construct, install or alter any equip- IS^Mm^ 

ment or control apparatus of any kind in any structure tion permits, 

, , . r ., , ... ., ,. equipment 

other than in a one or two family dwelling, until an apphca- and control 
tion, including plans and specifications, has been filed with ai 
the Department and an installation or alteration permit has 
been issued thereupon by the Department. 

4. — (1) No person shall use or cause to be used any new 2wt§iea3«, 
or altered equipment for which an installation or alteration new and 
permit was required or issued until an operating certificate equipment 
has been issued therefor by the Department. 

(2) No operating certificate or renewal thereof required by conditions 
this Act shall be issued by the Department unless the applicant tissue 11 * 
shows to the satisfaction of the Department that the equip- 
ment is designed to operate without causing a contravention 

of this Act and that the equipment incorporates advances in 
the art of air pollution control developed for the kind and 
amount of air contaminant emitted by the applicant's equip- 
ment. 

(3) Before an operating certificate or any renewal thereof * d s e t ™' 
is issued, the Department may require the applicant to con- 
duct such tests as are in the opinion of the Department 
necessary to determine the kind or amount of the air contam- 
inant emitted from the equipment or whether the equipment 

or fuel or the operation of the equipment contravenes this 
Act, and such tests shall be made at the expense of the ap- 
plicant and shall be conducted in a manner approved by the 
Department and the results of the tests shall be reviewed 
and certified by a professional engineer. 

(4) An operating certificate and any renewal thereof is™®™' 
valid for a period of three years from the date of issuance, 
unless it is sooner suspended or revoked. 

(5) Upon receipt of an application for an operating permit ope?at°ing y 
or a renewal thereof, the Department may issue a temporary certificates 
operating certificate valid for a period of not more than 

sixty days. 

5. — (1) Commencing one year after this Act comes into reskiuaf 
force, no person shall cause or permit the use or operation {^ning 
of fuel burning equipment using residual fuel oil until an q ej.^ m n ) g t ' 
operating certificate has been issued therefor by the De- certificates 
partment. 

(2) A certificate shall not be issued under subsection 1 president 3 
unless the applicant's fuel burning equipment includes the ^ertliica te 
installation and use of a combustion controller, an automatic 

113 



oil temperature maintenance device and an automatic water 
temperature maintenance device, or the equivalent of such 
devices, and, in addition thereto, such other requirements as 
the Department may specify. 

Existing (3) Commencing two years after this Act comes into force, 

SSiJment* no person shall cause or permit the use or operation of fuel 
reruflca&s burning equipment using coal as fuel until an operating 
certificate has been issued therefor by the Department. 



Conditions 
precedent 
to issue of 
• *rtifl<ate 



(4) A certificate shall not be issued under subsection 3 
unless the applicant's fuel burning equipment includes the 
installation and use of a combustion controller and an auto- 
matic water temi>erature maintenance device, or the 
equivalent of such devices, in addition to such other require- 
ments as the Department may specify. 



Existing 

refuse 

burning 

equipment. 

operating 

certificates 



6. — (1) Commencing one year after this Act comes into 
force, no person shall cause or permit the use or operation of 
refuse burning equipment in any structure, other than in a 
multiple dwelling of six storeys or less, until an operating 
certificate therefor has been issued by the Department. 



Idem. 

multiple 

dwellings 

of P »X 

storeys 
or lees 



(2) Commencing two years after this Act comes into force, 
no person shall cause or permit the use or operation of refuse 
burning equipment in any multiple dwelling of six storeys 
or less until an operating certificate has been issued therefor 
by the Department. 



Conditions 
precedent 
to issue of 
certificate 



Manufac- 
turing 
pro lessee. 
operating 
certificates 



(3) A certificate shall not be issued under this section 
unless the applicant's refuse burning equipment includes the 
installation and use of an auxiliary gas burner regulated by 
automatic firing clocks, an overfire air fan and nozzle system 
and control apparatus, such as a scrubber, or the equivalent 
of such devices, and, in addition thereto, such other require- 
ments as the Department may specify. 

7. Commencing one year after this Act comes into force, 
no person shall cause or permit the emission of any sulphur 
compound in the form of a gas, vapour or otherwise, from 
equipment used in a manufacturing process until an operating 
certificate has been issued therefor by the Department. 



Portable 
equipment, 
operating 
certificates 



8. Commencing one year after this Act comes into force, 
no person shall cause or permit the operation of portable 
equipment powered by an internal combustion engine, other 
than a motor vehicle, at any one location for a continuous 
period of ten days or more until an operating certificate 
has been issued therefor by the Department. 



113 



9. No person shall cause or permit to be operated any JjjSfpment 
equipment or process that is in existence when this Act 
comes into force except in accordance with this Act. 

lO. — (1) No person shall cause or permit the use of fuel^pbur 
that contains more than the following percentages of sulphur j^tricted 
by weight: 

1. For a period of two years and four months com- 
mencing eight months after this Act comes into 
force, 

i. coal, 2.2 per cent, 

ii. residual fuel oil, 2.2 per cent. 

2. For a period of two years commencing three years 
after this Act comes into force, 

i. coal, 2.0 per cent, 

ii. residual fuel oil, 2.0 per cent. 

3. After the period mentioned in item 2 expires, 

i. coal, 1.0 per cent, 
ii. residual fuel oil, 1.0 per cent. 

(2) Upon the application of any person engaged in the certificates 
operation of fuel burning equipment using coal or residual exemption 
fuel oil as a fuel, the Department may issue a certificate of 
exemption from the sulphur content restrictions of this 
section if the applicant proves to the satisfaction of the 
Department that the fuel burning equipment is operated in 

such a manner or is equipped with such control apparatus as 
to continuously prevent the emission of any sulphur com- 
pound or compounds in amounts greater than those that 
would be emitted from the burning in the same fuel burning 
equipment without such control apparatus of coal or residual 
fuel oil containing an amount of sulphur by weight not in 
excess of the maximum permitted at the applicable time by 
this section. 

(3) As a condition for the issuance or renewal of a certi- c f °£jianoe 
ficate of exemption, the applicant must, at his own expense, 

install scientific monitoring devices capable of continuously 
recording emissions of sulphur compounds and must submit 
the records thereof to the Department each day. 

113 



Prohibition 

and 

penalty 



(4) No |)erson shall cause or permit the emission of any 
sulphur compound or com|X)unds in an amount in excess of 
th.it permitted by the terms of a certificate of exemption 
issued under this section and, in the event of a contravention 
of this subsection, the Department may, as an alternative 
or in addition to any other penalty that may be imposed, 
suspend or revoke the certificate of exemption or take such 
Other action as may be deemed to be appropriate. 



Xrt incate or (5) A certificate of exemption or any renewal thereof is 
exemption valid for a period of one year from the date of issuance 
unless it is sooner suspended or revoked. 



Temporary 

< truncates 

or 

exemption 



(6) I'pon the application of any person engaged in the 
operation of fuel burning equipment using coal or residual 
fuel oil as fuel, the Department may issue a temporary 
certificate of exemption from the sulphur content restrictions 
of this section if the applicant proves to the satisfaction of 
the Department that the application is for the purpose of 
conducting an experimental operation prior to the submission 
of an application for a certificate of exemption. 



Term or 
tern porary 



(7) A temporary certificate of exemption is valid for a 
iflcate or period of three months from the date of issuance unless it is 
sooner suspended or revoked and may be renewed once only 
for an additional i>eriod of three months. 



Condition* 
or issuance 



(8) As a condition to the issuance or renewal of a temporary 
certificate of exemption, the applicant must at his own expense 
install scientific monitoring devices capable of continuously 
recording emissions of sulphur compounds and must submit 
the records thereof to the Department each day. 



Bituminous 
coal, use 

restricted 



11.— (1) Commencing three years after this Act comes 
into force, no person shall use bituminous coal in fuel burning 
equipment until he installs, uses and continuously maintains 
control apparatus certified by a professional engineer as 
capable of continuously preventing the emission of at least 
99 per cent of all solid particulate matter that would other^ 
wise be emitted from the use of bituminous coal in the fuel 
burning equipment. 



Srlon- 01 (2) As a condition for continued use of bituminous coal 

tinued use un der this Act, the Department may require, 

(a) the semi-annual submission of a statement by a 
professional engineer certifying to the continued 
99 per cent efficiency of the control apparatus; and 



113 



(b) the installation at the expense of the operator of 
scientific monitoring devices capable of continuously 
recording emissions of particulate matter or gases 
and the submission of a statement of the information 
so recorded. 

(3) Notwithstanding subsections 1 and 2, commencing two ^^J^. 
years after this Act comes into force, no person shall use 
bituminous coal in fuel burning equipment for the purpose 
of providing heat or hot water for any structure or building 
or any part thereof, but this prohibition does not apply to 
fuel burning equipment operated for the purpose of generating 
steam for off-premises sale, to which operation subsections 
1 and 2 apply. 

12. — (1) Commencing two years after this Act comes into^-lp"^ 
force, no person shall cause or permit the installation Of.JJSfoaB*" 
construction of refuse burning equipment for the burning 
of garbage or other waste matter. 

(2) Subsection 1 does not apply to refuse burning equip- Exce P tlons 
ment of a municipality or a local board. 

(3) A system of hygienic control or hygienic disposal of^'^j}]^ 
putrescible garbage and equipment capable of reducing the 
volume of refuse by two-thirds by means other than burning 

that is constructed, maintained and operated in conformity 
with all legal requirements applicable thereto shall be pro- 
vided in all multiple dwellings which are four or more storeys 
in height and occupied by more than twelve families, and 
which are erected two years or more after this Act comes 
into force. 

(4) Mechanically operated garbage grinders for the dis-** 1 ^^ 
charge of solid kitchen waste materials from dwelling units grinders 
may be installed in all dwellings, including multiple dwellings 

that are erected two years or more after this Act comes into 
force, provided, 

(a) that the installation of any such grinder is not 
prohibited by any municipal by-law; 

(b) that any such grinder is designed and installed in 
conformity with all legal requirements applicable 
thereto; and 

(c) that any such grinder will discharge wastes at a 
reasonably uniform rate and in fluid form that 
will flow readily and in a manner that will not clog 
or stop up the drain line or sanitary sewer. 

113 



8 

SSpoMi 13.— (1) No incinerator operated or to be operated by 

municipal a municipality or a local board shall be constructed or sub- 

ion»t*iTcUon stantially reconstructed unless there is installed and operated 

therein control apparatus that incorporates the most effective 

advances in the art of air pollution control as determined by 

the Department. 



Idem, 
operation 



(2) Commencing three years after this Act comes into 
force, no incinerator shall be operated by a municipality or 
a local board unless there is installed and operated therein 
control apparatus that incorporates the most effective 
advances in the art of air pollution control as determined 
by the Department. 



Operators, 
etc.. 
to take 
courses of 
instruction 



Employ- 
ment of un- 
qualified 
operators, 

prohibited 



Certificate 
of 

competence 



Sealing of 
equipment 



14. — (1) Every operator of fuel burning equipment using 
residual fuel oil, every operator of refuse burning equipment 
and every person who is charged with supervision of the 
operation of fuel burning equipment using residual fuel oil 
or of the operation of refuse burning equipment shall success- 
fully complete, within two years after this Act comes into 
force, or within six months after the commencement of his 
employment, whichever is later, a course of instruction in 
air pollution control approved by the Department. 

(2) No person shall employ an operator of fuel burning 
equipment using residual fuel oil, an operator of refuse 
burning equipment or a supervisor in charge of either of such 
operations unless the operator or supervisor, as the case 
may be, has complied with subsection 1. 

(3) Upon the successful completion of a course of instruc- 
tion mentioned in subsection 1, the operator or supervisor, 
as the case may be, shall be given a certificate stating his 
name and the date issued and certifying that he has success- 
fully completed the course mentioned, which certificate shall 
be posted in a prominent place at or near the equipment that 
he operates or supervises. 

15. The Department may seal any equipment installed 
or operated in contravention of this Act. 



Separate 
Hence* 



Offences 

and 

penalties 



!<*•— (1) The operation of any equipment in contravention 
of any provision of this Act shall be deemed a separate and 
distinct contravention as to each day of such operation. 

(2) Any person who contravenes any provision of this Act 
is guilty of an offence and on summary conviction is liable 
to a fine of not less than $25 and not more than $1,000 or 
to imprisonment for a term of not more than six months, 
or to both. 



113 



17. The Lieutenant Governor in Council may make such Regulations 
regulations with respect to air pollution control as he deems 
necessary for carrying out the purposes of this Act, and in 
particular, 

(a) denning bituminous coal and residual fuel oil for 
the purposes of this Act by reference to a recognized 
code of standards or a part thereof or otherwise; 

(b) respecting the emission of air contaminants; 

(c) requiring and prescribing alterations to equipment 
and processes in existence when this Act comes into 
force in order that they may be operated in com- 
pliance with this Act; 

(d) prescribing methods, by reference to a recognized 
code of standards or part thereof or otherwise, for 
determining the sulphur content of fuels by weight; 

(e) respecting applications for and the issuance, renewal, 
suspension and revocation of permits and certificates, 
and imposing conditions and limitations thereon ; 

(/) respecting the sealing of equipment and prescribing 
procedures with respect thereto ; 

(g) approving courses of instruction for operators and 
supervisors of, 

(i) fuel burning equipment using residual fuel 
oil, or 

(ii) refuse burning equipment; 

(h) prescribing forms and providing for their use; 

(*) prescribing fees. 

18. The following are repealed: Repealed: 

1. Every air pollution control by-law of every muni- By " laws 
cipality. 

2. The Air Pollution Control Act, 1967. 1967 - c - 2 

19. This Act may be cited as The Air Pollution Control Short title 
Act, 1968. 



113 



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BILL 114 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Surveys Act 



Mr. Brunelle 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 

Section 1 The amendments provide a more economical method 
of JabSing side lines of lots in five" townships in the Cochrane District. 



114 



BILL 114 1968 



An Act to amend The Surveys Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause a of section 34 of The Surveys Act is amended ^"fjjo' s 9 34 ' 
by inserting after "system" in the second line "or in the°i fl ' ' _, 

eim6ndGu 

townships of Cumming, Idington, O'Brien, Owens and 
Williamson in the Territorial District of Cochrane", so that 
the clause shall read as follows: 

(a) Where any such township was surveyed under the 
1,000-acre or 1,800-acre sectional system or in the 
townships of Cumming, Idington, O'Brien, Owens 
and Williamson in the Territorial District of 
Cochrane, and if intended in the original survey, 
he shall establish the side line on the astronomic 
course shown on the original plan and field notes 
for the side line of the section in which the lot is 
located that is nearest the end of the section from 
which the lots are numbered, or, if intended in the 
original survey, he shall establish the side line on 
the astronomic course shown on the original plan 
and field notes for the side at the other end of the 
section in which the lot is located. 

(2) Clause b of the said section 34 is amended by inserting ^"fgo," s 9 34,' 
after "township" in the first line "other than the townships amended 
of Cumming, Idington, O'Brien, Owens and Williamson in 
the Territorial District of Cochrane", so that the clause shall 
read as follows: 

(b) Where any such township, other than the townships 
of Cumming, Idington, O'Brien, Owens and Wil- 
liamson in the Territorial District of Cochrane, was 
surveyed under any sectional system other than 
the 1,000-acre or 1,800-acre sectional system, and 
if it was intended in the original survey, he shall 
establish the side line on the astronomic course of 

114 



the side line of the section in which the lot is located 
that is nearest the end of the section from which 
the lots are numbered, or, if intended in the original 
survey, he shall establish the side line on the astro- 
nomic course of the side line of the section in which 
the lot is located at the other end of the section in 
which the lot is located, but where the side line of 
the section from which the lots are numbered is 
broken by a lake or river to such an extent that the 
course thereof cannot be accurately determined, 
he shall establish the side line on the astronomic 
course of the side line of the section at the other end 
of the section, and where both side lines of the 
section are broken by a lake or river to such an 
extent that the course thereof cannot be accurately 
determined, he shall establish the side line on the 
astronomic course shown on the original plan and 
field notes. 

R.|^o. i960. 2. — (1) Subsection 2 of section 48 of The Surveys Act is 

•iib«. 2.' '* amended by inserting after "is" in the fifteenth line "subject 

to section 48a", so that the subsection shall read as follows: 

tion n o r f m " (2) The Minister shall appoint and instruct a surveyor 

to make the survey for which an application has been 
made under subsection 1 and when the survey has 
been made and the plan and field notes have been 
examined by the Minister, the Minister shall cause 
a notice to be published once in each week for four 
consecutive weeks in a newspaper having general 
circulation in the municipality in which the survey 
has been made of a hearing to be held by him at a 
stated place on a day not fewer than ten days after 
the last publication of the notice at which hearing 
the survey will be considered and any interested 
persons will be heard, and upon the evidence sub- 
mitted the Minister may direct such amendments 
to be made as he deems necessary and may confirm 
the position of the disputed or lost line, boundary 
or corner fixed by the survey, and any line, boundary 
or corner so confirmed is, subject to section 48a, 
an unalterable line, boundary or corner and is final 
and conclusive and shall not be questioned in any 
court. 

?*39o'« 19 48; (2) The said section 48 is amended by adding thereto the 
amended following subsection : 

Jonfl?m»tion < 2a ) The Minister shall mail within ten days of confirming 
a survey under subsection 2 a copy of the plan and 

114 



Sections 2 to 5. The amendments provide for an appeal to a judge 
of the Supreme Court from the confirmation by the Minister of a muni- 
cipal survey or a Crown re-survey. 



114 



field notes of the survey to the municipality and 
to every person who appeared at the hearing. 

R.S.O. I960, 

C. 390 S 48 

(3) Subsection 4 of the said section 48 is repealed. subs. 4," 

repealed 

3. The Surveys Act is amended by adding thereto the ^fgo' 1960, 

following Section: amended 

48a. — (1) Any person objecting to the confirmation of a^gf* 1 

survey under subsection 2 of section 48 may appeal confirmation 
to a judge of the Supreme Court who may decide 
the matter on the evidence before him or direct the 
trial of an issue and may dismiss the appeal or order 
the Minister to amend the survey and plan in such 
manner as the judge deems proper. 

(2) Notice of an appeal under this section shall be Notice of 
served on the Minister within thirty days of the date 

of the confirmation by the Minister of the survey. 

(3) Upon the expiry of thirty days from the confirmation p^^fa'nd 
of a survey by the Minister or where an appeal has field notes 
been taken under subsection 1 within thirty days 

of the final disposition of the appeal, a copy of the 
plan and field notes of the survey or of the survey as 
amended in accordance with the order of the judge, 
as the case may be, shall be registered by the Min- 
ister with the proper master of titles or registrar of 
deeds and a copy thereof shall be filed with the clerk 
of the municipality that made the application under 
subsection 1 of section 48. 

4. Subsection 3 of section 49 of The Surveys Act is repealed R fg°- 19 4 6 °- 
and the following substituted therefor: subs. 3, ' 

re-enacted 

(3) Subsection 2 of section 48 and section 48a apply conflrma- 
. . ill- • tlon of 

mutatis mutandis to a survey made under this section, survey 

5. Subsection 1 of section 51 of The Surveys Act is repealed R.s.o. i960, 
and the following substituted therefor: subs, i, 

re-enacted 

(1) The Minister may cause a survey to be made under crown 

• •••-• r ,i r r ' i • • re-survey 

his direction for the purpose of fixing the position 
of a disputed or lost line, boundary or corner that 
was surveyed under competent authority, and in any 
such case the Minister may direct that subsection 2 
of section 48 and section 48a apply mutatis mutandis. 

6. This Act comes into force on the day it receives Royal menY* 161106 
Assent. 

7. This Act may be cited as The Surveys Amendment Act, short title 
1968. 

114 



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BILL 114 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Surveys Act 



Mr. Brunelle 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 114 1968 



An Act to amend The Surveys Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause a of section 34 of The Surveys Act is amended ^fgo' s 19 34 ' 
by inserting after "system" in the second line "or in the cla > d 
townships of Cumming, Idington, O'Brien, Owens and 
Williamson in the Territorial District of Cochrane", so that 
the clause shall read as follows: 

(a) Where any such township was surveyed under the 
1,000-acre or 1,800-acre sectional system or in the 
townships of Cumming, Idington, O'Brien, Owens 
and Williamson in the Territorial District of 
Cochrane, and if intended in the original survey, 
he shall establish the side line on the astronomic 
course shown on the original plan and field notes 
for the side line of the section in which the lot is 
located that is nearest the end of the section from 
which the lots are numbered, or, if intended in the 
original survey, he shall establish the side line on 
the astronomic course shown on the original plan 
and field notes for the side at the other end of the 
section in which the lot is located. 

(2) Clause b of the said section 34 is amended by inserting ^f 90 ,'s. 9 34,' 
after "township" in the first line "other than the townships tended 
of Cumming, Idington, O'Brien, Owens and Williamson in 
the Territorial District of Cochrane", so that the clause shall 
read as follows: 

(b) Where any such township, other than the townships 
of Cumming, Idington, O'Brien, Owens and Wil- 
liamson in the Territorial District of Cochrane, was 
surveyed under any sectional system other than 
the 1,000-acre or 1,800-acre sectional system, and 
if it was intended in the original survey, he shall 
establish the side line on the astronomic course of 

114 



the side line of the section in which the lot is located 
that is nearest the end of the section from which 
the lots arc mi inhered, or, if intended in the original 
survey, he shall establish the side line on the astro- 
nomic course of the side line of the section in which 
the lot is located at the other end of the section in 
which the lot is located, but where the side line of 
the section from which the lots are numbered is 
broken by a lake or river to such an extent that the 
course thereof cannot be accurately determined, 
he shall establish the side line on the astronomic 
course of the side line of the section at the other end 
of the section, and where both side lines of the 
section are broken by a lake or river to such an 
extent that the course thereof cannot be accurately 
determined, he shall establish the side line on the 
astronomic course shown on the original plan and 
held notes. 



2.— (1) Subsection 2 of section 48 of The Surveys Act is 
amended by inserting after "is" in the fifteenth line "subject 
to section 48a", so that the subsection shall read as follows: 



subs. 2. 
amended 



(2) The Minister shall appoint and instruct a surveyor 
to make the survey for which an application has been 
made under subsection 1 and when the survey has 
been made and the plan and field notes have been 
examined by the Minister, the Minister shall cause 
a notice to be published once in each week for four 
consecutive weeks in a newspaper having general 
circulation in the municipality in which the survey 
has been made of a hearing to be held by him at a 
stated place on a day not fewer than ten days after 
the last publication of the notice at which hearing 
the survey will be considered and any interested 
persons will be heard, and upon the evidence sub- 
mitted the Minister may direct such amendments 
to be made as he deems necessary and may confirm 
the position of the disputed or lost line, boundary 
or corner fixed by the survey, and any line, boundary 
or corner so confirmed is, subject to section 48a, 
an unalterable line, boundary or corner and is final 
and conclusive and shall not be questioned in any 
court. 

y) Ine said section 48 is amended bv adding thereto the 
amended following subsection : 

eonfirmat ' hr Minister shall mail within ten davs of confirming 

mrvey under subsection 2 a copy of the plan and 

114 



field notes of the survey to the municipality and 
to every person who appeared at the hearing. 

R.S.O. I960, 
/^x o i • c i -i *r. • t i c. 390, s. 48, 

(3) Subsection 4 ot the said section 48 is repealed. subs. 4, 

repealed 

3. The Surveys Act is amended by adding thereto the^fgg- 1960, 

following section: amended 

48a. — (1) Any person objecting to the confirmation of a£££f al 

survey under subsection 2 of section 48 may appeal confirmation 
to a judge of the Supreme Court who may decide 
the matter on the evidence before him or direct the 
trial of an issue and may dismiss the appeal or order 
the Minister to amend the survey and plan in such 
manner as the judge deems proper. 

(2) Notice of an appeal under this section shall be Notice of 
served on the Minister within thirty days of the date 

of the confirmation by the Minister of the survey. 

(3) Upon the expiry of thirty days from the confirmation p/an* a ° n f d 
of a survey by the Minister or where an appeal has field notes 
been taken under subsection 1 within thirty days 

of the final disposition of the appeal, a copy of the 
plan and field notes of the survey or of the survey as 
amended in accordance with the order of the judge, 
as the case may be, shall be registered by the Min- 
ister with the proper master of titles or registrar of 
deeds and a copy thereof shall be filed with the clerk 
of the municipality that made the application under 
subsection 1 of section 48. 

4. Subsection 3 of section 49 of The Surveys Act is repealed R.s.o. i960, 
and the following substituted therefor: subs. 3, ' 

re-enacted 

(3) Subsection 2 of section 48 and section 48a apply Confirma- 

v ' , . ,. ill-- tion of 

mutatis mutandis to a survey made under this section, survey 

5. Subsection 1 of section 51 of The Surveys Act is repealed R.s.o. i960, 
and the following substituted therefor: subs, i,' 

re-enacted 

(1) The Minister mav cause a survev to be made under crown 
his direction for the purpose of fixing the position 
of a disputed or lost line, boundary or corner that 
was surveyed under competent authority, and in any 
such case the Minister may direct that subsection 2 
of section 48 and section 48a apply mutatis mutandis. 

6. This Act comes into force on the day it receives Royal ment mence 
Assent. 

7. This Act may be cited as The Surveys Amendment Act, Short title 
1968. 

114 



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BILL 115 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Public Lands Act 



Mr. Brunelle 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



EXI'LANATORY NOTES 

SraON 1 Section 37 is amended to create exceptions to the 
eeneS pXripk Vtot Crown grants of lands in areas where JTte Land 
S lies shall be forwarded to the master of titles. 



115 



BILL 115 1968 



An Act to amend The Public Lands Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows : 

1. — (1) Subsection 2 of section 37 of The Public Lands Act, R.s.o. i960, 

. . c 324 s 37 

as re-enacted by section 1 of The Public Lands Amendment (i965,' 
Act, 1965, is amended by striking out "local" in the fifth line, subs. 2 8 ' 
so that the subsection shall read as follows: 

(2) Where a Crown grant is made of public lands crown 
situate in a county, city or separated town to which registered 
The Land Titles Act applies or in a provisional titles office 
judicial district, the Minister shall cause to be ^ ?^' 196 °' 
forwarded to the master of titles the instrument by 
which the Crown grant is made, together with a 
copy thereof. 

(2) The said section 37 is amended by adding thereto thee. 324,' s. 37' 
following subsections: ^ioI'.s. i), 

amended 

(3a) Notwithstanding subsections 2 and 3, where an ^^ftT 'of 
order is made under subsection 2 of section 63 or a minerals 

r • rr-i /~< 1 registered 

grant of mineral rights is made under The Canada in land 

. titles and 

Company's Lands Act, 1922, the Minister shall cause registry 
such order or the instrument by which the Crown ^^c 24 
grant is made, as the case may be, together with a 
copy thereof, to be forwarded to the master of titles 
or registrar of deeds in whose office the land affected 
is registered. 

(3b) Notwithstanding subsections 2 and 3, where an ^{f f n ra ~ 
instrument affecting any public lands has been 'a nd titles 

1 • 1 7 • 1 • rr- 1 or registry 

registered in a land titles or registry office and a office 
Crown grant of the public lands is made, the Min- 
ister shall cause the instrument by which the Crown 
grant is made to be forwarded for registration and 
he may determine whether it shall be forwarded to 
the master of titles or registrar of deeds. 

115 



u so. 1960. (3 } Subsection 4 oi the said section 37 is amended by 
(iSJ:' striking out "or 3, the local" in the second line and inserting 

Hub?.Y l> in lieu thereof "3, 3fl or 3b, the", so that the subsection shall 

amended ^ ^ fo „ ows: 

Registration (4) Upon receipt of an instrument and the copy thereof 

under subsection 2, 3, 3a or 3b, the master of titles 
or the registrar shall, without fee or other charge, 
register the instrument, note particulars of registra- 
tion on the copy and forward the copy to the grantee 
at the address furnished by the Department. 

r 8.O. i960. 2. The Public iMtids Act is amended by adding thereto 
" «ied the following Part : 



PART I A 

ROADS ON PUBLIC LANDS 

Interpre 43J. ] n this Part, 

tatton 

(a) "private forest road" means a road occupied 
under the authority of a document issued 
under this Act or the regulations; 

(b) "public forest road" means a road, other 
than a private forest road, that is designated 
by the Minister as a public forest road; 

(c) "road" means a road or part of a road on 
public lands and includes the bridges, shoul- 
ders, ditches and right-of-way thereof, but 
does not include the King's Highway or a 
secondary highway, a tertiary road, a resource 
road or an industrial road designated under 

LO. i960. 'ffig Highway Improvement Act, or a road 

under the jurisdiction of a statute labour 
board or a local roads board. 

•Vr U pMMJte ht ^ e ' '' xcc P l as provided in this Part, any person may 

exercise a public right of passage on a road other 
than a private forest road. 

No liability 43y_.(ij x c i v j| action shall be brought against the 

Crown or any person in respect of misfeasance, 
non-feasance or negligence in connection with the 
construction, maintenance, repair or closing of a 
road. 

115 



Section 2. The new Part IA establishes provisions governing roads 
on public lands other than roads administered by the Department of 
Highways, statute labour boards, local roads boards and municipalities. 



115 



(2) Subsection 1 does not apply to an action based on a Exception 
contract between the parties to the action for the 
construction, maintenance or use of a road. 

43g. — (1) The Minister may designate a road other than forest 
a private forest road as a public forest road. roads 

(2) The Regulations Act does not apply to a designation c .349,' not ' 
made under subsection 1. to apply 

43h.- — (1) The district forester for the administrative ^^^^ 
district of the Department in which a public forest forest 

ro3.ds 

road is situate may, from time to time in his discre- 
tion and for such period or periods as he determines, 
close the public forest road or part thereof to travel 
by the public generally or by any class or classes of 
the public or by the public generally with the excep- 
tion of persons operating any class or classes of 
vehicles used for hauling forest products or other 
products designated by the regulations. 

(2) A closing of a public forest road under subsection 1 Methods of 

v ' of ^ ^ closure 

may be effected by the erection of signs or barricades. 

(3) Where a district forester closes a public forest road Barricades 
or part of a public forest road under subsection 1 

by the erection of barricades, he shall cause to be 
erected at each end of the public forest road or 
part so closed and at each intersection thereof with 
any other road a barricade upon which a red or 
flashing amber light visible for a distance of 500 feet 
shall be exposed and kept burning or operating 
continuously from sunset until sunrise, and at such 
ends and intersections shall cause to be erected a 
notice that the public forest road is closed. 

(4) Notwithstanding the closure of a public forest road, Permits 
the district forester may grant a permit for travel 

on the public forest road subject to such terms and 
conditions as he deems advisable. 

(5) Every person who, without lawful authority, travels ° ffence 
on a public forest road that has been closed to travel 

by him under subsection 1 and who has had a 
reasonable opportunity of knowing that the road 
has been so closed or who removes or defaces any 
barricade, light or notice erected thereon by lawful 
authority is guilty of an offence and on summary 
conviction is liable to a fine of not more than S500 
and is also liable to the Crown in right of Ontario 
for any damage or injury occasioned by such wrong- 
ful use, removal or defacement. 



115 



I'.titiul 

, 1..HUM- 



0. JTL" 



43r Where the district forester closes a public forest 
toad to the public generally with the exception of 
prisons operating vehicles used for hauling forest 
products or other products designated by the regula- 
tions, sections 45, 52, 53, 54, 55 and 58 of The 
Highway Traffic Act do not apply to the public 
forest road or to vehicles operated on the public 
forest road, as the case may be. 



ITivute 

fore* 
rotdi 



43/\ 0) Except as provided in subsection 2, a private 
forest road is not open to travel by the public. 



AKreemet.ts ^) The Minister may enter into an agreement with a 

person who occupies a private forest road under the 
authority of a document issued under this Act or 
the regulations for opening the private forest road 
or part thereof to travel by the public generally or 
1>\ any class or classes of the public as may be agreed 
upon, and thereupon the private forest road is open 
to travel by the public generally or by the class or 
classes of the public agreed upon for such time or 
times and upon such terms and conditions as are 
set forth in the agreement, provided that any 
vehicle used in such travel is registered under The 
Highway Traffic Act. 



Idem 



(3) Without limiting the generality of subsection 2, an 
agreement may provide that the cost of constructing, 
reconstructing or maintaining a private forest road 
shall be shared in the proportions agreed upon. 



Statu* 
of road 



1961 •< 8 
c. 76 



(4) Notwithstanding the use of a private forest road by 
the public or a class or classes thereof under subsec- 
tion 2, a private forest road remains a private forest 
road and is not a highway within the meaning ot 
The Highway Traffic Act, but the provisions of 
The Loggers Safety Act, 1962-63 and the regulations 
made thereunder respecting haul roads shall apply 
mutatis mutandis to the private forest road. 



Closure of 
private 
forest 
raatfi 



(5) Where an agreement has been made under subsec- 
tion 2, the district forester for the administrative 
district of the Department in which the private 
forest road is situate may, from time to time in his 
discretion and for such period or periods as he deter- 
mines, close the private forest road or part thereof 
to travel by the public generally or by any class or 
(lasses of the public with the exception of persons 
operating any class or classes of vehicle used for 



115 



Sb c„on 1. Th« .—do. re,*al«l will become obrolete with the 
enactment of section 1. 

section 4. Self-explanatory. 



115 



hauling forest products or other products designated 
by the regulations, and thereupon the provisions of 
section 43A apply mutatis mutandis. 

43&. The Lieutenant Governor in Council may make Regulations 
regulations designating products for the purposes 
of sections 43&, 43z and 43j. 

3. Subsection 3 of section 63 of The Public Lands Act is^f^'g 19 ^'' 
repealed. subs 3, 

r repealed 

4. The letters patent dated the 1st day of December, 1900, patent 8 
granting to Alvin Griffin, Moses Parker and Stephen R. amended 
Wiley as trustees for the Tabernacle Union Chapel the public 
lands described therein, being composed of part of the south 

half of the west half of Lot 13 in Concession III in the Town- 
ship of Houghton in the County of Norfolk, are amended by 
striking out the habendum which reads: "To have and to 
hold to the said Trustees and their Successors appointed for 
the purpose in trust for a site for a Church not to belong to 
any particular denomination of Christians and to be known 
as the Tabernacle Union Chapel : and to be open to such 
Orthodox Christian denominations as may be approved by 
said Trustees, and free from any Conference or Association 
of Churches" and inserting in lieu thereof the condition 
"It is a condition of these letters patent that the land shall be 
used only for church purposes". 

5. This Act comes into force on the day it receives Royal ment mence " 
Assent. 

6. This Act may be cited as The Public Lands Amendment Short tltle 
Act, 1968. 



115 



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BILL 115 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Public Lands Act 



Mr. Brunelle 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 115 1968 



An Act to amend The Public Lands Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1.— (1) Subsection 2 of section 37 of The Public Lands Act, R.s.o. i960, 

c 3^4 s 3T 

as re-enacted by section 1 of The Public Lands Amendment (i.965,' 
Act, 1965, is amended by striking out "local" in the fifth line, subs. 2 S ' 
so that the subsection shall read as follows: 

(2) Where a Crown grant is made of public lands c ™*te 
situate in a county, city or separated town to which registered 
The Land Titles Act applies or in a provisional titles office 
judicial district, the Minister shall cause to be^f^- 1960, 
forwarded to the master of titles the instrument by 
which the Crown grant is made, together with a 
copy thereof. 

(2) The said section 37 is amended by adding thereto the c. 324,' s. 37' 
following subsections: c . ios', s. 1), 

amended 

(3a) Notwithstanding subsections 2 and 3, where an O r a d n e t r 8 s, of 
order is made under subsection 2 of section 63 or a mine t rals , 

registered 

grant of mineral rights is made under The Canada in land 

. titles and 

Company' s Lands Act, 1922, the Minister shall cause registry 
such order or the instrument by which the Crown ° Q °2 c 24 
grant is made, as the case may be, together with a 
copy thereof, to be forwarded to the master of titles 
or registrar of deeds in whose office the land affected 
is registered. 

(3b) Notwithstanding subsections 2 and 3, where an^®g 1 f* ra " 
instrument affecting any public lands has been land titles 

.. , f • , • rr j° r registry 

registered in a land titles or registry omce and a office 
Crown grant of the public lands is made, the Min- 
ister shall cause the instrument by which the Crown 
grant is made to be forwarded for registration and 
he may determine whether it shall be forwarded to 
the master of titles or registrar of deeds. 

115 



o. i960. (3) Subsection 4 of the said section 37 is amended by 
tiSs.' ' striking out "or 3, the local" in the second line and inserting 
Zub!.Y' l> ' in lieu thereof "3, 3a or 36, the", so that the subsection shall 

amended rea( j M fol l ows: 

Registration (4) Upon receipt of an instrument and the copy thereof 

under subsection 2, 3, 3a or 3b, the master of titles 
or the registrar shall, without fee or other charge, 
register the instrument, note particulars of registra- 
tion on the copy and forward the copy to the grantee 
at the address furnished by the Department. 

O. i960. 2. The Public Lands Act is amended by adding thereto 
amended the following Part: 



PART IA 

ROADS ON PUBLIC LANDS 

inter pre- \$d. In this Part, 

tatlon 

(a) "private forest road" means a road occupied 
under the authority of a document issued 
under this Act or the regulations; 

(b) "public forest road" means a road, other 
than a private forest road, that is designated 
by the Minister as a public forest road; 

(c) "road" means a road or part of a road on 
public lands and includes the bridges, shoul- 
ders, ditches and right-of-way thereof, but 
does not include the King's Highway or a 
secondary highway, a tertiary road, a resource 
road or an industrial road designated under 
The Highway Improvement Act, or a road 
under the jurisdiction of a statute labour 
board or a local roads board. 

of U pii»ife ht 4 ^- k xce Pt as provided in this Part, any person may 

exercise a public right of passage on a road other 
than a private forest road. 

No liability 43/.— (1) No civil action shall be brought against the 

Crown or any person in respect of misfeasance, 
non-feasance or negligence in connection with the 
construction, maintenance, repair or closing of a 
road. 

115 



(2) Subsection 1 does not apply to an action based on a Exception 
contract between the parties to the action for the 
construction, maintenance or use of a road. 

43g. — (1) The Minister may designate a road other than g^est 
a private forest road as a public forest road. roads 

(2) The Regulations Act does not apply to a designation c'349," not ' 
made under subsection 1. to apply 

43h. — (1) The district forester for the administrative c^ 8 ^^ 
district of the Department in which a public forest forest 

,.. , . . f,.,. roads 

road is situate may, from time to time in his discre- 
tion and for such period or periods as he determines, 
close the public forest road or part thereof to travel 
by the public generally or by any class or classes of 
the public or by the public generally with the excep- 
tion of persons operating any class or classes of 
vehicles used for hauling forest products or other 
products designated by the regulations. 

(2) A closing of a public forest road under subsection 1 ^g^ ^ 8 of 
may be effected by the erection of signs or barricades. 

(3) Where a district forester closes a public forest road Barricades 
or part of a public forest road under subsection 1 

by the erection of barricades, he shall cause to be 
erected at each end of the public forest road or 
part so closed and at each intersection thereof with 
any other road a barricade upon which a red or 
flashing amber light visible for a distance of 500 feet 
shall be exposed and kept burning or operating 
continuously from sunset until sunrise, and at such 
ends and intersections shall cause to be erected a 
notice that the public forest road is closed. 

(4) Notwithstanding the closure of a public forest road, Permlts 
the district forester may grant a permit for travel 

on the public forest road subject to such terms and 
conditions as he deems advisable. 

(5) Every person who, without lawful authority, travels ° ffence 
on a public forest road that has been closed to travel 

by him under subsection 1 and who has had a 
reasonable opportunity of knowing that the road 
has been so closed or who removes or defaces any 
barricade, light or notice erected thereon by lawful 
authority is guilty of an offence and on summary 
conviction is liable to a fine of not more than $500 
and is also liable to the Crown in right of Ontario 
for any damage or injury occasioned by such wrong- 
ful use, removal or defacement. 

115 



Partial 
oloeure 



R.8.O. I960. 

0. 17- 



Private 
roads 



AglMBMntl 



43«. Where the district forester closes a public forest 
road to the public generally with the exception of 
persons operating vehicles used for hauling forest 
products or other products designated by the regula- 
tions, sections 45, 52, 53, 54, 55 and 58 of The 
Highway Traffic Act do not apply to the public 
forest road or to vehicles operated on the public 
forest road, as the case may be. 

43y. — (1) Except as provided in subsection 2, a private 
forest road is not open to travel by the public. 

(2) The Minister may enter into an agreement with a 
person who occupies a private forest road under the 
authority of a document issued under this Act or 
the regulations for opening the private forest road 
or part thereof to travel by the public generally or 
by any class or classes of the public as may be agreed 
upon, and thereupon the private forest road is open 
to travel by the public generally or by the class or 
classes of the public agreed upon for such time or 
times and upon such terms and conditions as are 
set forth in the agreement, provided that any 
vehicle used in such travel is registered under The 
Highway Traffic Act. 



!■:»•:.. 



(3) Without limiting the generality of subsection 2, an 
agreement may provide that the cost of constructing, 
reconstructing or maintaining a private forest road 
shall be shared in the proportions agreed upon. 



Status 
of road 



1962-63. 
c. 76 



(4) Notwithstanding the use of a private forest road by 
the public or a class or classes thereof under subsec- 
tion 2, a private forest road remains a private forest 
road and is not a highway within the meaning ot 
The Highway Traffic Act, but the provisions of 
The Loggers' Safety Act, 1962-63 and the regulations 
made thereunder respecting haul roads shall apply 
mutatis mutandis to the private forest road. 



Closure of 
private 
forest 
roads 



(5) Where an agreement has been made under subsec- 
tion 2, the district forester for the administrative 
district of the Department in which the private 
forest road is situate may, from time to time in his 
discretion and for such period or periods as he deter- 
mines, close the private forest road or part thereof 
to travel by the public generally or by any class or 
classes of the public with the exception of persons 
operating any class or classes of vehicle used for 



115 



hauling forest products or other products designated 
by the regulations, and thereupon the provisions of 
section 43A apply mutatis mutandis. 

43k. The Lieutenant Governor in Council may make Regulations 
regulations designating products for the purposes 
of sections 43h, 43* and 43;. 

3. Subsection 3 of section 63 of The Public Lands Act is R ^9- 19 £?» 

0. 324, 8. 63, 

repealed. subs. 3, 

repealed 

4. The letters patent dated the 1st day of December, 1900, patent* 
granting to Alvin Griffin, Moses Parker and Stephen R. amended 
Wiley as trustees for the Tabernacle Union Chapel the public 
lands described therein, being composed of part of the south 

half of the west half of Lot 13 in Concession III in the Town- 
ship of Houghton in the County of Norfolk, are amended by 
striking out the habendum which reads: "To have and to 
hold to the said Trustees and their Successors appointed for 
the purpose in trust for a site for a Church not to belong to 
any particular denomination of Christians and to be known 
as the Tabernacle Union Chapel and to be open to such 
Orthodox Christian denominations as may be approved by 
said Trustees: and free from any Conference or Association 
of Churches" and inserting in lieu thereof the condition: 
"It is a condition of these letters patent that the land shall be 
used only for church purposes". 

5. This Act comes into force on the day it receives Royal m °™ t mence " 
Assent. 

6. This Act may be cited as The Public Lands Amendment Short title 
Act, 1968. 



115 



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BILL 116 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend 
The Dog Tax and Live Stock and Poultry Protection Act 



Mr. Stewart 



TORONTO 

Printed and Published by Frank Fogg, Queen's Printer 



KXI'LANATORY NoTKS 

The purpose of the Bill is: 

1. To add "horses" to the definition of live stock (Section 1). 

2. To clarify the procedures to be followed in the presentation of 
rlaims for injury to or the death of live stock or poultry and the 
time at which a claim shall be paid (Section 2 and subsection 1 of 
section 3). 

3. To enlarge the right of appeal to the Commissioner to cover all 
matters contained in a municipal valuer's report rather than the 
amount of the award only (Subsections 2, 3, 4 and 5 of section 3) 

4. To provide a right of appeal to a county court judge on all matters 
contained in a report of a valuer (Subsection 5 of section 3). 

5. To establish a maximum amount of $500 payable in respect of a 
horse and to increase from $250 to $500 the maximum amount 
payable in respect of a head of cattle (Subsection 6 of section 3). 



116 



BILL 116 1968 



An Act to amend The Dog Tax and 
Live Stock and Poultry Protection Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause d of section 9 of The Dog Tax and Live Stock hs^o. i960, 
and Poultry Protection Act, as enacted bv subsection 3 of ci. d 

(1965 

section 4 of The Dog Tax and Cattle, Sheep and Poultry c. 33, 's. 4, 
Protection Amendment Act, 1965, is amended by inserting Amended 
after "goats" in the first line "horses", so that the clause 
shall read as follows: 

(d) "live stock" means cattle, goats, horses, sheep or 
swine. 

2. Subsection 1 of section 11 of The Dog Tax and Live R s ; o. i960, 

C 111 S. 11 

Stock and Poultry Protection Act, as amended by subsection lsubs. i, 
of section 6 of The Dog Tax and Cattle, Sheep and Poultry 
Protection Amendment Act, 1965, is repealed and the following 
substituted therefor: 

(1) Whether the owner of a dog that kills or injures ^^un*. 
live stock or poultry is known or not, the local cipaiity 
municipality in which the killing or injuring occurred 
is liable to the owner of the live stock or poultry for 
the amount of damage determined under section 12, 
and shall pay over such amount to the owner 
within thirty days after the amount has been so 
determined. 

3.— (1) Section 12 of The Dog Tax and Live Stock and R.s.o. i960, 
Poultry Protection Act, as amended by section 7 of The Dog amended 
Tax and Cattle, Sheep and Poultry Protection Amendment 
Act, 1965, is further amended by adding thereto the following 
subsection : 

(2a) Where an owner of live stock or poultry notifies a A „ ffldavit 

of o w n g v 

valuer or a clerk of a local municipality under sub- 
section 2, he shall, within ten days, file with the 

116 



clerk .111 affidavit that to the best of his knowledge 
and belief the live stock or poultry were killed or 
injured by a dog other than a dog owned by him or 
habitually kept ujxm his premises. 

i< s.o. iMo. (2) Subsection 6 of the said section 12, as amended by 
nub*, e. ' subsection 5 of section 7 of The Dog Tax and Cattle, Sheep 

and Poultry Protection Amendment Act, 1965, is repealed and 

the following substituted therefor: 



Appeal to 

rommli- 
sioner 



(6) Where the owner of live stock or poultry or the 
council is dissatisfied with the report of the valuer 
made under subsection 2, the owner or the council 
may appeal to the Commissioner who shall name a 
valuer, and the valuer so named shall make a further 
investigation and report. 



(3) Subsection 7 of the said section 12 is repealed and the 



R.S.O. 1960 

siibe. 7." following substituted therefor: 

re-enacted 



Tim* for 

appeal; 

deposit 



(7) Such appeal shall be made within thirty days after 
the making of the report to the clerk of the local 
municipality by its valuer, and $25 shall be deposited 
with the Commissioner at the time of making the 
appeal to be forfeited to the Crown if the report of 
the valuer for the local municipality is sustained 
on an appeal under this section. 



7;, 1960 / (4) Subsection 8 of the said section 12, as amended by 
re-enacted subsection 6 of section 7 of The Dog Tax and Cattle, Sheep 
and Poultry Protection Amendment Act, 1965, is repealed and 
the following substituted therefor: 



Where no 
municipal 
valuer 



(8) Where there is no valuer of the local municipality 
or the clerk or the valuer does not discharge the 
duties imposed upon him by this Act, the Com- 
missioner, on the application of the owner of any 
live stock or poultry killed or injured by a dog 
other than a dog owned by him or habitually kept 
upon his premises, shall name a valuer, and the 
valuer so named shall make an investigation and 
report, and the municipality shall pay to the Com- 
missioner the cost of such investigation and report 
as fixed bv him. 



R.S.O. I960. 

«-. 111. a. 12. 
sube. 9. 
re-enacted 



(5) Subsection 9 of the said section 12, as amended by 
subsection 7 of section 7 of The Dog Tax and Cattle, Sheep 
and Poultry Protection Amendment Act, 1965, is repealed and 
the following substituted therefor: 



116 



(9) A copy of the report of a valuer named by the ^^ of 

Commissioner under subsection 6 or 8 shall be for- appointed 
„ i_. by Com- 

warded by the C ommissioner as soon as practicable missioner 

to the clerk of the local municipality and to the 

owner of the live stock or poultry. 

(9a) A valuer named by the Commissioner under sub- Idem 
section 6 or 8 shall, where applicable, include in his 
report a statement of his belief that the amount of 
damage to live stock or poultry includes damage 
incurred under the circumstances set out in clause a, 
b or c of subsection 3, and the council of the munici- 
pality may thereupon deny liability in whole or in 
part by written notice given by the clerk of the 
municipality to the owner of the live stock or poultry 
within thirty days after receipt of the report of the 
valuer. 

(96) Where the owner of live stock or poultry or the^n\ eal 
council is dissatisfied with the report of the valuer r v e a ^J of 
made under subsection 6 or 8, the owner or the 
council may, within thirty days after receipt of the 
report, appeal to a judge of the county or district 
court of the county or district in which the muni- 
cipality is situate, and the judge may determine the 
liability of the municipality and, subject to subsec- 
tion 10, the amount payable to the owner. 

(6) Subsection 10 of the said section 12, as amended by^'f^g. 9 ^" 
subsection 8 of section 7 of The Dog Tax and Cattle, Sheep^°* n ^ BA 
and Poultry Protection Amendment Act, 1965, is repealed and 
the following substituted therefor: 

(10) No municipality shall be liable to an owner for an d^age ° f 
amount in respect of, limited 

(a) a head of cattle in excess of §500 ; 

(b) a goat in excess of $100; 

(c) a horse in excess of $500; 

(d) a head of sheep in excess of SI 00; 

(e) a head of swine in excess of SI 00; or 

(/) poultry of one owner, killed or injured in 
any year, in excess of $1,000. 

116 



OomntBM 4. -phis Act C omes into force on the day it receives Royal 
Assent. 

5. This Act may be cited as The Dog Tax and Live Stock 
and Poultry Protection Amendment Act, 1968. 



116 



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BILL 116 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend 
The Dog Tax and Live Stock and Poultry Protection Act 



Mr. Stewart 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 116 1968 



An Act to amend The Dog Tax and 
Live Stock and Poultry Protection Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause d of section 9 of The Dog Tax and Live Stocky -Jj^'i 9 ! 0, 
and Poultry Protection Act, as enacted by subsection 3 of ci. d 
section 4 of The Dog Tax and Cattle, Sheep and Poultry c. 33, 's. 4, 
Protection Amendment Act, 1965, is amended by inserting Imended 
after "goats" in the first line "horses", so that the clause 

shall read as follows: 

(d) "live stock" means cattle, goats, horses, sheep or 
swine. 

2. Subsection 1 of section 11 of The Dog Tax and Live'R-Sfi-i 9 ™' 
Stock and Poultry Protection Act, as amended bv subsection lsubs. i, 

re— GUcLctcd 

of section 6 of The Dog Tax and Cattle, Sheep and Poultry 
Protection Amendment Act, 1965, is repealed and the following 
substituted therefor: 

(1) Whether the owner of a dog that kills or injures JftJJJX 
live stock or poultry is known or not, the local cipaiity 
municipality in which the killing or injuring occurred 
is liable to the owner of the live stock or poultry for 
the amount of damage determined under section 12, 
and shall pay over such amount to the owner 
within thirty days after the amount has been so 
determined. 

3.— (1) Section 12 of The Dog Tax and Live Stock andffg- **». 
Poultry Protection Act, as amended by section 7 of The Dog amended 
Tax and Cattle, Sheep and Poultry Protection Amendment 
Act, 1965, is further amended by adding thereto the following 
subsection : 

(2a) Where an owner of live stock or poultry notifies a A . ffldav ^ 

V ' v • • • ' J 1 ° f OWner 

valuer or a clerk of a local municipality under sub- 
section 2, he shall, within ten days, file with the 

116 



clerk an affidavit that to the best of his knowledge 
and belief the live stock or poultry were killed or 
injured by a dog other than a dog owned by him or 
habitually kept upon his premises. 

H.8.O. i960. (2) Subsection 6 of the said section 12, as amended by 
rate. 6.' " subsection 5 of section 7 of The Dog Tax and Cattle, Sheep 

and Poultry Protection Amendment Act, 1965, is repealed and 

the following substituted therefor: 

Appeal to (()) Where the owner of live stock or poultry or the 

•toner council is dissatisfied with the report of the valuer 

made under subsection 2, the owner or the council 
may appeal to the Commissioner who shall name a 
valuer, and the valuer so named shall make a further 
investigation and report. 

? uV'b 19 i 6 2* W Subsection 7 of the said section 12 is repealed and the 
sub*, t. following substituted therefor: 

re-enacted ° 

Tin™ for (7) Such appeal shall be made within thirty days after 

deposit the making of the report to the clerk of the local 

municipality by its valuer, and $25 shall be deposited 
with the Commissioner at the time of making the 
appeal to be forfeited to the Crown if the report of 
the valuer for the local municipality is sustained 
on an appeal under this section. 

2 ii?."8. 9 £°.' (*) Subsection 8 of the said section 12, as amended by 
re-enacted subsection 6 of section 7 of The Dog Tax and Cattle, Sheep 

and Poultry Protection Amendment Act, 1965, is repealed and 

the following substituted therefor: 

municipal ( 8 ) Where there is no valuer of the local municipality 

or the clerk or the valuer does not discharge the 
duties imposed upon him by this Act, the Com- 
missioner, on the application of the owner of any 
live stock or poultry killed or injured by a dog 
other than a dog owned by him or habitually kept 
upon his premises, shall name a valuer, and the 
valuer so named shall make an investigation and 
report, and the municipality shall pay to the Com- 
missioner the cost of such investigation and report 
as fixed by him. 

£'?i?.'«Vi2; ( 5 > Subsection 9 of the said section 12, as amended bv 
?e?n.oted subsec tion 7 of section 7 of The Dog Tax and Cattle, Sheep 

and Poultry Protection Amendment Act, 1965, is repealed and 

the following substituted therefor: 

116 



(9) A copy of the report of a valuer named by the ^1^ of 
Commissioner under subsection 6 or 8 shall be for- appointed 
warded by the Commissioner as soon as practicable missioner 
to the clerk of the local municipality and to the 
^>wner of the live stock or poultry. 

(9a) A valuer named by the Commissioner under sub- Idem 
section 6 or 8 shall, where applicable, include in his 
report a statement of his belief that the amount of 
damage to live stock or poultry includes damage 
incurred under the circumstances set out in clause a, 
b or c of subsection 3, and the council of the munici- 
pality may thereupon deny liability in whole or in 
part by written notice given by the clerk of the 
municipality to the owner of the live stock or poultry 
within thirty days after receipt of the report of the 
valuer. 

(9b) Where the owner of live stock or poultry or the^^f* 1 
council is dissatisfied with the report of the valuer ™uier of 
made under subsection 6 or 8, the owner or the 
council may, within thirty days after receipt of the 
report, appeal to a judge of the county or district 
court of the county or district in which the muni- 
cipality is situate, and the judge may determine the 
liability of the municipality and, subject to subsec- 
tion 10, the amount payable to the owner. 

(6) Subsection 10 of the said section 12, as amended by ^•fi° s 19 1 6 ^ ) ' 
subsection 8 of section 7 of The Dog Tax and Cattle, Sheep ^-enacted 
and Poultry Protection Amendment Act, 1965, is repealed and 
the following substituted therefor: 

(10) No municipality shall be liable to an owner for an ^^g* of 
amount in respect of, limited 

(a) a head of cattle in excess of S500; 

(b) a goat in excess of $100; 
(e) a horse in excess of $500; 

(d) a head of sheep in excess of $100; 

(e) a head of swine in excess of SI 00; or 

(J) poultry of one owner, killed or injured in 
any year, in excess of $1,000. 

116 



m^nt" 6 " *" "** ''" n ' s ^ ( ' romes ' nto f° rce on the day it receives Royal 
Assent. 

short title 5^ -p h j s Act niay ^ citec j as j^, £>og Tax and Live Stock 
and Poultry Protection Amendment Act, 1968. 



116 



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BILL 117 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to relieve Medical Practitioners from Liability 
in respect of Voluntary Emergency Medical Services 



Mr. Sargent 






TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 






Explanatory Note 



The purpose of the Bill is to relieve medical practitioners from liability 
in respect of voluntary medical services rendered at the scene of an accident 
or other emergency. 



117 



BILL 117 1968 



An Act to relieve Medical Practitioners 

from Liability in respect of Voluntary 

Emergency Medical Services 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, "medical practitioner" means a person tatkm 1 " 6 
registered as a medical practitioner under The Medical Act. R §.£- 196 °- 

2. Where a medical practitioner voluntarily and without nabnftyfar 
expectation of compensation or reward renders medical damages 
services at the scene of an accident or other emergency to 

a person who is ill, injured or unconscious and the services 
are not rendered, 

(a) in a hospital; 

(b) in his office or the office of another medical practi- 
tioner; or 

(c) in any other place having adequate medical equip- 
ment, 

he shall not be liable for damages for injuries to or the death 
of such person alleged to have been caused by an act or 
omission on his part in rendering the medical services, unless 
it is established that the injuries or death were caused by 
gross negligence on his part. 

3. Nothing in section 2 shall be deemed to relieve a medical ^ appf y 
practitioner from liability for damages for injuries to or the to normal 
death of any person caused by an act or omission on the part services 
of the medical practitioner in respect of medical services 
rendered by him in the normal and ordinary course of his 
practice and not under the circumstances set forth in sec- 
tion 2. 

117 



SSnt m * nc *" **• ' n '^ >u "' (<inus mto f° rce on tne day it receives Royal 
Assent. 

5. This Act may be cited as The Voluntary Emergency 
Medical Services Art, 1°6H. 



117 



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BILL 118 



1st Session, 1 28th Legislative, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Mining Act 



Mr. Lawrence (St. George) 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 
Section 1. The terms defined are used in the amendments. 



Section 2. Self-explanatory. 



Section 3. The Director and Supervisor are made ex officio justices 
of the peace. 



118 



BILL 118 1968 



An Act to amend The Mining Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Section 1 of The Mining Act, as amended by section 1 ^f^; Iff}' 
of The Mining Amendment Act, 1962-63 and section 1 of amended 
The Mining Amendment Act, 1967, is further amended by 
adding thereto the following paragraphs: 

5a. "Director" means the Director of the Mining Lands 
Branch of the Department of Mines; 



22a. "Supervisor" means the Supervisor of the section of 
the Mining Lands Branch that includes the mining 
recorders. 



2. Subsection 2 of section 9 of The Mining Act is repealed ^"241.' s. 9 9?' 

subs. 2, 
re-enacted 



and the following substituted therefor: subs. 2 



(2) Where a mining recorder is absent because of illness menTin" 
or for any other reason, the Minister may appoint ^^n 06 of 
in writing a person to act as mining recorder pro recorder 
tempore, but such person shall exercise only such of 

the duties of the recorder as are defined in the 
appointment. 

(3) Where a mining recorder is absent because of illness Idem 
or for any other reason and no appointment is made 
under subsection 2, the Supervisor is pro tempore 
mining recorder for that division and may exercise 

all of the duties of the recorder. 

3. Section 17 of The Mining Act is amended by striking ^'fi?,' sfi 7.' 
out "and every inspector is ex officio a justice" in the first amended 
and second lines and inserting in lieu thereo ''Director, 
Supervisor and every inspector are ex officio justices", so that 
the section shall read as follows: 

118 



"Htio 
justices of 



17. The Commissioner, Director, Supervisor and every 
inspector are ex officio justices of the peace for every 
county and district in Ontario and a recorder in his 
division is ex officio a justice of the peace for the 
county or district in which any part of his division 
lies, and it is not necessary that they possess any 
residential or property qualification. 



. ■.•■u.s. 84. 
suits. 5. 
amended 



4. — (1) Subsection 5 of section 84 of The Mining Act is 
amended by adding after clause b "and, where it is impossible 
to take core with a core drill through overburden and core is 
subsequently taken after passage through the overburden, 
work may Ik? counted as though core was taken for the full 
length of the drill hole, including the overburden", so that the 
subsection shall read as follows: 



Diamond or 

other 

drills 



(5) Where the length of the drill hole is more than 
25 feet, boring by diamond or other core drill counts 
as work, 



(a) where the core from the drill is less than 
7/8 of an inch in diameter or the length of 
the drill hole is 100 feet or less, at the rate of 
one day's work for each 4 feet of boring; and 

(b) where the core from the drill is 7/8 of an inch 
or more in diameter and the length of the 
drill hole is greater than 100 feet, at the rate 
of one day's work for each foot of boring, 

and, where it is impossible to take core with a core 
drill through overburden and core is subsequently 
taken after passage through the overburden, work 
may be counted as though core was taken for the 
full length of the drill hole, including the overburden. 

(2) Subsection 6 of the said section 84 is repealed and the 
* u, *«.' 1 following substituted therefor: 

re-enaued 



Core 



(6) Where core specimens are submitted with the report 
and core log for the core drilling referred to in 
subsection 5, and the core specimens, 



(a) are representative of rock types encountered 
for the hole; 



(b) are not less than 3 inches in length; 



118 



Section 4 — Subsection 1. The amendment confirms the present 
practice followed in allowing drilling work credits. 



Subsection 2. The amendment allows drilling work credits for core 
specimens submitted to the recorder. The credits for non-coring drilling 
are simplified. 



118 



Subsection 3. Work credits for geological and ground geophysical 
surveys are allowed on the basis of performance and coverage. 



Subsections 4 and 5. Provision is made for work credits for radio- 
metric nrvej •, 



118 



(c) are taken at intervals of not less than 25 feet 
throughout the length of the hole and are 
clearly labelled as to the footage, 

each specimen counts as one day's work. 

(6a) Boring by other than core drill where the length of SftJ^M 
the bore hole is greater than 200 feet may be counted core drill 
as work at the rate of one day's work for each 2 feet 
of boring, 

(a) if the recorded holder files logs of the type 
and in the manner prescribed for core drilling; 
and 

(b) if the bore hole is lengthened by core drilling 
which is reported to the recorder at the same 
time as the boring by other than core drill. 

(3) The said section 84, as amended by section 7 of ThefAg;™*£ 
Mining Amendment Act, 1964 and section 10 of The Mining amended 
Amendment Act, 1967, is further amended by adding thereto 

the following subsection: 

(8a) Notwithstanding subsections 8 and 9 but subject g£?JJ*? form _ 
to the maximum credits permitted therein, if ^ance^and 
ground geophysical or a geological survey meets the 
requirements of the Minister, he may authorize the 
approval of work credits on the basis of performance 
and coverage, subject to the limitations prescribed in 
the requirements, but credit for the work shall be 
cancelled by the recorder unless full reports and 
plans in duplicate, satisfactory to the Minister, are 
submitted to the Minister within sixty days of the 
recording of the work and are approved. 

(4) The said section 84 is amended by adding thereto thef%£;£ 9 g%; 

following subsection: amended 

(9b) A radiometric survey, satisfactory to the Minister, ^ 1 e ° y metric 
of a mining claim may be recorded as work on the 
claim if performed by means of, 

(a) ground surveys with, 

(i) an instrument that measures the radia- 
tion in total units at the rate of seven 
days work in respect of each claim 
satisfactorily traversed, an4 

118 



(ii) an instrument that measures sep- 
arately, 

a. the radiation from potassium, 
uranium and thorium giving 
three readings, or 

b. the radiation due to uranium 
and thorium giving two read- 
ings, or 

c. the combined radiation due to 
uranium and thorium giving one 
reading, 

and if used in areas indicating anomalous 
conditions with a minimum of four times 
background count or supplemented by a 
geological map indicating all outcrops, at the 
rate of fourteen days work in respect of each 
claim satisfactorily traversed; and 

(b) airborne surveys with, 

(i) an instrument that measures the radia- 
tion in total units, at the rate of ten 
days work in respect of each mile of 
continuous recordings, and 

(ii) an instrument that measures sep- 
arately, 

a. the radiation from potassium, 
uranium and thorium giving 
three readings, or 

b. the radiation due to uranium 
and thorium giving two read- 
ings, or 

c. the combined radiation due to 
uranium and thorium giving one 
reading, 

at the rate of twenty days work in respect of 
each mile of continuous recordings, 

but not more than a total of twenty days work 
may be recorded in respect of each claim, and credit 
for the work shall be cancelled by the recorder unless 
full reports and plans in duplicate, satisfactory to 
the Minister, are submitted to the Minister within 
sixty days of the recording of the work and are 
approved. 



118 



Subsection 6. The work credit for studies for exploration or develop- 
ment work is now based on expenditure. The amendment allows credit 
for assays made on free assay coupons. 



Section 5. The annual rental for renewed mining leases is increased 
from 25 cents an acre to $1 an acre for both surface and mining rights, 
and 50 cents an acre for mining rights only, and the minimum is increased 
from $5 to $10 a year. This amendment is part of the continuing imple- 
mentation of the recommendations of the Select Committee on Mining. 



Section 6. The amendment provides for relief where a survey of 
a claim is required by the Minister and there is insufficient time to provide 
it before the time for applying for the lease. 



Sections 7 and 8. Provision for permits for exploring for coal or 
■alt in Northern Ontario is deleted. 



118 



(5) Subsection 11 of the said section 84, as amended by^-J^-g 19 ^- 
subsection 4 of section 10 of The Mining Amendment Act, 1967, suh »- j-i. 

is further amended by inserting after "geochemical" in the 
amendment of 1967 "radiometric", so that the subsection 
shall read as follows: 

(11) Subsection 6 of section 83 does not apply to geolog- certain 
ical, geochemical, radiometric and geophysical work, excepted 
and for the purposes of this Act such work shall be subs. 6 
deemed to have been performed equally on each 
claim actually covered by the survey, and shall be 
recorded accordingly and in no other way. 

(6) The said section 84 is amended by adding thereto the^-f^-* 9 ^ ' 

following Subsection: amended 

(14a) Where work submitted under subsection 14 has been Expenditure 

wn.Gr© 

paid for with a coupon or coupons obtained under coupons 
section 69, the expenditure represented shall be 
calculated according to the schedule of charges of 
the Laboratory Branch, Department of Mines. 

5. Subsection 9 of section 100a of The Mining Act, as c. '241,' 
enacted by section 28 of The Mining Amendment Act, 1962-63 ^Iq^-qz, 

is repealed and the following substituted therefor: subs.' I,' 28> ' 

re-enacted 

(9) The annual rental for a renewal lease, payable in^newa/ 01 " 
advance, is $1 an acre for both surface and mining of lease 
rights and 50 cents an acre for mining rights only, 
but the minimum annual rental shall be $10. 

6. Section 110 of The Mining Act, as amended by section 34^| 4 C '- i960, 
of The Mining Amendment Act, 1962-63, is further amended s. 110! 

by adding thereto the following subsection: 

(2) Where a survey is required under subsection 1, thejf^® 
Minister may specify the time within which such 
work is to be performed and recorded, and the 
application and payment for a patent, lease or 
licence of occupation shall be made within the time 
so specified. 

7.— (1) Subsection 1 of section 113 of The Mining Act is*f 4 ?; 1960 ' 
amended by striking out "natural gas, coal or salt" in the^^ 3 ^ 
fourth line and inserting in lieu thereof "or natural gas". amended 

(2) Subsection 4 of the said section 113 is amended by J"|4?; 1960, 
striking out "natural gas, coal or salt" in the fifth line and^^ 3 ^ 
inserting in lieu thereof "or natural gas". amended 

118 



O. lmo. 8.-- (1) Subsection 1 of section 114 of The Mining Act is 
•in! amended by striking out "natural gas, coal or salt" in the 

amended third line and in the ninth line and inserting in lieu thereof 



in each instance "or natural gas' 



i J) Subsection 3 of the said section 114 is amended by 

striking out "natural gas, coal and salt" in the fourth line 

amended and in the eleventh and twelfth lines and inserting in lieu 



thereof in each instance "and natural gas". 



<). i960. (3) Subsection 5 of the said section 114 is amended by 
i." in.' striking out "natural gas, coal or salt" in the second line and 

MMiidid inserting in lieu thereof "or natural gas". 

u |:9' ,960, 9. Subsection 1 of section 1 18 of The Mining Act is amended 
«. us.' by striking out "quartzite" in the third line and inserting in 

amended lieu thereof "quartz", so that the subsection shall read as 
follows: 



Quarry 
permit 



(1) No person shall take or remove or cause to be taken 
or removed any stone or rock quarried for any 
industrial or commercial purpose, limestone, marble, 
granite, quartz, feldspar, fluorspar, gypsum, diatom- 
aceous earth, clay, marl, peat, sand or gravel that 
is the property of the Crown unless he is the holder 
of a quarry permit. 



a. i960. io. Section 138 of The Mining Act is amended by adding 
thereto the following subsection: 



Appeal by 
Director 



(la) An appeal under subsection 1 may be taken by the 
Director or the Supervisor on his behalf where, in 
the opinion of the Minister, the public interest is 
affected, and no fee prescribed in the Schedule in 
respect of the appeal is payable by the Director or 
Supervisor. 



r.8^o. i960. 11# Subsection 1 of section 659 of The Mining Act is 
mb!?i amended by striking out "10" in the second line and inserting 

amended in lieu thereof "50", so that the subsection shall read as 
follows: 



Amount 
of tax 



1964, c. 62. 
». 3. sube. 2. 
amended 



(1) There shall be paid to the Crown in right of Ontario 
in each year an acreage tax of 50 cents an acre on 
any lands or mining rights to which this Part applies. 

12. Subsection 2 of section 3 of The Mining Amendment 
Act, 1964 is amended by adding at the end thereof "except 
that, subject to any special terms, the annual rental is $1 an 
acre but not less than $10 in a year", so that the subsection 
shall read as follows: 



118 



Section 9. The requirement for a quarry permit is extended to 
include quarrying of quartz that is not quartzite. 



Section 10. The provisions for appeals from decisions of recorders 
are made available to the Director. 



Section 11. The acreage tax is increased from 10 cents an acre to 
50 cents an acre. The amendment is part of the continuing implementa- 
tion of the recommendations of the Select Committee on Mining 



Sections 12, 13 and 14. The annual rental for leases or licences 
for claims under navigable waters issued before the 25th day of March, 
1964 is increased from 25 cents an acre with a minimum of $1 to $1 an acre 
with a minimum of $10 a year in the case of a lease and $5 a year in the 
case of a licence. This amendment is part of the continuing implementa- 
tion of the recommendations of the Select Committee on Mining. 



118 



(2) Notwithstanding subsection 1, section 47 of The^^ vins 
Mining Act continues in force in respect of leases 
made before this Act comes into force except that, 
subject to any special terms, the annual rental is 
$1 an acre but not less than $10 in a year. 

13. Subsection 4 of section 4 of The Mining Amendment l 9 ^^^ 
Act, 1964 is amended by adding at the end thereof "except amended 
that, subject to any special terms, the annual rental is $1 an 

acre but not less than $10 a year, in the case of a lease, or $5 
a year, in the case of a licence of occupation", so that the 
subsection shall read as follows: 

(4) Notwithstanding subsections 1, 2 and 3, subsec- Savmg 
tions 5 to 10 of section 52 of The Mining Act continue 
in force in respect of leases and licences made before 
this Act comes into force except that, subject to any 
special terms, the annual rental is $1 an acre but 
not less than $10 a year in the case of a lease, or $5 
a year in the case of a licence of occupation. 

14. Subsection 2 of section 9 of The Mining Amendment s 9 f 4 4ubs 62 2, 
Act, 1964 is amended by adding at the end thereof "except amended 
that, subject to any special terms, the annual rental is $1 an 

acre but not less than $10 a year", so that the subsection 
shall read as follows: 

(2) Notwithstanding subsection 1, section 100 of The^^^ 
Mining Act continues in force in respect of leases 
made before this Act comes into force except that, 
subject to any special terms, the annual rental is SI 
an acre but not less than $10 a year. 

15. Sections 12, 13 and 14 apply to leases upon their Application 
renewal and to licences of occupation on their anniversary 

dates, next occurring after those sections come into force. 

16. — (1) This Act, except section 11, comes into force on m e£t men 
the day it receives Royal Assent. 

(2) Section 11 comes into force on the 1st day of January, Idem 
1969. 

17. This Act may be cited as The Mining Amendment Shor 
Act, 1968. 



118 



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BILL 118 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Mining Act 



Mr. Lawrence (St. George) 






TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 118 1968 



An Act to amend The Mining Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Section 1 of The Mining Act, as amended by section 1 cVfi?,' s. 9 i?' 
of The Mining Amendment Act, 1962-63 and section 1 of amended 
The Mining Amendment Act, 1967, is further amended by 
adding thereto the following paragraphs: 

5a. "Director" means the Director of the Mining Lands 
Branch of the Department of Mines; 



22a. "Supervisor" means the Supervisor of the section of 
the Mining Lands Branch that includes the mining 
recorders. 

2. Subsection 2 of section 9 of The Mining Act is repealed ^f^.' 8. 9 9°' 
and the following substituted therefor: re-enacted 

(2) Where a mining recorder is absent because of illness men? to*" 
or for any other reason, the Minister may appoint ^^ e m | e of 
in writing a person to act as mining recorder pro recorder 
tempore, but such person shall exercise only such of 

the duties of the recorder as are defined in the 
appointment. 

(3) Where a mining recorder is absent because of illness Idem 
or for any other reason and no appointment is made 
under subsection 2, the Supervisor is pro tempore 
mining recorder for that division and may exercise 

all of the duties of the recorder. 

3. Section 17 of The Mining Act is amended by striking ^'24?.' 8?i°\ 
out "and every inspector is ex officio a justice" in the first amended 
and second lines and inserting in lieu thereof "Director, 
Supervisor and every inspector are ex officio justices", so that 

the section shall read as follows: 

118 



Em ojktio 

luattoM <>r 
the peace 



17. The Commissioner, Director, Supervisor and every 
inspector are ex officio justices of the peace for every 
county and district in Ontario and a recorder in his 
division is ex officio a justice of the peace for the 
county or district in which any part of his division 
lies, and it is not necessary that they possess any 
residential or property qualification. 



it. so. LMO, 
c. 241, B. 84. 
aube. 6. 
•mended 



4. — (1) Subsection 5 of section 84 of The Mining Act is 
amended by adding after clause b "and, where it is impossible 
to take core with a core drill through overburden and core is 
subsequently taken after passage through the overburden, 
work may be counted as though core was taken for the full 
length of the drill hole, including the overburden", so that the 
subsection shall read as follows: 



Diamond or 
other core 
drills 



(5) Where the length of the drill hole is more than 
25 feet, boring by diamond or other core drill counts 
as work, 



(a) where the core from the drill is less than 
7/8 of an inch in diameter or the length of 
the drill hole is 100 feet or less, at the rate of 
one day's work for each 4 feet of boring; and 

(b) where the core from the drill is 7/8 of an inch 
or more in diameter and the length of the 
drill hole is greater than 100 feet, at the rate 
of one day's work for each foot of boring, 

and, where it is impossible to take core with a core 
drill through overburden and core is subsequently 
taken after passage through the overburden, work 
may be counted as though core was taken for the 
full length of the drill hole, including the overburden. 

S"li?'ijM.' ( 2 ) Subsection 6 of the said section 84 is repealed and the 
?eSnatted f° ,low ' n g substituted therefor: 



Core 

specimens 



(6) Where core specimens are submitted with the report 
and core log for the core drilling referred to in 
subsection 5, and the core specimens, 



(a) are representative of rock types encountered 
for the hole; 



118 



(b) are not less than 3 inches in length; 



(c) are taken at intervals of not less than 25 feet 
throughout the length of the hole and are 
clearly labelled as to the footage, 

each specimen counts as one day's work. 

(6a) Boring by other than core drill where the length of Bonne by 
the bore hole is greater than 200 feet may be counted core drill 
as work at the rate of one day's work for each 2 feet 
of boring, 

(a) if the recorded holder files logs of the type 
and in the manner prescribed for core drilling; 
and 

(b) if the bore hole is lengthened by core drilling 
which is reported to the recorder at the same 
time as the boring by other than core drill. 

(3) The said section 84, as amended by section 7 of The R -^9- 19 £. 0> 

c 241 s 84 

Mining Amendment Act, 1964 and section 10 of The Mining amended 
Amendment Act, 1967, is further amended by adding thereto 
the following subsection: 

(8a) Notwithstanding subsections 8 and 9 but subject ^perform- 
to the maximum credits permitted therein, if a anceand 
ground geophysical or a geological survey meets the 
requirements of the Minister, he may authorize the 
approval of work credits on the basis of performance 
and coverage, subject to the limitations prescribed in 
the requirements, but credit for the work shall be 
cancelled by the recorder unless full reports and 
plans in duplicate, satisfactory to the Minister, are 
submitted to the Minister within sixty days of the 
recording of the work and are approved. 

(4) The said section 84 is amended by adding thereto the^-f^-^ 9 ^- 

following subsection: amended 






(9b) A radiometric survey, satisfactory to the Minister, Radiometric 
of a mining claim may be recorded as work on the 
claim if performed by means of, 

(a) ground surveys with, 

(i) an instrument that measures the radia- 
tion in total units at the rate of seven 
days work in respect of each claim 
satisfactorily traversed, and 



118 



(ii) an instrument that measures sep- 
arately, 

a. the radiation from potassium, 
uranium and thorium giving 
three readings, or 

b. the radiation due to uranium 
and thorium giving two read- 
ings, or 

c. the combined radiation due to 
uranium and thorium giving one 
reading, 

and if used in areas indicating anomalous 
conditions with a minimum of four times 
background count or supplemented by a 
geological map indicating all outcrops, at the 
rate of fourteen days work in respect of each 
claim satisfactorily traversed; and 

(b) airborne surveys with, 

(i) an instrument that measures the radia- 
tion in total units, at the rate of ten 
days work in respect of each mile of 
continuous recordings, and 

(ii) an instrument that measures sep- 
arately, 

a. the radiation from potassium, 
uranium and thorium giving 
three readings, or 

b. the radiation due to uranium 
and thorium giving two read- 
ings, or 

c. the combined radiation due to 
uranium and thorium giving one 
reading, 

at the rate of twenty days work in respect of 
each mile of continuous recordings, 

but not more than a total of twenty days work 
may be recorded in respect of each claim, and credit 
for the work shall be cancelled by the recorder unless 
full reports and plans in duplicate, satisfactory to 
the Minister, are submitted to the Minister within 
sixty days of the recording of the work and are 
approved. 



118 



(5) Subsection 11 of the said section 84, as amended by ^24?'s 19 84°' 
subsection 4 of section 10 of The Mining Amendment Act, 1967, 8Ubs - j 1 - 

, , i i i • • r it i • in • i amended 

is further amended by inserting after geochemical in the 
amendment of 1967 "radiometric", so that the subsection 
shall read as follows: 

(11) Subsection 6 of section 83 does not apply to geolog- certain 
ical, geochemical, radiometric and geophysical work, excepted 
and for the purposes of this Act such work shall be subs. 6 
deemed to have been performed equally on each 
claim actually covered by the survey, and shall be 
recorded accordingly and in no other way. 

(6) The said section 84 is amended by adding thereto the^-f^-^ 9 ^ - 

following Subsection: amended 

(14a) Where work submitted under subsection 14 has been Expenditure 

WllST© 

paid for with a coupon or coupons obtained under coupons 
section 69, the expenditure represented shall be 
calculated according to the schedule of charges of 
the Laboratory Branch, Department of Mines. 

5. Subsection 9 of section 100a of The Mining Act, as c . '241/ 
enacted by section 28 of The Mining Amendment Act, 1962-63, S (^Q2-Q3, 

is repealed and the following substituted therefor: subs.' I,' 28) " 

re-enacted 

(9) The annual rental for a renewal lease, payable inrenewai for 
advance, is $1 an acre for both surface and mining of lease 
rights and 50 cents an acre for mining rights only, 
but the minimum annual rental shall be S10. 

6. Section 110 of The Mining Act, as amended by section 34^ J^>- i960, 
of The Mining Amendment Act, 1962-63, is further amended s. 110' 

by adding thereto the following subsection: 

(2) Where a survey is required under subsection 1, the^^® 
Minister may specify the time within which such 
work is to be performed and recorded, and the 
application and payment for a patent, lease or 
licence of occupation shall be made within the time 
so specified. 

7.— (1) Subsection 1 of section 113 of The Mining Act isJJJg; 19 * 0, 
amended by striking out "natural gas, coal or salt" in the| u J^ 3 ^ 
fourth line and inserting in lieu thereof "or natural gas". amended 

(2) Subsection 4 of the said section 113 is amended by £-fi?; 1960, 
striking out "natural gas, coal or salt" in the fifth line and^* 3 ^ 
inserting in lieu thereof "or natural gas". amended 

118 



r.8.o. 1960. g. — (i) Subsection 1 of section 114 of The Mining Act is 
i.' im! amended by striking out "natural gas, coal or salt" in the 

SnSn.fc.i third line and in the ninth line and inserting in lieu thereof 
in each instance "or natural gas". 

r.s^o. i960. (2) Subsection 3 of the said section 114 is amended by 
• 114 ' striking out "natural gas, coal and salt" in the fourth line 

•mended and in the eleventh and twelfth lines and inserting in lieu 
thereof in each instance "and natural gas". 

r. so. i960. (3) Subsection 5 of the said section 114 is amended by 
•• IK." striking out "natural gas, coal or salt" in the second line and 

•mended inserting in lieu thereof "or natural gas". 



r.s.o. i960. 9, Subsection 1 of section 118 of The Mining Act is amended 
by striking out "quartzite" in the third line and inserting in 
lieu thereof "quartz", so that the subsection shall read as 
follows: 



■ube. 1. 
•mended 



Quarrv 
permit 



(1) No person shall take or remove or cause to be taken 
or removed any stone or rock quarried for any 
industrial or commercial purpose, limestone, marble, 
granite, quartz, feldspar, fluorspar, gypsum, diatom- 
aceous earth, clay, marl, peat, sand or gravel that 
is the property of the Crown unless he is the holder 
of a quarry permit. 



R.SM3. i960, lo. Section 138 of The Mining Act is amended by adding 
e.' 138.' thereto the following subsection: 

amended 



Appeal by 
Director 



(la) An appeal under subsection 1 may be taken by the 
Director or the Supervisor on his behalf where, in 
the opinion of the Minister, the public interest is 
affected, and no fee prescribed in the Schedule in 
respect of the appeal is payable by the Director or 
Supervisor. 



R.s^o. i960. ii # Subsection 1 of section 659 of The Mining Act is 
Uff$ amended by striking out "10" in the second line and inserting 

•mended in lieu thereof "50", so that the subsection shall read as 
follows: 



Amount 
of tax 



(1) There shall be paid to the Crown in right of Ontario 
in each year an acreage tax of 50 cents an acre on 
any lands or mining rights to which this Part applies. 



•.Taube 52 *. 12, Subsection 2 of section 3 of The Mining Amendment 

•mended Act, 1964 is amended by adding at the end thereof "except 

that, subject to any special terms, the annual rental is $1 an 

acre but not less than $10 in a year", so that the subsection 

shall read as follows: 



118 



(2) Notwithstanding subsection 1, section 47 of 77f€ Savin * 
Mining Act continues in force in respect of leases 
made before this Act comes into force except that, 
subject to any special terms, the annual rental is 
SI an acre but not less than $10 in a year. 

13. Subsection 4 of section 4 of The Mining Amendment l 9 ^- C : 62 A - 

a 8. 4, subs. 4, 

Act, 1964 is amended by adding at the end thereof "except amended 
that, subject to any special terms, the annual rental is $1 an 
acre but not less than $10 a year, in the case of a lease, or $5 
a year, in the case of a licence of occupation", so that the 
subsection shall read as follows: 

(4) Notwithstanding subsections 1, 2 and 3, subsec- Saving 
tions 5 to 10 of section 52 of The Mining Act continue 
in force in respect of leases and licences made before 
this Act comes into force except that, subject to any 
special terms, the annual rental is $1 an acre but 
not less than $10 a year in the case of a lease, or $5 
a year in the case of a licence of occupation. 

14. Subsection 2 of section 9 of The Mining Amendment l 9 g^ubs. 2 2, 
Act, 1964 is amended by adding at the end thereof "except amended 
that, subject to any special terms, the annual rental is $1 an 

acre but not less than $10 a year", so that the subsection 
shall read as follows: 

(2) Notwithstanding subsection 1, section 100 of The Sa,vine 
Mining Act continues in force in respect of leases 
made before this Act comes into force except that, 
subject to any special terms, the annual rental is $1 
an acre but not less than $10 a year. 

15. Sections 12, 13 and 14 apply to leases upon their Application 
renewal and to licences of occupation on their anniversary 

dates, next occurring after those sections come into force. 

16. — (1) This Act, except section 11, comes into force on m en\ me 
the day it receives Royal Assent. 

(2) Section 11 comes into force on the 1st day of January, Idem 
1969. 

17. This Act may be cited as The Mining Amendment Short title 
Act, 1968. 



118 



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BILL 119 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Highway Traffic Act 



Mr. Haskett 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 

Section 1. The definitions are amended to exclude motorized snow 
vehicles. 



Section 2. The amendment authorizes regulations to provide for 
the payment of fees upon application to the Department for any approval 
required in respect of equipment to be used on vehicles. 



119 



BILL 119 1968 



An Act to amend The Highway Traffic Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Paragraph 15 of subsection 1 of section 1 of ff£- J 9 f ' 
The Highway Traffic Act is amended by inserting after "a"subs.J., 
in the fifth line "motorized snow vehicle", so that the para- amended 
graph shall read as follows: 

15. "motor vehicle" includes an automobile, motorcycle, 
and any other vehicle propelled or driven otherwise 
than by muscular power; but does not include the 
cars of electric or steam railways, or other motor 
vehicles running only upon rails, or a motorized 
snow vehicle, traction engine, farm tractor, self- 
propelled implement of husbandry or road-building 
machine within the meaning of this Act. 

(2) Paragraph 29 of subsection 1 of the said section 1 is^f^,! 9 ? 0, 
amended by striking out "but not including" in the fourth subs. i, g 
and fifth lines and inserting in lieu thereof "but does not amended 
include a motorized snow vehicle", so that the paragraph 
shall read as follows: 

29. "vehicle" includes a motor vehicle, trailer, traction 
engine, farm tractor, road-building machine and any 
vehicle drawn, propelled, or driven by any kind of 
power, including muscular power, but does not 
include a motorized snow vehicle, the cars of electric 
or steam railways running only upon rails. 

2. Section 5 of The Highway Traffic Act is amended by £f ■}§; J. 9 g°' 
adding thereto the following clause: amended 

(c) providing for the payment of fees upon application 
to the Department for any approval required under 
this Act in respect of any equipment to be used on 
a vehicle and prescribing the amount of such fees. 

119 



R.8.0. 1960. 3. Clause e of subsection 1 of section 9 of The Highway 
rata. J * Traffic Act, as re-enacted by section 2 of The Highway Traffic 
o 19 e%. 2). Amendment Act, 1965, is amended by inserting after "forward" 
amended in the first line "to the Department", so that the clause shall 



read as follows: 



(«) does not, within six days, forward to the Depart- 
ment a notice on the prescribed form of the sale or 
purchase by or to him of a motor vehicle, trailer or 
conversion unit for which a permit has been issued, 



c*'i72.' i 9 i3.' *• Subsection 4 of section 13 of The Highway Traffic Act 
re-enacted * s ^pealed and the following substituted therefor: 



Re-exam- 
ination 



(4) The holder of an operator's licence shall submit to 
such examination in respect of the operation of a 
motor vehicle as and when required by the Minister 
and, 

(a) the licence of any such person who fails to 
take or complete such examination when 
required shall be cancelled by the Minister; 
and 

(b) the licence of any such person who completes 
such examination may be confirmed, sus- 
pended, cancelled or re-issued in accordance 
with subsection 3 by the Minister. 

cV?72.' b. 9 iS' *• Clause a of section 15 of The Highway Traffic Act, as 
J*?* 8 '* 4) re-enacted by section 4 of The Highway Traffic Amendment 
ci. a,' Act, 1966, is repealed and the following substituted therefor: 

re-enacted r ° 

(a) a resident of any other province of Canada, who is 
at least sixteen years of age and has complied with 
the law of the province in which he resides as to the 
licensing of motor vehicle operators or chauffeurs. 

SfiS.'i 9 ??: 6 « Subsection 8 of section 16 of The Highway Traffic Act 
re-enacted is re P ea led and the following substituted therefor: 



Re-exam- 
ination 



(8) The holder of a chauffeur's licence shall submit 
to such examination in respect of the operation of a 
motor vehicle as and when required by the Minister 
and, 

(a) the licence of any such person who fails to 
take or complete such examination when 
required shall be cancelled by the Minister; 
and 



119 



Section 3. The amendment is to make it clear that the notice of 
purchase or sale of a motor vehicle is to be sent to the Department. 



Section 4. The Minister is empowered to cancel a licence where the 
person refuses or fails to take an examination. 



Section 5. The provision exempting non-residents from obtaining 
a driving licence is amended to delete the provision that he may not carry 
on business in Ontario for more than six months in any one year. 



Section 6. See note to section 4. 



119 



.M<. iu>\ 7. Truck tractors when operated on a highway without a 
trailer are not required to display a cluster of three red identification 
lights to the rear. 



Section S.VAIl motor vehicles except motorcycles are required to be 
equipped with odometers. 



Section 9. Slow moving vehicle signs are required to be attached 
to the rear of any farm tractor or self-propelled implement of husbandry 
when operated on a highway. 



Section 10. The provisions respecting certificates of mechanical 
fitneaa are revised to require every person to produce a certificate when 
applying for the registration of a used motor vehicle. Provision is made 
for the issue of an unfit motor vehicle permit where a certificate is not 
produced and for the later issue of the licence plates when a certificate is 
produced. 



\V) 



(b) the licence of any such person who completes 
such examination may be confirmed, sus- 
pended, cancelled or re-issued in accordance 
with subsection 3 by the Minister. 

7. Section 33 of The Highway Traffic Act is amended by ^'f^; s. 9 33,' 
adding thereto the following subsection: amended 

(9a) Notwithstanding subsection 9, a truck tractor ^^tifiea- 
operated on a highway without a trailer or semi- tion lamps 

on tractors 

trailer is not required to carry the three red lamps without 

• trailer 

displaying red lights to the rear. 

8. Section 37 of The Highway Traffic Act, as amended by ^■ff^'s 1 . 9 !'?,' 
section 4 of The Highway Traffic Amendment Act, 1964, is amended 
further amended by adding thereto the following subsection: 

(3a) Every motor vehicle other than a motorcycle shall Odometers 
be equipped with an odometer in good working 
order. 

9. The Highway Traffic Act is amended by adding thereto ^'f^; 1960, 

the following section: amended 

42a. — (1) Every farm tractor and self-propelled imple- moving 
ment of husbandry when operated on a highway or^icie 
any vehicle towed by either of them, shall have a 
slow moving vehicle sign attached to the rear thereof 
in accordance with the regulations. 

(2) The Lieutenant Governor in Council may make Regulatlons 
regulations prescribing the type and specifications 
of the sign referred to in subsection 1, and the loca- 
tion thereof on the vehicle. 

10. Section 49 of The Highway Traffic Act, as re-enacted by ^'17?; s 9 49' 
section 6 of The Highway Traffic Amendment Act, 1967, is c (19 3 |^* s 6) 
repealed and the following substituted therefor: re-enacted 

49. — (1) Except as provided in subsection 2, every o^UecSn- 
dealer in used motor vehicles, before he enters intoi cal u fitness 

. to be given 

a contract to sell a used motor vehicle, shall give to by dealer 
the purchaser a certificate of mechanical fitness as 
prescribed by the regulations that is duly completed 
and signed by the dealer. 

Sale by 
dealer of 

(2) When a dealer in used motor vehicles sells a used us « d motor 

. vehicle for 

motor vehicle that cannot be certified as mechanically which 
fit as provided in subsection 1, he shall forward to cannot be 

given 

119 



the Department the notice required under clause e 
of subsection 1 of section 9 together with the number 
plates and permit issued with respect to such motor 
vehicle. 



Certificate 
to be 
produced 
on transfer 
of used 
motor 
vehicle 



(3) The DejKirtment shall not issue a permit or number 
plates to any person upon an application, 

(a) except as provided in subsection 4 to transfer 
a used motor vehicle; or 



(b) to register a used motor vehicle in Ontario 
that is registered in another jurisdiction, 



1964. e. a 



unless there is produced a valid certificate of mechan- 
ical fitness respecting such vehicle as prescribed by 
the regulations that is given by a dealer under 
subsection 1 or that is duly completed and signed 
by the holder of a subsisting certificate of qualifica- 
tion as a motor mechanic under The Apprenticeship 
and Tradesmen's Qualification Act, 1964. 



Kpt 

of subsec- 
tion 3 to 
commercial 
motor 
vehicles 



(4) Subsection 3 does not apply to a commercial motor 
vehicle currently registered in another jurisdiction 
and owned by a person who does not reside in 
Ontario. 



W here 
certificate 
not 
produced 



(5) Where a person applies for the transfer of a used 
motor vehicle and does not produce a valid certif- 
icate of mechanical fitness respecting such vehicle as 
required by subsection 3, he shall forward to the 
Department the notice required under clause e of 
subsection 1 of section 9 together with the number 
plates and permit issued with respect to such motor 
vehicle. 



Issue of 

permit 

when 

certificate 

not 

produced 



(6) The Department, upon receipt of the notice together 
with the number plates and i>ermit under subsec- 
tion 2 or 5 shall issue with respect to such motor 
vehicle a permit marked "unfit motor vehicle" and 
number plates shall not be issued under Part II for 
such motor vehicle until a valid certificate of mechan- 
ical fitness as required by subsection 3 is produced 
for such motor vehicle. 



Application 
to dealers 



(7) Subsections 1, 2, 3 and 5 do not apply to the sale 
or transfer of a used motor vehicle to a dealer in 
used motor vehicles. 



\V) 



Section 11. The amendment authorizes the Lieutenant Governor in 
Council to adopt by reference any code respecting safety devices on 
vehicles. 



ion 12. The amendment requires persons on motorcycles to 
wear helmets th.it comply with the regulations. 



119 



(8) Subsection 2 of section 2 of The Motor Vehicle of'Sef-ei 11 
Accident Claims Act, 1961-62 does not apply uponc- » 4 . |. 2,' 
the issuance or transfer of a permit where such to issuance 
permit is marked "unfit motor vehicle" but does motor 
apply upon the issuance by the Department of permit 
number plates for such motor vehicle. 

(9) Every dealer who contravenes subsection 1 or 2 Penalty for 

. . . contraven- 

is guilty of an offence and on summary conviction tkm of sub- 

• 1- 1 1 r r 1 I *. n , Section 1 Or 

is liable to a fine of not less than $50 and not more 2 by dealer 
than $300. 

(10) Every person who makes a false statement in a^ 11 * 
certificate of mechanical fitness is guilty of an offence statement in 

c6rtifica.tG 

and on summary conviction is liable to a fine of not 
less than $50 and not more than $300. 

(11) The Lieutenant Governor in Council may make ^s^iations 
regulations, icates of 

mechanical 
fitness 

(a) prescribing the form and content of certif- 
icates of mechanical fitness; 

(6) prescribing inspection procedures, inspection 
requirements and performance standards of 
those items to be inspected under a certificate 
of mechanical fitness; 

(c) prescribing the term of validity of a certificate 
of mechanical fitness. 

11. Section 50a of The Highway Traffic Act, as enacted Rsx>. i960, 
by section 10 of The Highway Traffic Amendment Act, 1966,s.50a' 

is amended by adding thereto the following subsection: c. 64, s. 10), 

amended 

(2) Any regulation may adopt by reference, in whole or Codes 
in part, with such changes as the Lieutenant Gov- 
ernor in Council considers necessary, any code, and 
may require compliance with any code that is so 
adopted. 

12. The Highway Traffic Act is amended by adding thereto J 1 ^; 1960, 
the following section: amended 

51a. — (1) No person shall ride on or operate a motor- riders™ 1016 
cycle on a highway unless he is wearing a helmet ^ ea t ^ 
that complies with the regulations. 

(2) The Lieutenant Governor in Council may make Regulations 
regulations, 

(a) prescribing the standards and specifications 
of helmets referred to in subsection 1 ; 

119 



CodM 



R.S.O. I960, 
c. 172. S. 52. 
subs. 2* 

i i Ma 

c. 64. a. 11. 

subs. 2). 
amended 



(b) providing for and requiring the identification 
and marking of such helmets. 

(3) Any regulation may adopt by reference in whole or 
in part, with such changes as the Lieutenant Gov- 
ernor in Council considers necessary, any code, and 
may require compliance with any code that is so 
adopted. 

13. Subsection la of section 52 of The Highway Traffic 
Act, as re-enacted by subsection 2 of section 1 1 of The Highway 
Traffic Amendment Act, 1966 and amended by section 7 of 
The Highway Traffic Amendment Act, 1967, is further amended 
by striking out "30th day of June, 1968" in the seventh 
line and in the amendment of 1967 and inserting in lieu 
thereof "31st day of December, 1969", so that the subsection 
shall read as follows: 



Moving or 
three-axle 

semitrailers 
or pole- 
trailers 
registered 
prior to 
.July 1. 1961 



(2a) Notwithstanding paragraph 6 of subsection 2, a 
semi-trailer or a pole-trailer referred to in such 
paragraph 6 that was registered under this Act 
prior to the 1st day of July, 1961, subject to section 6, 
may be moved with a gross weight not exceeding 
40,000 pounds on a Class A Highway until and 
including the 31st day of December, 1969. 



^"ij^g 9 ^s' 1^* Subsection 1 of section 58 of The Highway Traffic Act, 
subs i as amended by subsection 1 of section 11 of The Highway 

amended a J 

Traffic Amendment Act, 1961-62, is further amended by 
striking out "96" in the second line and inserting in lieu 
thereof "102", so that the subsection shall read as follows: 



Width of 
vehirle 



(1) No vehicle, including load or contents, shall have a 
greater width than 102 inches, except traction 
engines or threshing machines which may have a 
total width of 110 inches, and except loads of loose 
fodder and except motor vehicles and road-building 
machines while being used for the removal of snow 
from a highway. 



5 i^.b 19 !?; * 5 * Section 59 of The Highway Traffic Act is amended by 
amended adding thereto the following subsection: 



Suspension 
of licence 
on 
conviction 



(13) Where a magistrate has convicted a person for a 
contravention of any provision of this section and 
has determined that the person convicted was 
driving at a rate of speed of 30 or more miles per 
hour greater than the maximum speed limit, he may 
suspend the driver's licence of such person for a 
period of not more than 30 days. 



119 



Section 13. The period that tri-axled semi-trailers may be moved 
with a gross weight of 40,000 pounds is extended to the 31st day of Decem- 
ber, 1969. 



Section 14. The maximum permissible width of vehicles on a 
highway is increased from 96 inches to 102 inches. 






Section 15. Where a magistrate has convicted a person for driving 
at a rate of speed of 30 or more miles per hour greater than the speed limit, 
he is authorized to suspend such person's licence for up to 30 days. 



119 



Skction 16. The provisions respecting left turns are amended for 
the purpose of making the rule uniform. The amendment in subsection 3 
is to make it clear that the provisions of section 68 are subject to the 
provisions requiring a driver to obey the directions on official signs. 



Section 17. The amendment provides that signalling devices are 
to be used only for the purpose of indicating turns. 



Section 18. Rules are prescribed in relation to flashing green 
signal lights. 



119 



16. — (1) Subsection 3 of section 68 of The Highway Traffic ^ j^o g 19 ^' 
Act is amended by inserting after "of" where it occurs the subs. 3 
first time in the eighth line "and as closely as practicable to", 
so that the subsection shall read as follows: 

(3) The driver or operator of a vehicle intending to turn o^two-way 1 
to the left into an intersecting highway at an inter- highways 
section where traffic is permitted to move in both 
directions on each highway entering the intersection 

shall approach such intersection as closely as prac- 
ticable to the centre line of the highway and the left 
turn shall be made by passing to the right of such 
centre line where it enters the intersection, and upon 
leaving the intersection by passing to the right of 
and as closely as practicable to the centre line of the 
highway then entered. 

(2) Subsection 4 of the said section 68 is amended by ^^O- a 19 60. 
inserting after "pass" in the sixth line "to the right of and", subs - *. 

so that the subsection shall read as follows: 

(4) The driver or operator of a vehicle intending to turn J r n ° e ™ vay 
to the left from a highway designated for use of hi s hwa >' 
one-way traffic into an intersecting highway on which 
traffic is permitted to move in both directions shall 
approach the intersection as closely as practicable 

to the left curb or edge of the roadway and on 
entering the intersection shall pass to the right of 
and as closely as practicable to the centre line of the 
highway being entered where it enters the inter- 
section. 

(3) The said section 68 is amended by adding thereto the^ ^•g^gg- 
following subsection: amended 

(7) The provisions of subsections 1, 2, 3, 4, 5 and 6 are ^j^ 0113 
subject to clause c of section 76. t0 . «• ' 

J of s. 76 

17. Section 69 of The Highway Traffic Act is amended by fi'f^'.a^eS,' 
adding thereto the following subsection: amended 

(4a) No person while operating or in control of a vehicle devices" 8 
upon a highway shall actuate the mechanical or niy e for ed 
electrical device referred to in subsection 4 for any purpose of 

... . J . indicating 

purpose other than to indicate a movement referred turn 
to in subsection 1 or la. 



18. — (1) Section 70 of The Highway Traffic Act is amended ^'fj^'s 9 ™ ' 
by adding thereto the following subsection: amended 

119 



8 



riaahini 

Kre«n 



(3a) When a green light illuminated by rapid intermittent 
Mashes is shown at an intersection the driver or 
operator of a vehicle or car of an electric railways 
that is approaching the intersection and facing such 
light may, notwithstanding subsection 2 of section 68, 
proceed across the intersection or turn left or right. 



9- ,: -:V (2) Subsection 11 of the said section 70 is repealed and the 
subs, li following substituted therefor: 

re-enacted e 



Pedestrian 
rules re 
green 

Klgliul 



(11) Subject to subsection 11a, a pedestrian approaching 
and facing a green light shown at an intersection 
may proceed across the roadway, provided that, 
where markings upon the roadway indicate the 
portion of the roadway to be used by pedestrian 
traffic, the pedestrian shall proceed within the 
marked portion. 



flashing 
green 



(11a) A pedestrian approaching and facing a green light 
illuminated by rapid intermittent flashes at an 
intersection shall not proceed across the roadway 
except in accordance with subsection 13. 



e! iY^'s 19 ™' 1®« Clause r of section 76 of The Highway Traffic Act is 
re-enacted repealed and the following substituted therefor: 

(c) any lane may be designated for slowly moving 
traffic or traffic moving in a particular direction 
provided that official signs are erected to indicate 
such designation, and, notwithstanding section 68, 
where a highway is so designated the driver of every 
vehicle shall obey the direction on the official signs. 



I I960 

0. 172. S. 94 
(1960-61. 
c 
amended 



20. Section 94 of The Highway Traffic Act is amended 
!1w!s. I i2). D >' adding thereto the following subsection: 



Application 
of subsec- 
tions 2 and 
3 to certain 
munici- 
palities 

R.8.O. 196«. 
c. 362 

1968. e. . . . 



. MO 



I960. 



(3a) The council of a defined city under Part VI of 
The Secondary Schools and Boards of Education Act, 
the council of a municipality in the school division 
under the jurisdiction of The Ottawa Board of 
Education, and the council of the Regional Corpora- 
tion under The Regional Municipality of Ottawa- 
Carleton Act, 1968, in relation to highways under 
its jurisdiction in such school division, and the 
council of an area municipality and of the Metro- 
politan Corporation under The Municipality of 
Metropolitan Toronto Act may provide by by-law 
that subsections 2 and 3 do not apply to the highways 
under its jurisdiction. 



119 



Section 19. The amendment is complementary to section 68 as 
amended by section 15 of this Bill. 



Section 20. Under section 94 all traffic on a highway on which the 
maximum speed is greater than 35 miles per hour must stop for a school 
bus which is stopped with lights flashing. The amendment authorizes 
certain municipalities to exempt all highways under their jurisdiction 
from such provisions. 



119 



SUCTION 21. The amendment provides a penalty for clinging to 

vehicles to be drawn along the roadway. 



Section 22. The new section provides for the regulation of traffic 
in tunnels. 



Section 23. The amendment authorizes a municipality to prohibit 
pedestrians on its highways on which the maximum speed is 50 miles per 
hour or more. 



119 



21. Section 96 of The Highway Traffic Act is amended by f"fj9- 19 £9- 
adding thereto the following subsection: amended 

(3) No person shall attach himself to the outside of a Persons 

t_- i j <■ t .clinging to 

vehicle or street car on a roadway for the purpose of vehicles 
being drawn along the roadway. 

22. The Highway Traffic Act is amended by adding thereto R f£- 1960 

the following section: amended 

99a. — (1) The Lieutenant Governor in Council may regulations 
make regulations, re 

(a) designating any part of a highway as a tunnel; 

(b) providing for the erection of signs and the 
placing of markings, 

(i) on any highway approaching any part 
of a highway designated as a tunnel, 

(ii) on any part of a highway designated 
as a tunnel, 

and prescribing the types of such signs and 
markings and the location of each type of 
sign and marking; 

(c) prohibiting or regulating the use of that part 
of the highway designated as a tunnel by 
pedestrians, animals or any class or classes 
of vehicles; 

(d) prohibiting or regulating the transportation 
of explosives and dangerous materials or any 
class thereof by a vehicle on that part of a 
highway designated as a tunnel. 

(2) Every driver or operator of a vehicle shall obey the^te^ 
instructions or directions indicated on any sign so° be yed 
erected. 

23. Subsection 2 of section 100a of The Highway Traffic ff^ • 196 °- 
Act, as enacted by section 13 of The Highway Traffic Amend- 5 10 o°- 
merit Act, 1964, is repealed and the following substituted (1964." 

rhprpfnr- c. 38. s. 13), 

cnereior. re-enacted 

(2) The council of a municipality may by by-law prohibit Prohibiting 
pedestrians or the use of bicycles or animals on any etc", on 
highway or portion of a highway under its jurisdic- highways 
tion on which the maximum speed limit is 50 miles 
per hour or more. 

119 



10 



j l '" ;o 24. The Highway Traffic Act is amended by adding thereto 
.umMuifxi the following section: 



Hiding in 
house or 
boat 
trailers 
prohibited 



Penalty 



H.s.o. I960, 

C. IT'J 

«. 145a 

(1967. 

0. 35. 8. 18), 

re-enacted 

Report of 

medical 
practitioner 



N'o action 
for com- 
plying with 
*ubs. 1 

Reports 
privileged 



R.S.O. 1960. 
c. 172. 
s. 152. 
subs. 1 
(1960-61. 
C. 34. s. 16). 
amended 



Report on 

oonvi' • 

to Registrar 



100c. — (1) No driver of a motor vehicle to which a house 
trailer or boat trailer is attached shall operate such 
motor vehicle on a highway if the trailer is occupied 
by any jierson. 

(2) Every person who contravenes subsection 1 is guilty 
of an offence and on summary conviction is liable 
to a fine of not less than $25 and not more than $100. 

25. Section 145a of The Highway Traffic Act, as enacted 
by section 13 of The Highway Traffic Amendment Act, 1967, 
is repealed and the following substituted therefor: 

145a. — (1) Every legally qualified medical practitioner 
shall report to the Registrar the name, address and 
clinical condition of every person sixteen years of 
age or over attending upon the medical practitioner 
for medical services, who in the opinion of such 
medical practitioner is suffering from a condition 
that may make it dangerous for such person to 
operate a motor vehicle. 

(2) No action shall be brought against a qualified 
medical practitioner for complying with this section. 

(3) The report referred to in subsection 1 is privileged 
for the information of the Registrar only and shall 
not be open for public inspection, and such report is 
inadmissible in evidence for any purpose in any 
trial except to prove compliance with subsection 1. 

26. Subsection 1 of section 152 of The Highway Traffic 
Act, as re-enacted by section 16 of The Highway Traffic 
Amendment Act, 1960-61, is amended by inserting after 
"parking" in the eighth line "or the clerk of the court in 
which the conviction is made", so that the subsection shall 
read as follows: 

(1) A judge, magistrate or justice of the peace who 
makes a conviction for an offence under this Act 
or under any other Act of the Legislature or the 
Parliament of Canada or any regulation or order 
made under any of them committed by means of 
a motor vehicle, or for an offence under a municipal 
by-law regulating traffic on the highways, except 
convictions for offences for standing or parking or 
the clerk of the court in which the conviction is 



119 



Section 24. The new section prohibits riding in house or boat 
trailers. 



Section 25. The provisions respecting medical reports are revised 
to prohibit actions against doctors for complying with the provisions and 
makes such reports privileged for the information of the Registrar. 



Section 26. The amendment authorizes the clerk of the court in 
which a conviction is made to certify to the Registrar the particulars of 
the conviction. 



119 



11 

made, shall forthwith certify the conviction to the 
Registrar, setting out the name, address and descrip- 
tion of the person convicted, the number of his 
operator's or chauffeur's licence, the number of the 
permit of the motor vehicle with which the offence 
was committed, the time the offence was committed 
and the provision of the Act, regulation, order or 
by-law contravened. 

27.— (1) This Act, except sections 1, 8, 9, 10, 12, 13, 16, £°™ t mence " 
17, 18, 19, 21 and 24, comes into force on the day it receives 
Royal Assent. 

(2) Section 13 comes into force on the 1st day of July, Idem 
1968. 

(3) Sections 1, 8, 9, 12, 16, 17, 18, 19, 21 and 24 come into Idem 
force on the 1st day of September, 1968. 

(4) Section 10 comes into force on the 1st day of November, Idem 
1968. 

28. This Act may be cited as The Highway Traffic Amend- Short title 
ment Act, 1968. 



119 









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BILL 119 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Highway Traffic Act 



Mr. Haskett 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 119 1968 



An Act to amend The Highway Traffic Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Paragraph 15 of subsection 1 of section 1 of ^-s^. i960, 
The Highway Traffic Act is amended by inserting after "a" subs, i, 
in the fifth line "motorized snow vehicle", so that the para- amended 
graph shall read as follows: 

15. "motor vehicle" includes an automobile, motorcycle, 
and any other vehicle propelled or driven otherwise 
than by muscular power; but does not include the 
cars of electric or steam railways, or other motor 
vehicles running only upon rails, or a motorized 
snow vehicle, traction engine, farm tractor, self- 
propelled implement of husbandry or road-building 
machine within the meaning of this Act. 

(2) Paragraph 29 of subsection 1 of the said section 1 is ^"fj®' iff ' 
amended bv striking out "but not including" in the fourth 8Ubs - \> 

, T. . ■ '.. f para. 29, 

and fifth lines and inserting in lieu thereof "but does not amended 
include a motorized snow vehicle", so that the paragraph 
shall read as follows: 

29. "vehicle" includes a motor vehicle, trailer, traction 
engine, farm tractor, road-building machine and any 
vehicle drawn, propelled, or driven by any kind of 
power, including muscular power, but does not 
include a motorized snow vehicle, the cars of electric 
or steam railways running only upon rails. 

2. Section 5 of The Highway Traffic Act is amended by ;?"ii2,'s. 9 5?' 
adding thereto the following clause: amended 

(c) providing for the payment of fees upon application 
to the Department for any approval required under 
this Act in respect of any equipment to be used on 
a vehicle and prescribing the amount of such fees. 

119 



u.s^o. 1960. 3 # Clause e of subsection 1 of section 9 of The Highway 
8u»*!/"i * Traffic Act, as re-enacted by section 2 of The Highway Traffic 
o. 46%. 2). Amendment Act, 1965, is amended by inserting after "forward" 
amended in the first line "to the Department", so that the clause shall 
read as follows: 

(e) does not, within six days, forward to the Depart- 
ment a notice on the prescribed form of the sale or 
purchase by or to him of a motor vehicle, trailer or 
conversion unit for which a permit has been issued, 



j i. 9 f 3.' *• Subsection 4 of section 13 of The Highway Traffic Act 
8U enacted ' s repeals an d tne following substituted therefor: 

Re-exam- (4) The holder of an operator's licence shall submit to 

ination v ' ... , . f 

such examination in respect of the operation ot a 
motor vehicle as and when required by the Minister 
and, 

(a) the licence of any such person who fails to 
take or complete such examination when 
required shall be cancelled by the Minister; 
and 

(b) the licence of any such person who completes 
such examination may be confirmed, sus- 
pended, cancelled or re-issued in accordance 
with subsection 3 by the Minister. 

''"172' e 9 i5' **• Clause a of section 15 of The Highway Traffic Act, as 
(1M*.* re-enacted by section 4 of The Highway Traffic Amendment 

»i. a." Act, 1966, is repealed and the following substituted therefor: 

re-enacted 

(a) a resident of any other province of Canada, who is 
at least sixteen years of age and has complied with 
the law of the province in which he resides as to the 
licensing of motor vehicle operators or chauffeurs. 

J'i'JS 6. Subsection 8 of section 16 of The Highway Traffic Act 
re-enacted 1S repealed and tne following substituted therefor: 

i nation 1 "" (8) The holder of a chauffeur's licence shall submit 

to such examination in respect of the operation of a 
motor vehicle as and when required by the Minister 
and, 

(a) the licence of any such person who fails to 
take or complete such examination when 
required shall be cancelled by the Minister; 
and 

119 



(b) the licence of any such person who completes 
such examination may be confirmed, sus- 
pended, cancelled or re-issued in accordance 
with subsection 3 by the Minister. 

7. Section 33 of The Highway Traffic Act is amended by ^'172,' s. 9 !- ; 
adding thereto the following subsection: amended 

(9a) Notwithstanding subsection 9, a truck tractor ^||ntiflca- 
operated on a highway without a trailer or semi- tion lamps 

on tractors 

trailer is not required to carry the three red lamps without 

• trailer 

displaying red lights to the rear. 

8. Section 37 of The Highway Traffic Act, as amended by ^'fy^'s 19 !?* 
section 4 of The Highway Traffic Amendment Act, 1964, is amended 
further amended by adding thereto the following subsection: 

(3a) Every motor vehicle other than a motorcycle shall Odometers 
be equipped with an odometer in good working 
order. 

9. The Highway Traffic Act is amended by adding thereto ^"fj° ' 196 °* 

the following section: amended 

42a. — (1) Every farm tractor and self-propelled imple- moving 
ment of husbandry when operated on a highway or ^i^icie 
any vehicle towed by either of them, shall have a 
slow moving vehicle sign attached to the rear thereof 
in accordance with the regulations. 

(2) The Lieutenant Governor in Council may make Regulations 
regulations prescribing the type and specifications 
of the sign referred to in subsection 1, and the loca- 
tion thereof on the vehicle. 

10. Section 49 of The Highway Traffic Act, as re-enacted by ^172,' s. 9 49* 
section 6 of The Highway Traffic Amendment Act, 1967, is*, 1 ^ 7 ^ 6) 
repealed and the following substituted therefor: re-enacted 

49. — (1) Except as provided in subsection 2, every of 6 ^^. 
dealer in used motor vehicles, before he enters intoi ca L fltness 

11 1 1 • « 1 11 • to be given 

a contract to sell a used motor vehicle, shall give to by dealer 
the purchaser a certificate of mechanical fitness as 
prescribed by the regulations that is duly completed 
and signed by the dealer. 

Sale by 
dealer of 

(2) When a dealer in used motor vehicles sells a used us ed motor 
motor vehicle that cannot be certified as mechanically which 

certifies t e 

fit as provided in subsection 1, he shall forward to cannot be 

given 

119 



the Department the notice required under clause e 
of subsection 1 of section 9 together with the number 
plates and permit issued with respect to such motor 
vehicle. 



Certificate 
to be 
produced 
on transfer 
of used 
motor 
vehi 



(3) The Department shall not issue a permit or number 
plates to any person upon an application, 

(a) except as provided in subsection 4 to transfer 
a used motor vehicle; or 



(b) to register a used motor vehicle in Ontario 
that is registered in another jurisdiction, 



1964. c. 3 



unless there is produced a valid certificate of mechan- 
ical fitness respecting such vehicle as prescribed by 
the regulations that is given by a dealer under 
subsection 1 or that is duly completed and signed 
by the holder of a subsisting certificate of qualifica- 
tion as a motor mechanic under The Apprenticeship 
and Tradesmen's Qualification Act, 1964. 



Application 
of su bsec- 
tion 3 to 
commercial 
motor 
vehicles 



(4) Subsection 3 does not apply to a commercial motor 
vehicle currently registered in another jurisdiction 
and owned by a person who does not reside in 
Ontario. 



Where 

certifUate 

not 

produced 



(5) Where a person applies for the transfer of a used 
motor vehicle and does not produce a valid certif- 
icate of mechanical fitness respecting such vehicle as 
required by subsection 3, he shall forward to the 
Department the notice required under clause e of 
subsection 1 of section 9 together with the number 
plates and permit issued with respect to such motor 
vehicle. 



Issue of 

permit 

when 

certificate 

not 

produced 



(6) The Department, upon receipt of the notice together 
with the number plates and permit under subsec- 
tion 2 or 5 shall issue with respect to such motor 
vehicle a permit marked "unfit motor vehicle" and 
number plates shall not be issued under Part II for 
such motor vehicle until a valid certificate of mechan- 
ical fitness as required by subsection 3 is produced 
for such motor vehicle. 



Application 
to dealers 



(7) Subsections 1, 2, 3 and 5 do not apply to the sale 
or transfer of a used motor vehicle to a dealer in 
used motor vehicles. 



119 






(8) Subsection 2 of section 2 of The Motor Vehicle*?^**™ 
Accident Claims Act, 1961-62 does not apply upon c. 84, s. 2.' 
the issuance or transfer of a permit where such to issuance 
permit is marked "unfit motor vehicle" but does motor 
apply upon the issuance by the Department ofp| r mJt 
number plates for such motor vehicle. 

(9) Every dealer who contravenes subsection 1 or 2 ^ont*aven°- r 
is cruiltv of an offence and on summary conviction tion of sub- 

ssotiion 1 or 

is liable to a fine of not less than $50 and not more 2 by dealer 
than $300. 

(10) Every person who makes a false statement in a^y 
certificate of mechanical fitness is guilty of an offence statement in 
and on summary conviction is liable to a fine of not 

less than $50 and not more than $300. 

(11) The Lieutenant Governor in Council may make R^^!^ 0118 
regulations, icates of 

mechanical 

fitness 

(a) prescribing the form and content of certif- 
icates of mechanical fitness ; 

(b) prescribing inspection procedures, inspection 
requirements and performance standards of 
those items to be inspected under a certificate 
of mechanical fitness; 

(c) prescribing the term of validity of a certificate 
of mechanical fitness. 

11. Section 50a of The Highway Traffic Act, as enacted R sx>. i960, 
by section 10 of The Highway Traffic Amendment Act, 1966, soOo' 

is amended bv adding thereto the following subsection: c. 64, s. 10), 

amended 

(2) Any regulation may adopt by reference, in whole or codes 
in part, with such changes as the Lieutenant Gov- 
ernor in Council considers necessary, any code, and 
may require compliance with any code that is so 
adopted. 

12. The Highway Traffic Act is amended by adding thereto J-gg; 1960, 
the following section: amended 

51a. — (1) No person shall ride on or operate a motor- f-dere rcycle 
cycle on a highway unless he is wearing a helmet ^j^ts 
that complies with the regulations. 

(2) The Lieutenant Governor in Council may make Regulations 
regulations, 

(a) prescribing the standards and specifications 
of helmets referred to in subsection 1 ; 

119 



(b) providing for and requiring the identification 
and marking of such helmets. 






>. I960, 
I. B. 52. 

Bubs. 2a 
I L966, 

8. 11, 

Mil .- 2). 
amended 



(3) Any regulation may adopt by reference in whole or 
in part, with such changes as the Lieutenant Gov- 
ernor in Council considers necessary, any code, and 
may require compliance with any code that is so 
adopted. 

13. Subsection 2a of section 52 of The Highway Traffic 
Act, as re-enacted by subsection 2 of section 1 1 of The Highway 
Traffic Amendment Act, 1966 and amended by section 7 of 
The Highway Traffic Amendment Act, 1967, is further amended 
by striking out "30th day of June, 1968" in the seventh 
line and in the amendment of 1967 and inserting in lieu 
thereof "31st day of December, 1969", so that the subsection 
shall read as follows: 



Moving of 
three-axle 
semi-trailers 
or pole- 
trailers 
registered 
pn«r to 
July 1. 1961 



(2a) Notwithstanding paragraph 6 of subsection 2, a 
semi-trailer or a pole-trailer referred to in such 
paragraph 6 that was registered under this Act 
prior to the 1st day of July, 1961, subject to section 6, 
may be moved with a gross weight not exceeding 
40,000 pounds on a Class A Highway until and 
including the 31st day of December, 1969. 



R.S.O. I960. 
I, B. 68. 
subs. 1, 
amended 



14. Subsection 1 of section 58 of The Highway Traffic Act, 
as amended by subsection 1 of section 11 of The Highway 
Traffic Amendment Act, 1961-62, is further amended by 
striking out "96" in the second line and inserting in lieu 
thereof "102", so that the subsection shall read as follows: 



Wi«ltb of 
vehicle 



(1) No vehicle, including load or contents, shall have a 
greater width than 102 inches, except traction 
engines or threshing machines which may have a 
total width of 110 inches, and except loads of loose 
fodder and except motor vehicles and road-building 
machines while being used for the removal of snow 
from a highway. 



2s 19 59.' 15 * Section 59 of The Highway Traffic Act is amended by 
amended adding thereto the following subsection: 



Suspension 
of licence 
on 
conviction 



(13) Where a magistrate has convicted a person for a 
contravention of any provision of this section and 
has determined that the person convicted was 
driving at a rate of speed of 30 or more miles per 
hour greater than the maximum speed limit, he may 
suspend the driver's licence of such person for a 
period of not more than 30 days. 



119 



16. — (1) Subsection 3 of section 68 of The Highway Traffic *"fj2'i 9 68 '• 
Act is amended by inserting after "of" where it occurs the subs. 3, 
first time in the eighth line "and as closely as practicable to", 
so that the subsection shall read as follows: 

(3) The driver or operator of a vehicle intending to turn ^two-way 
to the left into an intersecting highway at an inter- highways 
section where traffic is permitted to move in both 
directions on each highway entering the intersection 

shall approach such intersection as closely as prac- 
ticable to the centre line of the highway and the left 
turn shall be made by passing to the right of such 
centre line where it enters the intersection, and upon 
leaving the intersection by passing to the right of 
and as closely as practicable to the centre line of the 
highway then entered. 

(2) Subsection 4 of the said section 68 is amended by ^-^o^o, 
inserting after "pass" in the sixth line "to the right of and", subs. 4 

• amended 

so that the subsection shall read as follows: 

(4) The driver or operator of a vehicle intending to turn on°e"way 
to the left from a highway designated for use of hi s hway 
one-way traffic into an intersecting highway on which 
traffic is permitted to move in both directions shall 
approach the intersection as closely as practicable 

to the left curb or edge of the roadway and on 
entering the intersection shall pass to the right of 
and as closely as practicable to the centre line of the 
highway being entered where it enters the inter- 
section. 

(3) The said section 68 is amended by adding thereto the^f^g 19 ^; 

following subsection : amended 

(7) The provisions of subsections 1, 2, 3, 4, 5 and 6 arej™/^ 0115 
subject to clause c of section 76. of sSl 

17. Section 69 of The Highway Traffic Act is amended by^'f^s. 9 ^,' 
adding thereto the following subsection: amended 

(4a) No person while operating or in control of a vehicle devices 118 
upon a highway shall actuate the mechanical or Q ° 1 b r e f ^ ed 
electrical device referred to in subsection 4 for an Y i p n u d ^°t?n° f 
purpose other than to indicate a movement referred turn 
to in subsection 1 or la. 

18.— (1) Section 70 of The Highway Traffic Act is amended *fj§-£ 9 $; 
by adding thereto the following subsection: amended 

119 



8 



flushing 

green 



(3a) When a preen light illuminated by rapid intermittent 
flashes is shown at an intersection the driver or 
operator of a vehicle or car of an electric railways 
th.it is approaching the intersection and facing such 
light may, notwithstanding subsection 2 of section 68, 
proceed across the intersection or turn left or right. 



j."b. 9 70.* (2) Subsection 11 of the said section 70 is repealed and the 
re-enacted following substituted therefor: 



Pedestrian 
rules re 
green 
signal 



(11) Subject to subsection 11a, a jjedestrian approaching 
and facing a green light shown at an intersection 
may proceed across the roadway, provided that, 
where markings upon the roadway indicate the 
portion of the roadway to be used by pedestrian 
traffic, the pedestrian shall proceed within the 
marked portion. 



I l—hlnt 
green 



(11a) A pedestrian approaching and facing a green light 
illuminated by rapid intermittent flashes at an 
intersection shall not proceed across the roadway 
except in accordance with subsection 13. 



R.S.O. I960, 
c. 172, s. 76. 
Oi. <r. 
re-enacted 



19. Clause c of section 76 of The Highway Traffic Act is 
repealed and the following substituted therefor: 



(c) any lane may be designated for slowly moving 
traffic or traffic moving in a particular direction 
provided that official signs are erected to indicate 
such designation, and, notwithstanding section 68, 
where a highway is so designated the driver of every 
vehicle shall obey the direction on the official signs. 



R.S.O. I960, 
c. 172. s. 94 
(1960-61, 
c. 34, 8. 12). 
amended 

Application 
of subsec- 
tions 2 and 
3 to certain 
munici- 
palities 
R.S.O. 1960. 
0. 362 

1968, o. . . . 



c. 260 



20. Section 94 of The Highway Traffic Act is amended 
by adding thereto the following subsection: 

(3a) The council of a defined city under Part VI of 
The Secondary Schools and Boards of Education Act, 
the council of a municipality in the school division 
under the jurisdiction of The Ottawa Board of 
Education, and the council of the Regional Corpora- 
tion under The Regional Municipality of Ottawa- 
Carleton Act, 1968, in relation to highways under 
its jurisdiction in such school division, and the 
council of an area municipality and of the Metro- 
politan Corporation under The Municipality of 
Metropolitan Toronto Act may provide by by-law 
that subsections 2 and 3 do not apply to the highways 
under its jurisdiction. 



119 









21. Section 96 of The Highway Traffic Act is amended by ^-^^960. 
adding thereto the following subsection: amended 

(3) No person shall attach himself to the outside of a Jf JJJJJ! to 
vehicle or street car on a roadway for the purpose of vehicles 
being drawn along the roadway. 

22. The Highway Traffic Act is amended by adding thereto ^-f^- 1960, 

the following section : amended 

99a. — (1) The Lieutenant Governor in Council may regulations 
make regulations, re 

(a) designating any part of a highway as a tunnel; 

(6) providing for the erection of signs and the 
placing of markings, 

(i) on any highway approaching any part 
of a highway designated as a tunnel, 

(ii) on any part of a highway designated 
as a tunnel, 

and prescribing the types of such signs and 
markings and the location of each type of 
sign and marking; 

(c) prohibiting or regulating the use of that part 
of the highway designated as a tunnel by 
pedestrians, animals or any class or classes 
of vehicles; 

(d) prohibiting or regulating the transportation 
of explosives and dangerous materials or any 
class thereof by a vehicle on that part of a 
highway designated as a tunnel. 

(2) Every driver or operator of a vehicle shall obey the^g£| 
instructions or directions indicated on any sign so obeved 
erected. 

23. Subsection 2 of section 100a of The Highway Traffic ffg- 196 °- 
Act, as enacted by section 13 of The Highway Traffic Amend-^iooa, 
merit Act, 1964, is repealed and the following substituted (i964, 

i «• C. 38, S. lo), 

therefor : re-enacted 

(2) The council of a municipality may by by-law prohibit j^c^ies 4 , 1118 
pedestrians or the use of bicycles or animals on any ^^Pp^ 
highway or portion of a highway under its jurisdic- highways 
tion on which the maximum speed limit is 50 miles 
per hour or more. 

119 



10 



r.s.o. 1960. 24. The Highway Traffic Act is amended by adding thereto 
amended the following section: 



Hiding in 
house or 
boat 
trailers 
prohibited 



Penalty 



l()0f.— (1) No driver of a motor vehicle to which a house 
trailer or boat trailer is attached shall operate such 
motor vehicle on a highway if the trailer is occupied 
by any |>erson. 

(2) Every person who contravenes subsection 1 is guilty 
of an offence and on summary conviction is liable 
to a fine of not less than $25 and not more than $100. 



R so. i960. 

172, 
I 145a 
1967, 
c. 35. e. 13). 
re-enacted 

Report of 

medical 

practitioner 



No action 
for com- 
plying with 

SUD8. 1 

Reports 
privileged 



25. Section 145a of The Highway Traffic Act, as enacted 
by section 13 of The Highway Traffic Amendment Act, 1967, 
is repealed and the following substituted therefor: 

145a. — (1) Every legally qualified medical practitioner 
shall report to the Registrar the name, address and 
clinical condition of every person sixteen years of 
age or over attending upon the medical practitioner 
for medical services, who in the opinion of such 
medical practitioner is suffering from a condition 
that may make it dangerous for such person to 
operate a motor vehicle. 

(2) No action shall be brought against a qualified 
medical practitioner for complying with this section. 

(3) The report referred to in subsection 1 is privileged 
for the information of the Registrar only and shall 
not be open for public inspection, and such report is 
inadmissible in evidence for any purpose in any 
trial except to prove compliance with subsection 1. 



H SO. I960, 
c. 172. 
s. 152. 
ttui*. 1 
(1960-61. 
c. 34. 8. 16). 
amended 



26. Subsection 1 of section 152 of The Highway Traffic 
Act, as re-enacted by section 16 of The Highway Traffic 
Amendment Act, 1960-61, is amended by inserting after 
"parking" in the eighth line "or the clerk of the court in 
which the conviction is made", so that the subsection shall 
read as follows: 



Report on 
conviction 
|0 Hffistr.ii 



(1) A judge, magistrate or justice of the peace who 
makes a conviction for an offence under this Act 
or under any other Act of the Legislature or the 
Parliament of Canada or any regulation or order 
made under any of them committed by means of 
a motor vehicle, or for an offence under a municipal 
by-law regulating traffic on the highways, except 
convictions for offences for standing or parking or 
the clerk of the court in which the conviction is 



119 



11 

made, shall forthwith certify the conviction to the 
Registrar, setting out the name, address and descrip- 
tion of the person convicted, the number of his 
operator's or chauffeur's licence, the number of the 
permit of the motor vehicle with which the offence 
was committed, the time the offence was committed 
and the provision of the Act, regulation, order or 
by-law contravened. 

27.— (1) This Act, except sections 1, 8, 9, 10, 12, 13, 16, c°™ mence - 
17, 18, 19, 21 and 24, comes into force on the day it receives 
Royal Assent. 

(2) Section 13 comes into force on the 1st day of July, Idem 
1968. 

(3) Sections 1, 8, 9, 12, 16, 17, 18, 19, 21 and 24 come into Idem 
force on the 1st day of September, 1968. 

(4) Section 10 comes into force on the 1st day of November, Idem 
1968. 

28. This Act may be cited as The Highway Traffic Amend- short title 
merit Act, 1968. 






119 



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BILL 120 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend 
The Secondary Schools and Boards of Education Act 



Mr. Davis 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The Bill provides for the dissolution of Retarded Children's Education 
Authorities and for the operation of schools for trainable retarded children 
by divisional boards of education. In The Municipality of Metropolitan 
Toronto, such schools will be operated by The Metropolitan Toronto 
School Board. 



120 






BILL 120 1%8 



An Act to amend The Secondary Schools 
and Boards of Education Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. The Secondary Schools and Boards of Education Act is^-f^; 1960, 
amended by adding thereto the following Part: amended 

PART VII 

SCHOOLS FOR TRAINABLE RETARDED CHILDREN 

101.— (1) In this Part, ggj^ 

(a) "authority" means a Retarded Children's 
Education Authority; 

(b) "committee" means an advisory committee 
on schools for trainable retarded children 
established under this Part; 

(c) "divisional board" means a divisional board 
of education and includes The Metropolitan 
Toronto School Board; 

(d) "local association" means a parents' group 
that is affiliated with the Ontario Association 
for the Mentally Retarded; 

(e) "school division" includes the Metropolitan 

Area as defined in The Municipality of Metro- ^feo' 196 °' 
politan Toronto Act; 

(/) "trainable retarded child" means a child 
whose intellectual and physical functioning is 
below the level at which he could profit from 
attendance in a special education class for 
educable retarded children. 

120 



Metro- 
politan 
Toronto 

School 

BOftTd 



(2) For the purposes of this I 'art, The Metropolitan 
Toronto School Board shall be deemed to be 
organized as a divisional board on the 1st day of 
January, 196°. 



I uvisional 

boards to 

operate 

schools for 

trainable 

retarded 

children 



102. — (1) Each school for trainable retarded children 
operated by an authority in a school division, except 
a denned city, shall cease to be operated by the 
authority on the 1st day of January, 1969, and 
thereafter shall be oj)erated by the divisional board 
of the school division. 



Idem 



(2) Each school for trainable retarded children operated 
by an authority in a school division of a defined city 
or by The Ottawa Collegiate Institute Board under 
subsection 3 shall cease to be operated by the 
authority or by such Board upon the organization 
of the divisional board of the school division, and 
thereafter shall be operated by the divisional board. 



Operation 

in 1969 of 

Ottawa 

Retarded 

Children's 

Education 

Authority 



(3) The schools operated by The Ottawa Retarded 
Children's Education Authority shall cease to be 
operated by such Authority on the 1st day of 
January, 1969, and for the year 1969 and until 
The Ottawa Board of Education is organized shall be 
operated by The Ottawa Collegiate Institute Board, 
which during such period shall be deemed to be a 
divisional board for the purposes of this Part, and 
The Ottawa Retarded Children's Education Author- 
ity is dissolved on that date, and section 103 applies 
mutatis mutandis. 



Assets, 

liabilities. 

etc. 



103. — (1) Upon the organization of a divisional board in 
a school division of a defined city and in respect of 
divisional boards of all other school divisions on the 
1st day of January, 1969, 



(a) all authorities that have jurisdiction wholly 
or partly in the school division are dissolved; 

(b) all personal property vested in an authority 
in respect of a school for trainable retarded 
children that is located in the school division 
is vested in the divisional board; 



(c) all real property located in the school division 
now vested in a local association for the use 
of an authority is vested in the divisional 
board; 



120 



(d) all debts, contracts, agreements, rights and 
liabilities of an authority or a local associa- 
tion in respect of a school for trainable 
retarded children that is located in the school 
division become debts, contracts, agreements, 
rights and liabilities of the divisional board. 

(2) No compensation shall be payable by the divisional J^^ 
board to any local association in respect of any payable 
property vested in the divisional board under sub- 
section 1. 

(3) Where a dispute arises with respect to any matter Dlspute 
under subsection 1, the local association involved 

and the divisional board shall each appoint an 
arbitrator, and these arbitrators shall appoint a 
third arbitrator who shall be the chairman, and the 
arbitrators shall resolve the dispute, and the decision 
of a majority of the arbitrators is final. 

104. All members of a divisional board are trustees for Trustees 
the purposes of schools for trainable retarded 
children. 

105. — (1) A divisional board may establish an advisory ^^^^ 
committee on schools for trainable retarded children established 
and every divisional board of a school division that 
operates one or more schools for trainable retarded 
children or that is requested to establish such a 
committee by a local association representing parents 
of trainable retarded children resident in the school 
division, shall establish an advisory committee on 
schools for trainable retarded children. 

(2) The committee shall consist of six members, of which, Son" 13081 " 

(a) three members shall be appointed by the 
divisional board from among its members; 
and 

(b) three members shall be appointed by the 
local association, and where there is more 
than one local association, three members 
shall be appointed at a joint meeting of the 
associations concerned. 

(3) The members of the committee appointed by the Son^of 3 ^" 
local association or associations shall have the members 
qualifications required for the members of the 
divisional board. 

120 



Term of 
omVe 






Honorarium 



Quorum 



Chairman 



Chairman 
voting 



Personnel 
and 

services 
available to 
committee 



Powers of 
committee 



(4) The members of the committee shall hold office until 
the expiry of the term for which the members of the 
divisional board were elected. 

(5) Every vacancy on a committee occasioned by death, 
removal or other cause shall be filled by appoint- 
ment by the divisional board or the local association 
or associations, as the case may be, of some qualified 
person, and every person so appointed shall hold 
office for the unexpired portion of the term of the 
member whose office has become vacant. 

(6) The divisional board may pay to each member of 
the committee who is not a member of the divisional 
board an honorarium not exceeding $10 for each 
month that he is a member of the committee. 

106. — (1) A majority of the members of the committee 
is a quorum, and a vote of a majority of the members 
present at a meeting is necessary to bind the com- 
mittee. 

(2) The members of the committee shall, at their first 
meeting, elect one of themselves as chairman who 
shall preside at all meetings and, if at any meeting 
the chairman is not present, the members present 
may elect a chairman for that meeting. 

(3) On every question, the chairman may vote with the 
other members of the committee, and any question 
on which there is an equality of votes shall be deemed 
to be negatived. 

(4) The divisional board shall make available to the 
committee such personnel and services as the divi- 
sional board may deem necessary for the proper 
functioning of the committee. 

107. — (1) The committee may make recommendations 
to the divisional board with respect to matters 
affecting the establishment and operation of schools 
for trainable retarded children in the school division. 



Right of 
committee 
to be heard 



(2) Before making a decision on a recommendation of 
the committee, the divisional board shall provide 
an opportunity for the committee to be heard before 
the board and before any committee thereof to which 
the recommendation is referred. 



Cost of 
operation 



108. The cost of operation of schools for trainable retarded 
children shall be included in the estimates of the 
divisional board for secondary school purposes and 



120 



apportioned in the same manner as the cost of 
operation of secondary schools. 

109. — (1) Subject to subsection 6, a trainable retarded Right of 

... , child to 

child whose parent or guardian resides in a school attend 
division in which a school for trainable retarded' 
children is operated by the divisional board has the 
right to attend the school. 

(2) Subject to subsection 6, a divisional board may \ d X S r 0n 
admit to a school for trainable retarded children children 
operated by the board a child who does not have 

the right to attend such school under subsection 1. 

(3) A trainable retarded child whose mother, mother is° se 

sole 
support, 

(a) resides in Ontario; etc - 

(b) is the sole support of the child; 

(c) is not assessed as a supporter of a public or 
separate school; and 

(d) boards her child in a residence in a school 
division, other than a children's boarding 

home as defined in The Children's Boardingf-^ 1960 ' 
Homes Act, 

shall be deemed to reside with his parent or guardian 
in such school division. 

(4) Subject to subsection 5, a trainable retarded child ward of , 

. . . . children s 

who is a ward of a children's aid society shall be aid 
deemed to be resident with his parent or guardian 
in the school division in which he resided with his 
parent or guardian in the year in which he became 
a ward. 

(5) Where a children's aid societv certifies that a child c ,hiid r 

i- iri -ii i ir placed for 

who is a ward ot such society has been placed tor adoption 
adoption on a probationary basis, the child shall be 
deemed to be resident with his parent or guardian 
in the school division in which the child resides with 
his adoptive parent. 

(6) A child may be admitted to or dismissed from a^™^ ^ 
school for trainable retarded children operated bv a on recom- 

,...,, , , . r , . mendation 

divisional board onlv upon the recommendation ot of 

... , , . . r admissions 

an admissions board consisting of, board 

(a) the principal of the school; 
120 



(b) a legally qualified psychiatrist or other 
legally qualified medical practitioner ap- 
pointed by the board; 

(c) a supervisory officer designated by the divi- 
sional board which operates the school or, 
in a provincial superintendency, a provincial 
area superintendent designated by the Min- 
ister; and 

(d) a supervisory officer designated by the 
separate school board having jurisdiction in 
the municipality in which the school is located, 
or in a provincial separate school superintend- 
ency, an area superintendent designated by 
the Minister. 



Chairman of 

admissions 

board 



(7) The principal of the school for trainable retarded 
children shall be the chairman of the admissions 
board. 



Fees for 

non-resident 

pupils 



R.S.O. 1960, 
c. 361 

Fees where 
residence 
in school 
section and 
separate 
s«hool zone 



110. — (1) Where a divisional board provides instruction 
in a school for trainable retarded children for a pupil 
whose parent or guardian does not reside in the school 
division, the board of the school division, high 
school district, school section or separate school 
zone in which his parent or guardian resides, shall 
pay to the divisional board on behalf of the pupil 
a fee calculated in accordance with subsection 2 
of section 100a of The Schools Administration Act. 

(2) Where a divisional board provides instruction in 
a school for trainable retarded children for a pupil 
whose parent or guardian does not reside in a school 
division, but does reside in a school section and in 
a separate school zone, the board of the school 
section or separate school zone of which the parent 
or guardian is a supporter shall pay to the divisional 
board on behalf of the pupil a fee calculated in 
accordance with subsection 2 of section 100a of 
The Schools Administration Act. 



Admission 
of child 
resident on 
tax-exempt 
lands 



R.S.O. I960, 
c. 330 



(3) Where a child is admitted to a school for trainable 
retarded children but is resident on lands that are 
exempt from taxation for school purposes and that 
have been designated by the Minister as a rural 
school section for which a board has been appointed 
under subsection 1 of section 12 of The Public Schools 
Act or that have been designated a high school 
district for which a board has been appointed under 



120 



subsection 5 of section 12, the board shall pay to 
the divisional board a tuition fee in accordance with 
subsection 2 of section 100a of The Schools Admin-^^- 196 °- 
istration Act. 

111. — (1) Where a pupil resides in a school division withholding 
his parent or guardian in a residence from which where daily 

. . i i r -Li i j transporta- 

daily transportation to a school for trainable retarded tion im- 
children that he has a right to attend is impractic- 
able due to distance or terrain as certified by the 
superintendent of education of the school division 
in which the pupil resides, the board of the school 
division in which his parent or guardian resides 
may reimburse the parent or guardian at the end 
of each month for the cost of providing for such 
pupil board, lodging, and transportation once a 
week from his residence to school and return, in 
an amount not exceeding that prescribed by the 
regulations for each day of attendance as certified 
by the principal of the school for trainable retarded 
children that the pupil attends. 

(2) Where a pupil resides in a school section or in a Idem 
separate school zone, but not in a school division, 
with his parent or guardian in a residence from 
which daily transportation to the school for trainable 
retarded children that he attends is impracticable 
due to distance or terrain as certified by the supervi- 
sory officer who has jurisdiction in the school section 

or separate school zone, the board of the school 
section or of the separate school zone of which his 
parent or guardian is a supporter may reimburse 
the parent or guardian at the end of each month 
for the cost of providing for such pupil board, 
lodging, and transportation once a week from his 
residence to school and return, in an amount not 
exceeding that prescribed by the regulations for 
each day of attendance as certified by the principal 
of the school for trainable retarded children that 
the pupil attends. 

(3) Where a pupil resides in a territorial district, but Idem 
not in a school division, school section or separate 
school zone, with his parent or guardian in a resi- 
dence from which daily transportation to the school 

for trainable retarded children that he attends is 
impracticable due to distance or terrain as certified 
by a supervisory officer of the divisional board of 
the school that he attends, the divisional board 
may reimburse the parent or guardian at the end of 

120 






8 

each month for the cost of providing for such pupil 
board, lodging, and transportation once a week 
from his residence to school and return, in an amount 
not exceeding that prescribed by the regulations 
for each day of attendance as certified by the 
principal of the school for trainable retarded children 
that the pupil attends. 

menV nence " ^* This Act comes mto force on the 1st day of January, 
1%<). 

sh..rt title 3# This Act may ^ citecl as The Secondary Schools and 
Boards of Education Amendment Act, 1 ( )6S {No. 2). 



120 



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BILL 120 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend 
The Secondary Schools and Boards of Education Act 



Mr. Davis 






TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 120 1968 



An Act to amend The Secondary Schools 
and Boards of Education Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. The Secondary Schools and Boards of Education Act is^f 6 °- 1960 
amended by adding thereto the following Part: amended 

PART VII 

SCHOOLS FOR TRAINABLE RETARDED CHILDREN 

101.— (1) In this Part, ggS^- 

(a) "authority" means a Retarded Children's 
Education Authority; 

(b) "committee" means an advisory committee 
on schools for trainable retarded children 
established under this Part ; 

(c) "divisional board" means a divisional board 
of education and includes The Metropolitan 
Toronto School Board ; 

(d) "local association" means a parents' group 
that is affiliated with the Ontario Association 
for the Mentally Retarded; 

(e) "school division" includes the Metropolitan 

Area as defined in The Municipality of Metro- ^§6o' 196 °* 
politan Toronto Act; 

(J) "trainable retarded child" means a child 
whose intellectual and physical functioning is 
below the level at which he could profit from 
attendance in a special education class for 
educable retarded children. 

120 



Metro- 
politan 
Toronto 
School 

Hoard 



(2) For the purposes of this Part, The Metropolitan 
Toronto School Board shall be deemed to be 
organized as a divisional board on the 1st day of 
January, 1969. 



Divisional 

boards to 

operate 

schools for 

trainable 

retarded 

children 



102. — (1) Each school for trainable retarded children 
operated by an authority in a school division, except 
a defined city, shall cease to be operated by the 
authority on the 1st day of January, 1969, and 
thereafter shall be operated by the divisional board 
of the school division. 



[den 



(2) Each school for trainable retarded children operated 
by an authority in a school division of a defined city 
or by The Ottawa Collegiate Institute Board under 
subsection 3 shall cease to be operated by the 
authority or by such Board upon the organization 
of the divisional board of the school division, and 
thereafter shall be operated by the divisional board. 



Operation 

in 1969 of 

Ottawa 

Retarded 

Children's 

Education 

Authority 



(3) The schools operated by The Ottawa Retarded 
Children's Education Authority shall cease to be 
operated by such Authority on the 1st day of 
January, 1969, and for the year 1969 and until 
The Ottawa Board of Education is organized shall be 
operated by The Ottawa Collegiate Institute Board, 
which during such period shall be deemed to be a 
divisional board for the purposes of this Part, and 
The Ottawa Retarded Children's Education Author- 
ity is dissolved on that date, and section 103 applies 
mutatis mutandis. 



liabilities, 
etc. 



103. — (1) Upon the organization of a divisional board in 
a school division of a defined city and in respect of 
divisional boards of all other school divisions on the 
1st day of January, 1969, 



(a) all authorities that have jurisdiction wholly 
or partly in the school division are dissolved; 

(b) all personal property vested in an authority 
in respect of a school for trainable retarded 
children that is located in the school division 
is vested in the divisional board; 

(c) all real property located in the school division 
now vested in a local association for the use 
of an authority is vested in the divisional 
board; 



120 



(d) all debts, contracts, agreements, rights and 
liabilities of an authority or a local associa- 
tion in respect of a school for trainable 
retarded children that is located in the school 
division become debts, contracts, agreements, 
rights and liabilities of the divisional board. 

(2) No compensation shall be payable by the divisional p^ ^ 
board to any local association in respect of any payable 
property vested in the divisional board under sub- 
section 1. 

(3) Where a dispute arises with respect to any matter Dispute 
under subsection 1, the local association involved 

and the divisional board shall each appoint an 
arbitrator, and these arbitrators shall appoint a 
third arbitrator who shall be the chairman, and the 
arbitrators shall resolve the dispute, and the decision 
of a majority of the arbitrators is final. 

104. All members of a divisional board are trustees for Tru8tees 
the purposes of schools for trainable retarded 
children. 

105. — (1) A divisional board may establish an advisory ^J^mittee 
committee on schools for trainable retarded children established 
and every divisional board of a school division that 
operates one or more schools for trainable retarded 
children or that is requested to establish such a 
committee by a local association representing parents 
of trainable retarded children resident in the school 
division, shall establish an advisory committee on 
schools for trainable retarded children. 

(2) The committee shall consist of six members, of which, h£™ pos1 " 

(a) three members shall be appointed by the 
divisional board from among its members; 
and 

(b) three members shall be appointed by the 
local association, and where there is more 
than one local association, three members 
shall be appointed at a joint meeting of the 
associations concerned. 

(3) The members of the committee appointed by the§££j^ a " 
local association or associations shall have the membere 
qualifications required for the members of the 
divisional board. 

120 



Term of 
office 



(4) The members of the committee shall hold office until 
the expiry of the term for which the members of the 
divisional board were elected. 



Vuum Im 



Honorarium 



Quorum 



Chairman 



Chairman 
voting 



Personnel 
and 

services 
available to 
committee 



Powers of 
committee 



(5) Every vacancy on a committee occasioned by death, 
removal or other cause shall be filled by appoint- 
ment by the divisional board or the local association 
or associations, as the case may be, of some qualified 
person, and every person so appointed shall hold 
office for the unexpired portion of the term of the 
member whose office has become vacant. 

(6) The divisional board may pay to each member of 
the committee who is not a member of the divisional 
board an honorarium not exceeding $10 for each 
month that he is a member of the committee. 

106. — (1) A majority of the members of the committee 
is a quorum, and a vote of a majority of the members 
present at a meeting is necessary to bind the com- 
mittee. 

(2) The members of the committee shall, at their first 
meeting, elect one of themselves as chairman who 
shall preside at all meetings and, if at any meeting 
the chairman is not present, the members present 
may elect a chairman for that meeting. 

(3) On every question, the chairman may vote with the 
other members of the committee, and any question 
on which there is an equality of votes shall be deemed 
to be negatived. 

(4) The divisional board shall make available to the 
committee such personnel and services as the divi- 
sional board may deem necessary for the proper 
functioning of the committee. 

107. — (1) The committee may make recommendations 
to the divisional board with respect to matters 
affecting the establishment and operation of schools 
for trainable retarded children in the school division. 



Right of 
committee 
to be heard 



Cost of 
operation 



(2) Before making a decision on a recommendation of 
the committee, the divisional board shall provide 
an opportunity for the committee to be heard before 
the board and before any committee thereof to which 
the recommendation is referred. 

108. The cost of operation of schools for trainable retarded 
children shall be included in the estimates of the 
divisional board for secondary school purposes and 



120 



apportioned in the same manner as the cost of 
operation of secondary schools. 

109. — (1) Subject to subsection 6. a trainable retarded Right of 

i mi i m • i • ii child to 

child whose parent or guardian resides in a school attend 
division in which a school for trainable retarded 
children is operated by the divisional board has the 
right to attend the school. 

(2) Subject to subsection 6, a divisional board may^ f d ^ n ^ on 
admit to a school for trainable retarded children children 
operated by the board a child who does not have 

the right to attend such school under subsection 1. 

(3) A trainable retarded child whose mother, SotheMs 066 

sole 
support 

(a) resides in Ontario; etc - 

(b) is the sole support of the child; 

(c) is not assessed as a supporter of a public or 
separate school; and 

(d) boards her child in a residence in a school 
division, other than a children's boarding 

home as defined in The Children's Boarding ^f4°" 1960, 
Homes Act, 

shall be deemed to reside with his parent or guardian 
in such school division. 

(4) Subject to subsection 5, a trainable retarded child \fJ^ n f, s 
who is a ward of a children's aid society shall be aid 
deemed to be resident with his parent or guardian 

in the school division in which he resided with his 
parent or guardian in the year in which he became 
a ward. 

(5) Where a children's aid society certifies that a child child 

d I el o © cl i o r 

who is a ward of such society has been placed for adoption 
adoption on a probationary basis, the child shall be 
deemed to be resident with his parent or guardian 
in the school division in which the child resides with 
his adoptive parent. 

(6) A child may be admitted to or dismissed from a^ r d ^^i^ al 
school for trainable retarded children operated by a on re 1 co t n1 ' 
divisional board only upon the recommendation of of 

, , , . . r admissions 

an admissions board consisting of, board 



(a) the principal of the school; 



120 



(6) a legally qualified psychiatrist or other 
legally qualified medical practitioner ap- 
pointed by the board; 

(c) a supervisory officer designated by the divi- 
sional board which operates the school or, 
in a provincial superintendency, a provincial 
area superintendent designated by the Min- 
ister; and 

(d) a supervisory officer designated by the 
separate school board having jurisdiction in 
the municipality in which the school is located, 
or in a provincial separate school superintend- 
ency, an area superintendent designated by 
the Minister. 



Chairman of 

admissions 

board 



(7) The principal of the school for trainable retarded 
children shall be the chairman of the admissions 
board. 



Fees for 

non-resident 
pupils 



R.S.O. 1960. 
c. 361 

Fees where 
residence 
in school 
section and 
separate 
school zone 



110. — (1) Where a divisional board provides instruction 
in a school for trainable retarded children for a pupil 
whose parent or guardian does not reside in the school 
division, the board of the school division, high 
school district, school section or separate school 
zone in which his parent or guardian resides, shall 
pay to the divisional board on behalf of the pupil 
a fee calculated in accordance with subsection 2 
of section 100a of The Schools Administration Act. 

(2) Where a divisional board provides instruction in 
a school for trainable retarded children for a pupil 
whose parent or guardian does not reside in a school 
division, but does reside in a school section and in 
a separate school zone, the board of the school 
section or separate school zone of which the parent 
or guardian is a supporter shall pay to the divisional 
board on behalf of the pupil a fee calculated in 
accordance with subsection 2 of section 100a of 
The Schools Administration Act. 



Admission 
of child 
resident on 
tax-exempt 
lands 



R.S.O. 1960. 
c. 330 



(3) Where a child is admitted to a school for trainable 
retarded children but is resident on lands that are 
exempt from taxation for school purposes and that 
have been designated by the Minister as a rural 
school section for which a board has been appointed 
under subsection 1 of section 12 of The Public Schools 
Act or that have been designated a high school 
district for which a board has been appointed under 



120 



subsection 5 of section 12, the board shall pay to 
the divisional board a tuition fee in accordance with 
subsection 2 of section 100a of The Schools Admin- R ^?- 196 °- 

C. ool 

istrahon Act. 
111. — (1) Where a pupil resides in a school division with Boarding 

. . r r .. . , r , . . of pupils 

his parent or guardian in a residence from which where daily 
daily transportation to a school for trainable retarded tion im- 
children that he has a right to attend is impractic- prao loa 
able due to distance or terrain as certified by the 
superintendent of education of the school division 
in which the pupil resides, the board of the school 
division in which his parent or guardian resides 
may reimburse the parent or guardian at the end 
of each month for the cost of providing for such 
pupil board, lodging, and transportation once a 
week from his residence to school and return, in 
an amount not exceeding that prescribed by the 
regulations for each day of attendance as certified 
by the principal of the school for trainable retarded 
children that the pupil attends. 

(2) Where a pupil resides in a school section or in a Idem 
separate school zone, but not in a school division, 
with his parent or guardian in a residence from 
which daily transportation to the school for trainable 
retarded children that he attends is impracticable 
due to distance or terrain as certified by the supervi- 
sory officer who has jurisdiction in the school section 

or separate school zone, the board of the school 
section or of the separate school zone of which his 
parent or guardian is a supporter may reimburse 
the parent or guardian at the end of each month 
for the cost of providing for such pupil board, 
lodging, and transportation once a week from his 
residence to school and return, in an amount not 
exceeding that prescribed by the regulations for 
each day of attendance as certified by the principal 
of the school for trainable retarded children that 
the pupil attends. 

(3) Where a pupil resides in a territorial district, but Idem 
not in a school division, school section or separate 
school zone, with his parent or guardian in a resi- 
dence from which daily transportation to the school 

for trainable retarded children that he attends is 
impracticable due to distance or terrain as certified 
by a supervisory officer of the divisional board of 
the school that he attends, the divisional board 
may reimburse the parent or guardian at the end of 



120 



8 

each month for the cost of providing for such pupil 
board, lodging, and transportation once a week 
from his residence to school and return, in an amount 
not exceeding that prescribed by the regulations 
for each day of attendance as certified by the 
principal of the school for trainable retarded children 
that the pupil attends. 

menV"*" * ^* ' ms ^ ct comes mto force on the 1st day of January, 
1969. 

3. This Act may be cited as The Secondary Schools and 
Boards of Education Amendment Act, 1068 (No. 2). 



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BILL 121 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Hospital Services Commission Act 



Mr. Dymond 






TORO N T O 
Printed and Published by Frank Fog;;, Queen's Printer 






Explanatory Notes 

Sections 1 and 3. The amendments are to make it clear that the 
Commission, under its subrogated rights, has the right to collect from the 
negligent person who caused the injury the costs of all past and future 
hospital expenses resulting from the injury, which costs the Commission 
has a duty to recover under the Hospital Insurance and Diagnostic Services 
Act (Canada). Authority is given to make regulations prescribing the 
terms and conditions under which an action to enforce Siich rights may be 
tried and judgment given, and establishing a schedule of per diem costs 
of maintenance, care, etc., in the various classes of hospitals under section 23 
for the purpose of determining such costs to be recovered under the Com- 
mission's subrogated rights. 



Section 2. Because the capital cost of the schools referred to is 
paid entirely from government funds, it is desirable to provide that no 
property occupied by such a school shall be mortgaged or otherwise 
disposed of without the approval of the Commission, similar to the provi- 
sion in subsection 5 of section 4 of The Public Hospitals Act. 



121 






BILL 121 1968 



An Act to amend 
The Hospital Services Commission Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows : 

1. Section 1 of The Hospital Services Commission Act, as^-fj-g'gff 0, 
amended by section 1 of The Hospital Services Commission amended 
Amendment Act, 1965 and section 1 of The Hospital Services 
Commission Amendment Act, 1967, is further amended by 
adding thereto the following clauses: 

(ab) "future hospital expenses" means the estimated 
total cost of the insured services made necessary as 
the result of an injury that will probably be required 
by a patient after the date of settlement or, where 
there is no settlement, the first day of trial, and 
includes the estimated cost of probable future 
maintenance, care, diagnosis and treatment in a 
hospital under section 23; 



{ba) "past hospital expenses" means the total cost of 
the insured services made necessary as the result 
of an injury and provided to a patient up to and 
including the date of settlement or, where there is 
no settlement, the first day of trial, and includes the 
cost of maintenance, care, diagnosis and treatment 
in a hospital under section 23. 



2. The Hospital Services Commission Act is amended by R S-0. i960, 
adding thereto the following section: amended 



lie. No land, building or other premises or place or any ^f^^g 
part thereof acquired or used for the purposes of a tr * inin g 
regional school of nursing or a school, institute or etc. 



training centre approved by the Commission for 



121 



the education of registered nurses, registered nursing 
assistants, medical laboratory technicians, radiologi- 
cal technicians or any other personnel for work in 
hospitals or other health facilities shall be sold, 
leased, mortgaged or otherwise disposed of without 
the approval of the Commission. 

" *?V! s 'rJ' «*. Clause I of subsection 1 of section 15 of The Hospital 
subs. i. Services Commission Act, as re-enacted by section 1 of The 
Hospital Services Commission Amendment Act, 1961-62, is 
re-enacted" repealed and the following substituted therefor: 

(/) subrogating the Commission to any right of recovery 
of past hospital expenses and future hospital expenses 
by an insured person or by a hospital indigent 
described in the regulations in respect of any injury 
or disability, and providing the terms and conditions 
under which an action to enforce such rights may be 
begun, conducted and settled and the terms and 
conditions under which the proceeds of the settle- 
ment or a judgment to which the Commission is 
entitled shall be paid to the Commission, and 
prescribing security therefor; 

(la) providing for and prescribing the terms and condi- 
tions under which an action mentioned in clause / 
may be tried and judgment therein given; 

(lb) establishing a schedule of the daily costs of mainten- 
ance, care, diagnosis and treatment provided in the 
various classes of hospitals under section 23 on 
which to calculate the costs of such maintenance, 
care, diagnosis and treatment that may be recovered 
by the Commission under its subrogated rights. 

Commence- 4. This Act comes into force on the day it receives Royal 
Assent. 

short title 5 # This Act may be cited as The Hospital Services Com- 
mission Amendment Act, 1968. 



121 



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BILL 121 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Hospital Services Commission Act 



Mr. Dymond 



TORONTO 

Printed and Published by Frank Fogg, Queen's Printer 



BILL 121 1968 



An Act to amend 
The Hospital Services Commission Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Section 1 of The Hospital Services Commission Act, as^-^?-* 9 ^ 0, 
amended by section 1 of The Hospital Services Commission amended 
Amendment Act, 1965 and section 1 of The Hospital Services 
Commission Amendment Act, 1967, is further amended by 
adding thereto the following clauses: 

(ab) "future hospital expenses" means the estimated 
total cost of the insured services made necessary as 
the result of an injury that will probably be required 
by a patient after the date of settlement or, where 
there is no settlement, the first day of trial, and 
includes the estimated cost of probable future 
maintenance, care, diagnosis and treatment in a 
hospital under section 23; 



(ba) "past hospital expenses" means the total cost of 
the insured services made necessary as the result 
of an injury and provided to a patient up to and 
including the date of settlement or, where there is 
no settlement, the first day of trial, and includes the 
cost of maintenance, care, diagnosis and treatment 
in a hospital under section 23. 



2. The Hospital Services Commission Act is amended by n f&- 1960> 
adding thereto the following section: amended 



14e. No land, building or other premises or place or any ffiSESL 
part thereof acquired or used for the purposes of a tr a ini , ng 

c . i i i r • . , . . schools, 

regional school of nursing or a school, institute or etc. 



training centre approved by the Commission for 



121 



- 

the education of registered nurses, registered nursing 
assistants, medical laboratory technicians, radiologi- 
cal technicians or any other personnel for work in 
hospitals or other health facilities shall be sold, 
leased, mortgaged or otherwise disposed of without 
the approval of the Commission. 

??76.' 8. 9 i6.' **• Clause / of subsection 1 of section 15 of The Hospital 
•ube. l. Services Commission Act, as re-enacted by section 1 of The 
d'961-62. Hospital Services Commission Amendment Act, 1061-62, is 
re-enacted repealed and the following substituted therefor: 

(/) subrogating the Commission to any right of recovery 
of past hospital expenses and future hospital expenses 
by an insured person or by a hospital indigent 
described in the regulations in respect of any injury 
or disability, and providing the terms and conditions 
under which an action to enforce such rights may be 
begun, conducted and settled and the terms and 
conditions under which the proceeds of the settle- 
ment or a judgment to which the Commission is 
entitled shall be paid to the Commission, and 
prescribing security therefor; 

{la) providing for and prescribing the terms and condi- 
tions under which an action mentioned in clause I 
may be tried and judgment therein given; 

(lb) establishing a schedule of the daily costs of mainten- 
ance, care, diagnosis and treatment provided in the 
various classes of hospitals under section 23 on 
which to calculate the costs of such maintenance, 
care, diagnosis and treatment that may be recovered 
by the Commission under its subrogated rights. 

Commence- 4. This Act comes into force on the day it receives Royal 
Assent. 

Short title 5 # j^is Act may be cited as 'The Hospital Services Com- 

mission Amendment Act, 1968. 



121 



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BILL 122 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Pharmacy Act 



Mr. Dymond 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 

Section 1: Subsection 1. Provides that the articles and substances 
listed in Part 1 of Schedule B may be sold by any person without restraint. 



Subsection 2. Provides for the precautionary labelling of containers 
containing certain specified articles or substances when sold at retail and 
also provides that the articles or substances listed in Parts II, III and IV 
of Schedule B must be sold in their original containers when sold at retail 
for the prevention or treatment of disease or physical disorder by any 
person other than a pharmaceutical chemist. 



Section 2. The authority to prescribe by regulation the labelling 
of containers is clarified. 



122 






BILL 122 1968 



An Act to amend The Pharmacy Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause k of section 2 of The Pharmacy Act is^-f^g- J 9 |°- 
amended by inserting after "in" in the third line "Part I of",ci. *, 
so that the clause shall read as follows: amended 

(k) prevents a person from selling or affects or interferes 
with the sale by any person of any article or sub- 
stance referred to in Part I of Schedule B. 

(2) The said section 2 is amended by adding thereto the R.s.o. i960, 

following clause: amended 

(/) prevents a person from selling or affects or interferes 
with the sale by any person of any article or sub- 
stance referred to in Parts II, III and IV of 
Schedule B, except that, 

(i) where the article or substance is sold at 
retail it shall be labelled as prescribed by the 
regulations respecting such article or sub- 
stance, and 

(ii) where the article or substance is sold at 
retail for the prevention or treatment of any 
ailment, disease or physical disorder by any 
person other than a pharmaceutical chemist, 
it shall be sold in the container in which 
it was purchased by the person who so sells it 
at retail. 

2. Clause c of section 52 of The Pharmacy Act is amended f f^B 9 ™ ' 
by striking out "therefor" in the third line and inserting inci. c. ' 

,. .. , ,. . M . . , . . r amended 

lieu thereof ot containers used for containing any poison 
or drug", so that the clause shall read as follows: 

122 



(c) prescribing the types of containers to be used for 
containing any poison or drug and the designs, 
specifications and labelling of containers used for 
containing any poison or drug. 

R.sx>. i960. 3# Schedule B to The Pharmacy Act is repealed and the 
re-enacted following substituted therefor: 

SCHEDULE B 



Alum 

Aromatic Cascara 

Arrowroot 

Bicarbonate of Soda 

Borax 

Carbonate of Soda 

Castor Oil 

Cod Liver Oil 



PARTI 

Epsom Salts 

Glycerin 

Linseed 

Mineral or Paraffin Oil 

Olive Oil 

Petroleum Jelly 

Saccharine Tablets 

Sodium Chloride 

Turpentine 



PART II 



Ammonium Chloride 

Beef, Iron & Wine 

Carbonate of Magnesia 

Cochineal 

Cream of Tartar (Potassium acid 
tartrate) 

Disodium-dibrom-oxymercuri-fluor- 
escin, whether described as 
"Mercurochrome" or any other 
trade name, mark or designation 
(not more than 2%) 

Essence of Peppermint 

Glauber Salt (Sodium Sulphate) 

Hydrogen Peroxide (not more than 
3%) 



Magnesium Carbonate 

Magnesium Citrate 

Magnesium Hydroxide 

Oil of Eucalyptus 

Phosphate of Soda 

Potassium Nitrate (Salt Petre) 

Rhubarb Root 

Rochelle Salts 

Seidlitz Powders 

Senna 

Spirit of Aromatic Ammonia 

Spirit of Nitrous Ether 

Sulphur 



PART III 



Acetylsalicylic Acid (whether de- 
scribed as aspirin, acetophen, or 
any other trade name, mark or 
designation) 

Acid Muriatic, Commercial 

Acid Sulphuric, Commercial 

Boracic Acid 

Calamine Lotion 

Camphor Gum 

Camphorated Chalk 

Camphorated Oil 

Chloride of Lime 

Chlorinated Lime 



Copper Sulphate (Bluestone) when 
sold as Bluestone 

Cresol (Cresylic Acid) or its prep- 
arations, and the homologues 
of Cresol or their preparations 
when weaker than 5% Cresol 

Ferrous Sulphate (Copperas) when 
sold as Copperas 

Iodine, tincture or solution (not 
more than 2^%) 

Nitrobenzol when in (commercial) 
preparations 

Solution of Ammonia 

Spirit of Camphor 



PART IV 



Acetone 

Benzol and chlorinated derivatives 

Carbon Tetrachloride 



Ether, Commercial 
Formaldehyde 
Tetrachlorethylene 
Trichlorethylene 



122 



Section 3. Schedule B is divided into four parts, complementary 
to the foregoing. 



122 



4. This Act comes into force on a day to be named by the ment mence 
Lieutenant Governor by his proclamation. 

5. This Act may be cited as The Pharmacy Amendment short title 
Act, 1968. 









122 



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BILL 122 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Pharmacy Act 



Mr. Dymond 



TORONTO 
Punted and Published by Frank Fogg, Queen's Printer 






BILL 122 1968 

An Act to amend The Pharmacy Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause k of section 2 of The Pharmacy Act is R -^9- l 9 o 0, 
amended by inserting after "in" in the third line "Part I of",ci. *• 
so that the clause shall read as follows: 

(k) prevents a person from selling or affects or interferes 
with the sale by any person of any article or sub- 
stance referred to in Part I of Schedule B. 

(2) The said section 2 is amended by adding thereto the R |g°- i960, 

following clause: amended 

(/) prevents a person from selling or affects or interferes 
with the sale by any person of any article or sub- 
stance referred to in Parts II, III and IV of 
Schedule B, except that, 

(i) where the article or substance is sold at 
retail it shall be labelled as prescribed by the 
regulations respecting such article or sub- 
stance, and 

(ii) where the article or substance is sold at 
retail for the prevention or treatment of any 
ailment, disease or physical disorder by any 
person other than a pharmaceutical chemist, 
it shall be sold in the container in which 
it was purchased by the person who so sells it 
at retail. 

2. Clause c of section 52 of The Pharmacy Act is amended ^fg^'g 19 ^ ' 
by striking out "therefor" in the third line and inserting in (1 - c - . . 

i- i t a c • ir • • • amended 

lieu thereof or containers used tor containing any poison 
or drug", so that the clause shall read as follows: 

122 



\ 

(c) prescribing the types of containers to be used for 
containing any poison or drug and the designs, 
specifications and labelling of containers used for 
containing any poison or drug. 

r.sx>. i960. 3# Schedule B to The Pharmacy Act is repealed and the 
si bed. b. following substituted therefor: 

SCHEDULE B 





PART I 








Alum 




Epsom Salts 


Aromatic Cascara 




Glycerin 


Arrowroot 




Linseed 


Bicarbonate of Soda 




Mineral or Paraffin Oil 


Borax 




Olive Oil 


Carbonate of Soda 




Petroleum Jelly 


Castor Oil 




Saccharine Tablets 


Cod Liver Oil 




Sodium Chloride 
Turpentine 




PART II 



r 



Ammonium Chloride 

Beef, Iron & Wine 

Carbonate of Magnesia 

Cochineal 

Cream of Tartar (Potassium acid 
tartrate) 

Disodium-dibrom-oxymercuri-fluor- 
escin, whether described as 
"Mercurochrome" or any other 
trade name, mark or designation 
(not more than 2%) 

Essence of Peppermint 

Glauber Salt (Sodium Sulphate) 

Hvdrogen Peroxide (not more than 
3%) 



Magnesium Carbonate 

Magnesium Citrate 

Magnesium Hydroxide 

Oil of Eucalyptus 

Phosphate of Soda 

Potassium Nitrate (Salt Petre) 

Rhubarb Root 

Rochelle Salts 

Seidlitz Powders 

Senna 

Spirit of Aromatic Ammonia 

Spirit of Nitrous Ether 

Sulphur 



PART III 



Acetylsalicylic Acid (whether de- 
scribed as aspirin, acetophen, or 
any other trade name, mark or 
designation) 

Acid Muriatic, Commercial 

Acid Sulphuric, Commercial 

Boracic Acid 

Calamine Lotion 

Camphor Gum 

Camphorated Chalk 

Camphorated Oil 

Chloride of Lime 

Chlorinated Lime 



Copper Sulphate (Bluestone) when 
sold as Bluestone 

Cresol (Cresylic Acid) or its prep- 
arations, and the homologues 
of Cresol or their preparations 
when weaker than 5% Cresol 

Ferrous Sulphate (Copperas) when 
sold as Copperas 

Iodine, tincture or solution (not 
more than V/i%) 

Nitrobenzol when in (commercial) 
preparations 

Solution of Ammonia 

Spirit of Camphor 



PART IV 



Acetone 

Benzol and chlorinated derivative 

Carbon Tetrachloride 



Ether, Commercial 
Formaldehyde 
Tetrachlorethylene 
Trichlorethylene 



122 



4. This Act comes into force on a day to be named by the °°™ t menc€ " 
Lieutenant Governor by his proclamation. 

5. This Act may be cited as The Pharmacy Amendment short tit,e 
Act, 1968. 






122 



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BILL 123 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Medical Act 



Mr. Dymond 



TORONTO 
Printed and Published by Frank Fcx;g, Queen's Printer 



Explanatory Notes 

SECTIONS 1 and 2. At present the Act provides that a person 
aggrieved by an order of the discipline committee may appeal either to 
the Council of the College or a Supreme Court judge with a further right 
of appeal to the Court of Appeal. 

The amendments provide for an appeal to a Supreme Court judge 
only. The right of appeal to the Court of Appeal is retained. 






123 



BILL 123 1968 



An Act to amend The Medical Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

R.S.O. I960, 
c. 234, 8. 40 

1. — (1) Subsection 1 of section 40 of The Medical Act, as^g^'g 6) 
re-enacted by section 6 of The Medical Amendment Act, 1966, landed 
is amended by adding "and" at the end of clause a and by 
striking out "and" at the end of clause b. r.s.o. i960, 

c. 234, s. 40 
(1966, 

(2) Clause c of subsection 1 of the said section 40 is repealed, subs.' i, 

Cl. C, 

repealed 

2. — (1) Clause a of subsection 1 of section 41 of The™-^-* 9 ™- 
Medical Act, as re-enacted by section 7 of The Medical Amend- (1966, 
ment Act, 1966, is repealed and the following substituted subs.' i," 

therefor : re-enacted 

(a) from the order of the discipline committee in a case 
that the committee has fully disposed of, to a judge 
of the Supreme Court, at any time within thirty 
days from the date of the order complained of, 
with a further right of appeal to the Court of Appeal 
from the order of the judge; and 

R.S.O. I960, 

c. 234, s. 41 

(1966, 

c. 85, s. 7), 

(2) Subsection 2 of the said section 41 is repealed. repealed 

R.S.O. I960, 

(3) Subsection 4 of the said section 41 is repealed and the liHi; s ' 41 

following substituted therefor: subs' 4' ?) ' 

re-enacted 

(4) Upon the hearing of an appeal the judge or Court and e costs 
of Appeal, as the case may be, may make such 
order in the matter and as to costs as the judge or 
Court of Appeal deems proper. r.s.o. i960. 

c.'234,'s. 41' 
(1966, 

(4) Subsection 7 of the said section 41 is repealed. subs.'?. 

repealed 

123 



2 

r.|^o. 1960. 3. The Medical Act is amended by addi 
amended following section: 



ling thereto the 



Interpre- 
tation 



51a. — (1) In this section, "medical student" means a 
person who is enrolled in the medical course of a 
university in Ontario and performs medical, surgical 
and obstetrical services as required by the curric- 
ulum of studies prescribed by the university. 



Mt-.ii, ..1 
student 
entitled to 
perform 
services 



(2) Notwithstanding section 51, a medical student is 
entitled to perform, under the supervision of a 
medical practitioner registered under this Act, the 
medical, surgical and obstetrical services required 
by the curriculum of studies. 



Section 43 
to apply to 
medical 
students 



(3) Section 43 applies to a medical student as if he were 
registered under this Act. 



ment menoe ^' This Act comes into force on the day it receives Royal 
Assent. 

short title 5. This Act may be cited as The Medical Amendment Act, 
1968. 



123 



Section 3. The new section confirms that a medical student is 
entitled to perform certain medical services under the supervision of a 
registered medical practitioner. 

The section also makes applicable to medical students the provisions 
of the Act respecting limitation of actions against registered practitioners. 






123 



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BILL 123 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Medical Act 



Mr. Dymond 






TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 123 1968 



An Act to amend The Medical Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

R.S.O. I960, 
c. 234, s. 40 

1. — (1) Subsection 1 of section 40 of The Medical Act, as* 19 ^ 6 ^ 6) 
re-enacted by section 6 of The Medical Amendment Act, *%^»S5S«iki 
is amended by adding "and" at the end of clause a and by 
striking out "and" at the end of clause b. r.s.o. i960, 

c. 234, s. 40 
(1966, 

(2) Clause c of subsection 1 of the said section 40 is repealed, subs.' i,' 

cl. c, 
repealed 

2. — (1) Clause a of subsection 1 of section 41 of The R -^-^ 9 ^- 
Medical Act, as re-enacted by section 7 of The Medical Amend- (i.966,' 
ment Act, 1966, is repealed and the following substituted subs.' i," 

therefor: re-enacted 

(a) from the order of the discipline committee in a case 
that the committee has fully disposed of, to a judge 
of the Supreme Court, at any time within thirty 
days from the date of the order complained of, 
with a further right of appeal to the Court of Appeal 
from the order of the judge; and 

R.S.O. I960. 

c. 234, s. 41 

(1966, 

c. 85, s. 7), 

(2) Subsection 2 of the said section 41 is repealed. repealed 

R.S.O. I960, 

(3) Subsection 4 of the said section 41 is repealed and the (iJee,' s " 41 
following substituted therefor: subs'!' 7> ' 

re-enacted 

(4) Upon the hearing of an appeal the judge or Court anci^sts 
of Appeal, as the case may be, may make such 
order in the matter and as to costs as the judge or 
Court of Appeal deems proper. r.s.o. i960, 

c. 234,'s. 4l' 
(1966, 

(4) Subsection 7 of the said section 41 is repealed. subs.' 7.' ' 

repealed 

123 



*'2S4' 19W ' *** *^ e Med'™! Act is amended by adding thereto the 
amended following section: 



Interpre- 
tation 



51a. — (1) In this section, "medical student" means a 
}>erson who is enrolled in the medical course of a 
university in Ontario and performs medical, surgical 
and obstetrical services as required by the curric- 
ulum of studies prescribed by the university. 



Meili.al 
Btudent 
entitled to 
perform 

services 



(2) Notwithstanding section 51, a medical student is 
entitled to perform, under the supervision of a 
medical practitioner registered under this Act, the 
medical, surgical and obstetrical services required 
bv the curriculum of studies. 



Section 43 
to apply to 
medical 
students 



(3) Section 43 applies to a medical student as if he were 
registered under this Act. 



Commence- 
ment 



4. This Act comes into force on the day it receives Royal 
Assent. 



Short title 



5. This Act may be cited as The Medical Amendment Act, 
196S. 



123 



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BILL 124 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Time Act 



Mr. Jessiman 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The Bill provides daylight saving time throughout Ontario and 
authorizes the councils of local municipalities to provide for the observance 
of standard time instead of daylight saving time. 



124 



BILL 124 1968 



An Act to amend The Time Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Section 1 of The Time Act is amended by adding atRs.o. i960, 
the commencement thereof "Subject to section 3", so that amended 
the section shall read as follows: 

1. Subject to section 3, where an expression of time expressions' 
occurs in any Act, proclamation, regulation, order of time 
in council, rule, order, by-law, agreement, deed or 
other instrument, heretofore or hereafter enacted, 
made or executed, or where any hour or other point 
in time is stated either orally or in writing, or any 
question as to time arises, the time referred to or 
intended shall, unless it is otherwise specifically 
stated, be held to be time reckoned as standard time. 

2. The Time Act is amended by adding thereto the following ^|qo' 196 °' 

Section: amended 

3. — (1) During the months of May, June, July, August, D *f U|t *{ ; 
September and October time shall be reckoned as in Ontario 
one hour in advance of standard time and shall be 
known as daylight saving time. 

(2) The council of any local municipality may by by-law declaring 
provide that during such months the time to be dav,i g h t 

. ... , . saving time 

observed in the municipality shall be standard time not in effect 
and not daylight saving time as provided in subsec- 
tion 1. 

3. This Act comes into force on the 1st dav of January, m e £t mence 
1969. 

4. This Act may be cited as The Time Amendment Act, Short tltle 
1968. 



124 



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BILL 125 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Business Corporations Act, 1968 



Mr. Rob arts 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The purpose of this Bill is to effect a complete revision of those 
Parts of The Corporations Act relating to the incorporation, operation, 
management and dissolution of ordinary Ontario corporations with share 
capital, in the light of the recommendation in the Interim Report of the 
Select Committee on Company Law. The Bill does not deal with special 
types of corporations, such as corporations without share capital, co- 
operatives, insurance corporations, loan and trust corporations, credit 
unions, finance and acceptance corporations and extra-provincial cor- 
porations, the study of which remains unfinished by the Select Committee. 

The principal changes are as follows: 

1. Incorporation is as of right by the tiling of articles of incorpora- 
tion and no longer in the discretion of the Minister. 

2. Incorporation to practise a profession is prohibited, unless ex- 
pressly permitted by the statute governing the profession. 

3. A corporation need have only one shareholder. 

4. The minimum number of directors is reduced from three to two 
in the case of a corporation that has fifteen or fewer shareholders. 

5. The distinction between public and private companies is abolished. 

6. The doctrines of ultra vires and constructive notice are abolished 
as regards third parties dealing with a corporation. 

7. Provision is made for establishing liability for pre-incorporation 
contracts. 

8. It will no longer be necessary after the first year of a corpora- 
tion's existence to call and hold a meeting of directors or share- 
holders to pass a by-law or resolution if such by-law or resolution 
is consented to in writing by all the directors or shareholders, 
as the case may be. 

9. Mutual fund shares are expressly provided for. 

10. A corporation is permitted to purchase its own common shares 
out of surplus and to resell them, subject to the insider trading 
provisions. 

11. Partly-paid shares can no longer be issued. 

12. Share warrants issued to bearer are no longer permitted. 

13. A code of conduct for trustees under corporate trust indentures 
is established. 

14. Article 8 of the Uniform Commercial Code, which provides for 
the negotiability of corporate securities, and defines the rights 
and obligations of issuers, transfer agents, transferors and trans- 
ferees with respect to the issue, registration and transfer of 
corporate securities, is adopted. 

15. Provision is made for the establishment of a central clearing 
corporation, whereby transfers of corporate securities can be 
effected merely by entries on the records of such corporation, 
eliminating the necessity for physical delivery of the actual 
certificates. 

16. Shareholders are given the right, with leave of the court, to bring 
representative actions on behalf of a corporation to enforce any- 
right that the corporation has, when the corporation refuses to 
bring action to enforce such right. 

125 



17. Dissenting shareholders can require a corporation to buy them 
out if the corporation sells its undertaking, amalgamates with 
another corporation or undergoes other fundamental corporate 
changes. 

18. Holders of 10 per cent of the voting shares can requisition a 
meeting of shareholders to pass specific by-laws, where the 
directors refuse to pass them. 

19. The minimum period of notice of meetings of shareholders is 
increased from ten to twenty-one days in the case of a corpora- 
tion that is offering its securities to the public. 

20. Meetings of shareholders can now be requisitioned by the holders 
of 5, rather than 10, per cent of the voting shares and also by 
the court upon the application of any shareholder. 

21. A director need no longer be a shareholder, unless the by-laws 
otherwise provide. 

22. A quorum of the directors is given the right to call a meeting of 
directors at any time. 

23. A statutory standard of conduct for directors and officers is 
prescribed. 

24. The liability of directors for an improper declaration of dividends 
is extended to the cases of an improper purchase or redemption 
of shares and an improper loan or guarantee to shareholders. 
In certain circumstances individual shareholders may also be 
personally liable in such cases. 

25. The liability of directors for wages of employees is extended from 
one to two years. 

26. A director can be removed from office at any time by a majority 
vote of the shareholders. 

27. A corporation can no longer indemnify its directors or officers 
in respect of the cost of legal actions taken against them as a 
result of their breach of duty. 

28. A corporation is permitted, under proper safeguards, to use elec- 
tronic or other devices to maintain its records. 

29. Within two years after the Act comes into force, no person can 
act as auditor of a corporation if he, his partner, employer or 
any person related to him (as defined in the Act) owns directly or 
indirectly any securities of the corporation or of the holding 
corporation of such corporation. 

30. The auditor of a corporation cannot be appointed its receiver or 
liquidator and cannot be the trustee in bankruptcy of the estate 
of such corporation. 

31. The percentage necessary to remove an auditor during his term 
of office is reduced to a majority of the votes cast at a meeting 
of the shareholders, from the present two-thirds vote required. 

32. Where an incumbent auditor is to be removed or replaced, he 
has the right to make representations to the shareholders, at the 
expense of the corporation, concerning his proposed removal 
or non-reappointment, prior to the meeting of shareholders at 
which such action is to be taken. 

33. The auditor of a holding corporation has the right to inspect the 
records and to question the directors, officers and employees of 
each subsidiary thereof. 



125 



34. Any shareholder can require the attendance of an auditor at any 
shareholders' meeting at the corporation's expense. 

35. It will no longer be possible for a corporation that is offering its 
securities to the public to omit from its annual audited financial 
statement or from its semi-annual interim financial statement 
the comparative statement for the corresponding previous period 
or the statement of source and application of funds. 

36. The right of a shareholder of a holding corporation to examine 
true copies of financial statements of its subsidiaries is extended 
from the present case where the holding corporation does not 
consolidate its accounts to include the case where it does. 

37. A corporation that is offering its securities to the public must 
appoint an audit committee of its directors, of whom a majority 
are not to be officers of the corporation, to which the annual 
financial statement must be submitted for review and before 
which the auditor has the right, and can be summoned, to appear. 

38. The present right of the holders of 10 per cent of the issued 
capital of a corporation to apply to the court for the appointment 
of an inspector to investigate the affairs and management of the 
corporation is now conferred upon any shareholder. The court 
may also order the investigation of the affairs and management 
of any affiliate of the corporation. The powers of the inspector 
are amplified. 

39. Two or more corporations proposing to amalgamate cannot do 
so if any of them is insolvent. 

40. On a voluntary winding up, the court has the power to review the 
remuneration of the liquidator even where it has been fixed by 
the shareholders. 

41. The period following dissolution of a corporation within which 
an application for revival can be made is extended from one to 
two years. 

42. Actions and other proceedings can be brought against a cor- 
poration within two years after its dissolution to the same 
extent as if it had not been dissolved. 

43. The period following dissolution of a corporation within which 
the shareholders may be liable to the creditors is extended from 
one to two years. 

44. The penalties are revised. 

45. The present right of a shareholder or creditor to apply to the 
court to require a corporation or any director or officer thereof to 
comply with the Act is extended to cover an application for an 
order of compliance with any provision of the articles of incor- 
poration or by-laws of the corporation as well. 

46. Applications to the court under the Act are to be heard by a judge 
of the Supreme Court of Ontario designated for that purpose 
by the Chief Justice of the High Court. 

47. All decisions of the Minister under the Act are appealable as of 
right to the Court of Appeal. 



125 



BILL 125 1968 



The Business Corporations Act, 1968 

HER MAJESTY, by and with the advice and consent 
of the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

l.-(l) In this Act, gffi?^ 

1. "affiliate" means an affiliated corporation within the 
meaning of subsection 4; 

2. "articles of incorporation" or "articles" means the 
original or restated articles of incorporation, articles 
of amalgamation, letters patent, supplementary 
letters patent, a special Act and any other instru- 
ment by which a corporation is incorporated, and 
includes any amendments thereto; 

3. "associate", where used to indicate a relationship 
with any person, means, 

i. any body corporate of which such person 
beneficially owns, directly or indirectly, equity 
shares carrying more than 10 per cent of the 
voting rights attached to all equity shares of 
the body corporate for the time being out- 
standing, 

ii. any trust or estate in which such person has a 
substantial beneficial interest or as to which 
such person serves as trustee or in a similar 
capacity, or 

iii. any relative or spouse of such person or any 
relative of such spouse who, in any such case, 
has the same home as such person ; 

4. "authorized capital" means the authorized capital 
as determined under section 24; 

125 



5. "body corporate" means any body corporate with 
or without share capital and whether or not it is 
a corporation to which this Act applies; 

6. "certificate of incorporation" includes letters patent, 
a special Act or any other instrument by which a 
corporation is incorporated; 

7. "certified copy" means, 

i. in relation to a document of a corporation, 
a copy of the document certified to be a true 
copy under the seal of the corporation and 
signed by an officer thereof, 

ii. in relation to a document issued by a court, 
a copy of the document certified to be a true 
copy under the seal of the court and signed by 
the registrar or clerk thereof, 

iii. in relation to a document in the custody of 
the Department, a copy of the document 
certified to be a true copy under the seal of 
the Minister and signed by the Minister or by 
such officer of the Department as is designated 
by the regulations; 

8. "Commission" means the Ontario Securities Com- 
mission; 

9. "corporation" means a body corporate with share 
capital to which this Act applies; 

10. "court" means the Supreme Court of Ontario pre- 
sided over by one of those judges of the High Court 
who are designated by the Chief Justice of the 
High Court for the purpose of hearing applications 
under this Act; 

11. "debt obligation" means a bond, debenture, note or 
other obligation of a body corporate, whether 
secured or unsecured; 

12. "Department" means the Department of the 
Minister; 

13. "equity share" means any share of any class of 
shares of a body corporate carrying voting rights 
under all circumstances and any share of any class 
of shares carrying voting rights by reason of the 
occurrence of any contingency that has occurred 
and is continuing; 



125 



14. "financial statement" means a financial statement 
referred to in section 159; 

15. "insider" or "insider of a corporation" means, 

i. any director or senior officer of a corporation 
that is offering its securities to the public, 

ii. any person who beneficially owns, directly or 
indirectly, equity shares of such a corporation 
carrying more than 10 per cent of the voting 
rights attached to all equity shares of the 
corporation for the time being outstanding, 
but, in computing the percentage of voting 
rights attached to equity shares owned by 
an underwriter as defined in The Securities 1966> c - 142 
Act, 1966, there shall be excluded any equity 
shares that have been acquired by him as 
underwriter in the course of distribution to 
the public of such shares, but such exclusion 
ceases to have effect on completion or cessa- 
tion of the distribution to the public by him, or 

iii. any person who exercises control or direction 
over the equity shares of such a corporation 
carrying more than 10 per cent of the voting 
rights attached to all equity shares of the 
corporation for the time being outstanding; 

16. "interim financial statement" means a financial 
statement referred to in section 171; 

17. "issued capital" means the issued capital as deter- 
mined under section 32; 

18. "Minister" means the member of the Executive 
Council to whom the administration of this Act is 
assigned by the Lieutenant Governor in Council; 

19. "officer" means the chairman or any vice-chairman 
of the board of directors, the president, any vice- 
president, the secretary, any assistant secretary, the 
treasurer, any assistant treasurer, the general 
manager, or any other person designated an officer 
by by-law or by resolution of the directors; 

20. "personal representative", where used with reference 
to holding shares in that capacity, means an executor, 
administrator, guardian, tutor, trustee, receiver or 
liquidator or the committee of or curator to a 
mentally incompetent person; 



125 



21. "prescribed" means prescribed by the regulations; 

22. "regulations" means the regulations made under 
this Act; 

23. "related person", where used to indicate a relation- 
ship with any person, means, 

i. any relative or spouse of such person or any 
relative of such spouse who, in any such case, 
has the same home as such person, or 

ii. any body corporate of which such person and 
any of the persons referred to in subparagraph 
i or the partner or employer of such person, 
either alone or in combination, beneficially 
owns, directly or indirectly, more than 50 per 
cent of the voting rights attached to all equity 
shares of the body corporate for the time being 
outstanding; 

24. "security", subject to section 62, means any share 
of any class of shares or any debt obligation of a body 
corporate ; 

25. "senior officer" means, 

i. the chairman or any vice-chairman of the 
board of directors, the president, any vice- 
president, the secretary, the treasurer or the 
general manager of a corporation or any other 
individual who performs functions for the 
corporation similar to those normally per- 
formed by an individual occupying any such 
office, and 

ii. each of the five highest paid employees of a 
corporation, including any individual referred 
to in subparagraph i; 

26. "special by-law" means a by-law that is not effective 
until it is, 

i. passed by the directors of a corporation, and 

ii. confirmed, with or without variation, by at 
least two-thirds of the votes cast at a general 
meeting of the shareholders of the corporation 
duly called for that purpose, or such greater 
proportion of the votes cast as the articles 



125 



provide, or, in lieu of such confirmation, by 
the consent in writing of all the shareholders 
entitled to vote at such meeting; 

27. "special resolution" means a resolution that is not 
effective until it is, 

i. passed by the directors of a corporation, and 

ii. confirmed, with or without variation, by at 
least two-thirds of the votes cast at a general 
meeting of the shareholders of the corporation 
duly called for that purpose, or such greater 
proportion of the votes cast as the articles 
provide, or, in lieu of such confirmation, by 
the consent in writing of all the shareholders 
entitled to vote at such meeting. R.S.O. 
1960, c. 71, s. 1; 1966, c. 28, ss. 1, 3, part, 
amended. 

(2) For the purposes of this Act, a corporation shall be \*lf£$™~ 
deemed to be a subsidiary of another corporation if, but subsidiary 

Only if, corporation 

(a) it is controlled by, 

(i) that other, or 

(ii) that other and one or more corporations each 
of which is controlled by that other, or 

(iii) two or more corporations each of which is 
controlled by that other; or 

(b) it is a subsidiary of a corporation that is that other's 
subsidiary. 

(3) For the purposes of this Act, a corporation shall be ^rpora^tion 
deemed to be another's holding corporation if, but only if, 

that other is its subsidiary. 

(4) For the purposes of this Act, one corporation shall be ^p^atton 
deemed to be affiliated with another corporation if, but only if, 

one of them is the subsidiary of the other or both are sub- 
sidiaries of the same corporation or each of them is controlled 
by the same person. R.S.O. 1960, c. 71, s. 90 (1-3). 

(5) For the purposes of this Act, a corporation shall be Contro1 
deemed to be controlled by another person or by two or more 
corporations if, but only if, 

125 



(a) shares of the first-mentioned corporation carrying 
more than 50 per cent of the votes for the election 
of directors are held, other than by way of security 
only, by or for the benefit of such other person or 
h\ or for the benefit of such other corporations; and 

(b) the votes carried by such shares are sufficient, if 
exercised, to elect a majority of the board of directors 
of the first-mentioned corporation. R.S.O. 1960, 
c. 71, s. 90 (4); 1966, c. 28, s. 12. 

Insider (6) p or the purposes of this Act, 

(a) every director or senior officer of a corporation that 
is itself an insider of another corporation shall be 
deemed to be an insider of such other corporation; 

(b) an individual shall be deemed to own beneficially 
securities beneficially owned by a corporation con- 
trolled by him or by an affiliate of such corporation; 

(c) a corporation shall be deemed to own beneficially 
securities beneficially owned by its affiliates; and 

(d) the acquisition or disposition by an insider of a put, 
call or other transferable option in respect of a secu- 
rity shall be deemed a change in the beneficial 
ownership of the security to which such transferable 
option relates. 1966, c. 28, s. 3, part, amended. 

insolvency (7) p" or the purposes of this Act, a corporation is insolvent 
if its liabilities exceed the realizable value of its assets or if 
the corporation is unable to pay its debts as they become due. 

shareholders (**) ^ n determining the number of shareholders of a 
corporation, for the purposes of this Act, two or more persons 
holding the same share or shares jointly shall be counted as 
one shareholder. 

offering B its n ( 9 ) ^ corj)oration shall be deemed to be offering its secu- 
tTthe "ties to tne public where, 

public 

(a) in respect of any of the securities of which a prospec- 
tus or statement of material facts has been filed 

1966, c. 142 with and accepted by the Commission under The 

Securities Act, 1966, or any predecessor thereof, 
so long as any of such securities are outstanding; or 

(b) any of the shares of which are listed and posted for 
trading on any stock exchange in Ontario recognized 
by the Commission. New. 

125 



2. This Act, except where it is otherwise expressly provided, Application 
applies, 

(a) to every corporation incorporated by or under a 
general or special Act of the Parliament of the former 
Province of Upper Canada ; 

(b) to every corporation incorporated by or under a 
general or special Act of the Parliament of the former 
Province of Canada that has its head office and 
carries on business in Ontario and that was incor- 
porated with objects to which the authority of the 
Legislature extends; and 

(c) to every corporation incorporated by or under a 
general or special Act of the Legislature, 

but this Act does not apply to a corporation incorporated for 

the construction and working of a railway, an incline railway 

or a street railway, or to a corporation within the meaning of 

The Loan and Trust Corporations Act except as provided by f"f^' 1960, 

that Act. R.S.O. 1960, c. 71, s. 17. 

INCORPORATION 

3. — (1) A corporation may be incorporated under this t i r < n 3rpora ~ 
Act for any lawful objects to which the authority of the 
Legislature extends, except those of a corporation the incor- 
poration of which is provided for in any other Act. R.S.O. 
1960, c. 71, s. 3 (1), amended. 

(2) Where the practice of a profession is governed by an Professions 
Act, a corporation may be incorporated to practise the profes- 
sion only if such Act expressly permits the practice of such 
profession by a corporation and subject to the provisions of 
such Act. New. 

4. — (1) One or more persons, being a body corporate or a A^jjrjj^.^ 
natural person who is of the age of twenty -one years or more, tion 
may incorporate a corporation by signing and delivering to the 
Minister in duplicate articles of incorporation. New. 

(2) The articles of incorporation shall set out, Contents of 

1. The name of the corporation to be incorporated. 

2. The period of duration of the corporation if other 
than perpetual. 

3. The objects for which the corporation is to be 
incorporated. 

125 



8 

4. The place in Ontario where the head office of the 
corporation is to be located, giving the municipality 
and the county or district or, where the head office 
is to be located in territory without municipal 
organization, the geographic township and district 
and the address giving the street and number, if any. 

5. The authorized capital, the classes of shares, if any, 
into which it is to be divided, the number of shares 
of each class, and the par value of each share, or, 
where the shares are to be without par value, the 
consideration, if any, exceeding which each share 
may not be issued or the aggregate consideration, 
if any, exceeding which all the shares of each class 
may not be issued. 

6. Where there are to be special shares, the designa- 
tions, preferences, rights, conditions, restrictions, 
limitations or prohibitions attaching to them or 
each class of them. 

7. The restrictions, if any, to be placed on the transfer 
of its shares or any class thereof. 

8. The number of directors of the corporation and the 
names in full and the residence address, giving the 
street and number, if any, of each person who is to 
be a first director of the corporation. 

9. The class and number of shares, if any, to be taken 
by each incorporator and the amount to be paid 
therefor. 

10. The names in full, and the residence address, giving 
street and number, if any, of each of the incorpora- 
tors. 

11. Any other matter required by this Act or the regu- 
lations to be set out in the articles. 

ldem (3) The articles may set out any provision that is author- 

ized by this Act to be set out in the articles or that could be 
the subject of a by-law of the corporation. R.S.O. 1960, c. 71, 
s. 18, amended. 

c °n» nt (4) Where the articles name as a first director a person who 

directors is not an incorporator, the articles shall have attached thereto 
his written and signed consent to act as a first director. 

125 



(5) The signature of each incorporator and of each first Affidavits 
director and the fact that each incorporator who is a natural 
person and each first director is of the age of twenty-one 
years or more shall be verified by affidavit. New. 

5. — (1) If the articles conform to law and the approval o/Tncor-' 6 
of any person or body required by statute to approve the poration 
incorporation has been given, the Minister shall, when all 
prescribed fees have been paid, 

(a) endorse on each duplicate of the articles the word 
"Filed" and the day, month and year of the filing 
thereof ; 

(b) file one of the duplicates in his office; and 

(c) issue to the incorporators or their agent a certificate 
of incorporation to which he shall affix the other 
duplicate. New. 

(2) A corporation comes into existence upon the issuance Idem 
of its certificate of incorporation. 1961-62, c. 21, s. 1. 

(3) A certificate of incorporation is conclusive proof that Idem 
all conditions precedent required to be performed by the 
incorporators have been complied with and that the cor- 
poration has been incorporated under this Act, except in a 
proceeding under section 236 to cancel the certificate for 
cause. R.S.O. 1960, c. 71, s. 9, amended. 



NAME 

6. — (1) The name of a corporation shall have the word^Q® d of 
"Limited" or the abbreviation "Ltd." as the last word thereof. "Limited" 
R.S.O. 1960, c. 71, s. 20 (1), amended. 

(2) Where a corporation or a director, officer or employee ^° f 
thereof uses the name of the corporation, the word "Limited" 

or the abbreviation "Ltd.", shall appear as the last word 
thereof. 

(3) Stamping, writing, printing or otherwise marking on Exception 
goods, wares or merchandise of the corporation or upon 
packages containing the goods, wares or merchandise shall 

not be deemed a use of the name within the meaning of 
subsection 2. R.S.O. 1960, c. 71, s. 21 (1, 2), amended. 

7. Notwithstanding section 6, a corporation may use its i-'se of 
name in such form and in such language as the articles provide 
and as the Minister approves. 1964, c. 10, s. 1, amended. 

125 



10 

name orate ^-^C 1 ) The name of a corporation shall not, 

(a) be the same as or similar to the name of a known 
body corporate, association, partnership or individual 
whether in existence or not if its use would be likely 
to deceive, except where the body corporate, asso- 
ciation, partnership or individual signifies its or his 
consent in writing to the use of the name in whole or 
in part, and, if required by the Minister, 

(i) in the case of a body corporate, undertakes 
to dissolve or change its name to a dissimilar 
name within six months after the filing of the 
articles or amendment by which the name is 
acquired, or 

(ii) in the case of an association, partnership or 
individual, undertakes to cease to carry on its 
or his business or activities, or change its or 
his name to a dissimilar name, within six 
months after the filing of the articles or amend- 
ment by which the name is acquired ; 

(b) suggest or imply a connection with the Crown or 
the Government of Canada or the government of or a 
municipality in any province or territory of Canada 
or any department, branch, bureau, service, agency 
or activity of any such government or municipality 
without the consent in writing of the appropriate 
authority ; 

(c) where the objects applied for are of a political 
nature, suggest or imply a connection with a political 
party or a leader of a political party; 

(d) include the word "co-operative" or any abbreviation 
or derivation thereof; 

(e) contain any word or phrase that indicates or implies 
that it is incorporated for any object other than one 
or more of the objects set out in its articles; 

(/) contain any word or phrase or any abbreviation or 
derivation thereof, the use of which is prohibited 
or restricted under any other Act unless in the latter 
case the restrictions are complied with; or 

(g) in the opinion of the Minister, be objectionable on 
any public grounds. 

125 



11 

(2) If a corporation through inadvertence or otherwise ^h^n^e of 
has acquired a name contrary to subsection 1, the Minister, objection- 
after he has given the corporation an opportunity to be 
heard, may issue a certificate of amendment to the articles 
changing the name of the corporation to the name specified 

in the certificate, and, upon the issuance of the certificate of 
amendment, the articles are amended accordingly. R.S.O. 
1960, c. 71, s. 12 (1, 2), amended. 

(3) Where an undertaking referred to in clause a of sub- perform 10 
section 1 is given by a corporation to which this Act applies undertaking 
and the undertaking is not carried out within the time speci- 
fied, the Minister may, after giving the corporation an oppor- 
tunity to be heard, issue a certificate of amendment to the 

articles changing the name of the corporation to the name 
specified in the certificate, and, upon the issuance of the 
certificate of amendment, the articles are amended accord- 
ingly. 

(4) Where an undertaking referred to in clause a of sub- Idem 
section 1 is given by a body corporate to which this Act 
does not apply or by an association, partnership or individual 
and the undertaking is not carried out within the time speci- 
fied, the Minister may, after giving the corporation that 
acquired the name by virtue of such undertaking an oppor- 
tunity to be heard, issue a certificate of amendment to the 
articles changing the name of the corporation to the name 
specified in the certificate, and, upon the issuance of the 
certificate, the articles are amended accordingly. New. 

9. A change in the name of a corporation does not affect ^affect™* 
its rights or obligations. R.S.O. 1960, c. 71, s. 13. ri « hts etc 

10. No person, partnership or association while not incor- i *£ e 1 d luthor ~ 
porated shall trade or carry on a business or undertaking h* 6 . o{ . ,. 
under a name in which "Limited", "Incorporated" or "Cor- etc. 
poration" or any abbreviation thereof is used. R.S.O. 1960, 

c. 71, s. 14, amended. 

11. — (1) Any person may, on application in writing and Reservation 
on the payment of the prescribed fee, reserve a corporate 
name for the use and benefit of the applicant or his nominee 
for a period of sixty days or such lesser period as he specifies, 
if the name is at the time not contrary to section 8. R.S.O. 
1960, c. 71, s. 15, amended. 

(2) During the period for which a name has been reserved, Idem 
no corporation shall acquire the name or a similar name 
without the consent in writing of the person for whose use 
and benefit the name has been reserved. New. 

125 



12 



KotlM 

of name 



12. An individual, partnership or association may notify 
the Minister of the name under which his or its business or 
undertaking is carried on, and thereupon the Minister shall 
make a notation thereof in his records. R.S.O. 1960, c. 71, 
s. 16, amended. 



SEAL AND HEAD OFFICE 



Corporate 



13. — (1) A corporation shall have a seal which shall be 
adopted and may be changed by resolution of the directors. 
R.S.O. 1960, c. 71, s. 292, amended. 



Idem 



(2) The name of the corporation shall appear in legible 
characters on the seal. New. 



I load 
office 



14. — (1) Subject to subsection 2, a corporation shall at 
all times have its head office at the place in Ontario where the 
articles provide that the head office is to be located. 



heatTofflce (2) A corporation may by special by-law change the 
municipality or geographic township in which its head office 
is located to another place in Ontario. R.S.O. 1960, c. 71, 
s. 290 (1, 2), amended. 



whe . re , ,.* (3) Where the location of the head office of a corporation 

municipality , \ ' . • . r 

annexed or i S changed by reason only ot the annexation or amalgamation 
gamated of the place in which the head office is located to or with 
another municipality, such change does not constitute and 
has never constituted a change within the meaning of sub- 
section 2. 1964, c. 10, s. 6. 



Filing of 
by-law 



(4) The corporation shall, within ten days after a by-law 
passed under subsection 2 has been confirmed by the share- 
holders, file a certified copy of the by-law with the Minister. 
R.S.O. 1960, c. 71, s. 290 (3), part, amended. 



Change of 
■tf — I 

ad drees 



(5) A corporation may by resolution of the directors change 
the location of its head office within a municipality or geo- 
graphic township and shall, within ten days after the passing 
of the resolution, file with the Minister notice of the change 
giving the address including the street and number, if any, 
of the new location. New. 



validity (£) Failure to comply with subsection 4 or 5 does not 

affect the validity of the by-law or resolution. R.S.O. 1960, 
c. 71, s. 290 (4), part, amended. 



125 



13 

POWERS 

General 
15. — (1) Every corporation has power, Sfaractera 

istics 

(a) to have perpetual succession unless a limited period 
of duration is set out in its articles; 

(b) to contract and sue and be sued in its corporate 
name; and 

(c) to carry on business in or identify itself to the 
public by a name or style other than its corporate 
name. R.S.O. I960, c. 191, s. 26 (a), amended. 

(2) A corporation has power as incidental and ancillary p"^^ ntal 
to the objects set out in its articles, 

1. to carry on any other business capable of being 
conveniently carried on in connection with its busi- 
ness or likely to enhance the value of or make 
profitable any of its property or rights; 

2. to acquire or undertake the whole or any part of the 
business, property and liabilities of any person 
carrying on any business that the corporation is 
authorized to carry on; 

3. to apply for, register, purchase, lease, acquire, hold, 
use, control, license, sell, assign or dispose of patents, 
patent rights, copyrights, trade marks, formulae, 
licences, inventions, processes, distinctive marks and 
similar rights; 

4. to enter into partnership or into any arrangement 
for sharing of profits, union of interests, co-operation, 
joint adventure, reciprocal concession or otherwise 
with any person or body corporate carrying on or 
engaged in or about to carry on or engage in any 
business or transaction that the corporation is 
authorized to carry on or engage in or any business 
or transaction capable of being conducted so as to 
benefit the corporation, and to lend money to, 
guarantee the contracts of, or otherwise assist any 
such person or body corporate, and to take or other- 
wise acquire securities of any such body corporate, 
and to sell, hold, re-issue, with or without guarantee, 
or otherwise deal with the same; 

125 



14 

5. to take or otherwise acquire and hold shares in any 
other body corporate having objects altogether or 
in part similar to those of the corporation or carrying 
on any business capable of being conducted so as to 
benefit the corporation ; 

6. to lend money to any other body corporate or any 
firm or person having dealings with the corporation 
or with whom the corporation proposes to have 
dealings or to any other body corporate any of whose 
shares are held by the corporation; 

7. to apply for, secure, acquire by grant, legislative 
enactment, assignment, transfer, purchase or other- 
wise, and to exercise, carry out and enjoy any 
charter, licence, power, authority, franchise, con- 
cession, right or privilege, that any government or 
authority or any body corporate or other public 
body may be empowered to grant, and to pay for, 
aid in and contribute toward carrying it into effect 
and to assume any liabilities or obligations incidental 
thereto ; 

8. to establish and support or aid in the establishment 
and support of associations, institutions, funds or 
trusts for the benefit of employees or former em- 
ployees of the corporation or its predecessors, or the 
dependants or connections of such employees or 
former employees, and grant pensions and allow- 
ances, and make payments towards insurance or for 
any object similar to those set forth in this para- 
graph, and to subscribe or guarantee money for 
charitable, benevolent, educational or religious ob- 
jects or for any exhibition or for any public, general 
or useful objects; 

9. to promote any body corporate for the purpose of 
acquiring or taking over any of the property and 
liabilities of the body corporate or for any other 
purpose that may benefit the corporation ; 

10. to purchase, lease, take in exchange, hire or otherwise 
acquire any personal property and any rights or 
privileges that the corporation considers necessary 
or convenient for the purposes of its business; 

11. to construct, maintain and alter any buildings or 
works necessary or convenient for its objects; 

12. to acquire by purchase, lease or otherwise and hold 
any land or interest therein necessary for its actual 



125 



15 



use and occupation or for carrying on its undertaking, 
and, when no longer necessary therefor, to sell, 
alienate or convey it ; 

13. to take, hold and alienate real and personal property 
that has in good faith been mortgaged to the cor- 
poration by way of security for, or conveyed to it in 
satisfaction of, debts previously contracted in the 
course of its business, or purchased at judicial sales 
upon levy for such indebtedness, or otherwise pur- 
chased for the purpose of avoiding a loss to the 
corporation ; 

14. to construct, improve, maintain, work, manage, 
carry out or control any roads, ways, tramways, 
branches or sidings, bridges, reservoirs, watercourses, 
wharves, manufactories, warehouses, electric works, 
shops, stores and other works and conveniences that 
may advance the interests of the corporation, and 
contribute to, subsidize or otherwise assist or take 
part in the construction, improvement, maintenance, 
working, management, carrying out or control 
thereof; 

15. to raise and assist in raising money for, and aid by 
way of bonus, loan, promise, endorsement, guarantee 
or otherwise, any person or body corporate with 
whom the corporation has business relations or any 
of whose securities are held by the corporation, and 
guarantee the performance or fulfilment of any 
contracts or obligations of any such person or body 
corporate, and in particular guarantee the payment 
of the principal of and interest on the debt obliga- 
tions of any such person or body corporate; 

16. to draw, make, accept, endorse, discount, execute 
and issue bills of exchange, promissory notes, bills of 
lading, warrants and other negotiable or transferable 
instruments; 

17. to sell, lease, exchange or otherwise dispose of the 
undertaking of the corporation or any part thereof 
as an entirety or substantially as an entirety for 
such consideration as the corporation thinks fit, 
and if authorized to do so by a special resolution ; 

18. to sell, improve, manage, develop, exchange, lease, 
dispose of, turn to account or otherwise deal with 
the property of the corporation in the ordinary 
course of its business; 



125 



16 

19. to adopt such means of making known the products 
of the corporation as may seem expedient, and in 
particular by advertising, by purchase and exhibition 
of works of art or interest, by publication of books 
and periodicals and by granting prizes and rewards 
and making donations; 

20. to cause the corporation to be registered and recog- 
nized in any foreign jurisdiction or any province or 
territory of Canada, and designate persons therein 
according to the laws of that foreign jurisdiction or 
that province or territory of Canada to represent 
the corporation and to accept service for and on 
behalf of the corporation of any process or suit; 

21. to allot and issue fully-paid shares of the corporation 
in payment or part payment of any property pur- 
chased or otherwise acquired by the corporation or 
for any past services rendered to the corporation; 

22. to distribute among the shareholders of the cor- 
poration in cash, kind, specie or otherwise as may 
be resolved, by way of dividend, bonus or in any 
other manner deemed advisable, any property of 
the corporation, but not so as to decrease the capital 
of the corporation unless the distribution is made 
for the purpose of enabling the corporation to be 
dissolved or the distribution, apart from this para- 
graph, would be otherwise lawful; 

23. to establish agencies and branches; 

24. to take or hold mortgages, hypothecs, liens and 
charges to secure payment of the purchase price, or 
of any unpaid balance of the purchase price, of any 
part of the property of the corporation of what- 
soever kind sold by the corporation, or for any 
money due to the corporation from purchasers and 
others and to sell or otherwise dispose of any such 
mortgage, hypothec, lien or charge; 

25. to pay all costs and expenses of or incidental to the 
iiuor|K)ration and organization of the corporation; 

26. to invest and deal with the moneys of the cor- 
poration not immediately required for the objects 
of the corporation in such manner as may be deter- 
mined; 



125 



17 

27. to do any of the things authorized by this subsection 
and all things authorized by its articles as principals, 
agents, contractors, trustees or otherwise, and either 
alone or in conjunction with others; 

28. to do all such other things as are incidental or 
conducive to the attainment of the objects and the 
exercise of the powers of the corporation. R.S.O. 
1960, c. 71, ss. 22 (1), 288, amended. 

(3) Any of the powers set out in subsection 2 may be with- artTcies* by 
held or limited by the articles. R.S.O. 1960, c. 71, s. 22 (2), 
amended. 

(4) Every corporation may exercise its powers beyond the Po t wer t t i > d 
boundaries of Ontario to the extent to which the laws in force Ontario 
where the powers are sought to be exercised permit, and may 
accept extra-provincial powers and rights. R.S.O. 1960, 

c. 71, s. 287, amended. 

16. — (1) No act of a corporation and no transfer of real Acting 

• i • , • , r . outside 

or personal property to or by a corporation, otherwise lawful, objects 
that is heretofore or hereafter done or made, is invalid by 
reason of the fact that the corporation was without capacity 
or power to do such act or make or receive such transfer, 
but such lack of capacity or power may be asserted, 

(a) in a proceeding against the corporation by a share- 
holder under subsection 2 ; 

(b) in a proceeding by the corporation, whether acting 
directly or through a receiver, liquidator, trustee or 
other legal representative or through shareholders 
in a representative capacity, against a director or 
officer or former director or officer of the corporation ; 
or 

(c) as cause for the cancellation of the certificate of 
incorporation of the corporation under section 236. 

(2) A shareholder of a corporation may apply to a court Restraining 
of competent jurisdiction for an order to restrain the corpora- 
tion from doing any act or transferring or receiving the transfer 
of real or personal property on the ground that the corpora- 
tion lacks capacity or power for the purpose, and the court 
may, if it deems it to be just and equitable, grant an order 
prohibiting the corporation from doing the act or transferring 
or receiving the transfer of the real or personal property, but, 
where the act or transfer sought to be restrained or prohibited 
is being or to be done or made under a contract to which the 
corporation is a party, 

125 



18 

(a) all the parties to the contract shall be parties to the 
proceeding; 

(b) the court in granting the order may set aside the 
contract and allow the corporation or other parties 
to the contract, as the case may be, such compensa- 
tion as may be equitable for the loss or damage 
sustained by any of them from the granting of the 
order and setting aside of the contract, other than 
anticipated profits from the contract. New. 

shareholders IT. — (1) Except as provided in subsection 2, a corporation 
Erectors sha11 n °*> 

(a) make loans to or guarantee loans for any of its 
shareholders or directors; or 

(b) give, directly or indirectly, by means of a loan, 
guarantee, the provision of security or otherwise, 
any financial assistance for the purpose of, or in 
connection with, a purchase made or to be made 
by any person of any shares of the corporation. 

Exceptions ( 2 ) A corporation may, 

(a) make loans to any of its shareholders or directors 
in the ordinary course of its business where the 
making of loans is part of the ordinary business of 
the corporation ; 

(b) make loans to or guarantee loans for bona fide 
full-time employees of the corporation whether or 
not they are shareholders or directors, with a view 
to enabling them to purchase or erect dwelling 
houses for their own occupation, and may take from 
such employees mortgages or other security for the 
repayment of such loans; 

(c) provide, in accordance with a scheme for the time 
being in force, money by way of loan or guarantee 
for the purchase by trustees of shares of the cor- 
poration, to be held by or for the benefit of bona fide 
employees of the corporation, whether or not they 
are shareholders or directors; or 

(d) make loans to or guarantee loans for bona fide 
employees of the corporation, other than directors, 
whether or not they are shareholders, with a view to 
enabling them to purchase shares of the corporation 
to be held by them by way of beneficial ownership. 



125 



19 

(3) The power mentioned in clause b, c or d of subsection 2 ™**** ciaX 
may be exercised only under the authority of a special by-law. only 
R.S.O. 1960, c. 71, s. 23 (1, 2), amended.' 

Contracts 
18. — (1) A contract that if entered into by an individual contracts 

...... i in wri ting 

person would be by law required to be in writing and under under seal 
seal may be entered into on behalf of a corporation in writing 
under the seal of the corporation. 

(2) A contract that if entered into by an individual person inciting 
would be by law required to be in writing signed by the parties » ot under 
to be charged therewith may be entered into on behalf of a 
corporation in writing signed by any person acting under its 
authority, express or implied. 

(3) A contract that if entered into by an individual person ^tracts 
would be by law valid although made by parol only and not 
reduced into writing may be entered into by parol on behalf 

of a corporation by any person acting under its authority, 
express or implied. R.S.O. 1960, c. 71, s. 293, amended. 

19. A corporation may, by writing under seal, empower %$££ ey f 
any person, either generally or in respect of any specified 
matters, to execute, as its attorney and on its behalf in any 
place within or outside Ontario, documents to which it is a 
party in any capacity and that are required by law to be 
under seal, and every document signed by such attorney on 
behalf of the corporation acting within the scope of his 
authority, express or implied, and under his seal binds the 
corporation and has the same effect as if it were under the 
seal of the corporation. R.S.O. 1960, c. 71, s. 294, amended. 

20.-(l) In this section, J^p™- 

(a) "contractor" means a person who enters into a pre- 
incorporation contract in the name of or on behalf 
of a corporation before its incorporation; 

(b) "other party" means a person with whom a con- 
tractor enters into a pre-incorporation contract; 

(c) "pre-incorporation contract" means a contract 
entered into by a contractor in the name of or on 
behalf of a corporation before its incorporation. 

(2) A corporation may adopt a pre-incorporation contract ^pre- 1011 
entered into in its name or on its behalf, and thereupon the {. n ^° rpora " 
corporation is entitled to the benefits and is subject to the contracts 

125 



_»() 



liabilities that were contracted in its name or on its behalf 
and the contractor ceases to be entitled to such benefits or 
to be subject to such liabilities. 



Non- 
adoption 
of pre- 
incor- 
poration 
contracts 



(3) Where a pre-incorporation contract is not adopted by 
a corporation, the contractor is entitled to the benefits and 
subject to the liabilities under the contract and is entitled to 
recover from the corporation the value of any benefit received 
by the corporation under the contract. 



Application 
to court 
for relief 



(4) Whether or not a pre-incorporation contract is adopted 
by the corporation, the other party may apply to the court 
which may, notwithstanding subsections 2 and 3, make an 
order fixing or apportioning liability as between the contractor 
and the corporation in any manner the court considers just 
and equitable under the circumstances. R.S.O. 1960, c. 71, 
s. 286, amended. 



By-laws 



By-laws and Resolutions 

21. — (1) The directors may pass by-laws not contrary to 
this Act or to the articles to regulate, 



(a) the allotment and issue of shares, the payment 
thereof, the issue of share certificates, the transfer 
and the registration of transfers of shares; 



(b) the declaration and payment of dividends; 

(c) the qualification and remuneration of the directors; 

(d) the time for and the manner of election of directors; 

(e) the appointment, remuneration, functions, duties 
and removal of agents, officers and employees of the 
corporation and the security, if any, to be given by 
them to it; 

(/) the time and place and the notice to be given for 
the holding of meetings of shareholders and of the 
board of directors, the quorum at meetings of share- 
holders, the requirements as to proxies, and the 
procedure in all things at shareholders' meetings and 
at meetings of the board of directors; 

(g) the conduct in all other particulars of the affairs of 
the corporation. 



125 



21 

(2) Subject to section 22, a by-law passed under subsection [j£n firma ~ 
1 and a repeal, amendment or re-enactment thereof is effective 

from the time of its passing if it is confirmed, with or without 
variation, at a general meeting of the shareholders duly called 
for that purpose or at the next annual meeting of the share- 
holders, whichever is held first. 

(3) The shareholders may, at the general meeting or the£,°^ e ™ 
annual meeting mentioned in subsection 2, confirm, reject, flrmation 
amend or otherwise deal with any by-law passed by the 
directors and submitted to the meeting for confirmation, but 

no act done or right acquired under any such by-law is pre- 
judicially affected by any such rejection, amendment or other 
dealing. R.S.O. 1960, c. 71, s. 67 (1, 3), amended. 

(4) Where a by-law or repeal, amendment or re-enactment Rejection 
thereof is not confirmed at a meeting as required by sub- 
section 2, it has effect from the time of its passing until the 
meeting but not thereafter, and no subsequent by-law, 
repeal, amendment or re-enactment of the same or similar 
substance has any effect until it is confirmed at a general 
meeting of the shareholders duly called for that purpose. 
R.S.O. 1960, c. 71, s. 67 (2), amended. 

22. — (1) A by-law relating to the remuneration of a R ®™^ era " 
director as director shall fix the remuneration and the period directors 
for which it is to be paid. New. 

(2) A by-law passed under subsection 1 is not effective tion firma 
until it is confirmed at a general meeting of the shareholders 
duly called for that purpose. R.S.O. 1960, c. 71, s. 68. 

23. — (1) Any by-law or resolution consented to at any By-laws 
time during a corporation's existence by the signatures of all resolutions 
the directors is as valid and effective as if passed at a meeting 
of the directors duly called, constituted and held for that 
purpose. 

(2) Any resolution, other than a resolution that is required Idem 
by this Act to be passed at an annual meeting, consented to 

at any time during a corporation's existence by the signatures 
of all the shareholders entitled to vote at a meeting of share- 
holders is as valid and effective as if passed at a meeting of 
the shareholders duly called, constituted and held for that 
purpose. 

(3) Any by-law or resolution passed by the directors at any method*^ 6 
time during a corporation's existence may, in lieu of confir- «>nflrming 
mation at a general meeting of shareholders, be confirmed in 
writing by all the shareholders entitled to vote at such meeting. 

125 



22 



Evidentiary 
value or 
signatures 



(4) Where a by-law or resolution purports to have been 
consented to or confirmed under this section by the signatures 
of all the directors or shareholders, as the case may be, of the 
corporation, the signatures to the by-law or resolution are 
admissible in evidence as prima facie proof of the signatures 
of the directors or shareholders, as the case may be, that they 
purport to represent and are admissible in evidence as prima 
facie proof that the signatories to the by-law or resolution 
were all the directors or all the shareholders entitled to vote 
at meetings of shareholders, as the case may be, at the date 
that the by-law or resolution purports so to have been con- 
sented to or confirmed. R.S.O. 1960, c. 71, s. 311, amended. 



SHARES 

Authorized Capital 

c^a U pitai rized ^4. — (1) Tn e authorized capital of a corporation shall be 
divided into shares with par value or without par value or 
both and may consist of shares of more than one class. 



Par 

shares 



(2) Where all the shares of a corporation are with par value, 
its authorized capital shall be expressed in Canadian or other 
currency in its articles, or partly in one currency and partly 
in another, and is an amount equal to the total of the products 
of the number of shares of each class multiplied by the par 
value thereof. R.S.O. 1960, c. 71, s. 24 (1, 2), amended. 



No par 
rinni 



(3) Where all the shares of a corporation are without par 
value, its authorized capital shall be expressed in its articles 
as a specified number of shares. 



No par 
and par 

shares 



(4) Where part of the shares of a corporation are with 
par value and part are without par value, its authorized 
capital shall be expressed in its articles as a specified number 
of shares of each class of shares having a specified par value 
and a specified number of shares of each class of shares without 
par value. R.S.O. 1960, c. 71, s. 24 (3), amended. 



Son 8 for ra " 25 * — (*) Where all the shares of a corporation are without 
SmSm &** va ^ ue or where part of its shares are with par value and 

part are without par value, the articles may provide, 

(a) that each share without par value shall not be issued 
for a consideration ; or 

(b) the shares of each class of shares without par value 
shall not be issued for an aggregate consideration, 



125 






23 

exceeding in amount or value a stated amount in Canadian or 
other currency, and the articles may provide, in addition, that 
such share or shares may be issued for such greater amount 
as the board of directors of the corporation by resolution 
determines. 

(2) A resolution referred to in subsection 1 is not effective Resolution 

N ' increasing 

Until, aggregate 

considera- 
tion for 

(a) a certified copy thereof has been filed with the shared 
Minister; 

(b) all prescribed fees have been paid ; and 

(c) the Minister has so certified. R.S.O. 1960, c. 71, 
s. 24 (4), amended. 

26. — (1) The common shares of a corporation shall be ^ h ° a I J?' s lon 
shares to which there is attached no preference, right, con- 
dition, restriction, limitation or prohibition set out in the 
articles of the corporation r other than a restriction on the 
allotment, issue or transfer. 

(2) Where a corporation has one class of shares, that class £/ shares 
shall be common shares and designated as provided in the 
articles. New. 

(3) Where a corporation has more than one class of shares, idem 
one class shall be common shares, designated as provided in 

the articles, and the other shares shall be special shares and 
may consist of one or more classes of special shares and shall 
have attached thereto the designations, preferences, rights, 
conditions, restrictions, limitations or prohibitions set out in 
the articles. 

(4) Xo class of special shares shall be designated as prefer- |hares ence 
ence shares or by words of like import, unless that class has 
attached thereto a preference or right over the common 
shares. R.S.O. 1960, c. 71, s. 27 (1), amended. 

27. — (1) Each class of special shares may have attached to flares 1 
it preferences, rights, conditions, restrictions, limitations or 
prohibitions, including but not limited to, 

(a) the right to cumulative, non-cumulative or partially 
cumulative dividends; 

(b) a preference over any other class or classes of shares 
as to the payment of dividends; 

125 



24 



(c) a preference over any other class or classes of shares 
as to repayment of capital upon the dissolution of 
the corporation or otherwise; 

(d) the exclusive right to elect part of the board of 
directors; 

(e) the right to convert the shares of that class into 
shares of another class or classes of shares; 

(/) the right of the corporation at its option to redeem 
all or part of the shares of that class at an amount 
stated in or determined by the articles for the redemp- 
tion thereof; 



(g) the purchase for cancellation by the corporation of 
all or part of the shares of that class by agreement 
with the holders thereof at the lowest price at which, 
the opinion of the directors, such shares are 



in 



obtainable, but not exceeding an amount stated in 
or determined by the articles; 



(h) conditions, restrictions, limitations or prohibitions 
on the right to vote at meetings of shareholders. 
R.S.O. 1960, c. 71, s. 27 (1, 2), amended. 



Idem 



(2) Special shares without par value shall not have a 
preference in respect of the repayment of capital or be subject 
to redemption or purchase for cancellation. R.S.O. 1960, 
c. 71, s. 27 (4), amended. 



Equality 
of shares 
of a class 



Special 
shares in 

f-enes 



28. Except as provided in section 29, each share of a class 
shall be the same in all respects as every other share of that 
class. R.S.O. 1960, c. 71, s. 25. 

29. — (1) The articles of a corporation may authorize the 
issue from time to time in one or more series of the special 
shares of a class and may authorize the directors to fix from 
time to time before such issue the designation, preferences, 
rights, conditions, restrictions, limitations or prohibitions 
attaching to the shares of each series of the class. 



Voting 
righto 



Propor- 
tionate 
abatement 



(2) The shares of all series of the same class of special 
shares shall carry the same voting rights or the same restric- 
tions, conditions, limitations or prohibitions on the right to 
vote. 

(3) Where any dividends or amounts payable on a repay- 
ment of capital are not paid in full, the shares of all series 
of the same class of special shares shall participate rateably 
in respect of such dividends, including accumulations, if any, 



125 



25 

in accordance with the sums that would be payable on such 
shares if all such dividends were declared and paid in full, 
and on any repayment of capital in accordance with the sums 
that would be payable on such repayment of capital if all 
sums so payable were paid in full. R.S.O. 1960, c. 71, s. 28 
(1-3), amended. 

30.— (1) The articles may set forth the designation, pref- f r r °^ on 
erences, rights, conditions, restrictions, limitations and pro- JESS g n 
hibitions attaching to the first series to be issued in which case 
the special shares of the first series may be issued in accordance 
with the articles. 



(2) A series, other than one to which subsection 1 applies, ^ 



Conditions 



issue 



shall not be issued until, of series 

(a) the directors have by resolution fixed the designa- 
tion, preferences, rights, conditions, restrictions, 
limitations and prohibitions attaching to the special 
shares of the series ; and 

(b) the statement referred to in section 31 has been 
filed with the Minister and the certificate of the 
Minister has been issued under section 31. R.S.O. 
1960, c. 71, s. 28 (4, 5), amended. 

31. — (1) For the purpose of bringing a resolution passed ^tement 
by the directors under subsection 2 of section 30 into effect 
the corporation shall deliver to the Minister, within six 
months after the resolution has been passed, a statement in 
duplicate executed under the seal of the corporation and 
signed by two officers, or by one director and one officer, of 
the corporation, and verified by affidavit of one of the officers 
or directors signing the statement, setting out, 

(a) the name of the corporation ; 

(b) a certified copy of the resolution; 

(c) that the resolution was duly passed by the directors; 

(d) the date of the passing of the resolution; and 

(e) that the conditions, if any, contained in the articles 
or in any prior resolution precedent to the creation 
and issue of the shares of the series have been 
complied with. 

(2) If the statement conforms to law, the Minister shall, ^ uance 
when all prescribed fees have been paid, certificate 

125 



26 

(a) endorse on each duplicate of the statement the word 
"Filed" and the day, month and year of the filing 
thereof; 

(b) file one of the duplicates in his office; and 

(c) issue to the corporation or its agent a certificate of 
the filing to which he shall affix the other duplicate. 

r'rf nV°te W Upon the issuance of the certificate of filing the reso- 

lution becomes effective and constitutes an amendment to 
the articles. New. 



[■mad 

capital, 
par value 

shares: 



Issued Capital 

32. — (1) Where all the shares of a corporation are with 
par value, its issued capital shall be expressed in Canadian 
or other currency, or partly in one currency and partly in 
another, and is an amount equal to the total of the products 
of the number of issued shares of each class multiplied by 
the par value thereof less such decreases in the issued capital 
as from time to time have been effected by the corporation 
in accordance with this Act. 



no par 
value 
shares, etc. 



(2) Where the shares of a corporation are without par value 
or where part of its shares are with par value and part are 
without par value, its issued capital shall be expressed in 
Canadian or other currency, or partly in one currency and 
partly in another, and is an amount equal to the total of the 
products of the number of issued shares of each class with 
par value multiplied by the par value thereof, together with 
the amount of the consideration for which the shares without 
par value from time to time outstanding were issued and 
together with such amounts as from time to time by by-law 
of the corporation may be transferred thereto and less such 
decreases in the issued capital as from time to time have been 
effected by the corporation in accordance with this Act. 
R.S.O. 1960, c. 71, s. 30 (1, 2), amended. 



of a par ,latlon «*«*• — 0) Where an issued share of a class with par value 
share: j s cancelled, the issued capital is decreased by an amount 

equal to the par value of the shares of that class. New. 



of no par 

share 



(2) Where an issued share of a class without par value is 
cancelled, the issued capital is decreased by an amount equal 
to the amount obtained by dividing, 

(a) that part of the issued capital attributable to that 
class of shares in accordance with subsection 2 of 
section 32, 

by 



125 



27 

(b) the number of issued shares of that class. R.S.O. 
1960, c. 71, s. 35, amended. 

(3) Where a fraction of an issued share of a class is can- £[ £hare lon 
celled, the issued capital is decreased by an amount that 
bears the same proportion to the amount determined under 
subsection 1 or 2, as the case may be, that the fraction bears 
to a whole share of that class. New. 

Redemption, Purchase, Conversion and Surrender 

34. — (1) Where the shares of a class of special shares are ^ep^iaV " 
made redeemable by the articles and part only of the special share8 
shares are to be redeemed, the shares to be redeemed shall be 
selected, 

(a) by lot in such manner as the board of directors 
determines; 

(b) as nearly as may be in proportion to the number of 
special shares of the class registered in the name of 
each shareholder; or 

(c) in such other manner as the board of directors 
determines with the consent of the holders of special 
shares of the class obtained in the manner set out 
in subsection 2, 

but the articles may confine the manner of selection to that 
set out in clause a or in clause b. 

(2) Where shares of a class of special shares are selected Idem 
in the manner referred to in clause c of subsection 1, the 
selection shall be consented to in writing by, 

(a) all the holders of the special shares of the class; or 

(b) at least 95 per cent of the holders of the special 
shares of the class holding at least 95 per cent of the 
issued shares of that class if, after twenty-one days 
notice has been given by sending notice to each of 
the holders of shares of that class addressed to him 
at his latest address as shown on the records of the 
corporation, none of the holders of shares of that 
class dissents in writing to the corporation. R.S.O. 
1960, c. 71, s. 27 (7, 8), amended. 

(3) Where a holder of redeemable special shares of a closely- IderM 
held corporation dies or leaves its employment, notwithstand- 
ing subsection 1, it may within one year of such event redeem 

all or any of the special shares held by him. R.S.O. 1960, 
c. 71, s. 27 (9), amended. 

125 



_\K 



Purchase of 
special 
shares for 
cancellation 



35. (1) Where the shares of a class of special shares are 
made purchasable for cancellation by the articles, then, 
except where the purchase is made on the open market or all 
the holders of the class consent to the purchase, the cor- 
poration may purchase the shares only pursuant to tenders 
received by the corporation upon request for tenders addressed 
to all the holders of the shares of the class, and the cor- 
poration shall accept only the lowest tenders. R.S.C). 1960, 
c. 71, s. 27 (11), amended. 



Idem 



(2) Where, in response to the invitation for tenders, two 
or more shareholders submit tenders at the same price and 
the tenders are accepted by the corporation as to part only 
of the shares offered, the corporation shall accept part of the 
shares offered in each tender in proportion as nearly as may 
be to the total number of shares offered in each tender. New. 



Con version 
of par 
shares to 
par sharee: 



36.— (1) The articles of a corporation shall not provide 
for the conversion of shares with par value into shares with 
par value if the aggregate par value of the shares being 
converted is not equal to the aggregate par value of the shares 
into which they are converted. 



par shares 
to no par 
shares 



(2) Where, in accordance with the articles, shares with 
par value are converted into shares without par value, the 
issued capital of the corporation attributable to the shares 
resulting from the conversion shall be equal to the aggregate 
par value of the shares converted. 



no par 
shares to 
par shares 



(3) Where the articles provide for the conversion of shares 
without par value into shares with par value, no such share 
shall be converted unless that part of the issued capital 
attributable to the shares being converted is equal to the 
aggregate par value of the shares resulting from the con- 
version. 



no par 
sharee to 
no par 

~hnro<- 



(4) Where, in accordance with the articles, shares without 
par value are converted into shares without par value, the 
issued capital shall remain unchanged. R.S.O. 1960, c. 71, 
s. 27 (15), amended. 



shares''"' (**) Where special shares of a class are converted into the 

same or another number of shares of another class or classes, 
whether special or common, the shares converted thereupon 
become the same in all respects as the shares of the class or 
classes respectively into which they are converted, and the 
number of shares of each class affected by the conversion is 
changed and the articles are amended accordingly. K.S .< ) 
1960, c. 71, s. 27 (14). 



125 



29 

37. — (1) Where the only undertaking of a corporation is surrender 
the business of investing the funds of the corporation, its f "nd shares 
articles may provide for the issuing of one or more classes of 
mutual fund shares that have attached thereto conditions 
requiring the corporation to accept, at the demand of the 
holder thereof and at prices determined and payable in 
accordance with the conditions, the surrender of the shares, 
or fractions or parts thereof. 

(2) Articles that provide for the issuing of mutual fund andprk^ 3 
shares shall set out the conditions governing, 

(a) the surrender of mutual fund shares or any fractions 
or parts thereof; and 

(b) the determination of the price to be paid therefor 
and the manner and time of payment thereof. New. 

38. — (1) A corporation shall not redeem or purchase ^^0°' 
special shares or accept mutual fund shares for surrender if surrender 
the corporation is insolvent or if the redemption, purchase or insolvent 
surrender would render the corporation insolvent. 

(2) Special shares that are redeemed or purchased by a cancellation 
corporation are thereby cancelled, and the authorized and redemption, 
issued capital of the corporation are thereby decreased and surrender 
the articles are amended accordingly. R.S.O. 1960, c. 71, 

s. 27 (12, 13), amended. 

(3) Where mutual fund shares are accepted for surrender mutual 
by a corporation, the shares are not thereby cancelled, and funds 
the board of directors may, acting in good faith and in the 

best interests of the corporation, resell the shares at such 
time and price and on such terms as it determines, in which 
case the amount received from the sale shall form part of the 
surplus of the corporation. New. 

39. — (1) Subject to any restrictions contained in its o^ommon 
articles, a corporation may purchase any of its common^™ 8 ^. 
shares out of surplus. 

(2) A corporation may purchase any of its common shares capital 
out of issued capital if the purchase is made, 

(a) for the purpose of eliminating fractions of shares; or 

(b) for the purpose of collecting or compromising in- 
debtedness to the corporation. 

125 



30 

PjHgfcM* (3) A corporation shall not purchase common shares under 

insolvent subsection 1 or 2 if the corporation is insolvent or if the 
purchase would render the corporation insolvent. 

Authoriea- (4) jsj purchase of common shares shall be made under 
this section by a corporation unless the purchase is authorized 
by an express resolution of the board of directors acting in 
good faith and in the best interests of the corporation. New. 

cancellation 40. — (1) Where common shares are purchased by a cor- 
poration under subsection 1 of section 39, 

(a) if the articles so require, the shares shall be can- 
celled and thereupon the authorized and issued 
capital of the corporation are thereby decreased, 
and the articles are amended accordingly; 

(b) if the articles do not require the shares to be can- 
celled, 

(i) the board of directors may at the time of the 
purchase cancel the shares, in which case the 
authorized and issued capital of the cor- 
poration are thereby decreased and the articles 
are amended accordingly; or 

(ii) the board of directors may, acting in good 
faith and in the best interests of the cor- 
poration, resell the shares at such time and 
price and on such terms as it determines, in 
which case the amount received from the sale 
shall form part of the surplus of the cor- 
poration. 

Cancellation (2) Common shares or fractions thereof purchased under 
subsection 2 of section 39 are thereby cancelled and the 
authorized and issued capital are thereby decreased and 
the articles are amended accordingly. New. 

inefjerre 011 ^** Where a corporation purchases common shares under 

and C resaie subsection 1 of section 39 or resells them under subclause ii 

of own of clause b of subsection 1 of section 40, the corporation shall 

be deemed to be an insider in respect of the purchase or resale, 

and sections 135 to 140 apply to the purchase or resale. New. 

anceof" **^* *^ n agreement for the purchase by a corporation of its 

agreement common shares is not invalid or unenforceable because of the 

to purchase 

common possibility that the corporation may not be able to comply 



shares 



with section 39, but such agreement is, 
125 



31 

(a) subject to subsection 2 of section 123, valid it 
performed ; and 

(b) if not performed, valid and enforceable to the 
extent the corporation is able to purchase its common 
shares at the time for performance. New. 

43.— (1) A corporation may accept from any shareholder Shares 1 
a donation of any of its shares without any repayment of 
capital in respect thereof. 

(2) Shares accepted under subsection 1 are not thereby donated 
cancelled, and the board of directors may, acting in good faith shares 
and in the best interests of the corporation, sell the shares 
at such time and price and on such terms as it determines, in 
which case the amount received from the sale shall form part 
of the surplus of the corporation. New. 

Allotment, Issue and Transfer 

44. — (1) In the absence of a provision to the contrary in^^.| 8 of 
the articles or by-laws of the corporation, shares may be 
allotted and issued at such times and in such manner and to 
such persons or class of persons as the directors determine. 

(2) Shares with par value shall not be allotted or issued £on 8 for ra ~ 
except for a consideration at least equal to the product of the P ar shares 
number of shares allotted or issued multiplied by the par 

value thereof. 

(3) Subject to section 25, shares without par value shall £on S for r no 
not be allotted or issued except for such consideration as is par 8hare s 
fixed by the directors acting in good faith and in the best 
interests of the corporation. 

(4) No share shall be issued until it is fully paid and a share fhares paid 
is not fully paid until all the consideration therefor in cash, 
property or services, as determined under this section, has 

been received by the corporation. 

(5) For the purposes of subsection 4 and paragraph 21 Idem 
of subsection 2 of section 15 a promissory note does not 
constitute property and services shall be past services actually 
performed for the corporation, and the value of property or 
services shall be the value the directors in good faith determine 

by express resolution to be in all the circumstances of the 
transaction the fair equivalent of the cash value. R.S.O. 
1960, c. 71, s. 31, amended. 

45. — (1) A corporation may provide by special by-law onT^e 86 ™" 
for the payment of commissions or allowing discounts to of 8hare8 
persons in consideration of their subscribing or agreeing to 

125 



32 



subscribe, whether absolutely or conditionally, for shares in 
the corporation, or procuring or agreeing to procure sub- 
scriptions, whether absolute or conditional, for such shares, 
but, except in the case of mining, gas or oil corporations or 
corporations at least 75 per cent of whose assets are of a 
wasting character, no such commission or discount shall 
exceed 25 per cent of the amount of the subscription price. 



No (2) Except as provided in subsection 1, no corporation 

unauthorized , v ' , r r . . . .... .• , 

commissions shall apply any of its shares or capital, either directly or 
indirectly, in payment of any commission, discount or allow- 
ance to any person in consideration of his subscribing or 
agreeing to subscribe, whether absolutely or conditionally, 
for shares of the corporation or procuring or agreeing to 
procure subscriptions, whether absolute or conditional, for 
such shares, whether the shares or capital is so applied by 
being added to the purchase money of any property acquired 
by the corporation or to the contract price of any work to 
be executed for the corporation, or is paid out of the nominal 
purchase money or contract price or otherwise. R.S.O. 1960, 
c. 71, s. 32, amended. 

personal < *®' * ne snares °f a corporation are personal property, 

properly R.S.O. 1960, c. 71, s. 38, amended. 

Restrictions 4.7. — <\\ \ corporation shall not impose restrictions on 

on transfer ret ■• 

the transfer of shares except such restrictions as are author- 
ized by the articles. R.S.O. 1960, c. 71, s. 39 (1), amended. 



Lien for 
indebted- 



(2) Except in the case of shares listed on a stock exchange 
recognized by the Commission, where the articles or by-laws 
so provide the corporation has a lien to the extent of the debt 
on the shares registered in the name of a shareholder who is 
indebted to the corporation. R.S.O. 1960, c. 71, s. 39 (3), 
amended. 



notTo'hoid 8 *8. — (1) Except in the cases mentioned in this section, a 
hoUJ?ng 0f corporation shall not be a shareholder of a corporation that 
corporations j s its holding corporation, and any allotment or transfer of 
shares of a corporation to its subsidiary corporation is void. 



Application 



(2) This section does not apply to a subsidiary holding 
shares as personal representative unless the holding cor- 
poration or a subsidiary thereof is beneficially interested 
under a trust and is not so interested only by way of security 
for the purposes of a transaction entered into by it in the 
ordinary course of a business that includes the lending of 
money. 



125 



33 

(3) This section does not prevent a subsidiary that on the Exception 
30th day of April, 1954, held shares of its holding corporation 

from continuing to hold such shares, but, subject to subsection 
2, the subsidiary has no right to vote at meetings of share- 
holders of the holding corporation or at meetings of any class 
of shareholders thereof. 

(4) Subject to subsection 2, subsections 1 and 3 apply in Nominee8 
relation to a nominee for a corporation that is a subsidiary 

as if the references in subsections 1 and 3 to such a corporation 
included references to a nominee for it. R.S.O. 1960, c. 71, 
s. 94. 

Share Certificates 

49. — (1) Every shareholder is entitled to a share certificate j? 1 !^ 6 , 
in respect of the shares held by him, signed by the proper 
officers in accordance with the corporation's by-laws in that 
regard, but the corporation is not bound to issue more than 
one share certificate in respect of a share or shares held 
jointly by several persons, and delivery of a share certificate 
to one of several joint shareholders is sufficient delivery to all. 

(2) A corporation may charge a fee of not more than 50 Fee 
cents for every share certificate issued, except that, in the case 
of the allotment and issue of shares, no fee shall be charged. 
R.S.O. 1960, c. 71, s. 43 (1,3). 

SO. A share certificate shall be signed manually by at of g s ! ha^ e 
least one officer of the corporation or by or on behalf of a oertiflcates 
transfer agent or branch transfer agent of the corporation, 
and the corporation may by by-law provide that any additional 
signatures required on share certificates may be printed, 
engraved, lithographed or otherwise mechanically reproduced 
thereon, and in such event share certificates so signed are as 
valid as if they had been signed manuallv. R.S.O. 1960, c. 71, 
s. 46. 

51. — (1) Every share certificate shall state upon its face, Contents 

v ' ' K 'of share 

certificates 

(a) the name of the corporation and the words "Incor- 
porated under the law of the Province of Ontario" 
or words of like effect; 

(b) the name of the person entitled to the share or the 
rights the share certificate evidences; and 

(c) the number and class of shares represented thereby 
and whether the shares are with par value or without 
par value and, if with par value, the par value 
thereof. R.S.O. 1960, c. 71, s. 45 (1), amended. 

125 



34 



statement* 
on share 
certificate* 



Production 
of 

preference*, 
etc. 



Lien on 
shares 



Transfer 
restricted 



Fractional 



(2) A share certificate issued for a share of a class of special 
shares shall, 

(a) legibly state on the certificate or have attached 
thereto a legible statement of the preferences, rights, 
conditions, restrictions, prohibitions or limitations 
attaching to that class of shares; or 

(b) legibly state on the certificate that there are prefer- 
ences, rights, conditions, restrictions, prohibitions or 
limitations attaching to that class and that a copy 
of the full text thereof is obtainable on demand and 
without fee from the corporation. 

(3) Where a share certificate contains a statement as 
provided in clause b of subsection 2, the corporation shall 
furnish to the shareholder on demand without fee a copy of 
the full text of the preferences, rights, conditions, restrictions, 
prohibitions and limitations attaching to the share. 

(4) Where the articles or by-laws provide that a corpora- 
tion has a lien on shares as authorized by subsection 2 of 
section 47, the right of the corporation to the lien shall be 
noted conspicuously on every share certificate issued by the 
corporation. 

(5) A share certificate for a share the transfer of which is 
restricted in accordance with the articles shall have the 
restriction noted conspicuously on the certificate. New. 

52. Where, as a result of a change in the authorized capital 
of a corporation, a person becomes entitled to a fraction of a 
share, he is not entitled to be registered on the records of the 
corporation in respect thereof or to receive a share certificate 
therefor, but he is entitled to receive a bearer fractional 
certificate in respect of such fraction, and, on presentation at 
the head office of the corporation or at a place designated 
by the corporation of bearer fractional certificates for frac- 
tions that together represent a whole share, a share certificate 
for a whole share shall be issued in exchange therefor, and 
sections 63 to 85 apply thereto. R.S.O. 1960, c. 71, s. 37 (1, 2), 
amended. 



horkowin<; 



nowera ing ****• — (1) When authorized by special by-law, the directors 



powers 



may, 



(a) borrow money on the credit of the corporation; or 

(b) issue, sell or pledge debt obligations of the cor- 
poration whether secured or unsecured; or 



125 



35 

(c) charge, mortgage, hypothecate or pledge all or any 
currently owned or subsequently acquired real or 
personal, movable or immovable property of the 
corporation, including book debts, rights, powers, 
franchises and undertaking, to secure any debt 
obligations or any money borrowed, or other debt 
or liability of the corporation. R.S.O. 1960, c. 71, 
s. 58 (1), amended. 

(2) Any by-law referred to in subsection 1 may, of°by-iaw 

(a) limit the amount to be borrowed as determined 
by the by-law; and 

(b) provide for the delegation by the directors of the 
powers conferred on them under the by-law to such 
directors or officers of the corporation and to such 
extent and manner as is set out in the by-law. New. 

54. A condition contained in a debt obligation or in an ^^hV 
instrument for securing a debt obligation is not invalid by obligation 
reason only that the debt obligation is thereby made irre- 
deemable or redeemable only on the happening of a con- 
tingency, however remote, or on the expiration of a period, 
however long. R.S.O. 1960, c. 71, s. 59, amended. 

55. — (1) Where a corporation makes a charge, mortgage Filing 
or other instrument of hypothecation or pledge to secure its obligations 
debt obligations, the corporation shall, forthwith after the 
making thereof, file a duplicate original or certified copy of the 
instrument in the office of the Minister, but such filing may be 
made by any interested person. R.S.O. 1960, c. 71, s. 60 (1), 
amended. 

(2) Where the filing is by an interested person under Y J f < ° e very 
subsection 1, that person is entitled to recover from the 
corporation the amount of any prescribed fee paid by him 

on such filing. New. 

(3) Subsection 1 does not apply to a charge or mortgage Exception 
filed with the Minister under The Corporation Securities**^ 1960 ' 
Registration Act, or any other Act. R.S.O. 1960, c. 71, s. 60 (2). 

Indenture Trustees 

56. In this section and in sections 57 to 61, tafion™" 

(a) "trust indenture" means any deed, indenture or 
document howsoever designated, including any sup- 
plement or amendment thereto, by the terms of 

125 



36 

which a corporation issues debt obligations and in 
which a trustee is named as trustee for the holders 
of the debt obligations issued thereunder; 

(b) "trustee" means any person named as trustee under 
the terms of a trust indenture, whether or not the 
person is a trust company authorized to carry on 
business in Ontario. New. 

quMtionor *^» — (1) F° r tne purposes °f tn ' s section, conflict of 
fact interest is a question of fact to be determined by the circum- 

stances of each case. 

o^truff 8 (2) Trust indentures to which a corporation is a party as 

indentures an issuer or guarantor of debt obligations and trust inden- 
tures that are expressed to be governed by the laws of Ontario 
shall contain or, if they do not, shall be deemed to contain 
provisions substantially to the following effect: 

1. In the exercise of the rights, duties and obligations 
prescribed or conferred by the terms of the trust 
indenture, the trustee shall exercise that degree of 
care, diligence and skill that a reasonably prudent 
trustee would exercise in comparable circumstances. 

2. A person shall not be appointed a trustee under a 
trust indenture if a conflict of interest exists in the 
trustee's role as a fiduciary thereunder, and a trustee 
under a trust indenture shall resign from office in 
the event that a conflict of interest subsequently 
arises. 

3. In the exercise of his rights, duties and obligations 
the trustee may, if he is acting in good faith, con- 
clusively rely, as to the truth of the statements and 
accuracy of the opinions expressed therein, upon 
certificates or opinions conforming to the require- 
ments of the trust indenture if the indenture contains 
provisions complying with section 58. • 

4. The trustee shall be required to give to the holders 
of debt obligations issued under the trust indenture, 
within thirty days after the occurrence thereof, 
notice of every event of default arising under the 
trust indenture known to the trustee unless the 
trustee in good faith determines that the with- 
holding of such notice is in the best interests of the 
holders of the debt obligations and so advises the 
corporation in writing. New. 

125 



37 



58. — (1) A trust indenture to which section 57 applies Provisions 

ii< • • • i • ii i /■ .. £ which trust 

shall contain provisions substantially to the following effect: indentures 

must 
contain 

1 . The corporation that is the issuer or guarantor of the 
debt obligations issued under the trust indenture 
shall furnish to the trustee evidence of compliance 
with every covenant or condition specified in the 
trust indenture relating to, 

i. the certification and delivery of debt obliga- 
tions under the trust indenture, 

ii. the release or release and substitution of 
property subject to any mortgage, charge, 
lien or other encumbrance created by the trust 
indenture, 

iii. the satisfaction and discharge of the trust 
indenture, 

iv. the issuing of additional debt obligations 
thereunder, and 

v. any other action or step required to be taken 
by the trustee under the trust indenture or as 
a result of any obligation imposed by the 
trust indenture. 






Evidence of compliance referred to in paragraph 1 
shall consist of, 

i. statutory declarations made by officers of the 
corporation authorized by the trust indenture 
stating that the covenant or condition has 
been complied with in accordance with the 
terms of the trust indenture, 



ii. an opinion of a solicitor that the covenant 
or condition has been complied with in accord- 
ance with the terms of the trust indenture, 
and 



in. 



in the case of a covenant or condition com- 
pliance with which is subject to the review or 
examination by auditors or accountants, an 
opinion or report of the auditor of the cor- 
poration or any accountant licensed under 
The Public Accountancy Act, in each case R.sxx!i960. 
approved by the trustee, as to the accuracy 
or reliability of the statements required to be 



317 



125 



38 



reviewed or examined and whether or not the 
statements have Ixjen made in accordance 
with the terms of the trust indenture. 

3. A statutory declaration, opinion or report required 
under paragraph 2 shall include, 

i. a statement by the person making or giving 
such statutory declaration, opinion or report 
that he has read and is familiar with the 
covenant or condition, 

ii. a brief statement of the nature and scope of 
the examination or investigation upon which 
the statements or opinions contained in the 
statutory declaration, opinion or report are 
based, 

iii. a statement that, in the belief of the person 
making or giving the statutory declaration, 
opinion or report, he has made such examina- 
tion or investigation as is necessary to enable 
him to express an opinion whether the 
covenant or condition has been complied 
with, and 

iv. a statement whether in the opinion of such 
person the covenant or condition has been 
complied with. 



Additional 
provisions 
may be 
included 



(2) Nothing in this section prevents the inclusion in a trust 
indenture of provisions requiring evidence of compliance with 
covenants or conditions in addition to those specified in this 
section. New. 



Provisions 
which trust 
indentures 
must not 
contain 



Trustees 

under trust 

indentures 

not to be 

appointed 

receivers, 

etc. 



50. A trust indenture to which section 57 applies shall 
not contain any provision relieving the trustee from liability 
arising thereunder, except that under the terms of the trust 
indenture the trustee may conclusively rely, as to the truth 
of the statements and the accuracy of the opinions expressed 
therein, upon statutory declarations, opinions or reports 
conforming to the requirements of section 58 if the trustee 
acts in good faith and examines the evidence furnished to him 
under that section in order to determine whether such evidence 
conforms to the applicable requirements of the trust inden- 
ture. New. 

60. A trustee under a trust indenture to which section 57 
applies and any related person to such trustee shall not be 
appointed a receiver or receiver and manager or liquidator 



125 



39 

of the assets or undertaking of the corporation that issued or 
guaranteed the debt obligations under the trust indenture. 

New. 

61. Sections 57, 58 and 59 do not apply to any trust ^. h 57-59 
indenture entered into before the coming into force of those ^° "° l 
sections. New. 

INVESTMENT SECURITIES 

62. — (1) In this section and in sections 63 to 85, tation™" 

(a) "appropriate person", when used to refer to a person 
endorsing a security, means, 

(i) the person specified by the security or by 
special endorsement to be entitled to the 
security, 

(ii) where a person is specified and described as 
fiduciary and is no longer serving in that 
capacity and notwithstanding that a successor 
has been appointed or qualified, 

a. where only one person is so described, 
that person or his successor, or 

b. where more than one person is so 
described, the remaining fiduciaries, 

(iii) where a person specified under subclause i 
has died, his personal representative, except 
where he is entitled jointly with one or more 
persons bearing the right of survivorship, in 
which case the surviving person or persons are 
appropriate persons, 

(iv) the personal representative of any person 
specified in the security or endorsement who 
is without capacity to act, 

(v) a person having power to sign under appli- 
cable law, or 

(vi) to the extent any person made appropriate 
under this clause may act through an agent, 
his authorized agent; 

(b) "broker" means a person registered under The 1966 - c - 142 
Securities Act, 1966 as a broker, broker-dealer, 
investment dealer or sub-broker-dealer; 

125 



40 

(c) "clearing corporation" means a corporation recog- 
nized as a clearing corporation by the Commission; 

(d) "security" means an instrument in writing that, 

(i) is issued by the corporation, 

(ii) evidences a share, participation or other 
interest in property or an enterprise or obliga- 
tion of the issuer, 

(iii) is one of a class or series of instruments 
or by its terms is divisible into a class or series 
of instruments, and 

(iv) is of a type commonly dealt in upon securities 
exchanges or markets or commonly recog- 
nized in any area in which it is issued or dealt 
in as a medium for investment. 

Application ^2) Sections 63 to 85 do not apply to a promissory note or 
r.s.c. 1952, bill of exchange to which the Bills of Exchange Act (Canada) 



applies. New. 



Transfer of Securities 



of r b*arer ***** ^ bearer fractional certificate may be transferred by 

security delivery. R.S.O. 1960, c. 71, s. 37 (2). 

Jl^fltLJ** 64. — (1) Subject to subsection 3, a security mav be 

registered ■ i « . • « i« 

security transferred bv endorsement and delivery. 



Endorse- 
ment 



(2) An endorsement of a security may be, 

(a) in blank, including to bearer; or 

(b) a special endorsement, specifying the person to 
whom the security is to be transferred. 

endorsement ^ Where a security is delivered to a purchaser without 
endorsement, the transfer is effected as against the transferor, 
and the purchaser has a right to any necessary endorsement, 
enforceable by specific performance. New. 

65. — (1) Delivery of a security to a transferee is made 
when, 

(a) the transferee or a person designated by him acquires 
possession of the security ; 

125 



41 

(b) where the security is specially endorsed, the broker 
of the transferee is in possession of the security; 

(c) where the security is endorsed in blank, the broker 
of the transferee is in possession of the security and 
gives the transferee confirmation of the purchase in 
writing and, by entry in his records or otherwise, 
identifies the security as belonging to the transferee; 
or 

(d) where the security remains in the possession of a 
person other than the transferor or the transferee or 
his broker, such person identifies the security and 
acknowledges in writing that he holds it for the 
transferee. 

(2) Unless otherwise agreed, a person obligated to deliver Form of 
securities may deliver any security of the specified issue delivered 
registered in the name of the transferee or endorsed to him 
or in blank. New. 

66.-(l) If a security, S^Sg 

corporation 

(a) is in the custody of a clearing corporation or a 
nominee of a clearing corporation who is subject to 
its instructions; 

(b) is endorsed in blank or registered in the name of the 
clearing corporation or its nominee; and 

(c) is shown on the account of a transferor or pledgor 
on the records of the clearing corporation, 

in addition to other methods, a transfer or pledge of the 
security or any interest therein may be effected by recording 
the appropriate information on the records of the clearing 
corporation reducing the account of the transferor or pledgor 
and increasing the account of the transferee or pledgee by the 
amount of the obligation or the number of shares or rights 
transferred or pledged. 

(2) The effecting of a transfer or pledge in accordance with Effec * of 
this section, 

(a) shall be deemed to be delivery of the security duly 
endorsed in blank; and 

(b) does not constitute registration of the transfer, 

and the transferee or pledgee shall be deemed to be the holder. 
125 



42 



Effect of 
error 



aifhti 

passing on 

transfer 



(3) Information recorded on the records of a clearing cor- 
poration that is not appropriate does not affect the validity 
or effect of the entries nor the liabilities or obligations of the 
clearing corporation to any person adversely affected thereby. 
New. 

67. — (1) l T pon the delivery of a security, the purchaser 
acquires the rights in the security that his transferor had or 
had actual authority to convey. 



Hijthts of 
bona fide 
purchaser 
for value 



(2) A purchaser of a security for value in good faith, in 
addition to acquiring the rights of the transferor, also acquires 
the security free of any adverse claims of which he has had 
no notice, except a purchaser who has himself been a party 
to any fraud or illegality affecting the security or who, as a 
prior holder, had notice of an adverse claim. 



Adverse 
claims 



(3) For the purposes of this section, an adverse claim 
includes a claim that a transfer was or would be unauthorized 
or wrongful or that a particular adverse person is the owner of 
or has an interest in the security. 



Notice of 
ad verse 
claim 



(4) For the purposes of this section, a purchaser is charged 
with notice of an adverse claim if the security has been en- 
dorsed "for collection" or "for surrender" or for some other 
purpose not involving transfer. 



Idem 



(5) For the purposes of this section, a purchaser of a security 
is not charged with notice of an adverse claim by reason only 
of the fact, 

(a) that he has notice that the security is held for a 
third person or is registered in the name of or en- 
dorsed by a fiduciary; 

(b) that he has notice of an act or event that creates a 
right to immediate performance of the principal 
obligation evidenced by the security or that sets a 
date on or after which the security is to be presented 
or surrendered for redemption or exchange, except 
where the purchase is made, 

(i) after one year from the date set for smh 
presentment or surrender for redemption or 
exchange, or 

(ii) after six months after the date set for pay- 
ment of money against presentment or sur- 
render of the security if funds are available 
for payment on that date. New. 



125 



43 

68. — (1) A person by transferring a security to a purchaser warranties 
for value warrants only that, 

(a) his transfer is effective and rightful; 

(b) the security is genuine and has not been materially 
altered ; and 

(c) he knows no fact that might impair the validity 
of the security. 

(2) Where a security is delivered by an intermediary, other Idem 
than a broker, known to be entrusted with the delivery of the 
security on behalf of another, the intermediary by such 
delivery warrants only his own good faith and authority not- 
withstanding that he has purchased or made advances against 
the claim to be collected against the delivery. New. 

69. — (1) Any person guaranteeing a signature of an e n- ^ v n arrantie8 
dorser of a securitv warrants that at the time of signing;, guarantee 

■* ° °' of endorse- 

ment 

(a) the signature was genuine; 

(b) the signer was an appropriate person to endorse; and 

(c) the signer had legal capacity to sign, 

but the guarantor does not otherwise warrant the rightfulness 
of the particular transfer. 

(2) Any person guaranteeing an endorsement of a security Idem 
not only guarantees the signature but also warrants the 
rightfulness of the particular transfer in all respects. 

(3) A guarantee under this section is made to any person g U |ra n Vor° f 
taking or dealing with the security in reliance on the guarantee, 

and the guarantor is liable to such person for any loss resulting 
from breach of the warranties. New. 

70. — (1) Unless the owner of a security has ratified an authorized 
unauthorized endorsement or is otherwise precluded from ^nt**' 
asserting its ineffectiveness, 

(a) he may assert its ineffectiveness against the issuer or 
any purchaser other than a purchaser for value and 
without notice of adverse claims who has in good 
faith received a new, re-issued or reregistered secu- 
rity on registration of the transfer; and 

(b) an issuer who registers the transfer of a security 
upon the unauthorized endorsement is subject to 
liability for improper registration. 

125 



44 



Reclaiming 
possession 



(2) Any person against whom the transfer of a security is 
wrongful or ineffective for any reason, including his incapacity, 
is entitled to reclaim possession of the security or obtain 
possession of any new security evidencing all or part of the 
same rights or have damages. 



Remedies 



(3) The right to reclaim or obtain possession of a security 
may be enforced by specific performance, and its transfer may 
be enjoined pending the litigation. New. 



Security 

as 

evidence 



71. In any action on a security, production of the security 
entitles the holder thereof to recover on it unless the defendant 
establishes a defence or a defect going to the validity of the 
security, in which case the plaintiff has the burden of estab- 
lishing that he is a person against whom the defence or defect 
is ineffective. New. 



Issue and Registration 

Application 72. A guarantor is subject to the obligations and defences 
guarantors of an issuer under sections 63 to 85 to the extent of his guar- 
antee whether or not his obligation is noted on the security. 

New. 

terms* ° f ^«*' — 0) A purchaser for value shall be deemed to have 

notice of the terms of a security stated on the security or made 
part of the security by reference and not conflicting with the 
stated terms, except that he is not deemed to have such notice 
by a reference that goes to the validity of the security not- 
withstanding that the security expressly states that a person 
accepting it admits such notice. 



Defences of 
issuer: 
security 
not general 



(2) Subject to section 75, lack of genuineness of a security 
is a complete defence even against a purchaser for value and 
without notice. 



Other 
defences 



Notice of 
defects 



(3) All other defences of the issuer including non-delivery 
and conditional delivery of the security are ineffective against 
a purchaser for value who has taken without notice of the 
particular defence. New. 

74. After an act or event that creates a right to immediate 
performance of the principal obligation evidenced by the 
security or that sets a date on or after which the security is 
to be presented or surrendered for redemption or exchange, 
a purchaser is charged with notice of any defect in its issue 
or defence of the issuer, 



(a) if the act or event is one requiring the payment of 
money or the delivery of securities or both on 
presentation or surrender of the security and such 



125 



45 

funds or securities are available on the date set for 
payment or exchange and he takes the security more 
than one year after that date; and 

(b) if the act or event is not one to which clause a 
applies and he takes the security more than two 
years after the date set for surrender or presentation 
or the date on which such performance became due. 

New. 

75. An unauthorized signature placed on a security prior ^ u n t " horized 
to or in the course of issue is ineffective except that the signatures 
signature is effective in favour of a purchaser for value and 
without notice of the lack of authority if the signing has been 
done by, 

(a) an authenticating trustee, registrar, transfer agent 
or other person entrusted by the issuer with the 
signing of the security or of similar securities or 
their immediate preparation for signing; or 

(b) an employee of the issuer or of any of the foregoing 
entrusted with responsible handling of the security. 

New. 

76. — (1) Where a security contains the signatures necessary J^^g. 16 * 6 
to its issue or transfer but is incomplete in any other respect, 

(a) any person may complete it by filling in the blanks 
as authorized ; and 

(b) even though the blanks are incorrectly filled in, 
the security as completed is enforceable by a pur- 
chaser who took it for value and without notice of 
such incorrectness. 

(2) A complete security that has been improperly altered, ability 6 " 
even though fraudulently, remains enforceable but only ac- f£jJ ODer 
cording to its original terms. New. alteration 

77.— (1) A person placing his signature upon a security X^chaser 
as authenticating trustee, registrar, transfer agent or other gygj n 6n " 
agent for the issuer warrants to a purchaser for value without 
notice of the particular defect that, 

(a) the security is genuine and in proper form; 

(b) his own participation in the issue of the security is 
within his capacity and within the scope of the 
authorization received by him from the issuer; and 

125 



46 



(c) he has reasonable grounds to believe that the security 
is in the form and within the amount the issuer is 
authorized to issue. 



Idem 



Duties to 
issuer on 
authen- 
tic ation 



(2) Unless otherwise agreed, a person by so placing his 
signature does not assume responsibility for the validity of 
the security in other respects. New. 

78.- (1) Where a person acts as authenticating trustee, 
registrar, transfer agent or other agent for an issuer in the 
registration of transfers of its securities or in the issue of new 
securities or in the cancellation of surrendered securities, 



(a) he is under a duty to the issuer to exercise good faith 
and due diligence in performing his functions; and 

(b) he has, with regard to the particular functions he 
performs, the same obligation to the holder or owner 
of the security and has the same rights and privileges 
as the issuer has in regard to those functions. 

issuer* to (2) Notice to an authenticating trustee, registrar, transfer 

agent or other agent for the issuer is notice to the issuer with 
respect to the functions performed by the agent. New . 



I..C! S 



79. — (1) A lien upon a security in favour of the issuer 
thereof is valid against a purchaser only if the right of the 
issuer to the lien is noted conspicuously on the security. 



otflranlfer 8 ^ Unless noted conspicuously on the security, a restric- 
tion on transfer imposed by the issuer even though otherwise 
lawful is ineffective except against a person with actual 
knowledge of it. New. 



Registra- 
tion of 
transfers 



80. — (1) Subject to subsection 5 of section 148, where 
a security is presented to the issuer with a request to register 
its transfer, the issuer is under a duty to register the transfer 
as requested if, 

(a) the security is endorsed by the appropriate person 
or persons; 

(b) reasonable assurance is given that the endorsements 
are genuine and effective; 

(c) the issuer has no duty to inquire into adverse 
claims or has discharged any such duty; 

(d) any applicable law relating to the collection of taxes 
has been complied with; 



125 



47 

(e) the transfer is not contrary to applicable restrictions 
or is not of a share in respect of which the corpora- 
tion is entitled to a lien and exercises its right to 
refuse registration; and 

(/) the transfer is in fact rightful or is to a purchaser 
for value in good faith and without notice of any 
adverse claim. 

(2) An issuer who is under a duty to register a transfer of a Dela y 
security is also liable to the person presenting it for registra- 
tion or his principal for loss resulting from any unreasonable 
delay in registration or from failure or refusal to register the 
transfer. 

(3) For the purpose of ensuring that each necessarv en- Require- 

, . . 1/Y-1- ' merits for 

dorsement is genuine and effective, the issuer mav require, registration 

J M ' of transfer 

(a) a guarantee of the signature of the person endorsing; 

(b) where the endorsement is by an agent, appropriate 
assurance of authority to sign ; 

(c) where the endorsement is by a fiduciary, appropriate 
evidence of appointment or incumbency; 

(d) where there is more than one fiduciary, reasonable 
assurance that all who are required to sign have 
done so; and 

(e) where the endorsement is by a person not referred 
to in this subsection, assurance appropriate to the 
case corresponding to those set out in this subsection. 

(4) No issuer may require a guarantee of endorsement Idem 
referred to in subsection 2 of section 69 as a condition to 
registration of a transfer. New. 

81. — (1) An issuer to whom a security is presented for P ut *' ? f 

; ' . « issuer to 

registration is under a duty to inquire into adverse claims if, inquire 

(a) a written notice of an adverse claim is received at a 
time and in a manner that affords the issuer a reason- 
able opportunity to act on it before the issuance of 
a new, re-issued or reregistered security and the 
notice identifies the claimant, the registered owner 
and the issue of which the security is a part and 
provides an address for communications directed to 
the claimant; or 

125 



48 

(6) the issuer is charged with notice of an adverse claim 
from an instrument governing or evidencing the 
appointment of a fiduciary required for a purpose 
other than solely for the purpose of evidence as to 
the appointment or incumbency of a fiduciary 
endorser. 

ad°veree to (2) The issuer may discharge any duty of inquiry by any 

claimants reasonable means, including notifying an adverse claimant 
by registered mail at the address furnished by him or, if no 
address is furnished, at his residence or regular place of 
business that the security has been presented for registration 
of transfer by a named person, and that the transfer will be 
registered unless, within thirty days from the date of mailing 
the notification, 

(a) an appropriate injunction or other process issues 
from a court of competent jurisdiction; or 

(b) an indemnity bond, sufficient in the opinion of the 
issuer to protect the issuer and any transfer agent, re- 
gistrar or other agent of the issuer involved from any 
loss that it or they may suffer by complying with the 
adverse claim, 

is filed with the issuer. 

issuer to (^) An issuer is not under a duty to inquire into adverse 

inquire claims except as set out in this section and in particular, 

(a) an issuer registering a security in the name of a 
person who is a fiduciary or who is described as a 
fiduciary is not bound to inquire into the existence, 
extent, or correct description of the fiduciary rela- 
tionship, and thereafter the issuer may assume 
without inquiry that the newly registered owner 
continues to be the fiduciary until the issuer receives 
written notice that the fiduciary is no longer acting 
as such with respect to the particular security; 

(6) an issuer registering a transfer on an endorsement 
by a fiduciary is not bound to inquire whether the 
transfer is made in compliance with the instrument 
governing or evidencing his appointment or with the 
law of the jurisdiction governing the fiduciary 
relationship, including any law requiring the fidu- 
ciary to obtain court approval of the transfer; and 

(c) an issuer is not charged with notice of the contents 
of any court record or file or other recorded or 

125 






49 

unrecorded document even though the document is 
in the issuer's possession and even though the transfer 
is made on the endorsement of a fiduciary to the 
fiduciary himself or to his nominee. New. 

82. The issuer is not liable to the owner or any other Liability 
person suffering loss as a result of the registration of a transfer 

of a security if the registration is made in the proper exercise 
of his duty under section 80. New. 

83. Subject to section 84 where an issuer is liable for Restitution 
registering a transfer of a security to a person not entitled 

to it, the issuer on demand shall deliver a like security to the 
true owner. New. 

84. — (1) In this section, "overissue" means the issue of '°y eri88ue " : 

• • • r i ii- i defined 

securities in excess ot the amount that the issuer has corporate 
power to issue. 

(2) The provisions of sections 63 to 85 that validate a not „ . , 

. r . compellable 

security or compel its issue or re-issue do not apply to the 
extent that validation, issue or re-issue would result in over- 
issue, but, 

(a) if an identical security that does not constitute an 
overissue is reasonably available for purchase, the 
person entitled to issue or validation may compel 
the issuer to purchase and deliver such a security to 
him against surrender of the security, if any, that 
he holds; or 

(b) if a security is not so available for purchase, the 
person entitled to issue or validation may recover 
from the issuer the price he or the last purchaser 
for value paid for it with interest from the date of 
his demand. New. 

85. — (1) Where a security has been lost, apparently Registration 
destroyed or wrongfully taken and the owner fails to notify security 
the issuer of that fact within a reasonable time after he has 
notice of it and the issuer registers a transfer of the security 
before receiving such a notification, the owner is precluded 
from asserting against the issuer any claim for registering 
the transfer under section 83 or any claim to a new security 
under this section. 

(2) Where the owner of a security claims that the security JJSnt B o?" 
has been lost, destroyed or wrongfully taken, the issuer shall security 
issue a new security in place of the original security if the 
owner, 

125 



50 

(a) so requests before the issuer has notice that the 
Motility has been acquired by a purchaser in good 
faith; 

(b) files with the issuer a sufficient indemnity bond; and 

(c) satisfies any other reasonable requirements imposed 
by the issuer. 

or e or?giinai on @) If, after the issue of the new security, a purchaser for 
arter value in good faith of the original security without notice 

repltueinent & ° . J . , 

of any adverse claim presents it for registration of transfer, 
the issuer shall register the transfer unless registration would 
result in overissue, in which event the issuer's liability is 
governed by section 84, and, in addition to any rights on the 
indemnity bond, the issuer may recover the new security 
from the person to whom it was issued or from any person 
taking under him except a purchaser for value in good faith 
without notice of any adverse claim. New. 



SHAREHOLDERS 

Rights 

corporation' ****• — 0) A corporation may treat the person in whose 
registered name a share represented by a share certificate is registered 
holder on the records of the corporation as the person entitled to 

receive notice of and to vote at meetings of the shareholders 
and to receive any payment in respect of the share, whether 
by way of dividend or otherwise. R.S.O. 1960, c. 71, s. 47 (2), 
amended. 

l/y corpora- (^) Where a person is shown on the records of the cor- 
peraonai h poration as holding a share as a personal representative, the 
repreaen- receipt by such person is a valid and binding discharge to the 
corporation for any payment made in respect of the share 
whether notice of any trust has been given to the corporation 
or not, and the corporation is not bound to see to the appli- 
cation of the money paid to him. R.S.O. 1960, c. 71, s. 47 
(1, 3), amended. 

not r a° n (3) Where shares are purchased by a corporation under 

of a own 0,der subsection 1 of section 39 or subsection 2 of section 88 or 
shares accepted by a corporation under subsection 3 of section 38 or 

section 43 and are not thereby cancelled, no person is entitled 
to receive notice of or to vote at meetings of shareholders 
or to receive any payment in respect of the shares whether 
by way of dividend or otherwise until such shares are resold. 
New. 

125 



51 

87. — (1) Subject to subsection 2, a shareholder of a cor- g^PJJ 8611 - 
poration may maintain an action in a representative capacity f c t io , I l 8 °, n 
for himself and all other shareholders of the corporation suing corporation 
for and on behalf of the corporation to enforce any right, 
duty or obligation owed to the corporation under this Act or 
under any other statute or rule of law or equity that could 
be enforced by the corporation itself, or to obtain damages 
for any breach of any such right, duty or obligation. 

(2) An action under subsection 1 shall not be commenced **** 
until the shareholder has obtained an order of the court 
permitting the shareholder to commence the action. 

(3) A shareholder may apply ex parte to the court for an ^pJ^V 011 

order referred to in subsection 2, and, if the court is satisfied to 

, commence 

that, action 

(a) the shareholder was a shareholder of the corporation 
at the time of the transaction or other event giving 
rise to the cause of action ; 

(b) the shareholder has made reasonable efforts to cause 
the corporation to commence or prosecute diligently 
the action on its own behalf; and 

(c) the shareholder is acting in good faith and it is prima 
facie in the interests of the corporation or its share- 
holders that the action be commenced, 



the court may make the order upon such terms as the court 
thinks fit, except that the order shall not require the share- 
holder to give security for costs. 

(4) At any time or from time to time while an action com- ^^ l rder ion 
menced under this section is pending, the plaintiff may apply for interim 
to the court for an order for the payment to the plaintiff by 

the corporation of reasonable interim costs, including soli- 
citor's and counsel fees and disbursements, for which interim 
costs the plaintiff shall be accountable to the corporation if 
the action is dismissed with costs on final disposition at the 
trial or on appeal. 

(5) An action commenced under this section shall be tried judgment 
by the court and its judgment or order in the cause, unless 

the action is dismissed with costs, may include a provision 
that the reasonable costs of the action are payable to the 
plaintiff by the corporation or other defendants taxed as 
between a solicitor and his own client. 

125 



52 



Discon- 
tinuance 
and 

settlement 



(6) An action commenced under this section shall not be 
discontinued, settled or dismissed for want of prosecution 
without the approval of the court and, if the court determines 
that the interests of the shareholders or any class thereof may 
be substantially affected by such discontinuance, settlement 
or dismissal, the court, in its discretion, may direct that notice 
in manner, form and content satisfactory to the court shall 
be given, at the expense of the corporation or any other party 
to the action as the court directs, to the shareholders or class 
thereof whose interests the court determines will be so affected. 
New. 



Rights of 8g. — (1) if a t a meeting of shareholders or of anv class 

shareholders of shareholders of a corporation, 

(a) a resolution passed by the directors authorizing the 
sale or disposition of the undertaking of the cor- 
poration or any part thereof as an entirety or sub- 
stantially as an entirety is confirmed with or without 
variation by the shareholders; or 

(b) a resolution passed by the directors authorizing an 
amendment to the articles to delete therefrom a 
provision restricting the transfer of the shares of 
the corporation or of any class thereof is confirmed 
with or without variation by the shareholders; or 

(c) a resolution approving an agreement for the amal- 
gamation of the corporation with one or more other 
corporations, is confirmed by the shareholders, 

any shareholder who has voted against the confirmation of 
the resolution may within ten days after the date of the 
meeting give notice in writing to the corporation requiring 
it to purchase his shares. 



Corporation 
bound to 
purchase 

shares 



(2) Within ninety days from the date of the completion of 
the sale or disposition or the issue of the certificate of amend- 
ment or amalgamation, as the case may be, the corporation, 
or amalgamated corporation, as the case may be, shall pur- 
chase the shares of every shareholder who has given notice 
under subsection 1, and every such shareholder shall sell his 
shares to the corporation. 



Saving 



(3) The corporation shall not purchase any shares under 
subsection 2 if it is insolvent or if the purchase would render 
it insolvent. 



125 



53 

(4) The price and terms of the purchase of such shares f^ r %° T 
shall be as may be agreed upon by the corporation and the 
dissenting shareholder, but, if they fail to agree, the price 

and terms shall be as determined by the court on the applica- 
tion of the dissenting shareholder. 

(5) Any shares purchased under subsection 2 shall not be^® e ° f 
cancelled by reason only of such purchase and the board of 
directors may, acting in good faith and in the best interests 

of the corporation, resell the shares at such time and price 
and on such terms as it determines, in which case the amount 
received from the sale shall form part of the surplus of the 
corporation. 

(6) If the sale or disposition is not completed or the certi- where 
ficate of amendment or amalgamation is not issued, the rights completed 
of the dissenting shareholder under this section cease and the 
corporation shall not purchase the shares of such shareholder 

under this section. R.S.O. 1960, c. 71, s. 99, amended. 

89.— (1) The holders of not less than one-tenth of the jJ?^J55J£ n 
issued shares of a corporation that carry the right to vote at or . x 

resolution 

meetings of the shareholders may requisition the directors to 
call a meeting of the directors for the purpose of passing any 
by-law or resolution that may properly be passed at a meeting 
of the directors duly called, constituted and held for that 
purpose. 

(2) The requisition shall set out the by-law or resolution, ^^^[^ 
as the case may be, that is required to be passed at the meeting 

and shall be signed by the requisitionists and deposited at the 
head office of the corporation, and may consist of several 
documents in like form, each signed by one or more requisi- 
tionists. 

(3) Upon deposit of the requisition, the directors shall doctors ° f 
forthwith call a meeting of the directors for the purpose of 
passing the by-law or resolution, as the case may be, set out 

in the requisition. 

- 

(4) Where the directors do not within twenty-one days JJ^reho^ders 
from the date of the deposit of the requisition call and hold 

such a meeting and pass such a by-law or resolution and, where 
the by-law or resolution requires confirmation at a general 
meeting of the shareholders, call a general meeting of the 
shareholders for the purpose of confirming the by-law or 
resolution, any of the requisitionists may call a general 
meeting of the shareholders for the purpose of passing such 
by-law or resolution, and the meeting shall be held within 
sixty days from the date of the deposit of the requisition. 

125 



54 

Notice (5) a meeting of the shareholders called under subsection 4 

shall be called as nearly as possible in the same manner as 
meetings of shareholders are called under the by-laws, but, 
if the by-laws provide for more than twenty-one days notice 
of meetings, twenty-one days notice is sufficient for the 
calling of the meeting. 



Validity of 
by-law or 
resolution 



Repayment 
of expenses 



(6) Where a by-law or resolution is passed at a meeting 
of the shareholders called under subsection 4, either as set 
out in the requisition or as varied at the meeting, it is as 
valid and effective as if it had been passed at a meeting of 
the directors duly called, constituted and held for that pur- 
pose and confirmed at a meeting of the shareholders duly 
called, constituted and held for that purpose, and, if the 
resolution or by-law is passed by at least two-thirds of the 
votes cast at the meeting of the shareholders called under 
subsection 4, it shall be conclusively deemed to be a special 
resolution or special by-law, as the case may be, for the 
purposes of this Act. 

(7) The corporation shall, 

(a) reimburse the requisitionists for any reasonable ex- 
penses incurred by them by reason of the failure 
of the directors to act in accordance with subsections 
3 and 4; and 

(b) retain out of any moneys due or to become due, by 
way of fees or other remuneration for their services, 
to such of the directors as were in default, an amount 
equal to the amount the requisitionists were re- 
imbursed, 

unless, at the meeting called under subsection 4, the share- 
holders, by a majority of the votes cast, reject the reimburse- 
ment of the requisitionists. New. 



ofshare- ion **** — (*) ^ n tne re< 4 u ' s »ti° n ' n writing of the holders of 

holders' not less than one-twentieth of the issued shares of a cor- 

reeolutions, . , , • , ■ . • . 

etc. poration that carry the right to vote at the meeting to which 

the requisition relates, the directors shall, 

(a) give to the shareholders entitled to notice of the next 
meeting of shareholders notice of any resolution that 
may properly be moved and is intended to be moved 
at that meeting; or 

(b) circulate to the shareholders entitled to vote at 
the next meeting of shareholders a statement of not 
more than 1,000 words with respect to the matter 



125 






55 

referred to in any proposed resolution or with respect 
to the business to be dealt with at that meeting. 

(2) The notice or statement or both, as the case may be, Notlce 
shall be given or circulated by sending a copy thereof to each 
shareholder entitled thereto in the same manner and at the 
same time as that prescribed by this Act, the articles or the 
by-laws, for the sending of notice of meetings of shareholders. 

(3) Where it is not practicable to send the notice or state- Idem 
ment or both at the same time as the notice of the meeting 

is sent, the notice or statement or both shall be sent as soon 
as practicable thereafter. 

(4) The directors are not bound under this section to give ^ouTsiti on 
notice of any resolution or to circulate any statement unless, etc - 

(a) the requisition, signed by the requisitionists, is 
deposited at the head office of the corporation, 

(i) in the case of a requisition requiring notice 
of a resolution to be given, not less than ten 
days before the meeting, 

(ii) in the case of a requisition requiring a state- 
ment to be circulated, not less than seven 
days before the meeting; and 

(b) there is deposited with the requisition a sum reason- 
ably sufficient to meet the expenses of the cor- 
poration in giving effect thereto. 

(5) The directors are not bound under this section to cir- Sectors 
culate any statement if, on the application of the corporation £ ot bound 
or any other person who claims to be aggrieved, the court is statement 
satisfied that the rights conferred by this section are being 
abused to secure needless publicity for defamatory matter, 

and on any such application the court may order the costs 
of the corporation to be paid in whole or in part by the 
requisitionists notwithstanding that they are not parties to 
the application. 

(6) No corporation or a director, officer or employee thereof u^b?uty n ° 
or person acting on its behalf, except a requisitionist, is liable 

in damages or otherwise by reason only of the giving of a 
notice or the circulation of a statement, or both, in compliance 
with this section. 

125 



56 

deaiVith ^ Notwithstanding anything in the by-laws of the cor- 

requisitioned poration, where the requisitionists have complied with this 

section, the resolution, if any, mentioned in the requisition 

shall be dealt with at the meeting to which the requisition 

relates. 



Repayment 
of expenses 



(8) The corporation shall pay to the requisitionists the 
sum deposited under clause b of subsection 4 unless at the 
meeting to which the requisition relates the shareholders 
by a majority of the votes cast reject the repayment to the 
requisitionists. R.S.O. 1960, c. 71, s. 309 (1-8), amended. 



Liability 
on decrease 
of issued 
capital 



Liabilities 

01. — (1) Where the issued capital of a corporation is 
decreased by an amendment to the articles, each person who 
was a shareholder on the effective date of the amendment is 
individually liable to the creditors of the corporation for the 
debts due on that date to an amount not exceeding the 
amount of the repayment to him. 



Limitation 
of liability 



(2) A person is not liable under subsection 1 unless, 

(a) the corporation has been sued for the debt within 
six months after the effective date of the amendment 
and execution has been returned unsatisfied in whole 
or in part; and 



Idem 



Class 
actions 



(b) he is sued for the debt in a court of competent 
jurisdiction within two years from the effective date 
of the amendment. 

(3) After execution has been so returned, the amount due 
on the execution, not exceeding the amount of the repayment 
to the person, is the amount recoverable against such person. 

(4) Where it is made to appear that there are numerous 
shareholders who may be liable under this section, the court 
of competent jurisdiction may permit an action to be brought 
against one or more of them as representatives of the class 
and, if the plaintiff establishes his claim as creditor, may make 
an order of reference and add as parties in the referee's office 
all such shareholders as may be found, and the referee shall 
determine the amount that each should contribute towards 
the plaintiff's claim and may direct payment of the sums so 
determined. 



Shareholder 
holding 
shares In 
fiduciary 
capacity 



(5) No person holding shares in the capacity of a personal 
representative and registered on the records of the corpora- 
tion as a shareholder and therein described as representing 
in such capacity a named estate, person or trust is personally 



125 



57 

liable under this section, but the estate, person or trust is 
subject to all liabilities imposed by this section. R.S.O. 1960, 
c. 71, s. 36, amended. 

92. A shareholder of a corporation as such is not answer- fohflr's 
able or responsible for any act, default, obligation or liability J^^L 11 ^ 
of the corporation, or for any engagement, claim, payment, 
loss, injury, transaction, matter or thing relating to or con- 
nected with the corporation. R.S.O. 1960, c. 71, s. 55 (1), 
amended. 

Meetings 

93. — (1) Subject to subsections 2 and 3, the meetings of meetings 
the shareholders shall be held at the place where the head 
office of the corporation is located. 

(2) Where the by-laws of the corporation so provide, the Exception 
meetings of the shareholders may be held at any place within 
Ontario. 

(3) Where the articles of the corporation so provide, the Idem 
meetings of the shareholders may be held at one or more 
places outside Ontario specified therein. R.S.O. 1960, c. 71, 

s. 74 (1-3), amended. 

94. — (1) Subject to subsection 2 and in the absence of houfere' 
other provisions in that behalf in the articles or by-laws of the meetings 
corporation, 

(a) notice of the time and place for holding a meeting of 
the shareholders shall be given to each person who 
is entitled to notice of meetings and who, five days 
before the date of mailing of the notice, appears on 
the records of the corporation as a shareholder by 
sending the notice by prepaid mail to his latest 
address as shown on the records of the corporation, 

(i) in the case of a corporation that is offering 
its securities to the public, twenty-one days 
or more before the date of the meeting, and 

(ii) in the case of a corporation that is not offering 
its securities to the public, ten days or more 
before the date of the meeting; 

(6) all questions proposed for the consideration of the 
shareholders at a meeting of shareholders shall be 
determined by the majority of the votes cast, and 
the chairman presiding at the meeting has a second 
or casting vote in case of an equality of votes; 

125 



58 



(c) the chairman presiding at a meeting of shareholders 
may, with the consent of the meeting and subject to 
such conditions as the meeting decides, adjourn the 
meeting from time to time and from place to place; 

(d) the president or, in his absence, a vice-president 
who is a director shall preside as chairman at a 
meeting of shareholders, but, if there is no president 
or such a vice-president or if at a meeting neither 
of them is present within fifteen minutes after the 
time appointed for the holding of the meeting, the 
shareholders present shall choose a person from 
their number to be the chairman; 

(«) unless a poll is demanded, an entry in the minutes 
of a meeting of shareholders to the effect that the 
chairman declared a motion to be carried is admis- 
sible in evidence as prima facie proof of the fact 
without proof of the number or proportion of votes 
recorded in favour of or against the motion. 



Notice 



(2) The articles or by-laws of the corporation shall not 
provide for fewer than, 



(a) twenty-one days notice in the case of a corporation 
that is offering its securities to the public, or 

(ft) ten days notice in the case of a corporation that is 
not offering its securities to the public, 

for meetings of shareholders and shall not provide that 
notice may be given otherwise than individually. 



Poll 



(3) If a poll is demanded, it shall be taken in such manner 
as the by-laws prescribe, and, if the by-laws make no provision 
therefor, then as the chairman directs. R.S.O. 1960, c. 71, 
s. 79, amended. 



Annual 
meetings 



95. A corporation shall hold an annual meeting of its 
shareholders not later than eighteen months after its incor- 
poration and subsequently not more than fifteen months 
after the holding of the last preceding annual meeting. R.S.O. 
1960, c. 71, s. 306. 



c.eneral 
meetings 



96. The directors may at any time call a general meeting 
of the shareholders for the transaction of any business, the 
general nature of which is specified in the notice calling the 
meeting. R.S.O. 1960, c. 71, s. 307. 



125 



59 

97.— (1) The holders of not less than one-twentieth of g£i utoltlon 
the issued shares of a corporation that carry the right to vote ^ ar ^ older8 ' 
at the meeting proposed to be held may requisition the 
directors to call a general meeting of the shareholders for any 
purpose that is connected with the affairs of the corporation 
and that is not inconsistent with this Act. 

(2) The requisition shall state the general nature of the Requisition 
business to be presented at the meeting and shall be signed 

by the requisitionists and deposited at the head office of the 
corporation and may consist of several documents in like 
form, each signed by one or more requisitionists. 

(3) Upon deposit of the requisition, the directors shall Erectors 
forthwith call a general meeting of the shareholders for the meeting 
transaction of the business stated in the requisition. 

(4) If the directors do not within twenty-one days from the requisl- 
date of the deposit of the requisition call and hold the meeting, ^ay^caii 
any of the requisitionists may call the meeting, which shall meeting 
be held within sixty days from the date of the deposit of the 
requisition. 

(5) A meeting called under this section shall be called ^s^| e lm * g of 
nearly as possible in the same manner as meetings of share- 
holders are called under the by-laws, but, if the by-laws 
provide for more than twenty-one days notice of meetings, 
twenty-one days notice is sufficient for the calling of the 
meeting. 

(6) The corporation shall, oYTxpe^es 

(a) reimburse the requisitionists for any reasonable ex- 
penses incurred by them by reason of the action 
taken by them under subsection 4; and 

(b) retain out of any moneys due or to become due, 
by way of fees or other remuneration for their 
services, to such of the directors as were in default, 
an amount equal to the amount the requisitionists 
were reimbursed, 

unless, at the meeting, the shareholders by a majority of 
the votes cast reject the reimbursement of the requisitionists. 
R.S.O. 1960, c. 71, s. 308, amended. 

98. Notwithstanding section 97, upon application by a J^®™/^^ 
shareholder of a corporation, the court, if satisfied that the 
application is made in good faith and that it is prima facie 
in the interests of the corporation or its shareholders that the 

125 



60 



meeting be held on requisition, may make an order, upon 
such terms as to security for the costs of holding the meeting 
or otherwise as to the court seem fit, requiring the directors 
to call a general meeting of the shareholders for any purpose 
that is connected with the affairs of the corporation and that 
is not inconsistent with this Act. New. 



Court may 
direoti 
method of 
holding 
meetings 



99. If for any reason it is impracticable to call a meeting 
of shareholders of a corporation in any manner in which 
meetings of shareholders may be called or to conduct the 
meeting in the manner prescribed by this Act, the articles or 
by-laws, the court may, on the application of a director or a 
shareholder who would be entitled to vote at the meeting, 
order a meeting to be called, held and conducted in such 
manner as the court thinks fit, and any meeting called, held 
and conducted in accordance with the order shall for all 
purposes be deemed to be a meeting of shareholders of the 
corporation duly called, held and conducted. R.S.O. 1960, 
c. 71, s. 310, amended. 



Voting 
riffhti 



100. The holder of each common share and, unless the 
articles condition, restrict, limit or prohibit the right to vote, 
the holder of each special share is entitled to one vote for each 
share held by him at all meetings of the shareholders of the 
corporation, or such greater number of votes for each share 
respecting such matters as the articles provide. R.S.O. 1960, 
c. 71, s. 29, amended. 



Personal 
represen- 
tative 



101. — (1) Where a person holds shares as a personal 
representative, that person or his proxy is the person entitled 
to vote at all meetings of shareholders in respect of the shares 
so held by him. 



Mortgagee. 
etc 



(2) Where a person mortgages or hypothecates his shares, 
that person or his proxy is the person entitled to vote at all 
meetings of shareholders in respect of such shares unless, in 
the instrument creating the mortgage or hypothec, he has 
expressly empowered the person holding the mortgage or 
hypothec to vote in respect of such shares, in which case, 
subject to the articles, such holder or his proxy is the person 
entitled to vote in respect of the shares. R.S.O. 1960, c. 71, 
s. 77, amended. 



Joint 

shareholders 



102. Where two or more persons hold the same share or 
shares jointly, any one of such persons present at a meeting 
of shareholders has the right in the absence of the other or 
others to vote in respect of such share or shares, but, if more 
than one of such persons are present or represented by proxy 
and vote, they shall vote together as one on the share or shares 
jointly held by them. R.S.O. 1960, c. 71, s. 78, amended. 



125 



61 
103. In this section and in sections 104 to 109, tatum"*" 

(a) "form of proxy" means a written or printed form 
that, upon completion and execution by or on behalf 
of a shareholder, becomes a proxy; 

(b) "information circular" means the circular referred 
to in subsection 1 of section 106; 

(c) "proxy" means a completed and executed form of 
proxy by means of which a shareholder has appointed 
a person as his nominee to attend and act for him 
and on his behalf at a meeting of shareholders; 

(d) "solicit" and "solicitation" include, 

(i) any request for a proxy whether or not accom- 
panied by or included in a form of proxy, 

(ii) any request to execute or not to execute a 
form of proxy or to revoke a proxy, 

(iii) the sending or delivery of a form of proxy or 
other communication to a shareholder under 
circumstances reasonably calculated to result 
in the procurement, withholding or revocation 
of a proxy, and 

(iv) the sending or delivery of a form of proxy to 
a shareholder under section 105, 

but do not include, 

(v) the sending or delivery of a form of proxy to 
a shareholder in response to an unsolicited 
request made by him or on his behalf, or 

(vi) the performance by any person of ministerial 
acts or professional services on behalf of a 
person soliciting a proxy. 1966, c. 28, s. 4, 
part. 

104. — (1) Every shareholder, including a shareholder that Proxies 
is a body corporate, entitled to vote at a meeting of share- 
holders may by means of a proxy appoint a person, who need 
not be a shareholder, as his nominee to attend and act at the 
meeting in the manner, to the extent and with the power 
conferred by the proxy. 

125 



62 

Execution (2) A proxy shall be executed by the shareholder or his 

termination attorney authorized in writing or, if the shareholder is a body 

corporate, under its corporate seal or by an officer or attorney 

thereof duly authorized, and ceases to be valid one year from 

its date. 



Contents 



(3) In addition to the requirements, where applicable, of 
section 108, a proxy shall contain the date thereof and the 
appointment and name of the nominee and may contain a 
revocation of a former proxy and restrictions, limitations or 
instructions as to the manner in which the shares in respect of 
which the proxy is given are to be voted or that may be 
necessary to comply with the laws of any jurisdiction in which 
the shares of the corporation are listed on a stock exchange or 
a restriction or limitation as to the number of shares in respect 
of which the proxy is given. 



Revocation (4) J n addition to revocation in any other manner per- 
mitted by law, a proxy may be revoked by an instrument in 
writing executed by the shareholder or by his attorney 
authorized in writing or, if the shareholder is a body cor- 
porate, under its corporate seal or by an officer or attorney 
thereof duly authorized, and deposited either at the head 
office of the corporation at any time up to and including the 
last business day preceding the day of the meeting, or any 
adjournment thereof, at which the proxy is to be used or with 
the chairman of such meeting on the day of the meeting, or 
adjournment thereof, and upon either of such deposits the 
proxy is revoked. 



Time limit 
for deposit 



(5) The directors may by resolution fix a time not exceeding 
forty-eight hours, excluding Saturdays and holidays, pre- 
ceding any meeting or adjourned meeting of shareholders 
before which time proxies to be used at that meeting must be 
deposited with the corporation or an agent thereof, and any 
period of time so fixed shall be specified in the notice calling 
the meeting or in the information circular relating thereto. 
1966, c. 28, s. 4, part. 



Mandatory 
solicitation 
of proxies 



105. Subject to section 107, the management of a cor- 
poration shall, concurrently with or prior to giving notice of a 
meeting of shareholders of the corporation, send by prepaid 
mail to each shareholder who is entitled to vote at such meet- 
ing at his latest address as shown on the records of the cor- 
poration a form of proxy that complies with section 108 
for use at the meeting. 1966, c. 28, s. 4, part, amended. 



ci n rc°u r iar* tion 10 **' — ^ Subject to subsection 2 and section 107, no 
person shall solicit proxies unless, 



125 



63 

(a) in the case of a solicitation by or on behalf of the 
management of a corporation, an information circu- 
lar, either as an appendix to or as a separate docu- 
ment accompanying the notice of the meeting, is 
sent by prepaid mail to each shareholder of the 
corporation whose proxy is solicited at his latest 
address as shown on the records of the corporation; 
or 

(b) in the case of any other solicitation, the person 
making the solicitation, concurrently with or prior 
thereto, delivers or sends an information circular to 
each shareholder of the corporation whose proxy is 
solicited. 

(2) Subsection 1 does not apply to, where 

rr J subs. 1 

does not 

(a) any solicitation, otherwise than by or on behalf of appy 
the management of a corporation, where the total 
number of shareholders whose proxies are solicited 

is not more than fifteen ; 

(b) any solicitation by a person made pursuant to 

section 79 of The Securities Act, 1966; and 1966, c. 142 

(c) any solicitation by a person in respect of shares of 
which he is the beneficial owner. 

(3) Section 242 applies to a solicitation that is subject to ^H+V 
this section by means ot a torm ot proxy, information circular an offence 
or other communication. 1966, c. 28, s. 4, part, amended. 

107. — (1) Section 105 and subsection 1 of section 106 Wh «™ 
apply only to a corporation that is offering its securities to 106 («' 
the public. apply 

(2) Upon the application of any interested person, the Exemption 
Commission may, if satisfied that in the circumstances of the 
particular case there is adequate justification for so doing, 
make an order, on such terms and conditions as seem to it 
just and expedient, exempting, in whole or in part, any 
person from the requirements of section 105 or from the 
requirements of subsection 1 of section 106. 1966, c. 28, s. 4, 
part, amended. 

108. Where section 105 or 106 applies to a solicitation of Special 

r form of 

proxies, proxy 

(a) the form of proxy sent to a shareholder by a person 
soliciting proxies, 

125 



64 

(i) shall indicate in bold-face type or other con- 
spicuous manner whether or not the proxy is 
solicited by or on behalf of the management 
of the corporation, and 

(ii) shall provide a specifically designated blank 
space for dating the form of proxy ; 

(b) the form of proxy shall provide means whereby the 
person whose proxy is solicited is afforded an oppor- 
tunity to specify that the shares registered in his 
name shall be voted by the nominee in favour of or 
against, in accordance with such person's choice, 
each matter or group of related matters identified 
therein or in the information circular as intended to 
be acted upon, other than the election of directors 
and the appointment of auditors, but a proxy may 
confer discretionary authority with respect to matters 
as to which a choice is not so specified by such means 
if the form of proxy or the information circular 
states in bold-face type or other conspicuous manner 
how it is intended to vote the shares represented by 
the proxy in each such case; 

(c) a proxy may confer discretionary authority with 
respect to, 

(i) amendments or variations to matters iden- 
tified in the notice of meeting, or 

(ii) other matters that may properly come before 
the meeting, 

but only if, 

(iii) the person by whom or on whose behalf the 
solicitation is made is not aware a reasonable 
time prior to the time the solicitation is made 
that any such amendments, variations or 
other matters are to be presented for action 
at the meeting, and 

(iv) a specific statement is made in the informa- 
tion circular or in the form of proxy that the 
proxy is conferring such discretionary author- 
ity; 

(d) no proxy shall confer authority, 

(i) to vote for the election of any person as a 
director of the corporation unless a bona fide 
proposed nominee for such election is named 
in the information circular, or 



125 






65 

(ii) to vote at any meeting other than the meeting 
specified in the notice of meeting or any 
adjournment thereof; 

(e) the information circular or form of proxy shall state 
that the shares represented by the proxy will be 
voted and that, where the person whose proxy is 
solicited specifies a choice with respect to any matter 
to be acted upon under clause b, the shares shall, 
subject to section 109, be voted in accordance with 
the specifications so made; 

(/) the information circular or form of proxy shall 
indicate in bold-face type or other conspicuous 
manner that the shareholder has the right to appoint 
a person to attend and act for him and on his behalf 
at the meeting other than the person, if any, desig- 
nated in the form of proxy, and shall contain instruc- 
tions as to the manner in which the shareholder may 
exercise such right; and 

(g) if the form of proxy contains a designation of a 
named person as nominee, means shall be provided 
whereby the shareholder may designate in a form of 
proxy some other person as his nominee for the 
purpose of subsection 1 of section 104. 1966, c. 28, 
s. 4, part, amended. 

109. If the aggregate number of shares represented at ^here 
a meeting by proxies required to be voted for or against a ballot not 
particular matter or group of matters carries, to the knowledge 
of the chairman of the meeting, less than 5 per cent of the 
voting rights attached to the shares entitled to vote and 
represented at the meeting, the chairman of the meeting has 
the right not to conduct a vote by way of ballot on any such 
matter or group of matters unless a poll is demanded at the 
meeting. 1966, c. 28, s. 4, part. 

DIRECTORS AND OFFICERS 

Directors 

110. — (1) Every corporation shall have a board of direc- Sectors 
tors howsoever designated. 

(2) The board of directors shall consist of a fixed number potion 
of directors, 

(a) in the case of a corporation having fifteen or fewer 
shareholders, of not fewer than two; and 

125 



66 



First 
directors 



(6) in the case of a corporation having more than fifteen 
shareholders, of not fewer than three. R.S.O. 1960, 
c. 71, s. 296 (1,2), amended. 

111. — (1) Each of the persons named as first directors 
in the articles of a corporation is a director of the corporation 
until replaced by a person duly elected or appointed in his 
stead. 



Idem 



(2) The first directors of a corporation have all the powers 
and duties and are subject to all the liabilities of directors. 
R.S.O. 1960, c. 71, s. 297 (1,2), amended. 



number or 112. — (1) A corporation may by special by-law increase 
directors or) subject to subsection 2 of section 110, decrease the number 
of its directors as set out in its articles. 



Filing of 
by-law 



(2) The corporation shall file with the Minister a certified 
copy of the by-law within ten days after the by-law has been 
confirmed by the shareholders. 



Validity 



Age of 
directors 



Sualiflca- 
ons 



(3) Failure to comply with subsection 2 does not affect 
the validity of the by-law. R.S.O. 1960, c. 71, s. 298, amended. 

113. — (1) No person under twenty-one years of age shall 
be a director of a corporation. 

(2) No undischarged bankrupt or mentally incompetent 
person shall be a director, and, if a director becomes a bank- 
rupt or a mentally incompetent person, he thereupon ceases 
to be a director. R.S.O. 1960, c. 71, s. 299 (4, 5), amended. 



Consent 



(3) A person who is elected or appointed a director is not a 
director unless, 



(a) he was present at the meeting when he was elected 
or appointed and did not refuse at the meeting to 
act as director; 

(b) where he was not present at the meeting when he 
was elected or appointed, he consented to act as 
director in writing before his election or appointment 
or within ten days thereafter. 



Ider:. 



(4) For the purposes of subsection 3, a person who is 
elected or appointed as director and refuses under clause a 
of subsection 3 or fails to consent under clause b of subsection 3 
shall be deemed not to have been elected or appointed as a 
director. New. 



125 



67 

114. — (1) The directors shall be elected by the share- ^ 1 ® e c c t t i °^ of 
holders in general meeting, and the election shall be by ballot 
or in such other manner as the by-laws of the corporation 
prescribe. 

(2) Unless the articles otherwise provide, the election of Idem 
directors shall take place yearly, or at such other interval not 
exceeding five years as is provided by the articles and all the 
directors then in office shall retire, but, if qualified, are eligible 

for re-election. R.S.O. I960, c. 71, s. 300 (1, 2), amended. 

(3) If an election of directors is not held within the pre-ance'in" 
scribed period, the directors continue in office until their offlce 
successors are elected. 

(4) The articles may provide for the election and retire- c^dTrectors 
ment of directors in rotation, but in that case no director 

shall be elected for a term of more than five years and at least 
three directors shall retire from office in each vear. R.S.O. 
1960, c. 71, s. 300 (3, 4), amended. 

115. The articles or a special by-law of a corporation voting 1 for' 6 
may provide that, directors 

(a) every shareholder entitled to vote at an election of 
directors has the right to cast thereat a number of 
votes equal to the number of votes attached to the 
shares held by him multiplied by the number of di- 
rectors to be elected, and he may cast all such votes in 
favour of one candidate or distribute them among the 
candidates in such manner as he sees fit; and 

(6) where he has voted for more than one candidate 
without specifying the distribution of his votes 
among such candidates, he shall be deemed to have 
divided his votes equally among the candidates for 
whom he voted. R.S.O. 1960, c. 71, s. 64 (1), 
amended. 

116. — (1) Subject to subsection 2, where there is a quorum Vacancies 
of directors in office and a vacancy occurs in the board, the 
directors remaining in office may appoint a qualified person 
to fill the vacancy for the remainder of the term. R.S.O. I960, 
c. 71, s. 301 (1, 2), amended. 

(2) Where part of the board of directors has been elected efected^y™ 
by the holders of the shares of a special class of shares as ** 88 ?' 

.,,. , , , ... shareholders 

provided in clause d of subsection 1 of section 27, and a 
vacancy occurs in that part of the board, the remaining 
directors or director, if any, in that part of the board may- 
US 



68 



Idem, 
where no 
quorum 



auorum or 
rectors 



Place of 
meetings 



appoint a qualified person to fill the vacancy for the remainder 
of the term, and, if there is no such remaining director, the 
holders of that class of shares at a general meeting thereof 
that may be called by any holder of shares of that class may 
elect a qualified person to fill the vacancy for the remainder 
of the term. New. 

(3) When there is not a quorum of directors in office, the 
director or directors then in office shall forthwith call a 
general meeting of the shareholders to fill the vacancies, and, 
in default or if there are no directors then in office, the meet- 
ing may be called bv any shareholder. R.S.O. 1960, c. 71, 
s. 301 (3). 

117. Unless the articles or by-laws otherwise provide, a 
majority of the board of directors constitutes a quorum, but 
in no case shall a quorum be less than two-fifths of the board 
of directors or two directors, whichever is the greater. R.S.O. 
1960, c. 71, s. 301 (1), amended. 

118. — (1) Subject to subsection 2, the meetings of the 
board of directors and the executive committee shall be held 
at the place where the head office of the corporation is located. 



Exception 



Meetings 
of directors 



Notice 



Duties 



Conduct of 
business 



(2) Where the by-laws of the corporation so provide, the 
meetings of the board of directors and of the executive com- 
mittee may be held at any place within or outside Ontario. 
R.S.O. 1960, c. 71, s. 74 (1, 2), amended. 

119. — (1) Notwithstanding any provision to the contrary 
in the articles or by-laws of a corporation, a quorum of the 
directors may, at any time, call a meeting of the directors for 
the transaction of any business the general nature of which is 
specified in the notice calling the meeting. 

(2) In the absence of any other provision in that behalf in 
the by-laws of the corporation, notice of the time and place 
for the holding of the meeting called under subsection 1 
shall be given to every director of the corporation by sending 
the notice by prepaid mail ten days or more before the date 
of the meeting to his latest address as shown on the records 
of the corporation. New. 

120. — (1) The board of directors shall manage or supervise 
the management of the affairs and business of the corporation 
and may make or cause to be made for the corporation any 
contract that the corporation may make. 

(2) Subject to section 121 and subsection 1 of section 23, 
no business of a corporation shall be transacted by its directors 
except at a meeting of directors at which a quorum of the board 
is present. 



125 






69 

(3) Where there is a vacancy or vacancies in the board of Idem 
directors, the remaining directors may exercise all the powers 
of the board so long as a quorum of the board remains in 
office. R.S.O. 1960, c. 71, s. 296, amended. 

121. — (1) Where the number of directors of a corporation fommluee 
is more than six, and if authorized by a special by-law, the 
directors may elect from among their number an executive 
committee consisting of not fewer than three and may dele- 
gate to the executive committee any powers of the board of 
directors, subject to the restrictions, if any, contained in the 
by-law or imposed from time to time by the directors. 

(2) An executive committee may fix its quorum, which shall Q uorum 
be not less than a majority of its members. R.S.O. 1960, 
c. 71, s. 69 (1, 2), amended. 

122. — (1) Every director of a corporation who has, di- ^directors 
rectly or indirectly, any interest in any contract or transaction pi interests 
to which the corporation is or is to be a party, other than a 
contract or transaction limited solely to his remuneration as 
a director, officer or employee, shall declare his interest in 
such contract or transaction at a meeting of the directors of 
the corporation and shall at that time disclose the nature 
and extent of such interest including, as to any contract or 
transaction involving the purchase and sale of assets by or 
to the corporation or a subsidiary thereof, the cost of the 
assets to the purchaser and the cost thereof to the seller if 
acquired by the seller within five years before the date of 
the contract or transaction, to the extent to which such 
information is within his knowledge or control. 

(2) Subsection 1 does not require the disclosure of any*£ te £ e8t 
interest in any contract or transaction unless the interest material 
and the contract or transaction are both material. 

(3) The declaration required by this section shall be made\Y h i en * 
at the meeting of the directors at which the contract or o f interest 
transaction is first considered or, if the director is not at the 

date of the meeting interested in the contract or transaction, 
at the next meeting of the directors held after he becomes so 
interested, and, where the director becomes interested in a 
contract or transaction after it is entered into, the declaration 
shall be made at the first meeting of the directors held after 
he becomes so interested. 

(4) If a director has made a declaration and disclosure of gJJ^f^f 
his interest in a contract or transaction in compliance with this 
section and has not voted in respect of the contract or trans- 
action at the meeting of the directors of the corporation, the 

125 



70 

director, if he is acting honestly and in good faith, is not by 
reason only of his holding the office of director accountable 
to the corporation or to its shareholders for any profit or gain 
realized from the contract or transaction, and the contract or 
transaction, if it is in the best interests of the corporation, is 
not voidable by reason only of the director's interest therein. 

connrma- (5) Notwithstanding anything in this section, a director, 

shareholders if he is acting honestly and in good faith, is not accountable 
to the corporation or to its shareholders for any profit or gain 
realized from any such contract or transaction by reason only 
of his holding the office of director, and the contract or trans- 
action, if it is in the best interests of the corporation, is not 
by reason only of the director's interest therein voidable, 

(a) if the contract or transaction is confirmed or ap- 
proved by at least two-thirds of the votes cast at a 
general meeting of the shareholders duly called for 
that purpose; and 

(b) if the nature and extent of the director's interest 
in the contract or transaction are declared and dis- 
closed in reasonable detail in the notice calling the 
meeting or in the information circular required by 
section 106. R.S.O. 1960, c. 71, s. 70, amended. 

123. — (1) Where any shares of a corporation are acquired 
by it by redemption, purchase or acceptance for surrender 
in contravention of this Act or the articles, the directors who 
voted in favour of or consented to the resolution authorizing 
the redemption, purchase or acceptance for surrender are 
jointly and severally liable to the corporation to the extent 
of the amount paid for the acquisition of the shares. 



Liability 
of directors 
re purchase 
of shares 



to P court tion (2) Where any shares of a corporation are acquired by it 
by redemption, purchase or surrender in contravention of 
this Act or the articles, 

(a) any shareholder of the corporation ; or 

(b) where the acquisition is in contravention of sub- 
section 1 of section 38, subsection 3 of section 39 or 
section 88, any creditor of the corporation who was 
a creditor at the time of the acquisition, 

may apply to the court within two years of the acquisition, 
and the court may, if it considers it to be just and equitable 
under the circumstances, make an order making any share- 
holder whose shares were acquired liable to the corporation, 
jointly and severally with the directors, to the extent of the 
amount paid to him for his shares. New. 



125 



71 
124. Where any dividend is declared and paid in contra- ^ directors 

vention of section 141 or 142, re dividends 

(a) the directors who voted in favour of or consented to 
the resolution authorizing the declaration of the 
dividend are jointly and severally liable to the 
corporation to the extent of the amount of the 
dividend so declared and paid or such part thereof 
as renders the corporation insolvent or diminishes 
its capital ; and 

(b) any shareholder of the corporation or any creditor 
of the corporation who was a creditor at the time of 
the declaration of the dividend may apply to the 
court within two years of the declaration, and the 
court may, if it considers it to be just and equitable 
under the circumstances, make an order making any 
shareholder to whom the dividend is paid jointly 
and severally liable with the directors to the extent 
of the amount of the dividend paid to him. R.S.O. 
1960, c. 71, s. 61 (3), part, amended. 

125. — (1) A director who was present at a meeting of the consent o^f 
board of directors or an executive committee thereof when, meeting 

(a) the redemption, purchase or acceptance for surrender 
of shares of the corporation is authorized; 

(b) the declaration and payment of a dividend is author- 
rized ; or 

(c) a loan or guarantee mentioned in section 133 is 
authorized, 

shall be deemed to have consented thereto unless, 

(d) his dissent is entered in the minutes of the meeting; 

(e) he files his written dissent with the person acting as 
secretary of the meeting before its adjournment; or 

(/) he delivers or sends his dissent by registered mail 
to the corporation immediately after the adjourn- 
ment of the meeting, 

and within seven days after complying with clause d, e or / 
he sends a copy of his dissent by registered mail to the 
Minister. 

(2) A director who voted in favour of a matter referred to Idem 
in subsection 1 is not entitled to dissent under subsection 1. 

125 



72 



Consent of 
director 
not at 
meeting 



Exception 
to liability 



Liability 

not 

excluded 



(3) A director who was not present at a meeting of the 
board of directors or any executive committee thereof when, 

(c) the redemption, purchase or acceptance for surrender 
of shares of the corporation is authorized ; 

(6) the declaration and payment of a dividend is author- 
ized ; or 

(c) a loan or guarantee mentioned in section 133 is 
authorized, 

shall be deemed to have consented thereto unless, 

(d) he delivers or sends to the corporation by registered 
mail his dissent; or 

(e) he causes his dissent to be filed with the minutes 
of the meeting, 

within seven days after he becomes aware of the authorization 
referred to in clause a, b or c and unless, within seven days 
after complying with clause d or e, he sends a copy of his 
dissent by registered mail to the Minister. 

(4) A director is not liable under section 123, 124 or 133 
if, in the circumstances, he discharged his duty to the cor- 
poration in accordance with section 131. 

(5) The liability imposed by this Act upon a director is in 
addition to any other liability that is by law imposed upon 
him. New. 



dSectow ° f 126.— (1) The directors of a corporation are jointly and 
for wages severally liable to the employees of the corporation to whom 
c*'23o' 196 °' The Master and Servant Act applies for all debts that become 
due while they are directors for services performed for the 
corporation, not exceeding six months wages, and for the 
vacation pay accrued for not more than twelve months under 
r.sx>. i960. The Hours of Work and Vacations with Pay Act and the regula- 
tions thereunder or under any collective agreement made by 
the corporation. 



Limitation 
of liability 



(2) A director is liable under subsection 1, 

(a) only if, 

(i) the corporation has been sued for the debt 
within six months after it has become due 
and execution against the corporation has 
been returned unsatisfied in whole or in part, 
or 



125 



73 

(ii) the corporation has within that period gone 
into liquidation or has been ordered to be 
wound up or has made an authorized assign- 
ment under the Bankruptcy Act (Canada), ^f4 C- 1952, 
or a receiving order under the Bankruptcy 
Act (Canada) has been made against it and, 
in any such case, the claim for the debt has 
been proved; and 

(b) he is sued for the debt while he is a director or 
within two years after he ceases to be a director. 

(3) After execution has been so returned against the cor- Idem 
poration, the amount recoverable against the director is the 
amount remaining unsatisfied on the execution. 

(4) If the claim for the debt has been proved in liquidation dYrlctor *" 
or winding-up proceedings or under the Bankruptcy -^^eVbt 3 
(Canada), a director who pays the debt is entitled to any 
preference that the creditor paid would have been entitled to 

or, if a judgment has been recovered for the debt, the director 
is entitled to an assignment of the judgment. R.S.O. 1960, 
c. 71, s. 73 (1-4), amended. 

127. The shareholders may, by resolution passed by a ^directors 
majority of the votes cast at a general meeting duly called for 
that purpose, remove any director before the expiration of 
his term of office and may, by a majority of the votes cast at 
the meeting, elect any person in his stead for the remainder 
of his term, but, where the directors have been elected by the 
method of voting provided by section 115, no director shall be 
removed from office where the votes cast against the resolution 
for his removal would, if cumulatively voted at an election 
of the full board of directors, be sufficient to elect one or 
more directors. R.S.O. I960, c. 71, s. 66 (1), amended. 

Officers 

128. — (1) A corporation shall have a president and a ° fficer8 
secretary and such other officers as are provided for by 
by-law or by resolution of the directors. 

(2) In the absence of other provisions in that behalf in the and Ctlon 
articles or by-laws, the directors, m P en°t int 

(a) shall elect the president from among themselves; 

(b) shall appoint or elect the secretary; and 

(c) may appoint or elect one or more vice-presidents or 
other officers. R.S.O. 1960, c. 71, s. 302 (1, 2), 
amended. 

125 



74 



Chairman 
of the 
board 



Sualiflea- 
OQ8 of 
chairman 
and 
president 



139. A corporation may by special by-law, 

(a) provide for the election or appointment by the 
directors of a chairman of the board; 

(b) define the duties of the chairman; 

(c) assign to the chairman all or any of the duties of the 
president or of any other officer of the corporation, 

and, if the by-law assigns to the chairman any of the duties 
of the president, it shall also fix and prescribe the duties of 
the president. R.S.O. 1960, c. 71, s. 303, amended. 

130. Unless the articles or by-laws otherwise provide, 
no person shall be the president or chairman of the board of a 
corporation unless he is a director of the corporation but no 
other officer need be a director. R.S.O. 1960, c. 71, s. 304 (1), 
amended. 



Standards 
of care, 
etc.. of 
directors 



Validity of 
acts of 
directors 
and officers 



Liability 
of directors 
and officers 



Indemnifi- 
cation of 
directors 



General 

131. Every director and officer of a corporation shall 
exercise the powers and discharge the duties of his office 
honestly, in good faith and in the best interests of the cor- 
poration, and in connection therewith shall exercise the 
degree of care, diligence and skill that a reasonably prudent 
director or officer would exercise in comparable circumstances. 
New. 

132. An act done by a director or by an officer is not 
invalid by reason only of any defect that is thereafter dis- 
covered in his appointment, election or qualification. R.S.O. 
1960, c. 71, s. 305, amended. 

133. Those directors and officers of a corporation who 
authorize or consent to a loan or guarantee of a loan in 
contravention of section 17 are, until repayment of the loan, 
jointly and severally liable to the corporation and to its 
creditors for the debts of the corporation then existing or 
thereafter contracted to the amount of the loan with interest 
at the rate of 5 per cent a year. R.S.O. 1960, c. 71, s. 23 (4), 
amended. 

134. — (1) Subject to subsection 2, the by-laws of a cor- 
poration may provide that every director and officer of the 
corporation and his heirs, executors, administrators and other 
legal personal representatives may from time to time be 
indemnified and saved harmless by the corporation from and 
against, 

(a) all costs, charges and expenses that he sustains or 
incurs in respect of any action, suit or proceeding 



125 






75 

that is proposed or commenced against him for or in 
respect of anything done or permitted by him in 
respect of the execution of the duties of his office; and 

(b) all other costs, charges and expenses that he sustains 
or incurs in respect of the affairs of the corporation. 
R.S.O. 1960, c. 71, s. 72, amended. 

(2) No director or officer of a corporation shall be indem- Idem 
nified by the corporation in respect of any costs, charges or 
expenses that he sustains or incurs in or about any action, 
suit or other proceeding as a result of which he is adjudged 
to be in breach of any duty or responsibility imposed upon 
him under this Act or under any other statute or rule of law 
or equity unless, in an action brought against him in his capa- 
city as director or officer, he has achieved complete or sub- 
stantial success as a defendant. New. 

INSIDERS 

135. — (1) A person who becomes an insider of a corpora- ^report 
tion shall, within ten days after the end of the month in which J 101 ^ 1 ! 8 ^ 
he becomes an insider, file with the Commission a report, as 
of the day on which he became an insider, of his direct or 
indirect beneficial ownership of or control or direction over 
securities of the corporation. 

(2) If a person who is an insider of a corporation but has Idem 
no direct or indirect beneficial ownership of or control or 
direction over securities of the corporation acquires direct 

or indirect beneficial ownership of or control or direction 
over any such securities, he shall, within ten days after the 
end of the month in which he acquired such direct or indirect 
beneficial ownership or such control or direction, file with 
the Commission a report, as of the date of such acquisition, 
of his direct or indirect beneficial ownership of or control or 
direction over securities of the corporation. 

(3) A person who has filed or is required to file a report f^p^ts U of nt 
under subsection 1 or 2 and whose direct or indirect beneficial changes 
ownership of or control or direction over securities of the 
corporation changes from that shown or required to be shown 

in such report or in the last report filed by him under this 
section shall, within ten days following the end of the month 
in which such change takes place, provided that he was an 
insider of the corporation at any time during such month, 
file with the Commission a report of his direct or indirect 
beneficial ownership of or control or direction over securities 
of the corporation at the end of such month and the change 
or changes therein that occurred during the month and giving 
such details of each transaction as may be required by the 
regulations. 1966, c. 28, s. 3, part, amended. 

125 



76 



Reports 
may be 
UMptottd 



Publication 
•f infor- 
mation 
contained 
in reports 



136. — (1) All reports filed with the Commission under 
section 135 shall, upon payment of the prescribed fee, be open 
to public inspection at the offices of the Commission during 
normal business hours of the Commission, and any person 
may make extracts from such reports. 

(2) The Commission shall summarize in or as part of a 
monthly periodical for distribution to the public on payment 
of the prescribed fee therefor the information contained in 
the reports so filed. 1966, c. 28, s. 3, part. 



Order 

requiring 

report 



Liability 
of insiders 



Limitation 
period 



137. Whenever it appears to the Commission that any 
person has failed to comply with section 135, it may in its 
discretion apply to the court, which may make an order 
requiring such person to comply therewith. 1966, c. 28, s. 3, 
part. 

138. — (1) Every insider of a corporation or associate or 
affiliate of such insider who, in connection with a transaction 
relating to the securities of the corporation, makes use of any 
specific confidential information for his own benefit or advan- 
tage that, if generally known, might reasonably be expected 
to affect materially the value of such securities, is liable to 
compensate any person for any direct loss suffered by such 
person as a result of the transaction, unless the information 
was known or ought reasonably to have been known to such 
person at the time of the transaction, and is also accountable 
to the corporation for any direct benefit or advantage received 
or receivable by such insider, associate or affiliate, as the 
case may be, as a result of the transaction. 

(2) An action to enforce any right created by subsection 1 
may be commenced only within two years after the date of 
completion of the transaction that gave rise to the cause of 
action. 1966, c. 28, s. 3, part. 



Order to 

commence 

action 



139. — (1) Upon application by any person who was at the 
time of a transaction referred to in subsection 1 of section 138 
or is at the time of the application an owner of securities of 
the corporation, the court may, if satisfied that, 



(a) such person has reasonable grounds for believing 
that the corporation has a cause of action under 
section 138; and 



(b) either, 
(i) 



the corporation has refused or failed to 
commence an action under section 138 within 
sixty days after receipt of a written request 
from such person so to do, or 



125 






77 

(ii) the corporation has tailed to prosecute dili- 
gently an action commenced by it under 
section 138, 

make an order, upon such terms as to security for costs and 
otherwise as to the court seems fit, requiring the Commission 
to commence or continue an action in the name of and on 
behalf of the corporation to enforce the liability created by 
section 138. 

(2) The applicant under subsection 1 shall give to the cor- Notice to 

. V i /-» • • • r ■■••■••■ • corporation 

poration and the Commission notice of his application, andando.s.c. 
the corporation and the Commission have the right to appear 
and be heard thereon. 

(3) Every order made under subsection 1 shall provide H^SCi 

that the corporation shall co-operate fullv with the Com- corporation 

. . . , . . ' , . . .to 

mission in the institution and prosecution of the action and co-operate 

shall make available to the Commission all records, docu- 
ments and other material or information known to the 
corporation or reasonably ascertainable by the corporation 
relevant to the action. 1966, c. 28, s. 3, part. 

140. Upon the application of any interested person, the Exception 
Commission may, if satisfied upon the circumstances of the 
particular case that there is adequate justification for so doing, 
make an order upon such terms and conditions as seem to the 
Commission to be expedient exempting in whole or in part 
any person from the requirements of section 135. New. 

DIVIDENDS 

141. — (1) Subject to the articles of the corporation, theJ° c Y*^ to 
directors may declare and the corporation may pay dividends dividends 
on its issued shares. 

(2) A dividend may be paid in cash or in property not piy^ent° f 
exceeding in value the amount of the dividend. 

(3) The directors shall not declare and the corporation ^dend 
shall not pay any dividend when the corporation is insolvent, not to be 
or any dividend the payment of which renders the corporation 
insolvent or that diminishes its capital. R.S.O. 1960, c. 71, 

s. 61 (1-3), amended. 

142. — (1) Notwithstanding anything in this Act, a cor- corporations 

poration, wasting 

r assets 

(a) that for the time being carries on as its principal 
business the business of operating a producing 
mining, gas or oil property owned and controlled 
by it; or 

125 



78 



Extent of 
impairment 
of capital 



Special 
by-law 



EdMB 



(b) at least 75 per cent of the assets of which are of a 
wasting character; or 

(c) incorporated for the object of acquiring the assets 
or a substantial part of the assets of a body corporate 
and administering such assets for the purpose of 
converting them into cash and distributing the cash 
among the shareholders of the corporation, 

may declare and pay dividends out of the funds derived from 
the operations of the corporation. 

(2) The powers conferred by subsection 1 may be exercised 
notwithstanding that the value of the net assets of the cor- 
poration may be thereby reduced to less than its issued capital 
if the payment of the dividends does not reduce the value of 
its remaining assets to an amount insufficient to meet all the 
liabilities of the corporation exclusive of its issued capital. 

(3) The powers conferred by subsection 1 may be exercised 
only under the authority of a special by-law. 

(4) Where dividends have been paid by a corporation in 
any of the cases mentioned in subsection 1 without the 
authority of a by-law, the payment thereof is nevertheless 
valid if a by-law adopting and approving the payment is 
passed and confirmed in the same manner as for a special 
by-law. R.S.O. 1960, c. 71, s. 61 (5-8), amended. 



dividends 143. For the amount of any dividend that the directors 

may declare payable in cash, they may declare a stock divi- 
dend and issue therefor shares of the corporation as fully paid. 
R.S.O. 1960, c. 71, s. 62, amended. 

RECORDS 



Records 



Where 
not in 
bound 
book 



144. — (1) Where this Act requires a record to be kept by 
a corporation, it may be kept in a bound or looseleaf book, or 
by means of a mechanical, electronic or other device. 

(2) Where a record is not kept in a bound book, the cor- 
poration shall, 

(a) take adequate precautions, appropriate to the means 
used, for guarding against the risk of falsifying the 
information recorded; and 

(b) provide means for making the information available 
in an accurate and intelligible form within a reason- 
able time to any person lawfully entitled to examine 
the record. R.S.O. I960, c. 71, s. 1, els. a, h, amended. 



125 



79 

(3) The bound or looseleaf book or, where the record is binty^f" 
not kept in a bound or looseleaf book, the information in the records in 

svidcnc© 

form in which it is made available under clause b of subsection 
2 is admissible in evidence as prima facie proof, before and 
after dissolution of the corporation, of all facts stated therein. 
R.S.O. 1960, c. 71, s. 314, amended. 

(4) No person shall remove, withhold or destroy information information 
required by this Act or the regulations to be recorded, or 

(a) record or assist in recording any information in a 
record ; or 

(6) make information purporting to be accurate avail- 
able in a form referred to in clause b of subsection 2 , 

knowing it to be untrue. R.S.O. 1960, c. 71, s. 316, amended. 

145. A corporation shall cause to be kept the following Records 
records : 

1. A copy of the articles of the corporation. 

2. All by-laws and resolutions, including special by- 
laws and special resolutions of the corporation. 

3. A register of security holders in which is set out the 
names alphabetically arranged or alphabetically in- 
dexed in appropriate categories of, 

i. all persons who are or have been within ten 
years registered as shareholders of the cor- 
poration and the residence address including 
the street and number, if any, of every such 
person while a holder, in which are set out also 
the number and class of shares held by such 
holder and, where the shares were issued 
before this Act comes into force and not fully 
paid, the amounts paid up and remaining 
unpaid on such shares, 

ii. all persons who are or have been holders of 
debt obligations of the corporation and the 
residence address including the street and 
number, if any, of every such person while a 
holder in which are set out also the class or 
series and principal amount of the debt ob- 
ligations held by such holder. 

4. A register of directors in which are set out the names 
and residence addresses, including the street and 

125 



80 

number, if any, of all persons who are or have been 
directors of the corporation with the several dates 
on which each became or ceased to be a director. 

5. Proper accounting records in which are set out all 
financial and other transactions of the corporation 
including, without limiting the generality of the 
foregoing, records of, 

i. all sums of money received and disbursed by 
the corporation and the matters with respect 
to which receipt and disbursement took place, 

ii. all sales and purchases of the corporation, 

iii. the assets and liabilities of the corporation, 
and 

iv. all other transactions affecting the financial 
position of the corporation. 

6. The minutes of all proceedings at meetings of share- 
holders, directors and any executive committee. 
R.S.O. 1960, c. 71, ss. 312 (1), 313, 315, amended. 

transfers of 144J. Every corporation shall cause to be kept a register 
of transfers in which all transfers of securities issued by the 
corporation and the date and other particulars of each transfer 
shall be set out. R.S.O. 1960, c. 71, s. 40, amended. 



Transfer 
agents 



147. A corporation may appoint a transfer agent to keep 
the register of security holders and the register of transfers 
and may also appoint one or more branch transfer agents to 
keep branch registers of security holders and branch registers 
of transfers. R.S.O. 1960, c. 71, s. 41, amended. 



Where 
registers 
to be kept 



Valid 
registration 



Entry in 
branch 

transfer 
ter 



148. — (1) The register of security holders and the register 
of transfers shall be kept at the head office of the corporation 
or at such other office or place in Ontario as is appointed by 
resolution of the directors, and the branch register or registers 
of security holders and the branch register or registers of 
transfers may be kept at such office or offices of the corporation 
or other place or places, either in or outside Ontario, as are 
appointed by resolution of the directors. 

(2) Registration of the transfer of a security of the cor- 
poration in the register of transfers or a branch register of 
transfers is a complete and valid registration for all purposes. 

(3) In each branch register of transfers shall be recorded 
only the particulars of the transfers of securities registered 
in that branch register of transfers. 



125 



81 

(4) Particulars of every transfer of securities registered in^g^ e ^ n of 
every branch register of transfers shall be recorded in the transfers 
register of transfers. 

(5) The directors of a corporation may by resolution close ^ °|rif te r 
the register of transfers and the branch register or registers of <> f transfers 
transfers, if any, for a period of time not exceeding forty-eight 

hours, exclusive of Saturdays and holidays, immediately pre- 
ceding any meeting of the shareholders, and notice of every 
such closing shall be given in a newspaper having general 
circulation in the place where the register of transfers is kept 
and in a newspaper having general circulation in each place 
in which a branch register of transfers is kept. R.S.O. 1960, 
c. 71, s. 42, amended. 

149. — (1) The records mentioned in sections 145 and 146^pg° r t o S 
shall, during the normal business hours of the corporation, f 3 x r a diJ.ectors 
be open to examination by any director and shall, except as 
provided in section 148 and in subsections 2 and 3 of this 
section, be kept at the head office of the corporation. 

(2) A corporation may keep at any place where it carries ^ c e C o° u r nf at f 
on business such parts of the accounting records as relate to br » n ch 
the operations, business and assets and liabilities of the cor- 
poration carried on, supervised or accounted for at such place, 

but there shall be kept at the head office of the corporation 
or such other place as is authorized under subsection 3 such 
records as will enable the directors to ascertain quarterly 
with reasonable accuracy the financial position of the cor- 
poration. 

(3) Where a corporation, SSSvIfof 

records 

(a) shows, to the satisfaction of the Minister, the neces- 
sity of keeping all or any of the records mentioned 
in subsection 1 at a place other than the head office 
of the corporation; and 

(b) gives to the Minister adequate assurance, by surety 
bond or otherwise, that such records will be open 
for examination, 

(i) at the head office or some other place in 
Ontario designated by the Minister, and 

(ii) by any person who is entitled to examine 
them and who has applied to the Minister for 
such an examination, 

125 



82 

the Minister may, by order and upon such terms as he thinks 
fit, permit the corporation to keep such of them at such place 
or places, other than the head office, as he thinks fit. R.S.O. 
1%0, c. 71, s. 317 (1-3), amended. 

Rescission (4) The Minister may by order upon such terms as he sees 

made under fit rescind any order made under subsection 3 or any order 
made by the Lieutenant Governor in Council under a pre- 
decessor of that subsection. R.S.O. 1960, c. 71, s. 317 (5), 
amended. 



Examination 
or records 
by share- 
holders 
and 
creditors 



150. — (1) Subject to section 151, the records of a cor- 
poration mentioned in section 145 or 146, other than account- 
ing records, resolutions of directors and the minutes of pro- 
ceedings at meetings of directors and of executive committees, 
shall, during the normal business hours of the corporation 
and at the place or places where they are kept, be open to 
examination by the shareholders and creditors or their agents 
or personal representatives, and any of them may make 
extracts therefrom. 



Icieisi 



(2) No person shall refuse to permit a person entitled thereto 
to inspect such records or to make extracts therefrom. R.S.O. 
1960, c. 71, s. 318, amended. 



List of 

security 

■olden 



151. — (1) A shareholder or creditor or the agent or per- 
sonal representative of any of them shall not make or cause to 
be made a list of all or any of the security holders of the cor- 
poration unless he has filed with the corporation or its agent 
his affidavit in the following form, and, where the security 
holder or creditor is a body corporate, the affidavit shall be 
made by the president or other officer authorized by resolution 
of the board of directors of the body corporate: 



Form of Affidavit 



Province of Ontario 
County of 



In the matter of 

(Insert name of corporation) 



I, , of the of. 

in the of 



make oath and say: 

1. I am a shareholder (or creditor) of the above-named cor- 
poration. 

( Where the shareholder or creditor is a body corporate, indicate 
office and authority of deponent in paragraph 1.) 

2. I am applying to make a list of the shareholders (debt obli- 
gation holders) of the above-named corporation. 



125 



83 

3. I require the list of shareholders (debt obligation holders) 
only for purposes connected with the above-named corporation. 

4. The list of shareholders (debt obligation holders) and the 
information contained therein will be used only for purposes con- 
nected with the above-named corporation. 

Sworn, etc. 

(2) No person, other than the corporation or its agent, ^ of 
shall use a list of all or any of the security holders of a cor- 
poration obtained under this section, 

(a) for the purpose of delivering or sending to all or 
any of the security holders advertising or other 
printed matter relating to securities, other than the 
securities of the corporation ; or 

(b) for any purpose not connected with the corporation. 

(3) Purposes connected with the corporation include any ^ U nnected 
effort to influence the voting of shareholders or debt obligation with the 

,,. . irt'iii . . . corporation 

holders at any meeting thereof and include the acquisition or defined 
offering of shares to acquire control or to effect an amalgama- 
tion or reorganization. R.S.O. 1960, c. 71, s. 319 (1-3), 
amended. 

152. — (1) Any person, upon payment of a reasonable u^o 1 ? 
charge therefor and upon filing with the corporation or its shareholders 
agent the affidavit referred to in subsection 2, may require a furni8hed 
corporation, other than a corporation that is not offering 
its securities to the public, or its transfer agent to furnish 
within ten days from the filing of the affidavit a list setting 
out the names alphabetically arranged of all persons who are 
shareholders of the corporation, the number of shares owned 
by each such person and the address of each such person as 
shown on the records of the corporation made up to a date 
not more than ten days before the date of filing the affidavit. 

(2) The affidavit referred to in subsection 1 shall be made affidavit 
by the applicant and shall be in the following form : 

Form of Affidavit 

Province of Ontario \ In the matter of 

County of / (Insert name of corporation) 

I, of the of , 

in the of , 

make oath and say: 



(Where the applicant is a body corporate, indicate office and 
authority of deponent.) 



125 



84 

1. 1 hereby apply for .i list of the shareholders of the above- 
named corporation. 

2. 1 require the list of shareholders only for purposes connected 
with the above-named corporation. 

3. The list of shareholders and the information contained 
therein will be used only for purposes connected with the above- 
named corporation. 

Sworn, etc. 

where (3) Where the applicant is a body corporate, the affidavit 

*P^ cant shall be made by the president or other officer authorized by 
corporate resolution of the board of directors of the body corporate. 



Use of list 



(4) No person shall use a list of all or any of the shareholders 
of a corporation obtained under this section, 



(a) for the purpose of delivering or sending to all or 
any of the shareholders advertising or other printed 
matter relating to securities other than the securities 
of the corporation; or 

(b) for any purpose not connected with the corporation. 

n«t rm8hing v5) Every corporation or transfer agent shall furnish a list 
in accordance with subsection 1 when so required. 



Purposes 
connected 
with 
corporation 



<rp 
?flr 



defined 



(6) Purposes connected with the corporation include any 
effort to influence the voting of shareholders at any meeting 
thereof, any offer to acquire shares in the corporation or any 
effort to effect an amalgamation or reorganization. 1966, 
c. 28, s. 17, part, amended. 



trafficking 153. No person shall offer for sale or sell or purchase or 
otherwise traffic in a list or a copy of a list of all or any of the 
security holders of a corporation. 1966, c. 28, s. 17, part, 
amended. 

co°uTt r to f 154. — (1) Where the name of a person is, without suffi- 

correct cient cause, entered in or omitted from the records of a cor- 

poration other than accounting records, or if default is made 
or unnecessary delay takes place in entering therein the fact 
of any person having ceased to be a security holder of the 
corporation, the person or security holder aggrieved, or any 
security holder of the corporation, or the corporation itself, 
may apply to the court for an order that the records be 
rectified, and the court may dismiss such application or 
make an order for the rectification of the records and may 
direct the corporation to compensate the party aggrieved for 
any damage he has sustained. 



125 



85 

(2) The court may, in any proceeding under this section, ^ e £ 81 t °*] e 
decide any question relating to the entitlement of a person 

who is a party to the proceeding to have his name entered in 
or omitted from such records whether the question arises 
between two or more security holders or alleged security 
holders, or between any security holders or alleged security 
holders and the corporation. 

(3) The court may direct an issue to be tried. R.S.O. 1960, o/lssue 
c. 71, s. 320 (1-3), amended. 

(4) This section does not deprive any court of any juris- of courts " 
diction it otherwise has. R.S.O. 1960, c. 71, s. 320 (5). n °t , . 

AUDITORS AND FINANCIAL STATEMENTS 

155. — (1) The shareholders of a corporation at their first Auditors 
general meeting shall appoint one or more auditors to hold 
office until the close of the first annual meeting and, if the 
shareholders fail to do so, the directors shall forthwith make 
such appointment or appointments. 

(2) The shareholders shall at each annual meeting appoint Idem 
one or more auditors to hold office until the close of the next 
annual meeting and, if an appointment is not so made, the 
auditor in office continues in office until a successor is ap- 
pointed. 

(3) The directors may fill any casual vacancy in the office vaxancy 
of auditor, but, while such vacancy continues, the surviving 

or continuing auditor, if any, may act. 

(4) The shareholders may, by resolution passed by a major- \ e £ u ( dttor 
ity of the votes cast at a general meeting duly called for the 
purpose, remove an auditor before the expiration of his term 

of office, and shall by a majority of the votes cast at that 
meeting appoint another auditor in his stead for the remainder 
of his term. R.S.O. 1960, c. 71, s. 80 (1-4), amended. 

(5) Before calling a general meeting for the purpose speci- Editor* 
fied in subsection 4, the corporation shall, fifteen days or more 
before the mailing of the notice of the meeting, give to the 
auditor, 

(a) written notice of the intention to call the meeting, 
specifying therein the date on which the notice of 
the meeting is proposed to be mailed; and 

(6) a copy of all material proposed to be sent to share- 
holders in connection with the meeting. 

125 



86 



Right o 
auditor 
to make 

represci - 

tationa 



(6) The auditor has the right to make to the corporation, 
three days or more before the mailing of the notice of the 
meeting, representations in writing concerning his proposed 
removal as auditor, and the corporation, at its expense, shall 
forward with the notice of the meeting a copy of such repre- 
sentations to each shareholder entitled to receive notice of the 
meeting. New. 



Remunera- 
tion 



(7) The remuneration of an auditor appointed by the share- 
holders shall be fixed by the shareholders, or by the directors 
if they are authorized so to do by the shareholders, and the 
remuneration of an auditor appointed by the directors shall 
be fixed by the directors. 



Appoint- 
ment by 
Minister 



(8) If for any reason no auditor is appointed, the court 
may, on the application of a shareholder, appoint one or more 
auditors to hold office until the close of the next annual 
meeting and may fix the remuneration to be paid by the 
corporation for his or their services. 



Notice of 
appoint- 
ment 



(9) The corporation shall give notice in writing to an 
auditor of his appointment forthwith after the appointment 
is made. R.S.O. 1960, c. 71, s. 80 (5-7), amended. 



Notice to 
auditor of 
proposal 
to appoint 
another 



156. — (1) If in the information circular required by sub- 
section 1 of section 106 reference is made to action proposed 
to be taken at an annual meeting of shareholders with respect 
to the appointment of an auditor other than the incumbent 
auditor, the corporation shall, fifteen days or more before 
the mailing of the notice of the meeting, give to the incumbent 
auditor written notice of management's intention not to 
recommend his re-appointment at the annual meeting, speci- 
fying therein the date on which the notice of the meeting is 
proposed to be mailed. 



Right of 
incumbent 
auditor 
to make 
represen- 
tations 



(2) The incumbent auditor has the right to make to the 
corporation, three days or more before the mailing of the 
notice of the meeting, representations in writing concerning 
the proposal not to re-appoint him as auditor, and the cor- 
poration, at its expense, shall forward with the notice of the 
meeting a copy of such representations to each shareholder 
entitled to receive notice of the meeting. New. 



Persons 
disqualified 
as auditors 



157. — (1) No person shall be appointed or act as auditor 
of a corporation who is a director, officer or employee of the 
corporation or of an affiliate of the corporation or who is a 
partner, employer or employee of any such director, officer or 
employee or who is a related person to any director or officer 
of the corporation or of an affiliate of the corporation. R.S.O. 
1960, c. 71, s. 81 (1), amended. 



125 



87 

(2) No person shall be appointed or act as auditor of a cor- Idem 
poration if he or any partner or employer of or related person 

to him beneficially owns, directly or indirectly, any securities 
of the corporation or, if the corporation is a subsidiary, any 
securities of its holding corporation. 

(3) Subsection 2 does not apply to a person, partner, ^{Jl™ 
employer or related person, as the case may be, if the person, d ^ y not 
partner, employer or related person is not empowered to 
decide whether securities of the corporation or its holding 
corporation, as the case may be, are to be beneficially owned, 
directly or indirectly, by him, or if he is not entitled to vote 

in respect thereof. 

(4) Where, on the date this section comes into force, an Idem 
auditor or his partner, employer or related person owns 
securities as set out in subsection 2, notwithstanding subsection 

2, he may for a period of two years from the date this section 
comes into force continue to act as auditor if he discloses in 
the report required under subsection 2 of section 158 that he 
or his partner, employer or related person so owns such 
securities but, at the expiration of such period, he shall cease 
to act as auditor unless he or his partner, employer or related 
person, as the case may be, has disposed of such securities. 

(5) No person shall be appointed a receiver or a receiver Auditors 
and manager or liquidator of any corporation of which he appointed 
or a related person is the auditor or has been auditor within etc 

the two years preceding his appointment as receiver or receiver 
and manager or liquidator. 

(6) No person who is appointed a trustee of the estate of a bankruptcy 
corporation under the Bankruptcy Act (Canada) or a related not to be 
person shall be appointed or act as auditor of the corporation. R sc . 1952 
New. c14 ' 

158. — (1) The auditor shall make such examination as will ^J 1 ^"* 1 
enable him to report to the shareholders as required by 
subsection 2. R.S.O. 1960, c. 71, s. 82 (1). 

(2) The auditor shall make a report to the shareholders on^ditor'a 
the financial statement, other than the part thereof that 
relates to the period referred to in subclause ii of clause b of 
subsection 1 of section 159, to be laid before the corporation 
at any annual meeting during his term of office and shall state 
in his report whether in his opinion the financial statement 
referred to therein presents fairly the financial position of the 
corporation and the results of its operations for the period 
under review in accordance with generally accepted accounting 
principles applied on a basis consistent with that of the 
preceding period, if any. R.S.O. 1960, c. 71, s. 82 (2); 1964, 
c. 10, s. 2; 1966, c. 28, s. 6 (1), amended. 

125 



Idem 



Idem 



Idem 



88 

(3) If the financial statement contains a statement of 
changes in net assets or a statement of source and application 
of funds, the auditor shall include in his report a statement 
whether in his opinion, in effect, the statement of changes in 
net assets or the statement of source and application of funds 
presents fairly the information shown therein. 1966, c. 28, 
s. 6 (2), amended. 

(4) Whether or not the assets and liabilities and income 
and expense of any one or more subsidiaries of a holding cor- 
poration are included in the financial statement of the holding 
corporation, the report of the auditor of the holding cor- 
poration required by subsection 2 may refer to the reports 
of auditors of one or more of such subsidiaries, but such 
reference shall not derogate from the duty of the auditor of 
the holding corporation to comply with subsection 2. New. 

(5) The auditor in his report shall make such statements 
as he considers necessary, 

(a) if the corporation's financial statement is not in 
agreement with its accounting records; 

(b) if the corporation's financial statement is not in 
accordance with the requirements of this Act; 

(c) if he has not received all the information and ex- 
planations that he has required; or 

(d) if proper accounting records have not been kept, so 
far as appears from his examination. R.S.O. 1960, 
c. 71, s. 82 (3). 

(6) The auditor of a corporation has right of access at all 
times to all records, documents, accounts and vouchers of the 
corporation and is entitled to require from the directors, 
officers and employees of the corporation such information 
and explanation as in his opinion are necessary to enable him 
to report as required by subsection 2. R.S.O. 1960, c. 71, 
s. 82 (4), amended. 

(7) The auditor of a holding corporation has right of access 
at all times to all records, documents, accounts and vouchers 
of all subsidiaries of the corporation and is entitled to require 
from the directors, officers and employees of each such sub- 
sidiary such information and explanation as in his opinion are 
necessary to enable him to report as required by subsection 2. 
New. 

Auditor (8) The auditor of a corporation is entitled to attend any 

may attend v ' *\ ... 

shareholders* meeting ot shareholders ot the corporation and to receive all 

notices and other communications relating to any such 

meeting that a shareholder is entitled to receive, and to be 



Right of 
accem, etc. 



Idem 



125 



89 

heard at any such meeting that he attends on any part of the 
business of the meeting that concerns him as auditor. R.S.O. 
1960, c. 71, s. 82 (5). 

(9) Any shareholder of a corporation, whether or not he is ^ h a a y rehold er 
entitled to vote at meetings of shareholders, may, by notice require 

. . . - , , , auditor s 

in writing to the corporation given five days or more before attendance 
any meeting of shareholders, require the attendance of the holders®" 
auditor at such meeting at the corporation's expense, and in meetings 
such event the auditor shall attend the meeting. 

(10) At any meeting of shareholders the auditor, if present, must' 01 " 8 
shall answer inquiries directed to him concerning the bases answer 

,.,,/ ,, .. ■ • « , inquiries at 

upon which he formed the opinion stated in the report made shareholders' 
under subsection 2. New. mee ngs 

159. — (1) The directors shall lay before each annual J lf ] °^ mation 

meeting of shareholders, laid before 

annual 
meeting 

(a) in the case of a corporation that is not offering its 
securities to the public, a financial statement for the 
period that commenced on the date of incorporation 
and ended not more than six months before the 
annual meeting or, if the corporation has completed 
a financial year, that commenced immediately after 
the end of the last completed financial year and 
ended not more than six months before the annual 
meeting, as the case may be, made up of, 

(i) a statement of profit and loss for such period 

(ii) a statement of surplus for such period, and 

(iii) a balance sheet as at the end of such period ; 

(b) in the case of a corporation that is offering its 
securities to the public, a comparative financial 
statement relating separately to, 

(i) the period that commenced on the date of 
incorporation and ended not more than six 
months before the annual meeting or, if the 
corporation has completed a financial year, 
that commenced immediately after the end 
of the last completed financial year and ended 
not more than six months before the annual 
meeting, as the case may be, and 

(ii) the period covered by the financial year next 
preceding such latest completed financial year, 
if any, 

125 



90 



1966. C. 142 



made up of, 

(iii) a statement of profit and loss for each period, 

(iv) a statement of surplus for each period, 

(v) in the case of a corporation that is a mutual 
fund company or investment company as 
defined in the regulations under The Secu- 
rities Act, 1966, a statement of changes in 
net assets for each period, 

(vi) in the case of a corporation other than one 
referred to in subclause v, a statement of 
source and application of funds for each 
period, and 

(vii) a balance sheet as at the end of each period; 

(c) the report of the auditor to the shareholders; and 

(d) such further information respecting the financial 
position of the corporation as the articles or by-laws 
of the corporation require. R.S.O. 1960, c. 71, 
s. 83 (1); 1966, c. 28, s. 7 (1), amended. 

(2) It is not necessary to designate the statements referred 
to in subsection 1 as the statement of profit and loss, statement 
of surplus, statement of changes in net assets, statement of 
source and application of funds and balance sheet. 1966, 
c. 28, s. 7 (2), amended. 

Auditors (3) The report of the auditor to the shareholders shall be 

to be read reaf J a t the annual meeting and shall be open to inspection 

at the meeting by any shareholder. R.S.O. 1960, c. 71, 

s. 83 (3). 



Designation 

of 

statements 



Statement 
of profit 
and loss 



160. — (1) The statement of profit and loss to be laid 
before an annual meeting shall be drawn up so as to present 
fairly the results of the operations of the corporation for the 
period covered by the statement and so as to distinguish 
severally at least, 

(a) in the case of a corporation that is offering its secu- 
rities to the public, sales or gross operating revenue; 

(b) the operating profit or loss before including or pro- 
viding for other items of income or expense that are 
required to be shown separately; 

(c) income from investments in subsidiaries whose 
financial statements are not consolidated with those 
of the corporation ; 



125 



91 

(d) income from investments in affiliated corporations 
other than subsidiaries; 

(e) income from other investments; 

(/) non-recurring profits and losses of significant amount 
including profits or losses on the disposal of capital 
assets and other items of a special nature to the 
extent that they are not shown separately in the 
statement of earned surplus; 

(g) any provision for depreciation or for obsolescence 
or for depletion; 

(h) amounts written off for goodwill or amortization of 
any other intangible assets to the extent that they are 
not shown separately in the statement of earned 
surplus; 

(t) interest on indebtedness initially incurred for a term 
of more than one year, including amortization of 
debt discount or premium and expense; and 

(J) taxes on income imposed by any taxing authority, 

and shall show the net profit or loss for the financial period. 
R.S.O. 1960, c. 71, s. 84 (1); 1966, c. 28, s. 8 (1, 2), amended. 

(2) Notwithstanding subsection 1, items of the natures Notes 
described in clauses g and h of subsection 1 may be shown 

by way of note to the statement of profit and loss. R.S.O. 
1960, c. 71, s. 84 (2); 1966, c. 28, s. 8 (3). 

(3) A corporation that is offering its securities to the public ^mlssio^ 
may apply to the Commission for an order permitting sales °J!|^ 8 
or gross operating revenue referred to in clause a of subsec- operating 

• « r i • • ii • r \ ri • revenue 

tion 1 ol this section or subclause i of clause c of subsection 1 
of section 171 to be omitted from the statement of profit and 
loss or the interim financial statement, as the case may be, 
and the Commission may, on such terms and conditions as 
it may impose, permit such omission where it is satisfied that 
in the circumstances the disclosure of such information would 
be unduly detrimental to the interests of the corporation. 
1966, c. 28, s. 8 (4), part, amended. 

(4) The statement of profit and loss of a mutual fund nfnd U or 
company or an investment company, as defined in the regula- companies* 
tions under The Securities Act, 1966, shall also distinguish 1966, c. 142 
the average net investment income per share and an item of 

this nature may be shown by way of note to the statement of 
profit and loss. New. 

125 



92 

^surplus 161. — (1) The statement of surplus shall be drawn up so 

as to present fairly the transactions reflected in the statement 
and shall show separately a statement of contributed surplus 
and a statement of earned surplus. 

contributed (2) The statement of contributed surplus shall be drawn 
up so as to include and distinguish the following items: 

1. The balance of such surplus at the end of the pre- 
ceding financial period. 

2. The additions to and deductions from such surplus 
during the financial period including, 

i. the amount of surplus arising from the issue 
of shares or the reorganization of the cor- 
poration's issued capital, including inter alia, 

a. the amount of premiums received on 
the issue of shares at a premium, 

b. the amount of surplus realized on the 
purchase for cancellation of shares, and 

ii. donations of cash or other property by share- 
holders. 

3. The balance of such surplus at the end of the financial 
period. 

surplus (3) The statement of earned surplus shall be drawn up 

so as to distinguish at least the following items: 

1. The balance of such surplus at the end of the pre- 
ceding financial period. 

2. The additions to and deductions from such surplus 
during the financial period and without restricting 
the generality of the foregoing at least the following: 

i. The amount of the net profit or loss for the 
financial period. 

ii. The amount of dividends declared on each 
class of shares. 

iii. The amount transferred to or from reserves. 

3. The balance of such surplus at the end of the financial 
period. R.S.O. 1960, c. 71, s. 85. 

125 



93 

162. — (1) The statement of changes in net assets referred ?? e'h^ges 
to in subclause v of clause b of subsection 1 of section 159 and in net assets 
clause a of subsection 1 of section 171 shall be drawn up so 
as to present fairly the information shown therein for the 
period and shall show separately at least, 



(a 
(b 
(c 
(d 

(e 
if 

(g 

(h 

(» 

(7 
(* 
(I 

(m 
(n 
(o 
(P 
(q 



net assets at beginning of the period ; 

net investment income or loss; 

aggregate proceeds on sale of portfolio securities; 

aggregate cost of portfolio securities owned at 
beginning of the period; 

aggregate cost of purchases of portfolio securities; 

aggregate cost of portfolio securities owned at end of 
the period ; 

aggregate cost of portfolio securities sold ; 

realized profit or loss on securities sold ; 

distributions, showing separately the amount out of 
net investment income and out of realized profits; 

proceeds from shares issued; 

cost of shares redeemed ; 

net increase or decrease in unrealized appreciation 
or depreciation of portfolio securities; 

net assets at end of the period ; 

net asset value per share at end of the period ; 

net asset value per share at beginning of the period ; 

distribution per share out of net investment income; 

distribution per share out of realized profits. 



(2) Notwithstanding subsection 1, items of the natures JJatement 
described in clauses n, o, p and q of subsection 1 may be shown 
by way of note to the statement of changes in net assets. 
New. 



125 



94 

of'eouree 1 163. The statement of source and application of funds 

a nd iic ti n re f erre d to in subclause vi of clause b of subsection 1 of section 

of funds 159 and clause b of subsection 1 of section 171 shall be drawn 

up so as to present fairly the information shown therein for 

the period, and shall show separately at least, 

(a) funds derived from, 

(i) current operations, 

(ii) sale of non-current assets, segregating invest- 
ments, fixed assets and intangible assets, 

(iii) issue of debt obligations or other indebtedness 
maturing more than one year after issue, and 

(iv) issue of shares; and 

(b) funds applied to, 

(i) purchase of non-current assets, segregating 
investments, fixed assets and intangible assets, 

(ii) redemption or other retirement of debt ob- 
ligations or repayment of other indebtedness 
maturing more than one year after issue, 

(iii) redemption or other retirement of shares, and 

(iv) payment of dividends. 1966, c. 28, s. 9. 

B h ala t nce 164. — (1) The balance sheet to be laid before an annual 

meeting shall be drawn up so as to present fairly the financial 
position of the corporation as at the date to which it is made 
up and so as to distinguish severally at least the following: 

1. Cash. 

2. Debts owing to the corporation from its directors, 
officers or shareholders, except debts of reasonable 
amount arising in the ordinary course of its business 
that are not overdue having regard to its ordinary 
terms of credit. 

3. Debts owing to the corporation, whether on account 
of a loan or otherwise, from subsidiaries whose 
financial statements are not consolidated with those 
of the corporation. 

4. Debts owing to the corporation, whether on account 
of a loan or otherwise, from affiliated corporations 
other than subsidiaries. 

125 



95 



5. Other debts owing to the corporation segregating 
those that arose otherwise than in the ordinary 
course of its business. 

6. Inventory, stating the basis of valuation. 

7. Shares, bonds, debentures and other investments 
owned by the corporation, except those referred to 
in paragraphs 8 and 9, stating their nature and the 
basis of their valuation and showing separately those 
that are marketable with a notation of their market 
value. 

8. Securities of subsidiaries whose financial statements 
are not consolidated with those of the corporation, 
stating the basis of valuation. 

9. Securities of affiliated corporations other than sub- 
sidiaries, stating the basis of valuation. 

10. Lands, buildings, and plant and equipment, stating 
the basis of valuation, whether cost or otherwise, and, 
if valued on the basis of an appraisal, the date of 
appraisal, the name of the appraiser, the basis of the 
appraisal value and, if such appraisal took place 
within five years preceding the date to which the 
balance sheet is made up, the disposition in the 
accounts of the corporation of any amounts added to 
or deducted from such assets on appraisal and also 
the amount or amounts accumulated in respect of 
depreciation, obsolescence and depletion. 

11. There shall be stated under separate headings, in so 
far as they are not written off, 

i. expenditures on account of future business, 

ii. any expense incurred in connection with any 
issue of shares, 

iii. any expense incurred in connection with any 
issue of debt obligations, including any 
discount thereon, and 

iv. any one or more of the following: goodwill, 
franchises, patents, copyrights, trade marks 
and other intangible assets and the amount 
if any, by which the value of any such assets 
has been written up within a period of five 
years preceding the date to which the balance 
sheet is made up. 



125 



96 

12. The aggregate amount of any outstanding loans or 
guarantees under clauses c and d of subsection 2 of 
section 17. 

13. Bank loans and overdrafts. 

14. Debts owing by the corporation on loans from its 
directors, officers or shareholders. 

15. Debts owing by the corporation to subsidiaries whose 
financial statements are not consolidated with those 
of the corporation, whether on account of a loan or 
otherwise. 

16. Debts owing by the corporation to affiliated cor- 
porations other than subsidiaries whether on account 
of a loan or otherwise. 

17. Other debts owing by the corporation, segregating 
those that arose otherwise than in the ordinary 
course of its business. 

18. Liability for taxes, including the estimated liability 
for taxes in respect of the income of the period 
covered by the statement of profit and loss. 

19. Dividends declared but not paid. 

20. Deferred income. 

21. Debt obligations issued by the corporation, stating 
the interest rate, the maturity date, the amount 
outstanding and the existence of sinking fund, 
redemption requirements and conversion rights, if 
any. 

22. The authorized capital, giving the number of each 
class of shares and a brief description of each such 
class, and indicating therein any class of shares that 
is redeemable and the redemption price thereof. 

23. The issued capital, giving the number of shares of 
each class issued and outstanding and the amount 
received therefor that is attributable to capital, and 
showing, 

i. the number of shares of each class issued since 
the date of the last preceding balance sheet 
and the value attributed thereto, distinguish- 
ing shares issued for cash, shares issued for 
services and shares issued for other considera- 
tion, and 



125 



97 

ii. where any shares issued before this Act comes 
into force have not been fully paid, 

a. the number of shares in respect of 
which calls have not been made and 
the aggregate amount that has not been 
called, and 

b. the number of shares in respect of 
which calls have been made and not 
paid and the aggregate amount that 
has been called and not paid. 

24. Contributed surplus. 

25. Earned surplus. 

26. Reserves, showing the amounts added thereto and 
the amounts deducted therefrom during the financial 
period. 

27. The number of common shares purchased and the 
number of the common shares resold since the date 
of the last preceding balance sheet, giving the date 
of each such purchase and resale and the price at 
which each such purchase or resale was made. 
R.S.O. 1960, c. 71, s. 86 (1); 1966, c. 28, s. 10 (1-3), 
amended. 

(2) Explanatory information or particulars of any item ^ T ° tes 
mentioned in subsection 1 may be shown by way of note to 
the balance sheet. R.S.O. I960, c. 71, s. 86 (2). 

165. — (1) There shall be stated by way of note to the J^ ^.* 
financial statement particulars of any change in accounting statement 
principle or practice or in the method of applying any account- 
ing principle or practice made during the period covered that 
affects the comparability of any of the statements with any 
of those for the preceding period, and the effect, if material, 
of anv such change upon the profit or loss for the period. 
R.S.O. 1960, c. 71, s. 87 (1). 

(2) For the purpose of subsection 1, a change in accounting change in 
... r . r . , . . ' . . ° accounting 

principle or practice or in the method ot applying any account- practice 

ing principle or practice affects the comparability of a state- 
ment with that for the preceding period, even though such 
change did not have a material effect upon the profit or loss 
for the period. 1962-63, c. 24, s. 3 (1). 

(3) Where applicable, the following matters shall be referred Idem 
to in the financial statement or by way of note thereto: 

125 



98 

1. The basis of conversion of amounts from currencies 
other than the currency in which the financial state- 
ment is expressed. 

2. Foreign currency restrictions that affect the assets 
of the corporation. 

3. Contractual obligations that will require abnormal 
expenditures in relation to the corporation's normal 
business requirements or financial position or that 
are likely to involve losses not provided for in the 
accounts. 

4. Material contractual obligations in respect of long- 
term leases, including, in the year in which the trans- 
action was effected, the principal details of any sale 
and lease transaction. 

5. Contingent liabilities, stating their nature and, 
where practicable, the approximate amounts in- 
volved. 

6. Any liability secured otherwise than by operation 
of law on any asset of the corporation, stating the 
liability so secured. 

7. Any default of the corporation in principal, interest, 
sinking fund or redemption provisions with respect 
to any issue of its debt obligations or credit agree- 
ments. 

8. The gross amount of arrears of dividends on any 
class of shares and the date to which such dividends 
were last paid. 

9. Where a corporation has contracted to issue shares 
or has given an option to purchase shares, the class 
and number of shares affected, the price and the 
date for issue of the shares or exercise of the option. 

10. The aggregate direct remuneration paid or payable 
by the corporation and its subsidiaries whose finan- 
cial statements are consolidated with those of the 
corporation to the directors and the senior officers 
and, as a separate amount, the aggregate direct 
remuneration paid or payable to such directors and 
senior officers by the subsidiaries of the corporation 
whose financial statements are not consolidated with 
those of the corporation. 

11. In the case of a holding corporation, the aggregate 
of any shares in, and the aggregate of any debt obli- 
gations of, the holding corporation held by subsidiary 



125 






99 

corporations whose financial statements are not con- 
solidated with those of the holding corporation. 

12. The amount of any loans by the corporation, or by a 
subsidiary corporation, otherwise than in the or- 
dinary course of business, during the corporation's 
financial period, to the directors or officers of the 
corporation. 

13. Any restriction by the articles or by-laws of the 
corporation or by contract on the payment of 
dividends that is significant in the light of the cor- 
poration's financial position. 

14. Any event or transaction, other than one in the 
normal course of business operations, between the 
date to which the financial statement is made up and 
the date of the auditor's report thereon that materi- 
ally affects the financial statement. R.S.O. 1960, 
c. 71, s. 87 (2); 1962-63, c. 24, s. 3 (2); 1966, c. 28, 
s. 11 (1). 

15. In the case of a corporation that is offering its secu- 
rities to the public, the amount of any obligation for 
pension benefits arising from service before the date 
of the balance sheet, whether or not such obligation 
has been provided for in the accounts of the corpora- 
tion, the manner in which the corporation proposes 
to satisfy such obligation and the basis on which 
it has charged or proposes to charge the related 
costs against operations. 1966, c. 28, s. 11 (2), 
amended. 

16. Brief particulars of any action commenced against 
the corporation under section 87 during the period. 
New. 

(4) A note to a financial statement is a part of it. R.S.O. Idem 
1960, c. 71, s. 87 (3). 

166. Notwithstanding sections 160 to 165, it is not neces- insigui- 
sary to state in a financial statement any matter that in allcircum- 
the circumstances is of relative insignificance. R.S.O. 1960, 8tance8 
c. 71, s. 88. 

167. — (1) A corporation, in this section referred to as^atwi 011 " 
"the holding corporation", may include in the financial state- JStSnSat 
ment to be submitted at an annual meeting the assets and 
liabilities and income and expense of any one or more of its 
subsidiaries, making due provision for minority interests, if 
any, and indicating in such financial statement that it is 
presented in consolidated form. 

125 



100 

consolidated (^) Where the assets and liabilities and income and expense 
financial of any one or more subsidiaries of the holding corporation 

statements J , , . _ . , °. , r .. 

are not so included in the financial statement of the holding 
corporation, 

(a) the financial statement of the holding corporation 
shall include a statement setting forth, 

(i) the reason why the assets and liabilities and 
income and expense of such subsidiary or 
subsidiaries are not included in the financial 
statement of the holding corporation, 

(ii) if there is only one such subsidiary, the amount 
of the holding corporation's proportion of the 
profit or loss of the subsidiary for the financial 
period coinciding with or ending in the 
financial period of the holding corporation, or, 
if there is more than one such subsidiary, the 
amount of the holding corporation's propor- 
tion of the aggregate profits less losses, or 
losses less profits, of all the subsidiaries for 
the respective financial periods coinciding 
with or ending in the financial period of the 
holding corporation, 

(iii) the amount included as income from such 
subsidiary or subsidiaries in the statement of 
profit and loss of the holding corporation and 
the amount included therein as a provision 
for the loss or losses of the subsidiary or 
subsidiaries, 

(iv) if there is only one such subsidiary, the 
amount of the holding corporation's propor- 
tion of the undistributed profits of the sub- 
sidiary earned since the acquisition of the 
shares of the subsidiary by the holding cor- 
poration to the extent that such amount has 
not been taken into the accounts of the 
holding corporation, or, if there is more than 
one such subsidiary, the amount of the hold- 
ing corporation's proportion of the aggregate 
undistributed profits of all the subsidiaries 
earned since the acquisition of their shares by 
the holding corporation less its proportion 
of the losses, if any suffered by any subsidiary 
since the acquisition of its shares to the extent 
that such amount has not been taken into the 
accounts of the holding corporation, 

125 



101 

(v) any qualifications contained in the report of 
the auditor of any such subsidiary on its 
financial statement for the financial period 
ending as aforesaid, and any note or reference 
contained in that financial statement to call 
attention to a matter that, apart from the 
note or reference, would properly have been 
referred to in such a qualification, in so far 
as the matter that is the subject of the quali- 
fication or note is not provided for by the 
corporation's own financial statement and is 
material from the point of view of its share- 
holders ; 

(b) if for any reason the directors of the holding cor- 
poration are unable to obtain such information as is 
necessary for the preparation of the statement that 
is to be included in the financial statement of the 
holding corporation, the directors who sign the 
financial statement shall so report in writing and 
their report shall be included in the financial state- 
ment in lieu of the statement; 

(c) if, in the opinion of the auditor of the holding cor- 
poration, adequate provision has not been made in 
the financial statement of the holding corporation 
for the holding corporation's proportion, 

(i) where there is only one such subsidiary, of the 
loss of the subsidiary suffered since acquisition 
of its shares by the holding corporation, or 

(ii) where there is more than one such subsidiary, 
of the aggregate losses suffered by the sub- 
sidiaries since acquisition of their shares by 
the holding corporation in excess of its pro- 
portion of the undistributed profits, if any, 
earned by any of the subsidiaries since such 
acquisition, 

the auditor shall state in his report the additional 
amount that in his opinion is necessary to make full 
provision therefor. R.S.O. 1960, c. 71, s. 89, 
amended. 

(3) Whether or not the assets and liabilities and income Subsidiary 
and expense of any one or more subsidiaries of a holding statements 
corporation are included in the financial statement of the 
holding corporation, true copies of the latest financial state- 
ment of the subsidiary or subsidiaries shall be kept on hand 
by the holding corporation at its head office and shall be open 
to examination by the shareholders of the holding corporation 

125 



102 

on request during the normal business hours of the holding 
corporation, but the directors of the holding corporation may 
by resolution refuse the right of such examination if the 
examination would be unduly detrimental to the interests of 
the corporation or the subsidiary or subsidiaries, which resolu- 
tion may, on the application of any such shareholder to the 
Commission, be set aside by the Commission. R.S.O. 1960, 
c. 71, s. 89 (2) (c), amended. 

Reserve 168. In a financial statement, the term "reserve" shall be 

used to describe only, 

(a) amounts appropriated from earned surplus at the 
discretion of management for some purpose other 
than to meet a liability or contingency known or 
admitted or a commitment made as at the statement 
date or a decline in value of an asset that has already 
occurred ; 

(b) amounts appropriated from earned surplus pursuant 
to the articles or by-laws of the corporation for some 
purpose other than to meet a liability or contingency 
known or admitted or a commitment made as at the 
statement date or a decline in value of an asset that 
has already occurred ; and 

(c) amounts appropriated from earned surplus in accord- 
ance with the terms of a contract and that can be 
restored to the earned surplus when the conditions 
of the contract are fulfilled. R.S.O. 1960, c. 71, s. 91. 



Audit 
committee 



160. — (1) The directors of a corporation that is offering 
its securities to the public shall appoint from among their 
number a committee to be known as the audit committee 
to be composed of not fewer than three directors, of whom a 
majority shall not be officers of the corporation or of an 
affiliate of the corporation. 



Submission 
of financial 
statement 
to audit 
committee 
and 

approval 
by board 



(2) The corporation shall submit the financial statement to 
the audit committee for its review, and the financial statement 
shall thereafter be approved by the board of directors, such 
approval to be evidenced by the signature at the foot of the 
balance sheet by two of the directors duly authorized to sign, 
and the auditor's report shall be attached to or accompany the 
financial statement. 



Appearance 
of auditor 



(3) The auditor has the right to appear before and be heard 
at any meeting of the audit committee and shall appear before 

committee ... . . ^*^ 

the audit committee when required to do so by the committee. 
New. 



125 



103 

170. — (1) A corporation that is offering its securities to fln|ncili° f 
the public shall, twentv-one davs or more before the date of statement 

to siisrc- 

the annual meeting of shareholders, send by prepaid mail to holders 
each shareholder at his latest address as shown on the records 
of the corporation a copy of the financial statement and a 
copy of the auditor's report. 

(2) A shareholder of a corporation that is not offering its financial 
securities to the public is entitled to be furnished by the on demand 
corporation on demand with a copy of the documents men- 
tioned in subsection 1. R.S.O. 1960, c. 71, s. 93, amended. 

171. — (1) A corporation that is offering its securities toP^ m ^ rative 
the public shall send to each shareholder a copv of a com- financial 
parative interim financial statement for the six-month period 
that commenced on the date of incorporation or, if the cor- 
poration has completed a financial year, for the six-month 
period that commenced immediately after the end of the last 
completed financial year and for the comparable six-month 
period, if any, in the twelve months immediately preceding 
the commencement of the six-month period in respect of which 
such interim financial statement is issued, made up of, 

(a) in the case of a corporation that is a mutual fund 
company or investment company as defined in the 
regulations under The Securities Act, 1966, a state- 1966> c - 142 
ment of changes in net assets for each period that 
complies with section 162 ; 

(b) in the case of a corporation other than one referred to 
in clause a, a statement of source and application of 
funds for each period that complies with section 163: 
and 

(c) sufficient relevant financial information in summary 
form to present fairly the results of the operations 
of the corporation for each period, including, 

(i) a statement of sales or gross operating 
revenue, 

(ii) extraordinary items of income or expense, 

(iii) net income before taxes on income imposed 
by any taxing authority, 

(iv) taxes on income imposed by any taxing 
authority, and 

(v) net profit or loss. 1966, c. 28, s. 13, part, 
amended. 

125 



104 



Idem 



o" r erVod n ^ Upon the application of any interested person, the 

Commission may, if satisfied that in the circumstances of the 
particular case there is adequate justification for so doing, 
make an order upon such terms and conditions as seem to the 
Commission just and expedient, exempting in whole or in part 
a corporation from the requirements of subsection 1 or per- 
mitting the comparative interim financial statement of a 
corporation to be for such period other than six months that 
is specified in the order. New. 

(3) There shall be stated by way of note to the interim 
financial statement required by subsection 1 particulars of 
any change in accounting principle or practice or in the 
method of applying any accounting principle or practice made 
during the period covered that affects the comparability of 
such statement with the statement for the preceding period 
or with the interim financial statement for a part of the 
preceding period, and the effect, if material, of any such 
change upon the profit or loss for the period covered by the 
interim financial statement. 

(4) For the purpose of subsection 3, a change in accounting 
principle or practice or in the method of applying any account- 
ing principle or practice affects the comparability of a state- 
ment with that for the preceding period or part thereof, 
even though such change did not have a material effect upon 
the profit or loss for the period covered by the interim financial 
statement. 

(5) The interim financial statement required by subsection 
1 shall be sent by prepaid mail to each shareholder, within 
sixty days of the date to which it is made up, at his latest 
address as shown on the records of the corporation. 1966, 
c. 28, s. 13, part, amended. 

INVESTIGATIONS 

tiontfand" 172. — (1) Upon application by a shareholder of a corpora- 

audits tion, the court, if satisfied that the application is made in 

good faith and that it is prima facie in the interests of the 
corporation or the holders of its securities to do so, may make 
an order, upon such terms as to the costs of the investigation 
or audit or otherwise as to the court seems fit, appointing an 
inspector to investigate the affairs and management of the 
corporation or any affiliate of the corporation, or both, and 
to audit the accounts and records of the corporation or any 
affiliate thereof named in the order. R.S.O. 1960, c. 71, 
s. 321 (1), amended. 



Idem 



Idem 



(2) An order may be made under subsection 1 whether or 
not there has been disclosure to the shareholders of the cor- 
poration of information relating to any matter on the basis of 
which the order is made. New. 



125 



105 

(3) Every director, officer, agent, employee, banker and of accounts 
auditor of the corporation or of any affiliate of the corporation and records 
named in the order and every other person shall produce for 

the examination of the inspector all accounts and records of or 
relating to the corporation or affiliate in their custody or 
control. 

(4) The inspector may examine upon oath any present or may n be ation 
former director, officer, agent or employee of the corporation upon oath 
or affiliate in relation to its affairs, management, accounts and 
records. R.S.O. 1960, c. 71, s. 321 (7, 8), amended. 

(5) The court may, on the application of the inspector, on order* for 
such terms and conditions as it sees fit, order any person not examination 
mentioned in subsection 4 to attend and be examined under 

oath before the inspector on any matter relevant to the 
investigation or audit. New. 

(6) Every director, officer, agent or employee who refuses ° ffence8 
to produce any account or record referred to in subsection 3 

and every banker or auditor who refuses to produce any 
account or record referred to in subsection 4 and every person 
examined under subsection 5 who refuses to answer any 
question related to the affairs and management of the cor- 
poration or any affiliate is guilty of an offence under section 
244, in addition to any other liability to which he is subject. 
R.S.O. 1960, c. 71, s. 321 (9), amended. 

(7) The inspector shall make a report to the court and shall j£ 8 > r 5 t ctor 3 
forward a copy of the report to the corporation and any 
affiliate of the corporation named in the order and to the 

person who made the application under subsection 1. New. 

173. — (1) A corporation may, by resolution passed at an corporation 

v '. Y ill ' * i • ft may appoint 

annual meeting of shareholders or a general meeting of share- inspector 
holders called for that purpose, appoint an inspector to inves- purpose 
tigate its affairs and management. 

(2) The inspector appointed under subsection 1 has the^°^ ers 
same powers and shall perform the same duties as an inspector duties of 
appointed under section 172 and he shall make his report in 
such manner and to such persons as the corporation by 
resolution of the shareholders directs. R.S.O. 1960, c. 71, 
s. 321 (5, 6), amended. 

174. A copy of the report of the inspector authenticated ^(fmTssibie 
by the court or in the case of an investigation under section in 

4 ~~ , , . . ...... , , ,. proceedings 

173 by the inspector is admissible in any legal proceeding as 
evidence of the opinion of the inspector in relation to any 
matter contained in the report. R.S.O. 1960, c. 71, s. 321 (10), 
amended. 

125 



106 

REORGANIZATION 

Amendment of Articles 

ment8 d ~ 175. — (1) A corporation may, from time to time, amend 

its articles of incorporation to, 

(a) change its name; 

(b) change the period of its duration; 

(c) extend, limit or otherwise vary its objects; 

(d) increase its authorized capital; 

(e) decrease, 

(i) its authorized capital by cancelling shares, 
whether issued or unissued and whether with 
par value or without par value, or by reducing 
the par value of issued or unissued shares, or 

(ii) its issued capital, if it has shares without par 
value, 

and, where it has more capital than it requires, to 
authorize the repayment of capital to the share- 
holders to the extent that the issued capital is 
decreased in any way under this clause; 

(/) redivide its authorized capital into shares of lesser 
or greater par value; 

(g) consolidate or subdivide any of its shares without 
par value; 

(h) change any of its shares with par value into shares 
without par value; 

(i) change any of its shares without par value into shares 
with par value; 

(j) redesignate any class of shares; 

(k) reclassify any shares with or without par value into 
shares of a different class; 

(/) delete or vary any provision in its articles; 

(m) provide for any other matter or thing that is author- 
ized by this Act to be set out in the articles or that 
could be the subject of a by-law of the corporation ; 

(n) provide for restrictions on the transfer of the shares 
or any class thereof. 

125 - 



107 

(2) An amendment under clauses a to m of subsection 1 Autnoriza- 

. . . tion 

shall be authorized by a special resolution. 

(3) An amendment under clause n of subsection 1 shall be Idem 
authorized by a resolution of the board of directors and 
confirmed in writing, 

(a) by 100 per cent of the shareholders; or 

(b) by at least 95 per cent of the shareholders holding at 
least 95 per cent of the issued capital, 

but, in the case of confirmation under clause b, the resolution 
is not effective until twenty-one days notice of the resolution 
has been given by sending the notice to each shareholder to 
his latest address as shown on the records of the corporation 
and only if at the expiration of the twenty -one days none of 
the shareholders has dissented in writing to the corporation. 

(4) If the amendment is to delete or vary a preference, authoHza 1 - 1 
right, condition, restriction, limitation or prohibition attach- tion . f ° r 

. ° ' -ii variation 

ing to a class of special shares or to create special shares of rights of 
ing in any respect in priority to or on a parity with an shareholders 
existing class of special shares, then, in addition to the con- 
firmation required by subsection 2, the resolution is not 
effective until it has been confirmed, 

(a) by 100 per cent of the holders of the shares of such 
class or classes of shares in writing; or 

(b) in writing by at least 95 per cent of the holders of 
the shares of such class or classes of shares holding 
at least 95 per cent of the issued shares of such class 
or classes and after twenty-one days notice of the 
resolution and confirmation has been given by send- 
ing the notice to each of the holders of shares of such 
class or classes to his latest address as shown on the 
records of the corporation and only if at the expira- 
tion of twenty-one days none of the holders of such 
class or classes has dissented in writing to the cor- 
poration; or 

(c) if the articles so provide, by at least two-thirds of 
the votes cast at a meeting of the holders of such 
class or classes of shares duly called for that purpose 
or such greater proportion of the votes cast as the 
articles provide, 

and bv such additional authorization as the articles provide. 
R.S.O! 1960, c. 71, s. 33 (1-5), amended. 

125 



10.S 



I'tion 



ml 
A> i cor- 
porations 
excepted 



(5) Where an amendment to the articles that could l>e 
made under this section is made as part of an arrangement 
under sections 179, 180 and 181, the procedure provided for 
in those sections and not the procedure provided for in this 
section applies to the amendment. 

(6) This section does not apply to a corporation incorpor- 
ated by special Act, except that a corporation incorporated 
by special Act may under this section amend its articles to 
change its name. R.S.C). 1960, c. 71, s. 33 (8, 9), amended. 



Articles of 
amendment 



176. — (1) For the purpose of bringing an amendment to 
the articles into effect, the corporation shall deliver to the 
Minister, within six months after the resolution has become 
effective, articles of amendment in duplicate, executed under 
the seal of the corporation and signed by two officers, or by 
one director and one officer, of the corporation and verified 
by affidavit of one of the officers or directors signing the 
articles of amendment, setting out, 



(a) the name of the corporation ; 

(b) a certified copy of the resolution ; 

(c) that the amendment has been duly authorized as 
required by subsections 2, 3 and 4 of section 40; and 

id) the date of the confirmation of the resolution by the 
shareholders. R.R.O. 1960, Reg. 61, s. 35, amended. 



Change 
of name 



(2) Where the articles of amendment are to change the 
name of the corporation, the articles of amendment shall be 
accompanied by evidence that establishes to the satisfaction 
of the Minister that the corporation is not insolvent. R.R.O. 
1960, Reg. 60, s. 4 (3), amended. 



Decrease 
of capital 



(3) Where the articles of amendment are to decrease the 
authorized or issued capital, the articles of amendment shall 
be accompanied by evidence that establishes to the satisfaction 
of the Minister that the corporation is not insolvent and that 
the decrease will not render the corporation insolvent, and, 
if required by the Minister, by evidence that establishes to 
his satisfaction that no creditors object to the amendment. 
R.S.O. 1960, c. 71, s. 34. 



Pro forma 

balance 

sheet 



(4) Where the articles of amendment are to make any 
change in the authorized or issued capital, the articles of 
amendment shall, if required by the Minister, be accom- 
panied by a pro forma balance sheet after giving effect to the 
proposed change. R.R.O. 1960, Reg. 60, s. 4 (1) (d), amended. 



125 



109 

177. — (1) If the articles of amendment conform to law, certificate 
the Minister shall, when all prescribed fees have been paid, amendment 

(a) endorse on each duplicate of the articles of amend- 
ment the word "Filed" and the day, month and year 
of the filing thereof; 

(b) file one of the duplicates in his office; and 

(c) issue to the corporation or its agent a certificate 
of amendment to which he shall affix the other 
duplicate. New. 

(2) Upon the issuance of the certificate of amendment, the ^ftiflcate 
amendment becomes effective and the articles of incorporation 
are amended accordingly. R.S.O. 1960, c. 71, s. 4, amended. 

Restatement of Articles 

178. — (1) A corporation may at any time restate its Restatement 
articles of incorporation as theretofore amended. 

(2) For the purposes of bringing the restated articles into Filing of 
effect, the corporation shall deliver to the Minister the restated 
articles in duplicate, executed under the seal of the corporation 

and signed by two officers, or by one director and one officer, 
of the corporation and verified by affidavit of one of the 
officers or directors signing the restated articles, setting out, 

(a) all the provisions that are then set out in the original 
articles of incorporation as theretofore amended; 
and 

(b) a statement that the restated articles correctly set 
out without change the corresponding provisions of 
the original articles as theretofore amended. 

(3) If the restated articles of incorporation conform to law, Restatement 
the Minister shall, when all prescribed fees have been paid, certificate 

(a) endorse on each duplicate of the restated articles the 
word "Filed" and the day, month and year of the 
filing thereof; 

(b) file one of the duplicates in his office; and 

(c) issue to the corporation or its agent a restated 
certificate of incorporation to which he shall affix 
the other duplicate. 

(4) Upon the issuance of the restated certificate of incor- Effect of 

certificate 

poration, the restated articles of incorporation become effec- 
tive and supersede the original articles of incorporation and 
all amendments thereto. New. 

125 



110 

Arrangements 

tatJon 1 *" ***** — M * n tl1,8 sect ^ on anc * sections 180 an d 181, "ar- 

rangement" includes a reorganization of the authorized 
capital of a corporation and also includes, 

(a) the consolidation of shares of different classes; 

(b) the reclassification of shares of one class into shares 
of another class; 

(c) the variation of the designations, preferences, rights, 
conditions, restrictions, limitations or prohibitions 
attaching to shares of any class; and 

(d) a reconstruction under which a corporation transfers 
or sells, or proposes to transfer or to sell, to another 
body corporate the whole or a substantial part of its 
undertaking for a consideration consisting in whole 
or in part of securities of the other body corporate 
and under which it proposes to distribute a part of 
that consideration among its shareholders of any 
class, or to cease carrying on its undertaking or that 
part of its undertaking so transferred or sold or so 
proposed to be transferred or sold. R.S.O. 1960, 
c. 71, s. 95 (1). 

Arrange- (2) Subject to section 180, a corporation may make an 

arrangement, 

(a) that affects the rights of all its shareholders ; or 

(b) that affects the rights of only holders of a particular 
class of its shares. R.S.O. 1960, c. 71, s. 95 (2), 
amended. 

subsidiaries! ^) Where a corporation proposing an arrangement has 
one or more subsidiaries, any one or more of the subsidiaries 
may join in the arrangement with the holding corporation in 
one scheme. New. 

Scheme of 180. — (1) A corporation proposing an arrangement shall 
ment prepare a scheme for the purpose, prescribing in detail what 

is to be done and the manner in which it is to be effected. 

to share- " (2) ^he corporation shall submit the scheme to the share- 
holders holders, or to the class of them affected, as the case may be, 

at a meeting duly called by the corporation for the purpose 

of considering the scheme. New. 

of°notir« @) Where a meeting of the shareholders or of any class or 

calling classes of shareholders is called under subsection 2, the notice 

D186t!nfl! 

calling the meeting shall contain a statement explaining the 
effect of the arrangement and in particular stating any interest 

125 



Ill 

of the directors of the corporation, whether as directors or as 
shareholders of the corporation or otherwise, and the effect 
thereon of the arrangement in so far as it is different from the 
effect on the like interest of other persons. R.S.O. 1960, c. 71, 

s. 95 (3). 

(4) If the shareholders of the corporation or of the class ^share- 
or classes affected, as the case may be, present in person or holders 
by proxy at the meeting, agree, by a vote of at least three- 
fourths of the shares of each class represented, to the arrange- 
ment either as proposed or as varied at the meeting, the scheme 

shall be deemed to have been adopted. R.S.O. 1960, c. 71, 
s. 95 (4), amended. 

(5) Where the scheme is deemed to have been adopted, the£ p P™vai 
corporation may apply to the court for an order approving 

the scheme. 

(6) Unless the court otherwise directs, the corporation Nrotice 
shall notify each of its dissentient shareholders, in such 
manner as the court may direct, of the time and place when 

the application for the approving order will be made. 

(7) The court shall hear and determine the matter and may ° rder 
approve the scheme as presented or may approve it, subject to 
compliance with such terms and conditions as it thinks fit, 
having regard to the rights and interests of the dissentient 
shareholders, or any of them. R.S.O. 1960, c. 71, s. 95 (4, 5), 
amended. 

181. — (1) For the purpose of bringing a scheme into effect, Statement 
the corporation shall, within six months of the approval of the *° a ^ nd 
scheme by the court, deliver to the Minister a statement in 
duplicate executed under the seal of the corporation and 
signed by two officers, or by one director and one officer, of 
the corporation, and verified by affidavit of one of the officers 
or directors signing the statement, setting out, 

(a) the name of the corporation ; 

(b) a certified copy of the scheme; 

(c) a certified copy of the order of the court; and 

(d) that the terms and conditions, if any, to which the 
scheme is made subject by the order have been 
complied with. 

(2) If the statement conforms to law, the Minister shall, ^tm'cate^ 
when all prescribed fees have been paid, amendment 

(a) endorse on each duplicate of the statement the word 
"Filed" and the day, month and year of the filing 
thereof; 

125 



112 

(b) file one of the duplicates in his office; and 

(c) issue to the corporation or its agent a certificate of 
the filing to which he shall affix the other duplicate. 

awtiflcate (3) Upon the issuance of the certificate of filing, the scheme 

of becomes effective and constitutes an amendment to the 

amendment . 

articles. New. 

Amalgamations and Continuations 

Amaiga- 182. — (1) Any two or more corporations, including hold- 

ing or subsidiary corporations, may amalgamate and continue 
as one corporation. 

Agreement (2) The corporations proposing to amalgamate shall enter 
into an agreement for the amalgamation, prescribing its terms 
and conditions of the amalgamation and the mode of carrying 
the amalgamation into effect, and, in particular the agree- 
ment shall set out, 

(a) the name of the amalgamated corporation ; 

(b) the period of duration of the amalgamated corpora- 
tion if other than perpetual; 

(c) the place in Ontario where the head office of the 
amalgamated corporation is to be located, giving the 
municipality and the county or district or, where 
the head office is to be located in territory without 
municipal organization, the geographic township and 
district, and giving the street and number, if any; 

(d) the authorized capital of the amalgamated corpora- 
tion, the classes of shares, if any, into which it is to 
be divided, the number of shares of each class, and 
the par value of each share, or, where the shares are 
to be without par value, the consideration, if any, 
exceeding which each share may not be issued or the 
aggregate consideration, if any, exceeding which all 
the shares of each class may not be issued ; 

(e) where there are to be special shares, the designations, 
preferences, rights, conditions, restrictions, limita- 
tions or prohibitions applying to them or each class 
of them; 

(/) the restrictions, if any, to be placed on the transfer 
of its shares, or any class thereof; 

(g) the names in full and the residence address, giving 
the street and number, if any, of each person who is 
to be a first director of the amalgamated corporation; 

125 



113 

(h) the time and manner of election of the subsequent 
directors of the amalgamated corporation; 

(t) whether or not the by-laws of the amalgamated 
corporation are to be those of one of the amalgamat- 
ing corporations, and, if not, a copy of the proposed 
by-laws of the amalgamated corporation; 

(j ) the manner in which the issued shares of each of the 
amalgamating corporations are to be converted into 
issued shares of the amalgamated corporation ; 

(k) such other details as may be necessary to perfect the 
amalgamation and to provide for the subsequent 
management and operation of the amalgamated cor- 
poration. R.S.O. 1960, c. 71, s. 96 (1, 2), amended. 

(3) Where shares of one of the amalgamating corporations f ma r iga° f 
are held by or on behalf of another of the amalgamating cor- matin « . 

J . , . ,,,.,/•, corporation 

porations, the amalgamation agreement shall provide for the held by 
cancellation of such shares upon the amalgamation becoming 
effective without any repayment of capital in respect thereof, 
and no provision shall be made in the agreement for the 
conversion of such shares into shares of the amalgamated 
corporation. New. 

(4) An amalgamation agreement is not effective until agreement 01 
approved by a special resolution of each of the amalgamating 
corporations. R.S.O. 1960, c. 71, s. 96 (3), amended. 

(5) Where the carrying out of the amalgamation agree- b P ^ r ecfii 
ment would result in the deletion or variation of a preference, shareholders 
right, condition, restriction, limitation or prohibition attaching 

to a class of issued special shares of any of the amalgamating 
corporations or in the creation of special shares of the amal- 
gamated corporation ranking in any respect in priority to, or 
on a parity with, any existing class of special shares of any of 
the amalgamating corporations, the agreement is not effective 
until it is approved in the manner provided by subsection 
4 of section 176 in addition to the approval required by 
subsection 4. New. 

183. — (1) For the purpose of bringing an amalgamation artlciofof 
into effect, the amalgamating corporations shall, within sixamajga- 
months after the amalgamation agreement has become effec- 
tive, deliver to the Minister articles of amalgamation in 
duplicate executed under the seal of each of the amalgamating 
corporations and signed by two officers, or by one director and 
one officer, of each of the amalgamating corporations and 
verified by affidavit of one of the officers or directors signing 
the articles of amalgamation for each amalgamating cor- 
poration, setting out, 

125 



114 

(a) the names of each of the amalgamating corporations; 

(b) a certified copy of the amalgamation agreement; 

(c) that the agreement has been duly approved as 
required by section 182; and 

(d) the dates on which the amalgamation agreement was 
approved by the shareholders of each of the amal- 
gamating corporations. 

eolveno* ° f (2) The articles of amalgamation shall be accompanied by 
evidence that establishes to the satisfaction of the Minister 
that each of the amalgamating corporations is not insolvent 
and, if required by the Minister, a pro forma balance sheet 
after giving effect to the proposed amalgamation. 

oertiflcate° f (3) If the articles of amalgamation conform to law, the 
matik>n lga Minister shall, when all prescribed fees have been paid, 

(a) endorse on each duplicate of the articles the word 
"Filed" and the day, month and year of the filing 
thereof ; 

(b) file one of the duplicates in his office; and 

(c) issue to the amalgamated corporation or its agent a 
certificate of amalgamation to which he shall affix 
the other duplicate. New. 

Mrtiflcate (*) Upon the issuance of the certificate of amalgamation, 

(a) the amalgamation becomes effective and the amal- 
gamating corporations are amalgamated and con- 
tinue as one corporation under the terms and con- 
ditions prescribed in the amalgamation agreement; 

(6) the amalgamated corporation possesses all the prop- 
erty, rights, privileges and franchises and is subject 
to all liabilities, contracts, disabilities and debts of 
each of the amalgamating corporations; 

(c) the issued capital of the amalgamated corporation is, 
subject to the decrease provided for in subsection 3 
of section 182, equal to the aggregate of the issued 
capital of each of the amalgamating corporations 
immediately before the amalgamation becomes effec- 
tive; and 

125 



115 

(d) the articles of incorporation of each of the amal- 
gamated corporations are amended to the extent 
necessary to give effect to the terms and conditions 
of the amalgamation agreement. R.S.O. 1960, c. 71, 
s. 96 (4), amended. 

184. — (1) A corporation incorporated under the laws of certificate 
any jurisdiction other than Ontario may, if it appears to thetinu&Mon 
Minister to be thereunto authorized by the laws of the juris- 
diction in which it was incorporated, apply to the Minister 
for a certificate continuing it as if it has been incorporated 
under this Act, and the Minister may issue the certificate 
of continuation on application supported by such material as 
appears satisfactory, and the certificate may be issued on such 
terms and subject to such limitations and conditions and con- 
tain such provisions as appear to the Minister to be fit and 
proper. R.S.O. 1960, c. 71, s. 323 (3), amended. 

(2) Upon the issuance of a certificate of continuation to aEffect^of 
corporation under subsection 1, this Act applies to the cor-o.fcon r 

. , -r • i i I • i tinuation 

poration to the same extent as if it had been incorporated 
under this Act. New. 



185. — (1) A corporation incorporated under the laws of Ontario 1 " ° f 
Ontario may, if authorized by a special resolution, by the corporations 
Minister and by the laws of any other jurisdiction, apply to 
the proper officer of that other jurisdiction for an instrument 
of continuation continuing the corporation as if it had been 
incorporated under the laws of that other jurisdiction. 

(2) The corporation shall file with the Minister a notice of Notice 
the issue of the instrument of continuation, and on and after 

the date of the filing of the notice this Act ceases to apply to 
that corporation. 

(3) This section applies only in respect of a jurisdiction that Application 
has legislation in force that permits corporations incorporated 

under its laws to apply for an instrument of continuation under 
the laws of Ontario. 1961-62, c. 21, s. 4, amended. 

186. All rights of creditors against the property, rights ^ft{o^ f 
and assets of a corporation amalgamated under section 182 preserved 
or continued under section 184 and all liens upon its property, 
rights and assets are unimpaired by such amalgamation or 
continuation, and all debts, contracts, liabilities and duties 
of the corporation thenceforth attach to the amalgamated 
or continued corporation and may be enforced against it. 
R.S.O. 1960, c. 71, s. 324. 

125 



116 



Interpre- 
tation 



DISSOLUTION 

Winding Up 

187. In sections 189 to 232, "contributory" means a person 
who is liable to contribute to the property of a corporation 
in the event of the corporation being wound up under this 
Act. R.S.O. 1960, c. 71, s. 241. 



Application 
ores. 189- 
201 



Voluntary 
winding up 



Appoint- 
ment of 
liquidator 



Review of 
remunera- 
tion by 
court 



Publication 
of notice 
of 
winding up 



Inspectors 



188. Sections 189 
wound up voluntarily 



Voluntary Winding Up 

apply to corporations being 



to 201 

New. 



180. — (1) Where the shareholders of a corporation by a 
majority of the votes cast at a general meeting duly called 
for that purpose, or by such greater proportion of the votes 
cast as the articles provide, pass a resolution requiring the 
corporation to be wound up, the corporation may be wound 
up voluntarily. 

(2) At such meeting the shareholders shall appoint one or 
more persons, who may be directors, officers or employees of 
the corporation, as liquidator of the estate and effects of the 
corporation for the purpose of winding up its affairs and 
distributing its property, and may at that or any subsequent 
general meeting fix his remuneration and the costs, charges 
and expenses of the winding up. R.S.O. 1960, c. 71, s. 243, 
amended. 

(3) On the application of any shareholder or creditor of the 
corporation or of the liquidator, the court may review the 
remuneration of the liquidator and, whether or not the 
remuneration has been fixed by resolution, the court may fix 
and determine the remuneration at such amount as it thinks 
proper. New. 

(4) A corporation shall file notice of a resolution requiring 
the voluntary winding up of a corporation with the Minister 
within ten days after the resolution has been passed and shall 
publish the notice in The Ontario Gazette within twenty days 
after the resolution has been passed. R.S.O. 1960, c. 71, 
s. 244 (1), amended. 

190. A corporation being wound up voluntarily may, in 
general meeting, by resolution, delegate to any committee of 
its shareholders, contributories or creditors, hereinafter 
referred to as inspectors, the power of appointing the liquidator 
and filling any vacancy in the office of liquidator, or may by a 
like resolution enter into any arrangement with its creditors 
with respect to the powers to be exercised by the liquidator 
and the manner in which they are to be exercised. R.S.O. 
1960, c. 71, s. 245. 



125 



117 

191. If a vacancy occurs in the office of liquidator by v ^° an ^ in 
death, resignation or otherwise, the shareholders in general liquidator 
meeting may, subject to any arrangement the corporation 

may have entered into with its creditors upon the appoint- 
ment of inspectors, fill such vacancy, and a general meeting 
for that purpose may be called by the continuing liquidator, 
if any, or by any shareholder or contributory, and shall be 
deemed to have been duly held if called in the manner pre- 
scribed by the articles or by-laws of the corporation, or, in 
default thereof, in the manner prescribed by this Act, for 
calling general meetings of the shareholders of the corporation. 
R.S.O. 1960, c. 71, s. 246, amended. 

192. The shareholders of the corporation may by a major- nq™dator° f 
ity of the votes cast at a general meeting called for that 
purpose remove a liquidator appointed under section 189, 

190 or 191, and in such case shall appoint another liquidator 
in his stead. R.S.O. 1960, c. 71, s. 247. 

193. A voluntary winding up commences at the time of the ment^f 106 
passing of the resolution requiring the winding up. R.S.O. winding up 
1960, c. 71, s. 248. 

194. A corporation being wound up voluntarily shall, Corporation 

c i f • • « • tO C6ELS6 

trom the commencement ot its winding up, cease to carry on business 
its undertaking, except in so far as may be required as bene- 
ficial for the winding up thereof, and all transfers of shares, 
except transfers made to or with the sanction of the liquidator, 
or alterations in the status of the shareholders of the cor- 
poration, taking place after the commencement of its winding 
up are void, but its corporate existence and all its corporate 
powers, notwithstanding that it is otherwise provided by its 
articles or by-laws, continue until its affairs are wound up. 
R.S.O. 1960, c. 71, s. 249, amended. 

195. After the commencement of a voluntary winding: up, No proceed- 

* ° r ings against 

corporation 

(a) no action or other proceeding shall be commenced voluntary 
against the corporation; and Except 8 UP 

by leave 

(b) no attachment, sequestration, distress or execution 
shall be put in force against the estate or effects of 
the corporation, 

except by leave of the court and subject to such terms as the 
court imposes. R.S.O. 1960, c. 71, s. 250. 

196. — (1) Upon a voluntary winding up, the liquidator, c^trlbu- 

tories 

and calls 

(a) shall settle the list of contributories; 
125 



118 



(b) may, before he has ascertained the sufficiency of the 
property of the corporation, call on all or any of the 
contributories for the time being settled on the list 
of contributories to the extent of their liability to 
pay any sum that he considers necessary for satisfy- 
ing the liabilities of the corporation and the costs, 
charges and expenses of winding up and for adjusting 
the rights of the contributories among themselves. 

(2) A list settled by the liquidator under clause a of sub- 
section 1 is prima facie proof of the liability of the persons 
named therein to be contributories. 

(3) The liquidator in making a call under clause b of sub- 
section 1 may take into consideration the probability that 
some of the contributories upon whom the call is made may 
partly or wholly fail to pay their respective portions of the 
call. R.S.O. 1960, c. 71, s. 251. 

corpora^fon 197. — (1) The liquidator may, during the continuance of 
winding up tne voluntary winding up, call general meetings of the share- 
holders of the corporation for the purpose of obtaining their 
approval by resolution, or for any other purpose he thinks fit. 



List 

prima facie 
proof 



Default 
on calls 



Where 
winding up 
continues 
more than 
one year 



(2) Where a voluntary winding up continues for more than 
one year, the liquidator shall call a general meeting of the 
shareholders of the corporation at the end of the first year and 
of each succeeding year from the commencement of the 
winding up, and he shall lay before the meeting an account 
showing his acts and dealings and the manner in which the 
winding up has been conducted during the immediately 
preceding year. R.S.O. 1960, c. 71, s. 252, amended. 



Arrange- 
ments 
with 
creditors 



Power to 
compromise 
with 
debtors 
and con- 
tributories 



108. The liquidator, with the approval of a resolution of 
the shareholders of the corporation passed in general meeting 
or with the approval of the inspectors, may make such com- 
promise or other arrangement as the liquidator thinks ex- 
pedient with any creditor or person claiming to be a creditor 
or having or alleging that he has a claim, present or future, 
certain or contingent, liquidated or unliquidated, against the 
corporation or whereby the corporation may be rendered 
liable. R.S.O. 1960, c. 71, s. 253, amended. 

109. The liquidator may, with the approval referred to in 
section 198, compromise all debts and liabilities capable of 
resulting in debts, and all claims, whether present or future, 
certain or contingent, liquidated or unliquidated, subsisting 
or supposed to subsist between the corporation and any 
contributory, alleged contributory or other debtor or person 
who may be liable to the corporation and all questions in any 
way relating to or affecting the property of the corporation, 



125 



119 

or the winding up of the corporation, upon the receipt of 
such sums payable at such times and generally upon such 
terms as are agreed, and the liquidator may take any security 
for the discharge of such debts or liabilities and give a com- 
plete discharge in respect thereof. R.S.O. 1960, c. 71, s. 254, 
amended. 

200. — (1) Where a corporation is proposed to be or is in| > ° we ^ to 
the course of being wound up voluntarily and it is proposed shares, 
to transfer the whole or a portion of its business or property considera- 
to another body corporate, referred to in this subsection as sale of r 
the purchasing corporation, the liquidator of the first-men- another 5 ' to 
tioned corporation, with the approval of a resolution of the J ofporaLte 
shareholders passed in general meeting of the corporation 
conferring either a general authority on the liquidator or an 
authority in respect of any particular arrangement, may 
receive, in compensation or in part-compensation for the 
transfer, cash or shares or other like interest in the purchasing 
corporation or any other body corporate for the purpose of 
distribution among the creditors or shareholders of the cor- 
poration that is being wound up in the manner set forth in 
the arrangement, or may, in lieu of receiving cash or shares or 
other like interest, or in addition thereto, participate in the 
profits of or receive any other benefit from the purchasing 
corporation or any other body corporate. 

(2) A transfer made or arrangement entered into by the^onflrma- 
liquidator under this section is not binding on the shareholders sale or 

of the corporation that is being wound up unless the share- ment 
holders or classes of shareholders, as the case may be, at a 
general meeting duly called for the purpose, by votes represent- 
ing at least three-fourths of the shares or of each class of shares 
represented at the meeting, approve the transfer or arrange- 
ment and unless the transfer or arrangement is approved by 
an order made by the court on the application of the cor- 
poration. 

(3) No resolution is invalid for the purposes of this section resolution 
because it was passed before or concurrently with a resolution not invalid 
for winding up the corporation or for appointing the liquidator. 

R.S.O. 1960, c. 71, s. 255, amended. 

201. — (1) The liquidator shall make up an account show- Account of 
ing the manner in which the winding up has been conducted winding up 
and the property of the corporation disposed of, and thereupon made by 
shall call a general meeting of the shareholders of the cor- to Q a idat ° r 
poration for the purpose of having the account laid before Meeting 
them and hearing any explanation that may be given by the 
liquidator, and the meeting shall be called in the manner 

125 



120 



Notice of 
holding 
of meeting 



prescribed by the articles or by-laws or, in default thereof, 
in the manner prescribed by this Act for the calling of general 
meetings of shareholders. 

(2) The liquidator shall within ten days after the holding 
of the meeting file a notice with the Minister stating that the 
meeting was held and the date thereof. 



Dissolution 



Extension 



Dissolution 
by court 
order 



Copy of 

extension 
order to 
be filed 



(3) Subject to subsection 4, on the expiration of three 
months from the date of the filing of the notice the cor- 
poration is dissolved. 

(4) At any time during the three-month period mentioned 
in subsection 3, the court may, on the application of the 
liquidator or any other person interested, make an order 
deferring the date on which the dissolution of the corporation 
is to take effect to a date fixed in the order, and in such event 
the corporation is dissolved on the date "so fixed. R.S.O. 
1960, c. 71, s. 279 (1-4), amended. 

(5) Notwithstanding anything in this Act, the court at 
any time after the affairs of the corporation have been fully 
wound up may, upon the application of the liquidator or any 
other person interested, make an order dissolving it, and it is 
dissolved on the date fixed in the order. R.S.O. 1960, c. 71, 
s. 280 (1), amended. 

(6) The person on whose application an order was made 
under subsection 4 or 5 shall within ten days after it was 
made file with the Minister a certified copy of the order. 
R.S.O. 1960, c. 71, s. 279 (5), amended. 



of ss. 203- 
214 



Winding up by Court Order 

202. Sections 203 to 214 apply to corporations being 
wound up by order of the court. New. 



Winding up 
by court 



203. A corporation may be wound up by order of the 



court, 



(a) where the shareholders by a majority of the votes 
cast at a general meeting called for that purpose or 
by such greater proportion of the votes cast as the 
articles provide pass a resolution authorizing an 
application to be made to the court to wind up the 
corporation ; 

(b) where proceedings have been begun to wind up 
voluntarily and it appears to the court that it is in 
the interest of contributories and creditors that^the 
proceedings should be continued under the super- 
vision of the court; 



125 



121 

(c) where it is proved to the satisfaction of the court 
that the corporation, though it may not be insolvent, 
cannot by reason of its liabilities continue its busi- 
ness and that it is advisable to wind it up; or 

(d) where in the opinion of the court it is just and 
equitable for some reason, other than the bank- 
ruptcy or insolvency of the corporation, that it 
should be wound up. R.S.O. 1960, c. 71, s. 256, 
amended. 

204. — (1) A winding-up order may be made upon thejppj > y may 
application of the corporation or of a shareholder or, where 
the corporation is being wound up voluntarily, of the liquida- 
tor or of a contributory or of a creditor having a claim of 
$1,000 or more. 

(2) Except where the application is made by the corpora- Notice 
tion, four days notice of the application shall be given to the 
corporation before the making of the application. R.S.O. 
1960, c. 71, s. 257, amended. 

205. The court may make the order applied for, may^'urt 
dismiss the application with or without costs, may adjourn 
the hearing conditionally or unconditionally or may make any 
interim or other order as is deemed just, and upon the making 
of the order may, according to its practice and procedure, 
refer the proceedings for the winding up to an officer of the 
court for inquiry and report and may authorize the officer to 
exercise such powers of the court as are necessary for the 
reference. R.S.O. 1960, c. 71, s. 258, amended. 

206. — (1) The court in making the winding-up order may ^J^f ~ 
appoint one or more persons as liquidator of the estate and liquidator 
effects of the corporation for the purpose of winding up its 
affairs and distributing its property. 

(2) The court may at any time fix the remuneration of the Son* 1 " 116 ™" 
liquidator. 

(3) If a liquidator appointed by the court dies or resigns Vacancy 
or the office becomes vacant for any reason, the court may 

by order fill the vacancy. R.S.O. 1960, c. 71, s. 259 (1-3). 

(4) A liquidator appointed by the court under this section ^ p °p ^ t ? f 
shall forthwith give to the Minister notice in writing of his^ent 
appointment and shall, within twenty days of his appoint- 
ment, publish the notice in The Ontario Gazette. New. 

207. The court may by order remove for cause a liquidator nq ^dauir^ 
appointed by it, and in such case shall appoint another 
liquidator in 'his stead. R.S.O. 1960, c. 71, s. 259 (4). 

125 



122 



Costs and 
expenses 



208. The costs, charges and expenses of a winding up 
by order of the court shall be taxed by a taxing officer of the 
Supreme Court at Toronto. R.S.O. 1960, c. 71, s. 260. 



mentof" *" 200. Where a winding-up order is made by the court 
winding up w |thout prior voluntary winding-up proceedings, the winding 
up shall be deemed to commence at the time of the service of 
notice of the application, and, where the application is made 
bv the corporation, at the time the application is made. 
R.S.O. 1960, c. 71, s. 261. 

/^wfnd/ng 8 210. Where a winding-up order has been made by the 
up after court, proceedings for the winding up of the corporation shall 
be taken in the same manner and with the like consequences 
as provided for a voluntary winding up, except that the list 
of contributories shall be settled by the court unless it has 
been settled by the liquidator before the winding-up order, 
in which case the list is subject to review by the court, and 
except that all proceedings in the winding up are subject to 
the order and direction of the court. R.S.O. 1960, c. 71, s. 262. 



Meetings 
of share- 
holders of 
corporation 
may be 
ordered 



211. — (1) Where a winding-up order has been made by 
the court, the court may direct meetings of the shareholders 
of the corporation to be called, held and conducted in such 
manner as the court thinks fit for the purpose of ascertaining 
their wishes, and may appoint a person to act as chairman of 
any such meeting and to report the result of it to the court. 



Order for 
delivery 
by contrib- 
utories 
and others 
of 

property, 
etc. 



(2) Where a winding-up order has been made by the court, 
the court may require any contributory for the time being 
settled on the list of contributories, or any director, officer, 
employee, trustee, receiver, banker or agent of the corporation 
to pay, deliver, convey, surrender or transfer forthwith, or 
within such time as the court directs, to the liquidator any 
sum or balance, documents, records, estate or effects that are 
in his hands and to which the corporation is prima facie 
entitled. 



(3) Where a winding-up order has been made by the court, 
ments and the court may make an order for the inspection of the docu- 

records 

ments and records of the corporation by its creditors and 
contributories, and any documents and records in the posses- 
sion of the corporation may be inspected in conformity with 
the order. R.S.O. 1960, c. 71, s. 263, amended. 

Proceedings 212. After the commencement of a winding up by order 

corporation of the COUrt, 
after court 
winding up 

(a) no action or other proceeding shall be proceeded 
with or commenced against the corporation; and 



125 



123 

(b) no attachment, sequestration, distress or execution 
shall be put in force against the estate or effects of 
the corporation, 

except by leave of the court and subject to such terms as the 
court imposes. R.S.O. 1960, c. 71, s. 264. 

213. — (1) Where the realization and distribution of the Provision 
property of a corporation being wound up under an order of charge of 
the court has proceeded so far that in the opinion of the court ancfdistri- 
it is expedient that the liquidator should be discharged and the^ourt" 
that the property of the corporation remaining in his hands 
can be better realized and distributed by the court, the court 
may make an order discharging the liquidator and for pay- 
ment, delivery and transfer into court, or to such officer or 
person as the court directs, of such property, and it shall be 
realized and distributed by or under the direction of the 
court among the persons entitled thereto in the same way as 
nearly as may be as if the distribution were being made 
by the liquidator. 

(2) In such case, the court may make an order directing Disposal of 
how the documents and records of the corporation and of the and 
liquidator are to be disposed of, and may order that they be re 
deposited in court or otherwise dealt with as the court thinks 
fit. R.S.O. 1960, c. 71, s. 283, amended. 

214. — (1) The court at any time after the affairs of the order for 

. i i r ,, , , ,. dissolution 

corporation have been fully wound up may, upon the applica- 
tion of the liquidator or any other person interested, make an 
order dissolving it, and it is dissolved on the date fixed in the 
order. 

(2) The person on whose application the order was made C iMoiuUon 
shall within ten days after it was made file with the Minister ^ d fl[ ed ° 
a certified copy of the order. R.S.O. 1960, c. 71, s. 280 (1, 2), 
amended. 



Winding Up Generally 

215. Sections 216 to 232 apply to corporations being Application 
wound up voluntarily or by order of the court. R.S.O. 1960, 232 

c. 71, s. 265. 

216. Where there is no liquidator, Editor 

(a) the court may by order on the application of a share- 
holder of the corporation appoint one or more persons 
as liquidator; and 



125 



124 

(b) the estate and effects of the corporation shall be 
under the control of the court until the appointment 
of a liquidator. R.S.O. 1960, c. 71, s. 266, amended. 

que££s of 217.— (1) Upon a winding up, 

winding up 

(a) the liquidator shall apply the property of the cor- 
poration in satisfaction of all its debts, obligations 
and liabilities and, subject thereto, shall distribute 
the property rateably among the shareholders ac- 
cording to their rights and interests in the cor- 
poration ; 

(b) in distributing the property of the corporation, 
debts to employees of the corporation for services 
performed for it due at the commencement of the 
winding up or within one month before, not exceed- 
ing three months wages and for vacation pay accrued 

r.s.o. i960. for not more than twelve months under The Hours of 

C. 181 . , J 

Work and Vacations with Pay Act and the regulations 
thereunder or under a collective agreement made by 
the corporation, shall be paid in priority to the 
claims of the ordinary creditors, and such persons are 
entitled to rank as ordinary creditors for the residue 
of their claims; 

(c) all the powers of the directors cease upon the appoint- 
ment of a liquidator, except in so far as the liquidator 
may sanction the continuance of such powers. 

Distribution (2) Section 52 of The Trustee Act applies mutatis mutandis 

or property N ' rr 

r.s.o. 1960. to liquidators. R.S.O. 1960, c. 71, s. 267, amended. 

c.408 

Payment 218. The costs, charges and expenses of a winding up, 

Of COStS .... . . r i •• • i LI 

and including the remuneration of the liquidator, are payable 

out of the property of the corporation in priority to all other 
claims. R.S.O. 1960, c. 71, s. 268. 



expenses 



S ta °l. 219.— (1) A liquidator may, 



liquidators 



(a) bring or defend any action, suit or prosecution, or 
other legal proceedings, civil or criminal, in the 
name and on behalf of the corporation; 

(b) carry on the business of the corporation so far as 
may be required as beneficial for the winding up of 
the corporation ; 

(c) sell the real and personal property, effects and things 
in action of the corporation by public auction or 
private sale; 



125 



125 



(d) do all acts and execute, in the name and on behalf of 
the corporation, all documents, and for that purpose 
use the seal of the corporation; 

(e) draw, accept, make and endorse any bill of exchange 
or promissory note in the name and on behalf of the 
corporation ; 

(/) raise upon the security of the property of the cor- 
poration any requisite money; 

(g) take out in his official name letters of administration 
of the estate of any deceased contributory and do 
in his official name any other act that is necessary 
for obtaining payment of any money due from a 
contributory or from his estate and which act cannot 
be done conveniently in the name of the corporation; 
and 

(h) do and execute all such other things as are necessary 
for winding up the affairs of the corporation and 
distributing its property. 

(2) The drawing, accepting, making or endorsing of a bill Change, 
of exchange or promissory note by the liquidator on behalf ^c.^to be 
of a corporation has the same effect with respect to the drawn in 

th© courss 

liability of the corporation as if such bill or note had been of business 
drawn, accepted, made or endorsed by or on behalf of the 
corporation in the course of carrying on its business. 

(3) Where the liquidator takes out letters of administration where 

i • 1 1 • rr • . r i • • .moneys 

or otherwise uses his official name for obtaining payment of deemed 
any money due from a contributory, such money shall be due to 
deemed, for the purpose of enabling him to take out such lqU1 ' 
letters or recover such money, to be due to the liquidator 
himself. R.S.O. 1960, c. 71, s. 269, amended. 

220. Where more than one person is appointed as liquida-^^, 1 ^.^ 
tor, any power conferred by sections 188 to 232 on a liquidator p. ne iidator 
may be exercised by such one or more of such persons as may 

be determined by the resolution or order appointing them or, 
in default of such determination, by any number of them not 
fewer than two. New. 

221. The liability of a contributory creates a debt accruing j^^® ^ 
due from him at the time his liability commenced, but pay- contribu- 
able at the time or respective times when calls are made for 
enforcing such liability. R.S.O. 1960, c. 71, s. 270. 



125 



126 



Who liable 
in case of 
his death 



Deposit of 
moneys 



R.s.o. 1960, 
0. 223 



Approval 
of bank by 
inspectors 



Separate 

deposit 

account 

to be kept; 

withdrawal 

from 

account 



Liquidators 
to produce 
bank pass- 
book 



Idem 



222. If a contributory dies before or after he had been 
placed on the list of contributories, his personal representative 
is liable in due course of administration to contribute to the 
property of the corporation in discharge of the liability of the 
deceased contributory and shall be a contributory accordingly. 
R.S.O. 1960, c. 71, s. 271, amended. 

223. — (1) The liquidator shall deposit all moneys that he 
has belonging to the corporation and amounting to $100 or 
more in any chartered bank of Canada or in the Province of 
Ontario Savings Office or in any trust company or loan cor- 
poration that is registered under The Loan and Trust Corpora- 
tions Act. 

(2) If inspectors have been appointed, the depository under 
subsection 1 shall be one approved by them. 

(3) Such deposit shall not be made in the name of the 
liquidator individually, but a separate deposit account shall 
be kept of the money belonging to the corporation in his name 
as liquidator of the corporation and in the name of the in- 
spectors, if any, and such money shall be withdrawn only by 
order for payment signed by the liquidator and one of the 
inspectors, if any. 

(4) At every meeting of the shareholders of the corporation 
the liquidator shall produce a pass-book or statement of 
account showing the amount of the deposits, the dates at 
which they were made, the amounts withdrawn and the 
dates of withdrawal, and mention of such production shall 
be made in the minutes of the meeting, and the absence of 
such mention is admissible in evidence as prima facie proof 
that the pass-book or statement of account was not produced 
at the meeting. 

(5) The liquidator shall also produce the pass-book or 
statement of account whenever so ordered by the court upon 
the application of the inspectors, if any, or of a shareholder 
of the corporation. R.S.O. 1960, c. 71, s. 272, amended. 



Proving 
claim 



c. 25 



224. For the purpose of proving claims, sections 25, 26 

r s o. loco, and 27 of The Assignments and Preferences Act apply mutatis 

mutandis, except that, where the word "judge" is used therein, 

the word "court" as used in this Act shall be substituted. 

R.S.O. 1960, c. 71, s. 273. 



Application 

for 

direction 



225. Upon the application of the liquidator or of the 
inspectors, if any, or of any creditors, the court, after hearing 
such parties as it directs to be notified or after such steps as 
the court prescribes have been taken, may by order give its 
direction in any matter arising in the winding up. R.S.O. 
1960, c. 71, s. 274. 



125 






127 

226. — (1) The court may at any time after the commence- Examination 
.... ' ' of persons 

ment of the winding up summon to appear before the court as t° 

or liquidator any director, officer or employee of the cor- 
poration or any other person known or suspected to have in 
his possession any of the estate or effects of the corporation, 
or alleged to be indebted to it, or any person whom the court 
thinks capable of giving information concerning its trade, 
dealings, estate or effects. 

(2) Where in the course of the winding up it appears that ^"nst 68 
a person who has taken part in the formation or promotion ^f^ctor 611 * 
of the corporation or that a past or present director, officer, etc. 
employee, liquidator or receiver of the corporation has mis- 
applied or retained in his own hands, or become liable or 
accountable for, property of the corporation, or has com- 
mitted any misfeasance or breach of trust in relation to it, 
the court may, on the application of the liquidator or of any 
creditor, shareholder or contributory, examine into the con- 
duct of that person and order him to restore the property so 
misapplied or retained, or for which he has become liable or 
accountable, or to contribute such sum to the property of the 
corporation by way of compensation in respect of such mis- 
application, retention, misfeasance or breach of trust, or both, 
as the court thinks just. R.S.O. 1960, c. 71, s. 275, amended. 

227.— (1) Where a shareholder of the corporation desires g° s c ^ ng8 
to cause any proceeding to be taken that, in his opinion, would hold e rs 
be for the benefit of the corporation, and the liquidator, under 
the authority of the shareholders or of the inspectors, if any, 
refuses or neglects to take such proceeding after being re- 
quired so to do, the shareholder may obtain an order of the 
court authorizing him to take such proceeding in the name of 
the liquidator or corporation, but at his own expense and risk, 
upon such terms and conditions as to indemnity to the liqui- 
dator or corporation as the court prescribes. 

(2) Any benefit derived from a proceeding under subsection 5hen fi fof 

1 belongs exclusively to the shareholder causing the institution shareholders 
of the proceeding for his benefit and that of any other share- 
holder who has joined him in causing the institution of the 
proceeding. 

(3) If before the order is granted the liquidator signifies ^po/ation 
to the court his readiness to institute the proceeding for the 

benefit of the corporation, the court shall make an order 
prescribing the time within which he is to do so, and in that 
case the advantage derived from the proceeding, if instituted 
within such time, belongs to the corporation. R.S.O. 1960, 
c. 71, s. 276, amended. 

125 



128 



Rights 
conferred 
l>y Act 
to be in 
addition 
to other 
powers 



228. The rights conferred by this Act are in addition to 
any other right to institute proceedings against any con- 
tributory, or against any debtor of the corporation, for the 
recovery of any sum due from such contributory or debtor 
or his estate. R.S.O. 1960, c. 71, s. 277, amended. 



stay of 

winding-up 

proceedings 



229. At any time during a winding up, the court, upon 
the application of a shareholder, creditor or contributory 
and upon proof to its satisfaction that all proceedings in rela- 
tion to the winding up ought to be stayed, may make an order 
staying the proceedings altogether or for a limited time on 
such terms and subject to such conditions as the court thinks 
fit R.S.O. 1960, c. 71, s. 278. 



Where 

creditor 

unknown 



230. — (1) Where the liquidator is unable to pay all the 
debts of the corporation because a creditor is unknown or 
his whereabouts is unknown, the liquidator may, by agree- 
ment with the Public Trustee, pay to the Public Trustee an 
amount equal to the amount of the debt due to the creditor 
to be held in trust for the creditor, and thereupon subsections 
5 and 6 of section 234 apply thereto. 



Idem 



(2) A payment under subsection 1 shall be deemed to be 
in satisfaction of the debt for the purposes of winding up. 
R.S.O. 1960, c. 71, s. 281 (3, 4), amended. 



\v here 

shareholder 

unknown 



231. — (1) Where the liquidator is unable to distribute 
rateably the property of the corporation among the share- 
holders because a shareholder is unknown or his whereabouts 
is unknown, the share of the property of the corporation of 
such shareholder may, by agreement with the Public Trustee, 
be delivered or conveyed by the liquidator to the Public 
Trustee to be held in trust for the shareholder, and thereupon 
subsections 5 and 6 of section 234 apply thereto. 



Idem 



(2) A delivery or conveyance under subsection 1 shall be 
deemed to be a distribution to that shareholder of his rateable 
share for the purposes of the winding up. R.S.O. 1960, c. 71, 
s. 281 (1, 2), amended. 



Disposal 
of records, 
etc., after 
winding up 



232. — (1) Where a corporation has been wound up under 
sections 188 to 231 and is about to be dissolved, its documents 
and records and those of the liquidator may be disposed of as 
it by resolution directs in case of voluntary winding up, or 
as the court directs in case of winding up under an order. 



When 
responsi- 
bility as to 
custody of 
records, 
etc., to 
0MM 



(2) After the expiration of five years from the date of the 
dissolution of the corporation, no responsibility rests on it or 
the liquidator, or anyone to whom the custody of the docu- 
ments and records has been committed, by reason that the 



125 



129 

same or any of them are not forthcoming to any person claim- 
ing to be interested therein. R.S.O. 1960, c. 71, s. 282, 
amended. 

Other Dissolution 

233. A corporation may be dissolved upon the authoriza- V issofuUon 
tion of, 

(a) a majority of the votes cast at a general meeting of 
the shareholders of the corporation duly called for 
the purpose or by such greater proportion of the votes 
cast as the articles provide ; 

(b) the consent in writing of all the shareholders en- 
titled to vote at such meeting; or 

(c) all its incorporators or their personal representatives 
at any time within two years after the date of 
issuance of its certificate of incorporation where the 
corporation has not commenced business and has not 
issued any shares. R.S.O. 1960, c. 71, s. 327 (1) (a), 
amended. 

234. — (1) For the purpose of bringing the dissolution Articles of 

,.,, , j f • n ^-, • rr i dissolution 

authorized under clause a or b of section 233 into effect, the where 
corporation shall deliver to the Minister articles of dissolution actfve™ 
in duplicate, executed under the seal of the corporation and 
signed by two officers or by one director and one officer, of the 
corporation and verified by affidavit of one of the officers or 
directors signing the articles of dissolution, setting out, 

(a) the name of the corporation ; 

(b) that its dissolution has been duly authorized under 
clause a or b of section 233 ; 

(c) that it has no debts, obligations or liabilities or its 
debts, obligations or liabilities have been duly pro- 
vided for in accordance with subsection 3 or its 
creditors or other persons having interests in its 
debts, obligations or liabilities consent to its dis- 
solution ; 

(d) that after satisfying the interests of creditors in all 
its debts, obligations and liabilities, if any, it has no 
property to distribute among its shareholders or that 
it has distributed its remaining property rateably 
among its shareholders according to their rights and 
interests in the corporation or in accordance with 
subsection 4 where applicable; 

125 



130 

(e) that there are no proceedings pending in any court 
against it; and 

(/) that it has given notice of its intention to dissolve 
by publication once in The Ontario Gazette and once 
in a newspaper having general circulation in the 
place where it has its head office. R.S.O. 1960, c. 71, 
s. 327 (1), part, amended. 

Articles of (2) For the purpose of bringing a dissolution authorized 
tun- under clause c of section 233 into effect, the corporation shall 

deliver to the Minister articles of dissolution in duplicate, 
signed by all its incorporators or their personal representatives 
and verified by affidavit of one of them setting out, 



active 



(a) the name of the corporation ; 

(b) the date of the issuance of its certificate of incor- 
poration ; 

(c) that the corporation has not commenced business; 

(d) that none of its shares has been issued ; 

(e) that dissolution has been duly authorized under 
clause c of section 233; 

(/) that it has no debts, obligations or liabilities; 

(g) that after satisfying the interests of creditors in all 
its debts, obligations and liabilities, if any, it has no 
property to distribute or that it has distributed its 
remaining property to the persons entitled thereto; 

(h) that there are no proceedings pending in any court 
against it; and 

(i) that it has given notice of its intention to dissolve 
by publication once in The Ontario Gazette and once 
in a newspaper having general circulation in the 
place where it has its head office. New. 

^Jifi* 6 («*) Where a corporation authorizes its dissolution and a 

creditor . . r . , 

unknown creditor is unknown or his whereabouts is unknown, the 
corporation may, by agreement with the Public Trustee, pay 
to the Public Trustee an amount equal to the amount of the 
debt due to the creditor to be held in trust for the creditor, 
and such payment shall be deemed to be due provision for the 
debt for the purposes of clause c of subsection 1. 

125 



131 

(4) Where a corporation authorizes its dissolution and a shareholder 
shareholder is unknown or his whereabouts is unknown, it unknown 
may, by agreement with the Public Trustee, deliver or convey 

his share of the property to the Public Trustee to be held in 
trust for him, and such delivery or conveyance shall be 
deemed to be a distribution to that shareholder of his rateable 
share for the purposes of the dissolution. 

(5) If the share of the property so delivered or conveyed ^q^ v %.^° 
to the Public Trustee under subsection 4 is in a form other 

than cash, the Public Trustee may at any time, and within 
ten years after such delivery or conveyance shall, convert it 
into cash. 

(6) If the amount paid under subsection 3 or the share f a £j£s£ n 
of the property delivered or conveyed under subsection 4 or entitled 
its equivalent in cash, as the case may be, is claimed by the 
person beneficially entitled thereto within ten years after 

it was so delivered, conveyed or paid, it shall be delivered, 
conveyed or paid to him, but, if not so claimed, it vests in the 
Public Trustee for the use of Ontario, and, if the person 
beneficially entitled thereto at any time thereafter establishes 
his right thereto to the satisfaction of the Lieutenant Governor 
in Council, an amount equal to the amount so vested in the 
Public Trustee shall be paid to him. R.S.O. 1960, c. 71, 
s. 327 (3-6), amended. 

235.— (1) If the articles of dissolution conform to law, certificate 
the Minister shall, when all prescribed fees have been paid dissolution 
and all taxes payable by the corporation to the Treasurer of 
Ontario have been paid, 

(a) endorse on each duplicate of the articles of dissolu- 
tion the word "Filed" and the day, month and year 
of the filing thereof; 

(b) file one of the duplicates in his office; and 

(c) issue to the corporation or its agent a certificate of 
dissolution to which he shall affix the other duplicate. 

(2) Upon the issuance of the certificate of dissolution, the^fifl C °[ e 
dissolution becomes effective and the corporation is dissolved. 

New. 

236. Where sufficient cause is shown to the Minister, he ^certificate, 
may, after he has given the corporation an opportunity to be 1*9-.^. 
heard, by order, upon such terms and conditions as he thinks 
fit, cancel a certificate of incorporation or any certificate 
issued by him under this Act, and, 

125 



132 



Cancellation 
for default 
in filing 
returns 
1968, c... 



Revival 



Suits after 
dissolution 



(a) in the case of the cancellation of a certificate of 
incorporation, the corporation is dissolved on the 
date fixed in the order; 

(b) in the case of the cancellation of any other certificate, 
the matter that became effective upon the issuance 
of the certificate ceases to be in effect from the date 
fixed in the order. R.S.O. 1960, c. 71, s. 326 (1), 
amended. 

237. — (1) Where it appears that a corporation is in default 
for a period of one year in filing its annual returns under 
The Business Corporations Information Act, 1968 or a pre- 
decessor thereof and that notice of such default has been sent 
by prepaid mail to, 

(a) the corporation at its head office as shown on the 
records of the Department; and 

(b) one of the directors at his latest address as shown 
on the records of the Department, 

and has been published once in a newspaper of general cir- 
culation in the place where the head office is located and once 
in The Ontario Gazette, the Minister may by order cancel the 
certificate of incorporation, and, subject to subsection 2, the 
corporation is dissolved on the date fixed in the order. R.S.O. 
1960, c. 71, s. 326 (2); 1964, c. 10, s. 8 (1), amended. 

(2) Where a corporation is dissolved under subsection 1, 
the Minister, on the application of any interested person 
immediately before the dissolution, made within two years 
after the date of dissolution, may in his discretion by order, 
on such terms and conditions as he sees fit to impose, revive 
the corporation, and thereupon the corporation, subject to 
the terms and conditions of the order and to any rights 
acquired by any person after its dissolution, is restored to its 
legal position, including all its property, rights, privileges and 
franchises, and is subject to all its liabilities, contracts, dis- 
abilities and debts, as at the date of its dissolution, in the 
same manner and to the same extent as if it had not been 
dissolved. R.S.O. 1960, c. 71, s. 326 (3); 1964, c. 10, s. 8 (2), 
amended. 

238. — (1) Notwithstanding the dissolution of a corporation 
under section 235, 236 or 237 or by the expiration of the 
period of its duration, 

(a) any action, suit or other proceeding commenced by 
or against the corporation before its dissolution may 
be proceeded with as if the corporation had not been 
dissolved; 



125 



133 

(b) any action, suit or other proceeding may be brought 
against the corporation within two years after its 
dissolution as if the corporation had not been dis- 
solved; and 

(c) any property that would have been available to 
satisfy any judgment, order or other decision if the 
corporation had not been dissolved remains available 
for such purpose. 1962-63, c. 24, s. 12, amended. 

(2) For the purposes of this section, the service of any service 
process on a corporation after its dissolution shall be deemed dissolution 
to be sufficiently made if it is made upon any person last 
shown on the records of the Department as being a director 
or officer of the corporation before the dissolution. New. 

239. — (1) Notwithstanding the dissolution of a corpora- ^ability 
tion, each of the shareholders among whom its property has holders to 

creditors 

been distributed remains liable to its creditors to the extent 
of the amount received by him upon the distribution, and an 
action in a court of competent jurisdiction to enforce such 
liability may be brought against him within two years from 
the date of the dissolution and not thereafter. 



(2) Where there are numerous shareholders, the court Action 
referred to in subsection 1 may permit an action to be brought one share- 

• « holder els 

against one or more shareholders as representatives of the representing 
class and, if the plaintiff establishes his claim as creditor, may 
make an order of reference and add as parties in the referee's 
office all such shareholders as are found, and the referee shall 
determine the amount that each should contribute towards 
the plaintiff's claim and may direct payment of the sums so 
determined. R.S.O. 1960, c. 71, s. 329, amended. 

240. Subject to section 238, any real or personal property Forfeiture 
of a corporation that has not been disposed of at the date of disposed 



its dissolution is forfeit to the Crown. 
s. 330, amended. 



R.S.O. 1960, c. 71, 



property 



GENERAL 



241. 

tion, 



(1) Subject to the articles or by-laws of a corpora- directors 



and 
shareholders 



(a) a notice or other document required to be given or 
sent by a corporation to a shareholder or director 
may be delivered personally or sent by prepaid mail 
addressed to the shareholder or director at his latest 
address as shown on the records of the corporation; 
and 



125 



134 



(b) a notice or other document sent by mail by a cor- 
poration to a shareholder or director shall be deemed 
to be given or sent at the time when it would be 
delivered in the ordinary course of mail. R.S.O. 
1960, c. 71, s. 332, amended. 



Notice to 
corporation 



(2) Except where otherwise provided in this Act, a notice 
or document required to be given or sent to a corporation 
may be sent to the corporation by prepaid mail at its head 
office as shown on the records of the Department and shall 
be deemed to be given or sent at the time when it would be 
delivered in the ordinary course of mail. 



waiver of (3) Where a notice is required by this Act to be given, 

abridgement the giving of the notice may be waived or the time for the 

notice may be waived or abridged with the consent in writing 

of every person entitled thereto, whether before or after the 

time prescribed. New. 



Offence, 
false 

statements 



Defence 



242. — (1) Every person who makes or assists in making 
a statement in any document required by or for the purposes 
of this Act or the regulations that, at the time and in the 
light of the circumstances under which it was made, is false 
or misleading in respect of any material fact or that omits to 
state any material fact the omission of which makes the state- 
ment false or misleading is guilty of an offence and on sum- 
mary conviction is liable to a fine of not more than $2,000 or 
to imprisonment for a term of not more than one year, or to 
both. R.S.O. 1960, c. 71, s. 339 (1), amended. 

(2) No person is guilty of an offence under subsection 1 if 
he did not know that the statement was false or misleading 
and in the exercise of reasonable diligence could not have 
known that the statement was false or misleading. New. 



Offence, 
failure to 
file 



Idem 



243. — (1) Every person who fails to file with the Minister 
any document required by this Act to be filed with him is 
guilty of an offence and on summary conviction is liable to a 
fine of not more than $2,000 or, if such person is a body 
corporate, to a fine of not more than $20,000. 

(2) Where a body corporate is guilty of an offence under 
subsection 1, every director or officer thereof who authorized, 
permitted or acquiesced in such offence is also guilty of an 
offence and on summary conviction is liable to a fine of not 
more than S2.000. New. 



Consent 244. No proceeding under section 242 or 243 shall be 

commenced except with the consent or under the direction of 
the Minister. New. 



125 






135 

245. — (1) Except where otherwise provided, every person gJJ,®^' 
who commits an act contrary to or fails or neglects to comply 
with any provision of this Act or the regulations is guilty of 
an offence and on summary conviction is liable to a fine of 
not more than $1,000 or, if such person is a body corporate, to 
a fine of not more than $10,000. 

(2) Where a body corporate is guilty of an offence under idem 
subsection 1, every director or officer thereof who authorized, 
permitted or acquiesced in the offence is also guilty of an 
offence and on summary conviction is liable to a fine of not 
more than $1,000. R.S.O. 1960, c. 71, s. 340, amended. 

246.— (1) No proceeding under section 242 or 243 or under Limitation 
section 245 for a contravention of section 149 shall be com- 
menced more than one year after the facts upon which the 
proceedings are based first came to the knowledge of the 
Minister as certified by him. R.S.O. 1960, c. 71, s. 339 (2), 
amended. 

(2) Subject to subsection 1 , no proceeding for an offence Idem 
under this Act or the regulations shall be commenced more 
than one year after the time when the subject-matter of the 
offence arose. New. 

247. Where a corporation or a director, officer or em- J^ere ining 
ployee of a corporation does not comply with any provision 

of this Act, the articles or the by-laws of the corporation, a 
shareholder or a creditor of the corporation, notwithstanding 
the imposition of any penalty in respect of such non-compli- 
ance and in addition to any other rights he may have, may 
apply to the court for an order directing the corporation, 
director, officer or employee, as the case may be, to comply 
with such provision, and upon such an application the court 
may make such order or such other order as the court thinks 
fit. R.S.O. 1960, c. 71, s. 341, amended. 

248. The Minister may delegate in writing any of his jwnfeter*" 
duties or powers under this Act to any public servant in the 
Department. R.S.O. 1960, c. 71, s. 5, part, amended. 

249. — (1) The Minister may require any fact relevant to^ ^^' 
the performance of his duties under this Act or the regulations 
to be verified by affidavit or otherwise. 

(2) For the purpose of holding a hearing under this Act, hearings 
the Minister may administer oaths to witnesses and require 
them to give evidence under oath. R.S.O. 1960, c. 71, s. 7, 
amended. 

125 



136 



of u not c io«« on 250. The Minister shall cause notice to be published 
in Th* forthwith in The Ontario Gazette, 

Ontario 
Gouttt 

(a) of the issue of every certificate under section 5, 8, 
31, 177, 181, 183, 184 or 235; 

(6) of the issue of everv order under section 149, 236 or 
237; 

(c) of the filing of a certified copy of an order under 
subsection 6 of section 201 or subsection 2 of section 
214; and 

(d) of the filing of a notice by a liquidator under sub- 
section 3 of section 201 or by a corporation under 
subsection 2 of section 185. R.S.O. 1960, c. 71, s. 10, 
amended. 

Searches 251. — (1) Upon payment of the prescribed fee, any person 

is entitled to examine any document filed with or issued by 
the Minister under this Act, and to make extracts therefrom. 



Certifica- 
tions by 
Minister 



(2) Upon payment of the prescribed fee, the Minister shall 
furnish any person with a certificate as to whether or not a 
document has been filed with or issued by him under this 
Act or any predecessor thereof or with a certified copy of any 
such document. New. 



Execution 
of certi- 
ficates of 
Minister 



252 — (1) Where this Act requires or authorizes the Minis- 
ter to issue a certificate or certify any fact, the certificate 
shall be issued under the seal of the Minister and shall be 
signed by him or by such officer of the Department as is 
designated by the regulations. New. 



Certificates 
as 

evidence 



(2) Any certificate purporting to be under the seal of the 
Minister and signed by a person authorized by or under sub- 
section 1 or under the seal of a corporation and signed by an 
officer of the corporation, or any certified copy, is receivable 
in evidence in any action, prosecution or other proceeding as 
prima facie proof of the facts so certified without proof of the 
seal or of the signature or the official position of the person 
appearing to have signed the certificate. R.S.O. 1960, c. 71, 
s. 333, amended. 



Notice of 
refusal 
to file 



253. — (1) Where the Minister refuses to file any articles 
or any other document required by this Act to be filed by 
him before it becomes effective, he shall give written notice 
to the person who delivered the articles or other document of 
his refusal, specifying the reasons therefor. 



125 



137 



six months after the delivery to 
or other document referred to in 



(2) Where, within 
Minister of articles 
section 1, the 

articles or other document, he shall be deemed for the purposes 
of section 254 to have refused to file it. New. 



thf Failure 
u,c to act 
Slib- doomed 
ref usal 

Minister has not filed or refused to file such 



254. — (1) Any person who feels aggrieved by a decision of £££f al 

the Minister to, Minister 

(a) refuse to file articles or any other document or to 
issue any certificate required by this Act to be filed 
or issued; 

(b) issue or refuse to issue a certificate of amendment 
under subsection 2, 3 or 4 of section 8; or 

(c) issue an order under section 236, 

may appeal the decision to the Court of Appeal. 

(2) Every appeal shall be by notice of motion sent by Form of 
registered mail to the Minister within thirty days after the 
mailing of the notice of the decision, and the practice and 
procedure upon and in relation to the appeal shall be the same 

as upon an appeal from a judgment of a judge of the Supreme 
Court in an action, provided that the Rules Committee may 
vary or amend such practice and procedure or may prescribe 
the practice and procedure that shall be applicable to appeals 
taken under this Act. 

(3) The Minister shall certify to the Registrar of the certificate 
Supreme Court, Minister 

(a) the decision of the Minister, together with a state- 
ment of the reasons therefor; 

(b) the record of any hearing; and 

(c) all written submissions to the Minister or other 
material that is relevant to the appeal. New. 

(4) The Minister is entitled to be heard, by counsel or^fon* 611 
otherwise, upon the argument of an appeal under this section. 
1962-63, c. 24, s. 11, part, amended. 

(5) Where an appeal is taken under this section, the Court court ° f 
of Appeal may by its order direct the Minister to make such of Appeal 
decision or to do such other act as the Minister is authorized 

and empowered to do under this Act and as the court thinks 
proper, having regard to the material and submissions before 
it and to this Act, and the Minister shall make such decision 
or do such act accordingly. 



125 



138 



Minister 
may make 
further 
decision 



(6) Notwithstanding an order of the Court of Appeal, the 
Minister has power to make any further decision upon new 
material or where there is a material change in the circum- 
stances, and every such decision is subject to this section. 
New. 



Oomrn£° f 255.— (1) Section 5 of The Securities Act, 1966 applies, 
"ion so far as possible, to hearings of the Commission under this 

1966. C. 142 Act 

Appeal (2) Any person who feels aggrieved by a decision of the 

commission Commission under this Act may appeal the decision to the 
Court of Appeal, and subsections 2 to 6 of section 29 of The 
Securities Act, 1966 apply to the appeal. New. 



Appeal 

from 

court 



256. An appeal lies to the Court of Appeal from any 
order made by the court under this Act. R.S.O. 1960, c. 71, 
s. 338. 



Regulations 257. The Lieutenant Governor in Council may make 
regulations respecting any matter that he considers necessary 
relating to the incorporation, operation, management and 
dissolution of corporations including, without limiting the 
generality of the foregoing, regulations, 

(a) respecting names of corporations or classes thereof, 
objects of corporations, authorized capital of cor- 
porations, the designation, preferences, rights, con- 
ditions, restrictions, limitations or prohibitions at- 
taching to shares or classes of shares of corporations, 
or any other matter pertaining to articles or the 
filing thereof; 

(b) requiring the payment of fees for any matter that 
the Minister is required or authorized to do under 
this Act, and prescribing the amounts thereof; 

(c) prescribing any matter required by this Act to be 
prescribed by the regulations; 

(d) designating officers of the Department for the pur- 
poses of paragraph 7 of subsection 1 of section 1 and 
section 252; 

(e) respecting the form and content of the reports of 
insiders required to be filed under section 135; 

(/) respecting the form and content of information cir- 
culars required by section 106. R.S.O. 1960, c. 71, 
s. 335; 1966, c. 28, ss. 3, 4, part, amended. 

125 



139 

258. — (1) Any provision in the letters patent, supplemen-Continu- 
tary letters patent or by-laws of a corporation that was valid letters 
immediately before this Act comes into force continues to be 
valid and in effect, but any additions or amendments thereto 
or deletions therefrom shall be made in accordance with this 
Act. 

(2) The provisions of The Corporations Act relating to the ^ n^ 1 ^ 11 " 
liability of the holder of shares that are not fully paid and to^ 1 " 68 ^ 
the enforcement of such liability continue to apply in respect r.s.o. i960, 
of shares that are not fully paid when this Act comes into c * 71 
force. New. 

259. This Act comes into force on a day to be named by ment mence 
the Lieutenant Governor by his proclamation. 

260. This Act may be cited as The Business Corporations short title 
Act, 1968. 



125 



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BILL 126 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Business Corporations Information Act, 1968 



Mr. Rob arts 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 






Explanatory Note 



The Bill is a revision of The Corporations Information Act forXthe 
purpose of, 

1. incorporating the recommendations of the Select Committee on 
Company Law to require the registration of business names; 

2. simplifying the information required in returns to include only those 
matters in which the public has an interest; 

3. improving the provisions for enforcement. 



126 






BILL 126 1968 



The Business Corporations 
Information Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, gg&T- 

(a) "corporation" means a corporation with share 
capital, wherever or however incorporated; 

(b) "court" means the Supreme Court of Ontario 
presided over by one of those judges of the High 
Court who are designated by the Chief Justice of 
the High Court for the purpose of hearing applica- 
tions under this Act; 

(c) "Department" means the Department of the Min- 
ister ; 

(d) "extra-provincial corporation" means a corporation 
with share capital incorporated otherwise than by 
or under the authority of an Act of the Legislature; 

(e) "Minister" means the member of the Executive 
Council to whom the administration of this Act is 
designated by the Lieutenant Governor in Council; 

(/) "prescribed" means prescribed by the regulations; 

(g) "regulations" means the regulations made under 
this Act. R.S.O. 1960, c. 72, s. 1, amended. 

2. — (1) No corporation shall carry on business in or ^Jp^jT 8 " 
identify itself to the public by a name or stvle other than its business 

ii • e • j • i_ names 

corporate name unless the name or style is first registered with 
the Minister. 

126 



Method of 
registration 



Effect of 
registration 



Expiration 



Annual 
returns 



(2) A corporation may register a name or style referred to 
in subsection 1 by filing with the Minister a statement 
setting out, 

(a) the name of the corporation; 

(b) the date and manner of its incorporation ; 

(c) the jurisdiction in which it was incorporated; 

(d) the name or style in which it intends to carry on 
business or identify itself to the public; 

(e) a brief description of the business, activity or service 
to be carried on in or identified by the name being 
registered ; and 

(/) the location of its head office giving street and 
number, if any. 

(3) The registration of a name or style under this section 
does not confer on the corporation any right to such name or 
style that it does not otherwise have. 

(4) Every registration made under subsection 1 expires 
in five years after the date of the registration or last renewal 
thereof. New. 

3. — (1) On or before the 1st day of June in each year, 
every corporation having its head or other office or carrying 
on business or a part thereof in Ontario, unless of a class 
exempted by the regulations, shall make out, verify and file 
with the Minister, together with the prescribed fee, a return 
setting out, as of the 31st day of March next preceding, 

(a) the name of the corporation; 

(b) the date and manner of its incorporation; 

(c) the jurisdiction in which the corporation was incor- 
porated ; 

(d ) whether or not the corporation is in operation ; 

(«) generally the undertaking that the corporation is 
actually carrying on; 

(/) the number of directors authorized and the names 
and residence addresses, giving street and number, 
if any, of the directors and the date on which each 
became a director; 



126 



(g) the names and residence addresses, giving street and 
number, if any, of its president, secretary, treasurer 
and general manager and the date on which each 
became an officer; 

(h) the location of its head office, giving street and 
number, if any; 

(*) whether or not the corporation has more than 
fifteen shareholders. R.S.O. 1960, c. 72, s. 3 (1) (a-i), 
amended. 

(2) For the purposes of clause i of subsection 1, in deter- ^areh^iders 
mining the number of shareholders of a corporation two or 

more persons holding the same share or shares jointly shall be 
counted as one shareholder. New. 

(3) The return mentioned in subsection 1 shall be verified Veriflcation 
by the certificate of the president or a director of the cor- 
poration. R.S.O. 1960, c. 72, s. 3 (3), amended. 

(4) The corporation shall retain a duplicate of its latest uon'by 1 * 
return made under subsection 1 and shall maintain the dupli- hotders etc. 
cate available for examination by any shareholder, member 

or creditor of the corporation during the normal business 
hours of the corporation at its head or principal office in 
Ontario, who may make copies thereof or extracts therefrom. 
R.S.O. 1960, c. 72, s. 3 (5), amended. 

(5) Every corporation to which subsection 1 applies shall board g of in 
file with the Minister a notice of every change in the member- directors 
ship of its board of directors within fifteen days after the 
change has taken place, and the notice shall specify the date 

upon which each person became a director or ceased to be a 
director, as the case may be, and the residence address, 
giving street and number, if any, of each such person. 
1961-62, c. 22, s. 1, part; 1962-63, c. 25, s. 1 (1). 

(6) Where shares of a class are redeemed, purchased, ailthorfzed 
accepted for surrender or converted into shares of another capital 
class or classes by a corporation to which subsection 1 applies, 

the corporation shall, within thirty days of the date on which 
the redemption, purchase, surrender or conversion is effected, 
file with the Minister a notice setting out, 

(a) the number of shares of the class redeemed, pur- 
chased, surrendered or converted; 



(b) the number and class or classes of shares into which 
the shares were converted; and 






126 



(c) the date on which the redemption, purchase, sur- 
render or conversion was effected. 1961-62, c. 22, 
s. 1, part. 



Summary 

under 



of return 



(7) A corporation required to file a summary under sec- 
i^'63 C in Heii ** on *^ °^ tne Canada Corporations Act may file with the 
Minister a duplicate of such summary, signed and certified 
as prescribed in the said section 125 in lieu of the return 
required by subsection 1, and shall pay the fee prescribed for 
such return. 1966, c. 29, s. 2, amended. 



Enlarge- 
ment of 
time and 
exemption 
of fee 



Where 
default 
deemed to 
> ontinue 



(8) The Minister may in his discretion enlarge the time for 
filing any such return or summary and may grant an exemp- 
tion in whole or in part from the payment of the fee. 

(9) Notwithstanding that a corporation has delivered or 
filed the return mentioned in this section or a predecessor of 
this section, the corporation shall be deemed to be in default 
in filing such return until the prescribed fee payable on the 
delivery or filing of such return has been paid. R.S.O. 1960, 
c. 72, s. 3 (11, 12). 



Searches 



Certified 
copies 



4. — (1) Upon payment of the prescribed fee, every person 
is entitled to examine any statement or return filed under 
section 2 or section 3 or any predecessor thereof, and may 
make copies thereof or extracts therefrom. 

(2) Upon payment of the prescribed fee, the Minister 
shall furnish any person with a certified copy of any state- 
ment or return filed with him under section 2 or section 3 or 
any predecessor thereof. New. 



may require ^' — ^ ^he ^i mster ma Y at an Y time by notice require 
returns any corporation to file within the time specified in the notice 

a return upon any subject connected with its affairs and 
relevant to the administration or enforcement of this Act or 
The Business Corporations Act, 1968. R.S.O. 1960, c. 72, 
s. 4, amended. 

(2) The Minister or any employee of the Department shall 
not disclose any information contained in a return made 
under subsection 1, except where it is necessary for the 
administration or enforcement of this Act or The Business 
Corporations Act, 1968 or where it is required by a court for 
the purposes of an action, prosecution or other proceeding. 
New. 

Miniater f ®* ^ ne ^ mster mav delegate in writing any of his duties 

or powers under this Act to any public servant in the Depart- 
ment. New. 



1968, c. 



Disclosure 



126 



7. Whenever it appears to the Minister that any cor-£ rc } e . r . 

... . requiring 

poration has failed to comply with section 2, 3 or 5, he may report 
in his discretion apply to the court for an order requiring the 
corporation to comply therewith. New. 

8. — (1) Every person who makes or assists in making a^® 11061 
statement in any document required by or for the purposes statements 
of this Act that, at the time and in the light of the circum- 
stances under which it was made, is false or misleading in 
respect of any material fact or that omits to state any material 
fact the omission of which makes the statement false or 
misleading is guilty of an offence and on summary conviction 
is liable to a fine of not more than $2,000 or to imprisonment 
for a term of not more than one year, or to both. R.S.O. 1960, 
c. 72, s. 3 (7), amended. 

(2) No person is guilty of an offence under subsection 1 Defence 
if he did not know that the statement was false or misleading 
and in the exercise of reasonable diligence could not have 
known that the statement was false or misleading. New. 

9. — (1) Every person who fails to file with the Minister ^ e 1 ^ e: 
any document required by this Act to be filed with him is to flle 
guilty of an offence and on summary conviction is liable to 
a fine of not more than $2,000 or if such person is a corpora- 
tion to a fine of not more than $20,000. 

(2) Where a corporation is guilty of an offence under Idem 
subsection 1, every director or officer thereof, and, where 
the corporation is an extra-provincial corporation, every 
person acting as its representative in Ontario, who authorized, 
permitted or acquiesced in such offence is also guilty of an 
offence and on summary conviction is liable to a fine of not 
more than $2,000. R.S.O. 1960, c. 72, s. 3 (6), amended. 

10. No proceeding under section 8 or 9 shall be commenced Consent 
except with the consent or under the direction of the Min- 
ister. New. 

11. — (1) Except where otherwise provided, every person genera? : 
who commits an act contrary to or fails or neglects to comply 
with any provision of this Act is guilty of an offence and on 
summary conviction is liable to a fine of not more than $1,000 
or if such person is a corporation, to a fine of not more than 
$10,000. 

(2) Where a corporation is guilty of an offence under Id « m 
subsection 1, every director or officer thereof, and, where the 
corporation is an extra-provincial corporation, every person 
acting as its representative in Ontario, who authorized, 

126 



Limitation 



Kit-in 



Certificates 
issued by 
Minister 



Issuance 
and effect of 
certificates 



permitted or acquiesced in the offence is also guilty of an 
offence and on summary conviction is liable to a fine of not 
more than $1,000. New. 

12. — (1) No proceeding under section 8 or 9 shall be 
commenced more than one year after the facts upon which 
the proceedings are based first came to the knowledge of 
tin- Minister as certified by him. 

(2) No proceeding under section 10 shall be commenced 
more than one year after the time when the subject-matter 
of the offence arose. New. 

13. The Minister may issue a certificate certifying, 

(a) as to the registration or non registration of a name 
or style under section 2; 

(b) as to the filing or non-filing of any document or 
material required or permitted to be filed under this 
Act; 

(c) as to the time when the facts upon which proceedings 
are based first came to the knowledge of the Min- 
ister; or 

(d) that any person named in the certificate on the date 
or during the period specified in the certificate is 
shown on the records of the Department as a director 
or officer of the corporation named in the certificate. 
R.S.O. 1960, c. 72, s. 3 (13); 1962-63, c. 25, s. 1 (4), 
part, amended. 

14. Where this Act requires or authorizes the Minister 
to issue a certificate or certify any fact, the certificate shall be 
issued under the seal of the Minister and shall be signed by 
him or by such officer of the Department as is designated by 
the regulations and is receivable in evidence in any action, 
prosecution or other proceeding as prima facie proof of the 
facts so certified without proof of the seal or of the signature 
or the official position of the person appearing to have signed 
the certificate. New. 



15. The Lieutenant Governor in Council may make 
regulations, 

(a) exempting any class or classes of corporations from 
filing returns under section 3; 

(b) requiring the payment of fees for any matter required 
to be done in the administration of this Act and 
prescribing the amounts thereof; 



126 



(c) designating officers of the Department who may 
sign certificates for the purposes of section 14. 
R.S.O. 1960, c. 72, s. 6; 1966, c. 29, s. 4, amended. 



16. — (1) This Act, except section 2, comes into force on^™ t menc6 ' 
a day to be named by the Lieutenant Governor by his proc- 
lamation. 

(2) Section 2 comes into force one month after the day on Idem 
which the remainder of this Act is proclaimed in force. 

17. This Act may be cited as The Business Cor porations short title 
Information Act, 1968. 



126 



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BILL 127 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Ontario Universities 
Capital Aid Corporation Act, 1964 



Mr. MacNaughton 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The amendment will permit the Corporation to purchase from the 
Ryerson Polytechnical Institute bonds and debentures issued by the 
Institute for capital construction projects that have been approved by 
the Minister of Education. 



127 



BILL 127 1968 



An Act to amend The Ontario Universities 
Capital Aid Corporation Act, 1964 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause a of section 1 of The Ontario Universities Capital g 9 i 4 * cl c - * 5, 
Aid Corporation Act, 1964, as enacted by section 1 of The(™&- 
Ontario Universities Capital Aid Corporation Amendment A ct, amended 
1967, is amended by adding at the end thereof "and includes 
Ryerson Polytechnical Institute established under The Ryerson 
Polytechnical Institute Act, 1962-63", so that the clause shall 

read as follows: 

(a) "college" means a college of applied arts and technol- 
ogy established under section 14a of The Department R-S.o. i960, 
of Education Act, and includes Ryerson Polytechnical 
Institute established under The Ryerson Poly 'technical e 9 ilg 63. 
Institute Act, 1962-63. 

2. This Act shall be deemed to have come into force on commence- 

- . .. ment 

the 1st day of April, 1968. 

3. This Act may be cited as The Ontario Universities short title 
Capital Aid Corporation Amendment Act, 1968. 



127 



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BILL 127 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Ontario Universities 
Capital Aid Corporation Act, 1964 



Mr. MacNaughtox 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 127 



1968 



An Act to amend The Ontario Universities 
Capital Aid Corporation Act, 1964 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause a of section 1 of The Ontario Universities Capital '1964, c. 85. 
Aid Corporation Act, 1964, as enacted by section 1 of The &967, ' 
Ontario Universities Capital Aid Corporation Amendment Act, amended ' 
1967, is amended by adding at the end thereof "and includes 
Ryerson Polytechnical Institute established under The Ryerson 
Poly technical Institute Act, 1962-63", so that the clause shall 
read as follows: 



(a) "college" means a college of applied arts and technol- 
ogy established under section 14a of The Department R.s.o. i960. 
of Education A ct, and includes Ryerson Polytechnical 
Institute established under The Ryerson Polytechnical ^flg 63. 
Institute Act, 1962-63. 

2. This Act shall be deemed to have come into force on Commence- 
the 1st day of April, 1968. 

3. This Act may be cited as The Ontario Universities Short title 
Capital Aid Corporation Amendment Act, 1968. 



127 









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BILL 128 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Training Schools Act, 1965 



Mr. Grossman 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 

This Bill is one of a series transferring costs of the administration of 
justice from municipalities to the Province, as recommended in the Report 
of the Ontario Committee on Taxation. 

The Bill deletes those provisions of the Act requiring or having to do 
with the payment by the municipality to which a child belongs of the 
cost of his maintenance at a training school. 

References to the Minister and Department of Reform Institutions 
are changed to Correctional Services to complement Bill 129, The Depart- 
ment of Correctional Services Act, 1968. 



128 






BILL 128 1968 



An Act to amend 
The Training Schools Act, 1965 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause a of section 1 of The Training Schools Act, J. 9 Sf cf.'o, 32, 
1965 is amended by striking out "Reform Institutions" in amended 
the first and second lines and inserting in lieu thereof "Cor- 
rectional Services", so that the clause shall read as follows: 

(a) "Department" means the Department of Correc- 
tional Services. 

(2) Clause/ of the said section 1 is amended by striking i. 9 if' c f;/ 82, 
out "Reform Institutions" in the first and second lines and amended 
inserting in lieu thereof "Correctional Services", so that the 

clause shall read as follows: 

(/) "Minister" means the Minister of Correctional 
Services. 

1965 c 132 

(3) Clause g of the said section 1 is repealed. s. i, ci.'«, 

repealed 

2. Subsection 4 of section 8 of The Training Schools Act,l 9 g 5 ^be 3 Z' 
1965 is repealed. repealed ' 

3. Section 11 of The Training Schools Act, 1965 is repealed i 96 ^- c - 132> 
and the following substituted therefor: re-enacted 

11. The judge in his order sending a child to a training J^de 1 * 85 
school shall state, where practicable, the name, age 
and religious faith of the child. 

4. Subsection 2 of section 12 of The Training Schools Act,l*H\ c> 132, 
1965 is amended by striking out "to the clerk of the munici- landed 
pality declared liable for the maintenance of the child" in 

the second and third lines, so that the subsection shall read 
as follows: 

128 



Clerk 
to mail 
copies 
of order 



(2) The clerk of the court shall send by registered mail 
a certified copy of the order to the parent of the 
child, to the Department and to any other person 
the judge deems necessary. 



c 9 i32 s 15 &• — (1) Subsection 1 of section 15 of The Training Schools 
8Uh8 nd'd ^ c *' ^ * s amen ded by striking out "and, subject to sub- 
section 2, the actual expense in so doing shall be borne by 
the municipality liable for maintenance" in the third, fourth 
and fifth lines, so that the subsection shall read as follows: 



Transporta- 
tion of 
children 
to training 
school 



1965. 

. . 182. s. 15, 

subs. 2, 
repealed 

1965, c. 132. 
88. 16, 17. 
repealed 



(1) Every child sent to a training school shall be taken 
to the training school by a probation officer or other 
person designated by the judge in his order. 

(2) Subsection 2 of the said section 15 is repealed. 

6. Sections 16 and 17 of The Training Schools Act, 1965 
are repealed. 



1965. 

c. 132, 8. 18, 

8UD8. 1, 

amended 



7. Subsection 1 of section 18 of The Training Schools Act, 
1965 is amended by striking out "or 17 or an order under 
subsection 2 of section 20" in the first and second lines, so 
that the subsection shall read as follows: 



Appeals to 
Court of 
Appeal 



(1) A decision upon an appeal under section 13 is subject 
to an appeal to the Court of Appeal. 



ss 96 i 5 9- c 22 132, 8 - Sections 19 » 20 » 21 and 22 oi The Training Schools Act, 
repealed' 1Q65 are repealed. 



1965, 0. 132, 
s. 28, cl. k. 
repealed 



9. Clause k of section 28 of The Training Schools Act, 1965 
is repealed. 



Commence 
ment 



10. — (1) This Act, except subsections 1 and 2 of section 1, 
shall be deemed to have come into force on the 1st day of 
January, 1968. 



Idem 



(2) Subsections 1 and 2 of section 1 come into force on 
a day to be named by the Lieutenant Governor by his proc- 
lamation. 



Short title 



11. This Act may be cited as The Training Schools Amend- 
ment Act, 1968. 



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BILL 128 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Training Schools Act, 1965 



Mr. Grossman 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 128 1968 



An Act to amend 
The Training Schools Act, 1965 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause a of section 1 of The Training Schools ^^,g 9 ^* cl c a 132, 
1965 is amended by striking out "Reform Institutions" in amended 
the first and second lines and inserting in lieu thereof "Cor- 
rectional Services", so that the clause shall read as follows: 

(a) "Department" means the Department of Correc- 
tional Services. 

(2) Clause/ of the said section 1 is amended by striking s?ifci c .'/ 32, 
out "Reform Institutions" in the first and second lines and amended 
inserting in lieu thereof "Correctional Services", so that the 

clause shall read as follows: 

(J) "Minister" means the Minister of Correctional 
Services. 

(3) Clause g of the said section 1 is repealed. s. i, ci." g , 

repealed 

2. Subsection 4 of section 8 of The Training Schools Act,l 9 g^£bB 3 i' 
1965 is repealed. repealed 

3. Section 11 of The Training Schools Act, 1965 is repealed \ B *\- c - 132 > 
and the following substituted therefor: re-enacted 

11. The judge in his order sending a child to a training of°order S 
school shall state, where practicable, the name, age 
and religious faith of the child. 

4. Subsection 2 of section 12 of The Training Schools Act,\ 9 ^\ c ' 132, 
1965 is amended by striking out "to the clerk of the munici- l^mied 
pality declared liable for the maintenance of the child" in 

the second and third lines, so that the subsection shall read 
as follows: 

128 



Clerk 
to mail 

• ■ • (MI'S 

of order 



(2) The clerk of the court shall send by registered mail 
a certified copy of the order to the parent of the 
child, to the Department and to any other person 
the judge deems necessary. 



o 9 i32 s is *** — (*) Subsection 1 of section 15 of The Training Schools 
8Ub *d'd ^ c *' ^^ ls amen ded by striking out "and, subject to sub- 
section 2, the actual expense in so doing shall be borne by 
the municipality liable for maintenance" in the third, fourth 
and fifth lines, so that the subsection shall read as follows: 



(1) Every child sent to a training school shall be taken 
to the training school by a probation officer or other 
person designated by the judge in his order. 

(2) Subsection 2 of the said section 15 is repealed. 



Transporta- 
tion of 
children 
to training 
school 

1965. 

0. 132. s. 15. 

subs. 2, 

repealed 

1965. c 132. 6. Sections 16 and 17 of The Training Schools Act, 1965 

88. 16. 17, , , * 

repealed are repealed. 

19 i32 is ^ ' Subsection 1 of section 18 of The Training Schools Act, 
subs, i.' ' 1965 is amended by striking out "or 17 or an order under 

subsection 2 of section 20" in the first and second lines, so 

that the subsection shall read as follows: 



Appeals to 
Court of 
Appeal 



(1) A decision upon an appeal under section 13 is subject 
to an appeal to the Court of Appeal. 



1965. c. 132. 
as. 19-22, 
repealed 



8. Sections 19, 20, 21 and 22 of The Training Schools Act, 
1965 are repealed. 



1965, c. 132. 
8. 28. el. k, 
repealed 



9. Clause k of section 28 of The Training Schools Act, 1965 
is repealed. 



Commence- 
ment 



lO. — (1) This Act, except subsections 1 and 2 of section 1, 
shall be deemed to have come into force on the 1st day of 
January, 1968. 



Idem 



(2) Subsections 1 and 2 of section 1 come into force on 
a day to be named by the Lieutenant Governor by his proc- 
lamation. 



Short title 



11. This Act may be cited as The Training Schools Amend- 
ment Act, 1968. 



128 



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BILL 129 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Department of Correctional Services Act, 1968 



Mr. Grossman 



TORONTO 

■ 

Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The Bill consolidates the Acts under the administration of the Depart- 
ment of Reform Institutions, dealing with adult offenders, and changes 
the name of the Department to the Department of Correctional Services 
and the title of the Minister to Minister of Correctional Services. 

The principal changes include the following: 

1. The proposed amendments to the Prisons and Reformatories Act 
(Canada) concerning temporary absences for medical or human- 
itarian purposes and hospitalization are incorporated into this 
Bill. 

2. The provision for remission of sentences are standardized to 
those applying to federal offenders. 

3. Provision is made for the establishment of vocational training 
programs under which inmates, in proper cases, may continue 
in regular employment or take work or other training in the 
community. 



129 



BILL 129 1968 



The Department of Correctional 
Services Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, l^Pre- 

(a) "Board" means the Board of Parole; 

(b) "correctional institution" means a correctional 
institution established or continued under section 8 
and does not include a training school established 

or authorized under The Training Schools Act, 1965 ™ || 5 6?i960, 
or a lock-up established under section 372 of The - 249 
Municipal Act; 

(c) "Department" means the Department of Cor- 
rectional Services; 

(d) "Deputy Minister" means the Deputy Minister of 
Correctional Services; 

(e) "Minister" means the Minister of Correctional 
Services; 

(/) "regulations" means the regulations made under 
this Act. New. 

2. — (1) The department of the public service heretofore department 
known as the Department of Reform Institutions is continued institutions 

• i nT-«. r r^ • i o • m continued as 

under the name Department of Correctional Services . Department 
R.S.O. 1960, c. 101, s. 2 (1), amended. tionai 

Services 

(2) The Minister shall preside over and have charge of the Mlni8ter 
Department. R.S.O. 1960, c. 101, s. 2 (2). 

3. The Minister is responsible for the administration of ^lilter^ 
this Act and the Acts that are assigned or transferred to him 
by the Legislature or by the Lieutenant Governor in Council. 
R.S.O. 1960, c. 101, s. 3. 

129 



Ho!'(>ton,o 
to Minister 
or Depart- 
ment in 
other Acta 



4. Any mention of or reference to the Minister of Reform 
Institutions or the Department of Reform Institutions in any 
Act or regulation shall be deemed to be a mention of or 
reference to the Minister of Correctional Services or the 
Department of Correctional Services, respectively. New. 



Expenses 5. — (l) The expenses of the Department in carrying out 

its objects shall be paid out of such moneys as are appropriated 
therefor by the Legislature. R.S.O. 1960, c. 101, s. 4. 



Reimburse- 
ment re 
jails 
1968. c. 



Delegation 
of 

Minister's 
powers 



(2) Every municipality that made expenditures for the 
maintenance and operation of jails after the 31st day of 
December, 1967 and before the date when The Administration 
of Justice Act, 1968 receives Royal Assent shall be reimbursed 
therefor out of the moneys appropriated by the Legislature 
for the objects of the Department. New. 

6. The Minister may delegate any of the powers relating 
to the operation of the Department conferred upon him by 
or under this or any other Act to the Deputy Minister or any 
other official of the Department designated by the Minister. 
New. 



Contracts 



7. All dealings and transactions respecting any correc- 
tional institution including all contracts for goods, wares or 
merchandise necessary for the maintenance and operation of 
the institution or for the sale of goods prepared, produced or 
manufactured at a correctional institution shall be entered 
into and carried out by the Minister or an official of the 
Department designated by him, on behalf of Her Majesty. 
R.S.O. 1960, c. 347, s. 23, amended. 



i^stuutions 1 **. — (1) The jails, reformatories, industrial farms and 
regional detention centres existing immediately before this 
Act comes into force continue to exist as correctional institu- 
tions. 



Idem 



Sentence to 
correctional 
institution 



(2) The Lieutenant Governor in Council may establish or 
discontinue such correctional institutions as he considers 
necessary. New. 

9. — (1) The court before which any person is convicted 
under any Act of the Legislature of an offence punishable by 
imprisonment may sentence such person to a correctional 
institution. R.S.O. 1960, c. 195, s. 2, amended. 



Female 
offenders 



(2) Subject to section 11, the court before which any 
female is convicted under any Act of the Legislature of an 
offence punishable by imprisonment may sentence such female 
for an indefinite period not exceeding two years in a reform- 



129 



atory designated in the regulations as one to be used for the 
treatment, training and confinement of female offenders only. 
R.S.O. 1960, c. 15, s. 7 (1), amended. 

(3) Subject to section 11, the court before which any rnale^® f ^^" 
person is convicted under any Act of the Legislature of an 
offence punishable by imprisonment may sentence him to 
imprisonment in a reformatory for a period of not less than 
three months, and for an indeterminate period thereafter 

of not more than two years less one day. R.S.O. 1960, 
c. 347, s. 7; s. 17, amended. 

(4) Where a person is sentenced to imprisonment in a^ 1 ^ t n °i iy 
reformatory under this section, the person may be detained conveyance 
in any other correctional institution or in the custody of 

a provincial bailiff for the purpose of conveyance to the 
correctional institution to which he or she was sentenced. 
New. 

10. — (1) There shall be a superintendent for each correc-Superin- 
tional institution who shall be an official of the Department 
designated by the Minister and who is responsible for the 
administration of the institution. New. 

(2) The superintendent of a correctional institution shall °^ e f n ° f 
receive into his institution every person delivered to his tendent 
institution under lawful authority for detention therein 
and is responsible for his custody and control until the term 
of his detention is completed or until he is by warrant under 
section 11 transferred therefrom or otherwise discharged in 
due course of law. R.S.O. 1960, c. 347, s. 10, amended. 

11. The Minister may designate in writing one or more Admissions 
officials of the Department who shall control and direct transfers 
admissions to correctional institutions and who from time 
to time by warrant may remove or transfer any person 
detained in a correctional institution from one correctional 
institution to another. R.S.O. 1960, c. 291, s. 9 (1), amended. 

12. — (1) The Minister may designate in writing officials Inspectors 
of the Department as inspectors. R.S.O. 1960, c. 291, s. 2, 
amended. 

(2) Each correctional institution shall be regularly inspected Elections 
by an inspector who shall inquire into all aspects of its opera- 
tion and shall provide the Minister or an official of the Depart- 
ment designated by the Minister for the purpose with a 
written report in respect of each correctional institution 
inspected by him. New. 



129 



Ministerial 
inquiry 



Report 



13. — (1) The Minister may appoint any person to inves- 
tigate and inquire into any matter connected with or affecting 
the administration and operation of the Department. 

(2) The person who conducts an inquiry under subsection 1 
shall report his findings in writing to the Minister. New. 



Use of 
correctional 
institutions 
as lock-ups 



14. Where a municipality is unable to establish and 
maintain a lock-up, or where it is considered advisable for 
the welfare of a person in custody or for public safety, the 
Minister may designate a correctional institution that may be 
used by the municipality as a lock-up and the municipality 
shall pay to the Treasurer of Ontario annually such rate per 
day for persons in custody in the lock-up as is fixed by the 
Minister for the year. R.S.O. 1960, c. 249, s. 374, amended. 



o^sectfons" 15. Sections 16 to 35 are subject to the Prisons and 
16 to 35 Reformatories Act (Canada) in respect of persons detained 
r.s^c. 1952, j n a correc tional institution for an offence against the laws of 
Canada. New. 



Provincial 

bailiffs 



16. — (1) The Lieutenant Governor in Council may appoint 
provincial bailiffs who may convey any person in custody in 
any correctional institution to another correctional institution 
in which the person is lawfully directed to be confined. 
R.S.O. 1960, c. 195, s. 13 (1), amended. 



removal 18 ° f (2) A provincial bailiff may convey a person from one 
correctional institution to another without further authority 
than a warrant of removal signed by an official of the Depart- 
ment designated under section 11, which warrant shall be 
sufficient authority for a superintendent to deliver over the 
person named therein. 

P rovtnciai ^ * n t ^ ie convevance °f a person from one correctional 

bailiff institution to another, a provincial bailiff has the same 

powers as a constable. R.S.O. 1960, c. 195, s. 13 (3, 4), 

amended. 



Hospital 
treatment 



Idem 
1967, c. 51 



17. — (1) Where a person detained in a correctional institu- 
tion requires hospital treatment that cannot be supplied at 
the institution, the superintendent of the institution shall 
arrange for the person to receive such treatment at a public 
hospital and shall report the fact to an official of the Depart- 
ment designated under section 11. R.S.O. 1960, c. 291, 
s. 9 (3), amended. 

(2) Where a person detained in a correctional institution 
requires hospitalization in a psychiatric facility under The 
Mental Health Act, 1967, the superintendent of the institution 



129 



shall arrange for the person to be so hospitalized, and shall 
report the fact to an official of the Department designated 
under section 11, but where the superintendent is unable 
to have the person hospitalized, he shall notify an official 
designated under section 11, who shall then make arrange- 
ments to have the person hospitalized. 1967, c. 71, s. 1, 
amended. 

(3) The charges for the hospital treatment referred to in Payment 
subsections 1 and 2 shall be paid by the person receiving the 
treatment unless he is unable to provide for payment, in which 
case the charges shall be paid by the Department in accord- 
ance with the rates prescribed for payments in respect of 
indigent patients under The Public Hospitals Act. R.S.O. ^f^" 1960 ' 
1960, c. 291, s. 9 (4), amended. 

18. The Lieutenant Governor in Council from time to^ m n ^ loy - 
time may authorize the employment of any of the persons ? ut £ i t de t - 
sentenced to imprisonment detained in a correctional institu- 
tion to do any specific work or duty for public purposes 
beyond the limits of the institution. R.S.O. 1960, c. 195, 
s. 14 (1); c. 347, s. 18 (1), amended. 

19. — (1) Where, in the opinion of an official of the Depart- j£™P° e rary 
ment designated by the Lieutenant Governor in Council for 
the purpose, it is necessary or desirable that an inmate be 
temporarily absent from a correctional institution for medical 
or humanitarian reasons or to assist him in his rehabilitation, 
the temporary absence of the inmate may be authorized by 
such official on such terms and conditions as he specifies. 

(2) Any inmate temporarily absent under subsection 1 Id © m 
shall comply with such terms and conditions as are specified, 
and shall return to the correctional institution at the expira- 
tion of the period for which he is permitted to be at large, 
and if he fails to so return or to comply with the terms and 
conditions prescribed, he shall be deemed to be unlawfully 
at large. New. 

20. The Lieutenant Governor in Council may establish vocational 
a vocational training programme under which persons detained programme 
in a correctional institution may be granted the privilege of 
continuing to work at their regular employment, obtaining 
new employment, attending academic institutions, or partici- 
pating in any other program that the Lieutenant Governor in 
Council considers advisable in order that such persons may 
have a better opportunity for rehabilitation. New. 

21. — (1) Every person detained in a correctional institu- Remission 
tion shall be granted statutory and earned remission of his 

129 



a 



R.8.C. 



L952, 



Restoration 
of forfeited 
remission 



sentence and is subject to the forfeitures of such remission 
equivalent to that provided for in the Prisons and Reform- 
atories Act (Canada). 

(2) Where a person detained in a correctional institution 
has forfeited the whole or any part of his statutory remission, 
an official of the Department designated by the Lieutenant 
Governor in Council for the purpose may, where he is satisfied 
that it is in the interest of the inmate's rehabilitation, remit 
the whole or any part of such forfeiture. New. 



Employee* 

not to be 
interested 
in contracts 



Offence 



22. — (1) No official or employee of the Department shall, 
either in his own name or in the name of or in connection 
with or as the agent of any other person, provide, furnish or 
supply any materials, goods or provisions for the use of a 
correctional institution, or have an interest, directly or 
indirectly, in furnishing, supplying or transporting the same 
or in any contract relating thereto. R.S.O. 1960, c. 15, 
s. 13 (1); c. 347, s. 12 (1), amended. 

(2) Every person who contravenes any of the provisions 
of subsection 1 is guilty of an offence, and on summary 
conviction is liable to a fine of not more than $5,000. R.S.O. 
1960, c. 15, s. 13 (2); c. 347, s. 12 (2), amended. 



Employees 
not to trade, 
etc., with 
persons in 
custody 



23. No official or employee of the Department shall buy 
from or sell to any person in custody in a correctional institu- 
tion anything whatsoever or take or receive to his own use 
or for the use of any other person, any fee or gratuity from 
any person in custody in a correctional institution or from 
any visitor thereto or from any other person in respect of a 
person in custody, or employ any person in custody in working 
for him. R.S.O. 1960, c. 15, s. 14; c. 347, s. 13, amended. 



Kroi! ° f 24r * ^ ne Board of Parole established under The Parole 

R.s.o. i960, Act is continued and shall be composed of not more than 

seven persons appointed by the Lieutenant Governor in 

Council, of whom at least five shall be full-time members. 

R.S.O. 1960, c. 286, s. 2, amended. 



Chairman 



Quorum 



Stall 



iMi-ea 

c. 121 



25. — (1) The Lieutenant Governor in Council may des- 
ignate one of the members of the Board to be chairman 
thereof. 

(2) Three members of the Board constitute a quorum. 
R.S.O. 1960, c. 286, s. 3 (1-2). 

26. — (1) Such officers and employees as are deemed 
necessary for purposes of the Board shall be appointed under 
The Public Service Act, 1961-62. R.S.O. 1960, c. 286, s. 4, 
amended. 



129 



(2) The members of the Board who are not full-time R £ m £ nera - 
members shall serve without salary but may be paid such part-time 
expenses and allowances for attendance at Board meetings 
and for other attendances in connection with the business of 
the Board as are determined by the Lieutenant Governor in 
Council. R.S.O. 1960, c. 286, s. 5 (2), amended. 

27. Subject to the regulations, the Board may order the "/p^o'if 
release on parole of any person detained in a correctional 
institution, 

(a) convicted of an offence against a statute of Ontario 
or against a municipal by-law and sentenced to an 
indeterminate sentence; or 



R.S.C. 1952, 
217 



(b) referred to in section 43 of the Prisons and Reform-^ 
atories Act (Canada) and sentenced to an indeter- 
minate sentence, 

to be at large during the indeterminate portion of his sentence. 
R.S.O. 1960, c. 286, s. 6, amended. 

28. Where parole is granted, the term of parole shall Reml8Slons 
include any portion of statutory remission standing to the 

credit of the parolee when he is released, but shall not include 
any period of earned remission standing to his credit at 
that time. New. 

29. When required by the Board, it is the duty of every „?££!£»" 
person having information relevant to the suitability of a 

person to be paroled to submit such information to the 
Board in writing in the form prescribed by the regulations. 
R.S.O. 1960, c. 286, s. 9, amended. 

30. — (1) Whenever a member of the Board, or such other Termination 

v / ' . of parole 

person as is designated by the Board for the purpose, believes 
on reasonable and probable grounds that a person on parole 
has failed to observe any of the conditions of his parole, 
he may authorize the arrest and return to a correctional 
institution of the person by a warrant in writing signed by him. 

(2) Where a person on parole has been returned to a Review 
correctional institution under subsection 1, the Board shall 
review the parole as soon as possible thereafter, and shall 
decide either to terminate the parole or to release the person 
and allow him to continue on parole. New. 

31. Whenever a person while on parole is convicted of whlie lctlon 
an indictable offence he shall undergo a term of imprisonment paroled 
equal to the portion of the term to which he was originally 

129 



s 



Annual 
report 



Interpre- 
tation 



sentenced that remained unexpired at the time of the offence, 
in addition to any term of imprisonment to which he may be 
sentenced. R.S.O. 1960, c. 286, s. 7, amended. 

32. The Board shall in each year, on or before the 30th 
day of September, make a report in writing to the Lieutenant 
Governor in Council of the history and proceedings of the 
Board during the twelve-month period ending on the 31st 
day of March of such year. R.S.O. 1960, c. 286, s. 10. 

33. Nothing in this Act shall be construed as affecting 
or impairing or as intending or purporting to affect or impair 
the powers of the Governor General of Canada or the Lieuten- 
ant Governor of Ontario to grant a reprieve, pardon or com- 
mutation of sentence in any case. R.S.O. 1960, c. 286, s. 11. 



Regulations 34. — (1) The Lieutenant Governor in Council may make 
regulations, 

(a) respecting the operation and management of correc- 
tional institutions or any class thereof, and respecting 
the classification, treatment, training employment, 
discipline and control of persons detained therein; 



R.S.C. 1952. 
c. 217 



(b) designating correctional institutions as reformatories 
for the purposes of the Prisons and Reformatories 
Act (Canada); 

(c) establishing and governing a vocational training 
program referred to in section 20; 

(d) prescribing conditions under which a person may be 
paroled ; 

(e) prescribing procedures of the Board for the perform- 
ance of its functions; 

(/) prescribing forms for the purposes of this Act and 
providing for their use. R.S.O. 1960, c. 286, s. 12 (1), 
amended. R.S.O. 1960, c. 291, s. 4, amended. 



(2) Such of the regulations made under clause d, e or / of 
subsection 1 as are approved by the Minister of Justice 
(Canada) apply in respect of persons in custody referred to 
in section 43 of the Prisons and Reformatories Act (Canada). 
R.S.O. 1960, c. 286, s. 12 (2), amended. 



Applicati 
of regula- 
tions to 
R.S.C. 1952 
c. 217 



Repeal 



R.8.O. 1960, 
o. 16; 



35. The following Acts are repealed: 

1. The Andrew Mercer Reformatory Act. 
129 



2. The Department of Reform Institutions Act. 

3. The Industrial Farms Act. 

4. The Industrial Farms Amendment Act, 1964. 

5. The Industrial Farms Amendment Act, 1966. 

6. The Jails Act. 

7. The Jails Amendment Act, 1961-62. 

8. The Jails Amendment Act, 1966. 

9. The Parole Act. 

10. The Parole Amendment Act, 1966. 



R.S.O. I960, 
c. 101; 

R.S.O. 1960, 
c. 185; 

1964, c. 44; 
1966, c. 70; 



R.S.O. 1960. 
c. 195; 

1961-62, 
c. 64 ; 

1966, c. 72; 



R.S.O. 1960, 
c. 286; 

1966, c. 110; 



11. The Penal and Reform Institutions Inspection Act. ^'fg?: 196 °- 

12. The Penal and Reform Institutions Inspection Amend- 1964 - c - 8 ~; 
ment Act, 1964. 

13. The Penal and Reform Institutions Inspection Amend- 1966, c ' 112; 
ment Act, 1966. 

14. The Penal and Reform Institutions Inspection Amend- 1967, c - 71: 
ment Act, 1967. 



R.S.O. I960, 
c. 347; 



1964, c. 101: 



15. The Reformatories Act. 

16. The Reformatories Amendment Act, 1964. 

17. The Regional Detention Centres Act, 1965. 1965> c - 115; 

18. The Regional Detention Centres Amendment Act, 1967. 1967, c - 87 

36. This Act comes into force on a day to be named by meSt mence " 
the Lieutenant Governor by his proclamation. 

37. This Act may be cited as The Department of Correc- Short title 
tional Services Act, 1968. 



129 



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BILL 129 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Department of Correctional Services Act, 1968 



Mr. Grossman 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 129 1968 



The Department of Correctional 
Services Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, Interpre- 

tation 

(a) "Board" means the Board of Parole; 

(b) "correctional institution" means a correctional 
institution established or continued under section 8 
and does not include a training school established 

or authorized under The Training Schools Act, 1965 R 9 | 5 6?'i96o 
or a lock-up established under section 372 of The - 249 
Municipal Act; 

(c) "Department" means the Department of Cor- 
rectional Services; 

(d) "Deputy Minister" means the Deputy Minister of 
Correctional Services; 

(e) "Minister" means the Minister of Correctional 
Services ; 

(/) "regulations" means the regulations made under 
this Act. New. 

2. — (1) The department of the public service heretofore D f e £|rtment 
known as the Department of Reform Institutions is continued institutions 
under the name "Department of Correctional Services". Department 
R.S.O. 1960, c. 101, s. 2 (1), amended. tionai rre ° 

Services 

(2) The Minister shall preside over and have charge of the Minister 
Department. R.S.O. 1960, c. 101, s. 2 (2). 

3. The Minister is responsible for the administration of^ti^of 
this Act and the Acts that are assigned or transferred to him 
by the Legislature or bv the Lieutenant Governor in Council. 
R.S.O. 1960, c. 101, s. 3. 

129 



Reference 
to Minister 
or Depart- 
ment in 
other Acts 



Expenses 



4. Any mention of or reference to the Minister of Reform 
Institutions or the Department of Reform Institutions in any 
Act or regulation shall be deemed to be a mention of or 
reference to the Minister of Correctional Services or the 
Department of Correctional Services, respectively. New. 

5. — (1) The expenses of the Department in carrying out 
its objects shall be paid out of such moneys as are appropriated 
therefor by the Legislature. R.S.O. 1960, c. 101, s. 4. 



Reimburse- 
ment re 
jails 

1968. c. 



(2) Every municipality that made expenditures for the 
maintenance and operation of jails after the 31st day of 
December, 1967 and before the date when The Administration 
of Justice Act, 1968 receives Royal Assent shall be reimbursed 
therefor out of the moneys appropriated by the Legislature 
for the objects of the Department. New. 



Delegation 
of 

Minister's 
powers 



6. The Minister may delegate any of the powers relating 
to the operation of the Department conferred upon him by 
or under this or any other Act to the Deputy Minister or any 
other official of the Department designated by the Minister. 

New. 



Contracts 



7. All dealings and transactions respecting any correc- 
tional institution including all contracts for goods, wares or 
merchandise necessary for the maintenance and operation of 
the institution or for the sale of goods prepared, produced or 
manufactured at a correctional institution shall be entered 
into and carried out by the Minister or an official of the 
Department designated by him, on behalf of Her Majesty. 
R.S.O. 1960, c. 347, s. 23, amended. 



instuutions 1 **• — (*) The jails, reformatories, industrial farms and 
regional detention centres existing immediately before this 
Act comes into force continue to exist as correctional institu- 
tions. 



Idem 



(2) The Lieutenant Governor in Council may establish or 
discontinue such correctional institutions as he considers 
necessary. New. 



Sentence to 
correctional 
institution 



9. — (1) The court before which any person is convicted 
under any Act of the Legislature of an offence punishable by 
imprisonment may sentence such person to a correctional 
institution. R.S.O. 1960, c. 195, s. 2, amended. 



Female 
offenders 



(2) Subject to section 11, the court before which any 
female person is convicted under any Act of the Legislature 
of an offence punishable by imprisonment may sentence such 
female person for an indefinite period not exceeding two yeaffc 



129 



in a reformatory designated in the regulations as one to be 
used for the treatment, training and confinement of female 
offenders only. R.S.O. 1960, c. 15, s. 7 (1), amended. 

(3) Subject to section 11, the court before which any male Reform- 

• -i i * r i -w • ■ r atones 

person is convicted under any Act of the Legislature of an 
offence punishable by imprisonment may sentence him to 
imprisonment in a reformatory for a period of not less than 
three months, and for an indeterminate period thereafter 
of not more than two years less one day. R.S.O. 1960, 
c. 347, s. 7; s. 17, amended. 

(4) Where a person is sentenced to imprisonment in a^^ t I ody 
reformatory under this section, the person may be detained conveyance 
in any other correctional institution or in the custody of 

a provincial bailiff for the purpose of conveyance to the 
correctional institution to which he or she was sentenced. 
New. 

10. — (1) There shall be a superintendent for each correc- superin- 
tional institution who shall be an official of the Department 
designated by the Minister and who is responsible for the 
administration of the institution. New. 

(2) The superintendent of a correctional institution shall °pg£ 8 n ? f 
receive into his institution every person delivered to his tendent 
institution under lawful authority for detention therein 
and is responsible for his custody and control until the term 
of his detention is completed or until he is by warrant under 
section 11 transferred therefrom or otherwise discharged in 
due course of law. R.S.O. 1960, c. 347, s. 10, amended. 

11. The Minister may designate in writing one or more Admissions 
officials of the Department who shall control and direct transfers 
admissions to correctional institutions and who from time 
to time by warrant may remove or transfer any person 
detained in a correctional institution from one correctional 
institution to another. R.S.O. 1960, c. 291, s. 9 (1), amended. 

12. — (1) The Minister may designate in writing officials Inspectors 
of the Department as inspectors. R.S.O. 1960, c. 291, s. 2, 
amended. 

(2) Each correctional institution shall be regularly inspected SSSctfon8 
by an inspector who shall inquire into all aspects of its opera- 
tion and shall provide the Minister or an official of the Depart- 
ment designated by the Minister for the purpose with a 
written report in respect of each correctional institution 
inspected by him. New. 

129 



Ministerial 
inquiry 



13. — (1) The Minister may appoint any person to inves- 
tigate and inquire into any matter connected with or affecting 
the administration and operation of the Department. 



Report (2) The person who conducts an inquiry under subsection 1 

shall report his findings in writing to the Minister. New. 



Use of 
correctional 
institutions 
as lock-ups 



14. Where a municipality is unable to establish and 
maintain a lock-up, or where it is considered advisable for 
the welfare of a person in custody or for public safety, the 
Minister may designate a correctional institution that may be 
used by the municipality as a lock-up and the municipality 
shall pay to the Treasurer of Ontario annually such rate per 
day for persons in custody in the lock-up as is fixed by the 
Minister for the year. R.S.O. 1960, c. 249, s. 374, amended. 



o^&ctfons 11 **' ^ ect ' ons 16 to 35 are subject to the Prisons and 
16 to 35 Reformatories Act (Canada) in respect of persons detained 
r.s^c. 1952, j n a correctional institution for an offence against the laws of 
Canada. New. 



Provincial 

bailiffs 



16. — (1) The Lieutenant Governor in Council may appoint 
provincial bailiffs who may convey any person in custody in 
any correctional institution to another correctional institution 
in which the person is lawfully directed to be confined. 
R.S.O. 1960, c. 195, s. 13 (1), amended. 



removal 18 ° f &) A provincial bailiff may convey a person from one 
correctional institution to another without further authority 
than a warrant of removal signed by an official of the Depart- 
ment designated under section 11, which warrant shall be 
sufficient authority for a superintendent to deliver over the 
person named therein. 

P rov!™iai ^ * n t ^ ie convevance of a person from one correctional 

bailiff institution to another, a provincial bailiff has the same 

powers as a constable. R.S.O. 1960, c. 195, s. 13 (3, 4), 

amended. 



Hospital 
treatment 



17. — (1) Where a person detained in a correctional institu- 
tion requires hospital treatment that cannot be supplied at 
the institution, the superintendent of the institution shall 
arrange for the person to receive such treatment at a public 
hospital and shall report the fact to an official of the Depart- 
ment designated under section 11. R.S.O. 1960, c. 291, 
s. 9 (3), amended. 



Idem 
1967, c. 51 



(2) Where a person detained in a correctional institution 
requires hospitalization in a psychiatric facility under The 
Mental Health Act, 1967, the superintendent of the institution 



129 






shall arrange for the person to be so hospitalized, and shall 
report the fact to an official of the Department designated 
under section 11, but where the superintendent is unable 
to have the person hospitalized, he shall notify an official 
designated under section 11, who shall then make arrange- 
ments to have the person hospitalized. 1967, c. 71, s. 1, 
amended. 

(3) The charges for the hospital treatment referred to in Payment 
subsections 1 and 2 shall be paid by the person receiving the 
treatment unless he is unable to provide for payment, in which 
case the charges shall be paid by the Department in accord- 
ance with the rates prescribed for payments in respect of 
indigent patients under The Public Hospitals Act. R.S.O. Jf^' 196 °" 
1960, c. 291, s. 9 (4), amended. 

18. The Lieutenant Governor in Council from time to ment° y 
time may authorize the employment of anv of the persons? 11 ^®. 

, . ii-i- -i institution 

sentenced to imprisonment and detained in a correctional 
institution to do any specific work or duty for public purposes 
beyond the limits of the institution. R.S.O. 1960, c. 195, 
s. 14 (1); c. 347, s. 18 (1), amended. 

19. — (1) Where, in the opinion of an official of the Depart- J^™P° e rary 
ment designated by the Lieutenant Governor in Council for 
the purpose, it is necessary or desirable that an inmate be 
temporarily absent from a correctional institution for medical 
or humanitarian reasons or to assist him in his rehabilitation, 
the temporary absence of the inmate may be authorized by 
such official on such terms and conditions as he specifies. 

(2) Any inmate temporarily absent under subsection 1 Id » m 
shall comply with such terms and conditions as are specified, 
and shall return to the correctional institution at the expira- 
tion of the period for which he is permitted to be at large, 
and if he fails to so return or to comply with the terms and 
conditions prescribed, he shall be deemed to be unlawfully 
at large. New. 

20. The Lieutenant Governor in Council may establish vocational 
a vocational training programme under which persons detained programme 
in a correctional institution may be granted the privilege of 
continuing to work at their regular employment, obtaining 
new employment, attending academic institutions, or partici- 
pating in any other program that the Lieutenant Governor in 
Council considers advisable in order that such persons may 
have a better opportunity for rehabilitation. New. 

21. — (1) Every person detained in a correctional institu- Remission 
tion shall be granted statutory and earned remission of his 

129 



R.S.C. 1952, 
c. 217 



Restoration 
of forfeited 
remission 



sentence and is subject to the forfeitures of such remission 
equivalent to that provided for in the Prisons and Reform- 
atories Act (Canada). 

(2) Where a person detained in a correctional institution 
has forfeited the whole or any part of his statutory remission, 
an official of the Department designated by the Lieutenant 
Governor in Council for the purpose may, where he is satisfied 
that it is in the interest of the inmate's rehabilitation, remit 
the whole or any part of such forfeiture. New. 



Employees 
net to be 
interested 
in contracts 



Offence 



22. — (1) No official or employee of the Department shall, 
either in his own name or in the name of or in connection 
with or as the agent of any other person, provide, furnish or 
supply any materials, goods or provisions for the use of a 
correctional institution, or have an interest, directly or 
indirectly, in furnishing, supplying or transporting the same 
or in any contract relating thereto. R.S.O. 1960, c. 15, 
s. 13 (1); c. 347, s. 12 (1), amended. 

(2) Every person who contravenes any of the provisions 
of subsection 1 is guilty of an offence, and on summary 
conviction is liable to a fine of not more than $5,000. R.S.O. 
1960, c. 15, s. 13 (2); c. 347, s. 12 (2), amended. 



Employees 
not to trade, 
etc.. with 
persons in 
custody 



23. No official or employee of the Department shall buy 
from or sell to any person in custody in a correctional institu- 
tion anything whatsoever or take or receive to his own use 
or for the use of any other person, any fee or gratuity from 
any person in custody in a correctional institution or from 
any visitor thereto or from any other person in respect of a 
person in custody, or employ any person in custody in working 
for him. R.S.O. 1960, c. 15, s. 14; c. 347, s. 13, amended. 



Board of 
Parole 
R.8.O. 1960, 
c. 286 



Chairman 



Quorum 



Staff 



1961-62, 
c. 121 



24. The Board of Parole established under The Parole 
Act is continued and shall be composed of not more than 
seven persons appointed by the Lieutenant Governor in 
Council, of whom at least five shall be full-time members. 
R.S.O. 1960, c. 286, s. 2, amended. 

25. — (1) The Lieutenant Governor in Council may des- 
ignate one of the members of the Board to be chairman 
thereof. 

(2) Three members of the Board constitute a quorum. 
R.S.O. 1960, c. 286, s. 3 (1-2). 

26. — (1) Such officers and employees as are deemed 
necessary for purposes of the Board shall be appointed under 
The Public Service Act, 1961-62. R.S.O. 1960, c. 286, s. 4, 
amended. 



129 



7 

(2) The members of the Board who are not full-time Rem " nera - 
members shall serve without salary but may be paid such part-time 
expenses and allowances for attendance at Board meetings 
and for other attendances in connection with the business of 
the Board as are determined by the Lieutenant Governor in 
Council. R.S.O. 1960, c. 286, s. 5 (2), amended. 

27. Subject to the regulations, the Board may order the 2^ pal off 
release on parole of any person detained in a correctional 
institution, 

(a) convicted of an offence against a statute of Ontario 
or against a municipal by-law and sentenced to an 
indeterminate sentence; or 

(b) referred to in section 43 of the Prisons and Reform- f"2u' 1952 ' 
atories Act (Canada) and sentenced to an indeter- 
minate sentence, 

to be at large during the indeterminate portion of his sentence. 
R.S.O. 1960, c. 286, s. 6, amended. 

28. Where parole is granted, the term of parole shall Remissions 
include any portion of statutory remission standing to the 

credit of the parolee when he is released, but shall not include 
any period of earned remission standing to his credit at 
that time. New. 

29. When required by the Board, it is the duty of every Je pa^ofeM 11 
person having information relevant to the suitability of a 

person to be paroled to submit such information to the 
Board in writing in the form prescribed b} r the regulations. 
R.S.O. 1960, c. 286, s. 9, amended. 

30. — (1) Whenever a member of the Board, or such other Termination 
person as is designated by the Board for the purpose, believes 
on reasonable and probable grounds that a person on parole 
has failed to observe any of the conditions of his parole, 
he may authorize the arrest and return to a correctional 
institution of the person by a warrant in writing signed by him. 

(2) Where a person on parole has been returned to a Review 
correctional institution under subsection 1, the Board shall 
review the parole as soon as possible thereafter, and shall 
decide either to terminate the parole or to release the person 
and allow him to continue on parole. New. 

31. Whenever a person while on parole is convicted of whiie ictlon 
an indictable offence he shall undergo a term of imprisonment paroled 
equal to the portion of the term to which he was originally 

129 



Annual 
report 



Interpre- 
tation 



sentenced that remained unexpired at the time of the offence, 
in addition to any term of imprisonment to which he may be 
sentenced. R.S.O. 1960, c. 286, s. 7, amended. 

32. The Board shall in each year, on or before the 30th 
day of September, make a report in writing to the Lieutenant 
Governor in Council of the history and proceedings of the 
Board during the twelve-month period ending on the 31st 
day of March of such year. R.S.O. 1960, c. 286, s. 10. 

33. Nothing in this Act shall be construed as affecting 
or impairing or as intending or purporting to affect or impair 
the powers of the Governor General of Canada or the Lieuten- 
ant Governor of Ontario to grant a reprieve, pardon or com- 
mutation of sentence in any case. R.S.O. 1960, c. 286, s. 11. 



Regulations 34. — (i) The Lieutenant Governor in Council may make 
regulations, 

(a) respecting the operation and management of correc- 
tional institutions or any class thereof, and respecting 
the classification, treatment, training employment, 
discipline and control of persons detained therein ; 



R.S.C. 1952, 
c. 217 



(b) designating correctional institutions as reformatories 
for the purposes of the Prisons and Reformatories 
Act (Canada); 

(c) establishing and governing a vocational training 
program referred to in section 20; 

(d) prescribing conditions under which a person may be 
paroled ; 

(e) prescribing procedures of the Board for the perform- 
ance of its functions; 

(J) prescribing forms for the purposes of this Act and 
providing for their use. R.S.O. 1960, c. 286, s. 12 (1), 
amended. R.S.O. 1960, c. 291, s. 4, amended. 



Application 
or r 



(2) Such of the regulations made under clause d, e or / of 
subsection 1 as are approved by the Minister of Justice 



regula- 
tions to 
R. SO 1 QS2 

c.'2'n' " (Canada) apply in respect of persons in custody referred to 
in section 43 of the Prisons and Reformatories Act (Canada). 
R.S.O. 1960, c. 286, s. 12 (2), amended. 



Repeal 



R.S.O. 1960. 
o. 15; 



35. The following Acts are repealed : 

1. The Andrew Mercer Reformatory Act. 
129 






2. The Department of Reform Institutions Act. 

3. The Industrial Farms Act. 

4. The Industrial Farms Amendment Act, 1964. 

5. The Industrial Farms Amendment Act, 1966. 

6. The Jails Act. 

7. The Jails Amendment Act, 1961-62. 

8. The Jails Amendment Act, 1966. 

9. The Parole Act. 

10. The Parole Amendment Act, 1966. 



R.S.O. I960, 
c. 101; 

R.S.O. I960, 
c. 185; 

1964, c. 44; 
1966, c. 70; 



R.S.O. 1960, 
c. 195; 

1961-62, 
c. 64; 

1966, c. 72; 



R.S.O. 1960, 
c 286; 

1966, c. 110; 



11. The Penal and Reform Institutions Inspection Act. f"^' 1960, 

12. The Penal and Reform Institutions Inspection Amend- 1964 - c - 87: 
ment Act, 1964. 

13. The Penal and Reform Institutions Inspection Amend- 1966, c * 112: 
ment Act, 1966. 

14. The Penal and Reform Institutions Inspection Amend- 1967, c - 71: 
ment Act, 1967. 



R.S.O. I960, 
c. 347; 



1964, c. 101; 



15. The Reformatories Act. 

16. The Reformatories Amendment Act, 1964. 

17. The Regional Detention Centres Act, 1965. 1965> c - 115: 

18. The Regional Detention Centres Amendment Act, 1967. 1967, c * 87 

36. This Act comes into force on a day to be named by ment menc8 ~ 
the Lieutenant Governor by his proclamation. 

37 . This Act may be cited as The Department of Correc- short title 
tional Services Act, 1968. 



129 



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BILL 130 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Employment Standards Act, 1968 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The purpose of the Bill is to enact new provisions respecting employ- 
ment standards and to consolidate, revise and up-date The Hours of Work 
and Vacations with Pay Act, The Minimum Wage Act and certain provisions 
of The Industrial Safety Act, 1964, The Ontario Human Rights Code, 1961-62 
and The Wages Act. 



130 



BILL 130 



1968 



The Employment Standards Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 



INTERPRETATION 

1. In this Act, 

(a) "Department" means the Department of Labour; 



Interpre- 
tation 



(b) "Director" means the Director of Labour Standards 
appointed for the purposes of The Industrial Stand- ffgQ- 1960t 
ards Act; 

(c) "employee" includes every person who performs 
any work or services in an establishment for an 
employer, and includes any person doing homework; 

{d) "employer" includes every person who as the owner, 
proprietor, manager, superintendent or overseer of 
any establishment, 

(i) has control or direction of, or is directly or 
indirectly responsible for the employment of, 
an employee therein, or 

(ii) employs or permits any person to work 
therein ; 

(e) "establishment" means any place of business, work, 
trade, occupation or profession other than those 
designated in the regulations; 

(/) "holiday" means New Year's Day, Good Friday, 
Victoria Day, Dominion Day, Labour Day, Thanks- 
giving Day and Christmas Day and where New 
Year's Day, Dominion Day or Christmas Day falls 
on a Sunday, the day next following is in lieu thereof 
a holiday; 



130 



2 






(g) "homework" means the doing of any work in the 
manufacture, preparation, improvement, repair, 
alteration, assembly or completion of any article 
or thing or any part thereof by a person for wages 
in premises occupied primarily as living accommoda- 
tion, and "homeworker" has a corresponding 
meaning; 



(h) "Minister" means the Minister of Labour or such 
member of the Executive Council as is for the time 
being charged with the administration of this Act; 



(*) "regular rate" means, 



(i) the hourly rate paid to an employee for his 
normal non-overtime work week, or 



(ii) in the case of an employee to whom sub- 
clause i does not apply, the amount obtained 
by dividing his total earnings for the week 
by the number of hours he worked in the week ; 

(J) "regulations" means the regulations made under 
this Act; 

(k) "wages" includes any form of remuneration for work 
or services performed, but does not include tips and 
other gratuities. R.S.O. 1960, c. 240, s. 1 ; 1962-63, 
c. 83, s. 1; R.S.O. 1960, c. 181, s. 1, amended. 






PART I 

GENERAL 



Minister 
responsible 

f°, r a f d : m j n - this Act. 

istration 



, 2. The Minister is responsible for the administration of 
New. 



Agreements 3 # This Act applies notwithstanding any agreement or 

contrary waiver to the contrary. R.S.O. 1960, c. 240, s. 7, amended. 

to Act J ' 



Standards 

as 

minimums 



4. — (1) The standards for rates of wages and vacations 
with pay required under this Act are minimum standards only 
and nothing in this Act shall affect any rights or benefits of 
an employee under any law, custom, agreement or arrange- 
ment that is more favourable to him than his rights or benefits 
under this Act. New. 



with fl other (^) Where there is conflict between the rate of wages, 

Acts vacations with pay or payment in lieu thereof, or hours of 

work determined under this Act or the regulations and those 

determined under any other Act or any regulation or order 

130 






made thereunder, or any schedule under The 
Standards Act, the greater rate of wages and vacations with 
pay and the lesser hours of work shall prevail. R.S.O. 1960, 
c. 181, s. 13, amended. 



Industrial ?-s$- I'^o, 



5.— (1.) The Director may, mkThofd 

. . inquiry 

(a) hold an inquiry into the facts concerning any persons 
employed in or about an establishment as members 
or alleged members of a partnership or association, 
or in the execution of any agreement or scheme of 
profit-sharing or co-operative or joint contract or 
undertaking, including the investigation of the 
contractual and other relations of the persons so 
employed, as between themselves or as between 
them and their employer; and 

(b) make such order as he deems proper declaring any 
of such persons or any class or group thereof to be 
employers and any of such persons or any class or 
group thereof to be employees for the purposes of 
this Act, provided that, in his opinion, the partner- 
ship, association, agreement or scheme is intended 
or has the effect, directly or indirectly, of defeating 
the true intent and purpose of this Act. R.S.O. 
1960, c. 181, s. 7, part, amended. 

(2) The Director may, by notice in writing, require the Pow ® rto 
attendance before him of any person at the time and place attendance, 
named in the notice, and examine such person under oath in 
respect of any matter concerning wages, hours of work, 
vacations with pay or any matter mentioned in subsection 1. 

(3) The Director may refer any matter to the Industry and i^nTstry by 
Labour Board appointed under The Department of Labour ^^Board abour 
for a hearing and the Board shall hold the hearing and report r.s.o. i960, 
its findings and recommendations to the Director. 

6. Where the Director is unable to act or there is a vacancy director 
in the office, the powers and duties of the Director shall be 
exercised and performed by such employee of the Depart- 
ment as the Minister designates. New. 

PART II 

HOURS OF WORK 

7. — (1) Subject to subsection 2, the working hours of an Maximum 
employee shall not exceed eight in the day and forty-eight in 
the week. R.S.O. 1960, c. 181, s. 2 (1), amended. 



130 



Exceptions 



(2) Subsection 1 does not apply to an employee whose only 
work is suj>ervisory or managerial in character, or of a char- 
acter exempted by the regulations. R.S.O. 1960, c. 181, s. 3, 
amended. 



Variation 
of working 
day 



8. — (1) Subject to subsection 2, an employer may, with 
the approval of the Director, and upon such terms and 
conditions as the Director prescribes, adopt a working day 
in excess of eight hours, but the working hours of his employees 
shall not exceed forty-eight hours in a week. 



workYnK m (2) The maximum working hours of an employee in a day 

hours prescribed by section 7 is subject to any schedule in force 

?'?86" 196 °' under The Industrial Standards Act. New. 

ejfress'ho'urs ® # — 0) The Director may issue a permit authorizing hours 
of work in an establishment in excess of those prescribed by 
section 7 or under section 8, but the excess working hours 
shall not exceed, 

(a) in the case of an engineer, fireman, full-time mainten- 
ance man, receiver, shipper, delivery truck driver 
or his helper, watchman or other person, who in 
the opinion of the Director, is engaged in a similar 
occupation, twelve hours in each week for each 
employee; and 

(b) in the case of all other employees, 100 hours in each 
year for each employee. 



Idem 



(2) Notwithstanding subsection 1, the Director may issue 
a permit for work in excess of the maximum hours prescribed 
by subsection 1 where he is satisfied that the nature of the 
work or perishable nature of raw material being processed 
requires the excess hours. 



work'of 6 (3) Notwithstanding subsections 1 and 2, the overtime 

employee work of a female employee under the age of eighteen years 
shall not exceed six hours in a week. 



Exceeding 
maximum 
in case of 
accident 



(4) The limit of hours of work prescribed by subsection 1 
of section 7 may be exceeded in case of accident, or in case 
of work urgently required to be done to machinery or plant, 
but only so far as may be necessary to avoid serious inter- 
ference with the ordinary working of the establishment. 
New. 



Terms and 
conditions 
of overtime 
work 



lO. A i>ermit issued under section 9 shall contain such 
terms and conditions as the Director prescribes. New. 



130 



11. — (1) No employer may require or permit work, and ^ g b ? ect to U 
no employee may work or agree to work, any hours that maximums 
exceed the maximum hours determined under this Act. 

(2) The issuance of a permit under section 9 does notdoe^not 
require an employee to work any hours in excess of those employee 
prescribed by section 7 without the consent or agreement of 
the employee or his agent. New. 

12. — (1) No female employee under the age of eighteen m^of" 
years shall work in an establishment between the hours of^™^*?*. 
12 o'clock midnight and 6 o'clock in the forenoon of any day. 
1964, c. 42, s. 2, part, amended. 

(2) Where the work period of a female employee ends ^"^ovide 
between 12 o'clock midnight and 6 o'clock in the forenoon, transporta- 
the employer shall provide her with private transportation 

to her residence at his expense. 

(3) Where the work period of a female employee begins Idem 
between 12 o'clock midnight and 6 o'clock in the forenoon, 

the employer shall provide her with private transportation 
from her residence to the place of employment at his expense. 
New. 

. 13. Every employer shall provide eating periods of at p^Vod* 
least one-half hour, or such shorter period as is approved 
by the Director, at such intervals as will result in no employee 
working longer than five consecutive hours without an eating 
period, but where immediately before this Act comes into 
force an employer provides eating periods that are shorter 
than one-half hour, he may continue such eating periods, 
unless ordered to do otherwise by the Director. 1964, c. 42, 
s. 2, part, amended. 



PART III 

OVERTIME PAY 

14. — (1) Where an employee works for an employer in°^ rtlme 
excess of forty-eight hours in any week, he shall be paid for 
each hour worked in excess of forty-eight hours an amount 
not less than one and one-half times his regular rate. 

(2) Where an employee works on a holiday, he shall be onholiday8 
paid for each hour worked an amount not less than one and 
one-half times his regular rate. New. 

130 



PART IV 



Employees 
may not 
waive the 
Act 



MINIMUM WAGES 

15. No employee is competent to agree to waive or to 
forego any provision of this Act, and no employer is com- 
petent to enter into any agreement, arrangement or under- 
standing with an employee or with any other person that 
results in the whole or any part of the wages paid to an 
employee or to the Director on behalf of an employee being 
returned to or accepted by the employer, either directly or 
indirectly, and every such agreement, arrangement and under- 
taking is void. R.S.O. 1960, c. 240, s. 7, amended. 



Statutory 

agreement 

for 

minimum 

wage 



16. Every employer who permits any employee to perform 
any work with respect to which a minimum wage is established 
shall be deemed to have agreed to pay to the employee at 
least the minimum wage established and the minimum wage 
shall be paid to the employee only by cash or by cheque 
payable at par at the place where the employee performed 
the work. R.S.O. 1960, c. 240, s. 6. 



Handle a p- 
ped em- 
ployees 



17. For the purpose of enabling a handicapped person to be 
gainfully employed, the Director may, upon the application 
of the handicapped person or his employer and with the 
consent of the handicapped person, his parent or guardian, 
authorize the employment of such handicapped person at 
a wage lower than the minimum wage prescribed under a 
regulation. R.S.O. 1960, c. 240, s. 4, amended. 



Application 
of Part 
1964, c. 3 



18. This Part does not apply to apprentices to whom 
The Apprenticeship and Tradesmen's Qualification Act, 1964, 
applies. New. 



PART V 



Equal pay 
for equal 
work 



EQUAL PAY FOR EQUAL WORK 

19. — (1) No employer or person acting on behalf of an 
employer shall discriminate between his male and female 
employees by paying a female employee at a rate of pay less 
than the rate of pay paid to a male employee, or vice versa, 
employed by him for the same work performed in the same 
establishment, the performance of which requires equal skill, 
effort, and responsibility, and which is performed under 
similar working conditions, except where such payment is 
made pursuant to, 



(a) a seniority system; 

(b) a merit system; 



130 



(c) a system that measures earnings by quantity or 
quality of production; or 

(d) a differential based on any factor other than sex. 
1961-62, c. 93, s. 5 (1), amended. 

(2) No employer shall reduce the rate of pay of an employee ^f^ 10 ' 
in order to comply with subsection 1. reduced 

(3) No organization of employers or employees, as the case not ?o b| r 
may be, or its agents shall cause or attempt to cause an contravene 
employer to pay to his employees rates of pay that are in 3Ubs - x 
contravention of subsection 1. 

(4) Where in the opinion of the Director an employer has uon e b^ ma " 
not complied with subsection 1, the Director may determine Director 
the amount of moneys owing to an employee, and such amount 

shall be deemed to be unpaid wages. 

(5) This section applies to the Crown and everv agency applies to 
thereof. New. Crown 



20. — (1) Where the Director is unable to effect a deter- ment^f" 
mination under subsection 4 of section 19, the Minister, on i b n °qu?ry f 
the recommendation of the Director, may appoint a board of 
inquiry, composed of one or more persons, to investigate 
the matter. 

(2) The Director shall communicate the names of the^l™^,!^ 
members of the board to the parties concerned. munlcated 

(3) The board shall have the powers of a conciliation o°g q S 1960 
board under section 28 of The Labour Relations Act. c'262' 

(4) The board shall give the parties full opportunity to Duties 
present evidence and to make submissions and shall rec- 
ommend to the Director the course of action that ought to be 
taken. 

(5) If the board is composed of more than one person, ^ e I com- ty 
the recommendations of the majority are the recommenda- ^ e ^ e a v ^° 1 ns 
tions of the board. 

(6) After the board has made its recommendations, the Sr rSSmi- ion 
Director may direct it to clarify or amplify any of them mendations 
and they shall be deemed not to have been received by the 
Director until they have been so clarified or amplified. 

(7) The rate of remuneration of the chairman and members ^® n nunera " 
of a board of inquiry appointed under this section shall be 

the rate paid from time to time to the chairman and members 

of a conciliation board under The Labour Relations Act. New. ^262 ' 196 °' 

130 



PART VI 



Vacations 



Idem 



When 

vacation 

taken 



Vacation 
pay 



Payment 
in lieu of 
vacation 



VACATIONS WITH PAY 

21. — (1) Every employee in an establishment shall be 
given, 

(a) an annual v. ic.it ion of at least one week with pay 
upon the completion of each twelve months' employ- 
ment during the first thirty-six months of his employ- 
ment; or 

(b) an annual vacation of at least two weeks with pay 
upon the completion of each twelve months' employ- 
ment thereafter. 

(2) Where an employee has completed thirty-six months 
of non-continuous employment during any period of five 
consecutive years subsequent to the year 1963, he shall be 
given an annual vacation of at least two weeks with pay 
upon the completion of each twelve months' employment 
thereafter. 1966, c. 67, s. 1, part, amended. 

22. The employer shall determine the period when an 
employee may take the vacation provided by section 21, 
which, in the case of a two-week vacation, may be a two-week 
period or two periods of one week each, but in any case the 
employee shall be given his vacation not later than ten months 
after the end of the year for which the vacation was given. 
1966, c. 67, s. 1, part, amended. 

23. In the case of a one-week vacation, the amount of 
pay for the vacation shall not be less than an amount equal 
to 2 per cent of the pay of the employee for all work done 
by him in the year for which the vacation is given, and, in 
the case of a two-week vacation, the amount of pay for the 
vacation shall not be less than an amount equal to 4 per cent 
of the pay of the employee for all work done by him in the 
year for which the vacation is given. 1966, c. 67, s. 1, part. 

24. Where an employee's employment terminates, the 
employer shall, in lieu of the vacation required by section 21, 
pay to the employee the proportion of the vacation pay 
determined under section 23 that is referable to any year or 
part of a year in respect of which no vacation has been given. 
New. 



Agreements 
for pay 
in lieu of 
vacation 



25. Any agreement between the employer and his em- 
ployees respecting the method of providing funds for paying 
vacation pay, or payment in lieu of vacation, or of any 
arrangements for the taking of vacation, is subject to the 
approval of the Director. New. 



130 



PART VII 

HOMEWORKERS 

26. -(1) An application for a permit to employ home- fo^rmlt" 
workers shall be made by the employer to the Director. 

(2) No person shall employ a homeworker without a permit Permits 
therefor issued by the Director. 

(3) The Director may issue a permit on such terms and conditions 
conditions as he considers advisable. 

(4) The Director may revoke or suspend a permit for a^fdsus- 1011 
breach of a term or condition thereof, or where the holder P ension 

is liable for a nuisance within the meaning of The Public™ »|£°- 1960 > 
Health Act, or a breach of any Act. 1964, c. 45, s. 27, part, 
amended. 

(5) Every employer shall keep a register and enter therein oVhome- 
the name and address of every homeworker to whom he gives workers 
homework, and the wages paid therefor. 1964, c. 45, s. 29 (1), 
amended. 

PART VIII 

WAGE PROTECTION 

27. Every employer shall furnish to every employee atj^" ement 
the time wages are paid to the employee, a statement in 
writing which can be retained by the employee, setting forth, 

(a) the period of time or the work for which the wages 
are being paid; 

(b) the rate of wages to which the employee is entitled 
unless such information is furnished to the employee 
in some other manner; 

(c) the amount of the wages to which the employee is 
entitled ; 

(d) the amount of each deduction from the wages of 
the employee and the purpose for which each deduc- 
tion is made; 

(e) any living allowance or other payment to which 
the employee is entitled; and 

(/) the net amount of money being paid to the employee. 
1962-63, c. 143, s. 1, part, amended. 

130 



Determina- 
tion of 
amounts 
payable 



Notice to 
employer, 
etc. 



10 
28. — (1) Where an employer has failed to pay an employee, 

(a) the amount of wages due; 

(b) any pay to which the employee is entitled under 
section 14; or 

(c) any vacation pay to which the employee is entitled 
under Part VI, 

the Director may determine the difference between the 
amount paid to the employee and the amount to which the 
employee is entitled. 

(2) The Director shall notify an employer of any deter- 
mination made under subsection 1, and may require the 
employer to pay to him in trust unpaid wages, overtime pay 
or vacation pay, not exceeding $1,000, owing to an employee 
as determined under subsection 1. 



Employer (3) Where the Director has collected from an employer 

to Minister unpaid wages, overtime pay or vacation pay, the employer 
may, within twenty-one days of the date of the notice under 
subsection 2, appeal to the Minister for a review of the deter- 
mination of the Director. 



Hearing and (4) The Minister or a person designated bv him shall, 

determina- v r o j 



tion of 

amount 

owing 



Payment by 
Director 



(a) review the matter at a hearing; 

(b) give the employer full opportunity to present 
evidence and make submissions; and 

(c) determine the amount owing to the employee. 

(5) Where no appeal has been made to the Minister, the 
Director shall pay to the employee all moneys collected on 
his behalf. 



idem (6) Where an appeal has been made to the Minister, the 

Director shall pay to the employee the amount owing to him 
as determined under subsection 4 and shall pay to the em- 
ployer the balance, if any, of the moneys collected from him. 

New. 

PART IX 

REGULATIONS 

Regulations 29. — (1) The Lieutenant Governor in Council may make 
regulations for carrying out the purposes of this Act and, 
without restricting the generality' of the foregoing, may makfl 
regulations, 



130 






11 

(a) establishing minimum rates of wages for employees; 

(b) designating or defining any establishment or part 
thereof to which the regulation is applicable; 

(c) designating or defining the zone or zones within 
Ontario in which any regulation or provision thereof 
is applicable; 

(d) designating any place of business, work, trade, 
occupation or profession or any class thereof for 
the purposes of clause e of section 1 ; 

(e) prescribing conditions of employment; 

(/) exempting any class of employers or employees from 
the application of this Act or the regulations or any 
provision thereof; 

(g) prescribing what constitutes the performance of work 
in respect of which minimum wages shall be paid; 

(h) specifying the deductions that may be made from 
the minimum wage paid to employees; 

(i) providing for a system of vacation-with-pay credit 
stamps for use in the construction industry as defined 
in the regulations, and providing for the sale and 
redemption of such stamps; 

(j) prescribing the maximum number of hours that may 
elapse between the commencement and the termina- 
tion of the daily work period or periods of an em- 
ployee ; 

(k) prescribing the records that shall be kept and the 
returns that shall be made by employers; 

(/) governing the production and inspection of records 
required to be kept by employers; 

(m) requiring employers in any establishment or branch 
thereof to notify employees, by the publication of 
such notices, in such manner as may be prescribed, 
of the provisions of this Act or any regulation or 
permit made thereunder; 

(n) providing for the setting up of a consultative or 
advisory committee to advise the Minister on any 
matters arising in relation to the administration of 
this Act; 



130 



12 



Application 



Posting 

notices 



Records 



(o) prescribing forms and providing for their use; 

(/>) respecting any matter necessary or advisable to 
carry out effectively the intent and purpose of this 
Act. 

(2) A regulation made under subsection 1 or any provision 
thereof may be confined in its application to any class of 
employer, employee or establishment defined in the regula- 
tion. R.S.O. 1960, c. 240, s. 3, amended. 

PART X 

ADMINISTRATION 

30. Every employer shall post and keep posted any notice 
required by the Director in a conspicuous place where his 
employees are engaged in their duties. 1961-62, c 58, s. 4, 
part, amended. 

31. — (1) Every employer shall, 

(a) make and keep for a period of eighteen months after 
work is performed by an employee complete and 
accurate records in respect of the employee showing, 

(i) his name and address, 

(ii) his age, if under eighteen years of age, 

(iii) the number of hours worked by him in each 
day and week, 

(iv) the number of hours worked by him in any 
day or week in excess of the hours prescribed 
by this Act or the regulations, 

(v) wage rate and actual earnings; and 

(b) make and keep for a period of five years after work 
is performed by an employee complete and accurate 
records in respect of the employee showing, 

(i) his name and address, 

(ii) the date of commencement of his present 
term of employment and the anniversary date 
thereof, and 

(iii) his earnings during each pay period and his 
vacations with pay or payment to him in lieu 
thereof. 1962-63, c. 83, s. 5, part, amended. 



130 









13 

(2; Subclause iii of clause a of subsection 1 does not apply Exception 
in respect of the salaried employees of an employer who 
perform work of a clerical or administrative nature where 
the employer establishes a regular working day in accordance 
with section 7 and makes and keeps a record showing the 
number of hours worked by such employees in excess of eight 
hours a day and forty -eight hours a week. New. 

32. An employer shall, JtSSSSK* 

(a) produce the records required under this Act for 
inspection by the Director or any person authorized 
by the Minister, and shall for this purpose provide 
access to his premises for the Director or such person 
at all reasonable times and at any time his employees 
are engaged in their work; and 

(b) furnish such information from the records at such 
time and place as the Director requires. R.S.O. 
1960, c. 181, s. 8 (1); 1961-62, c. 58, s. 1. 

33.— (1) The Director may, information 

(a) require any employer to make or furnish such full 
and correct statements, either orally or in writing 
as the Director requires, respecting the wages, hours 
of work, vacations with pay and conditions of work 
of any of his employees, and require the statements 
to be made by the employer on oath or to be verified 
by his statutory declaration; 

(b) require any employee to make such full and correct 
statements, either orally or in writing as the Director 
requires, respecting his wages, hours of work, vaca- 
tions with pay and other matters relating to his 
employment, and require such statements to be made 
on oath or verified by his statutory declaration. 

(2) The Director or any person authorized by the Minister Examina- 

mav, records, 

inspection of 
premises 

(a) inspect and examine all books, payrolls and other 
records of an employer that in any way relate to the 
wages, hours of work, vacations with pay or condi- 
tions of work of his employees; 

(6) take extracts from or make copies of any entry in 
the books, payrolls and other records mentioned in 
clause a ; 

130 



14 



R.S.O. 1960, 

c. 387 



(c) at any reasonable time, enter any establishment or 
business or other premises for the purpose of making 
an inspection, provided, however, that he shall not 
enter any room or place actually used as a dwelling 
without the consent of the occupier except under the 
authority of a search warrant issued under section 14 
of The Summary Convictions Act; and 



(d) question any employee apart from his employer. 
R.S.O. 1960, c. 181, s. 9; 1961-62, c. 58, s. 2, 
amended. 



Notice to 

furnish 

information 



34. — (1) Where the Director is authorized under this Act 
or the regulations to require a person to furnish information, 
the Director may require the information to be furnished by 
a notice to that effect served personally or sent by registered 
mail addressed to the last known place of abode of the person 
for whom the notice is intended, and such person shall furnish 
the information within such reasonable time as is specified in 
the notice. 



Proof of 
service of 
notice 



(2) A certificate of the Director certifying that the notice 
was sent by registered mail to the person to whom.it was 
addressed, accompanied . by and identifying the post office 
certificate of the registration and a true copy of the notice 
is admissible as prima facie proof of the mailing and receipt 
of the notice. 



Proof of 
failure 
to comply 



(3) Where the Director is authorized to require a person 
to furnish information under this Act, a certificate of the 
Director certifying that the information has not been furnished 
is admissible as prima facie proof that in such case the person 
did not furnish the information. 



Proof of 
documents 



(4) A certificate of the Director certifying that a document 
annexed thereto is a document or true copy of a document 
made by or on behalf of the Director is admissible as prima 
facie proof of the nature and contents of the document and 
shall be received in evidence in the place and stead of the 
original and has the same force and effect as the original 
document would have had if produced and proved. 



Proof of 
authority 



(5) A certificate under this section signed or purix>rting 
to be signed by the Director is admissible as prima facie 
proof of the facts stated therein and of the authority of the 
person giving or making the certificate without any proof of 
appointment or signature. 1961-62, c. 58, s. 4, part; 1962-63, 
c. 83, s. 8, amended. 



130 



15 



PART XI 

ENFORCEMENT 

35. — (1) Every employer who dismisses or threatens to Offence. ^ 
dismiss or otherwise discriminates against an employee employer 
because the employee has sought the enforcement of this Act 
or the regulations or has given information to a person 
authorized to require it under this Act is guilty of an offence 
and on summary conviction is liable to a fine of not more than 
$1,000. R.S.O. 1960, c. 240, s. 8, amended. 

(2) Where an employer is convicted of the offence ' of ^ d ng t £te- 
dismissing an employee under one of the circumstances ment 
mentioned in subsection 1, the magistrate making the con- 
viction shall, in addition to the penaltv, order the employer, 

(a) to reinstate the employee in his employ at such date 
as in the opinion of the magistrate is just and 
proper in the circumstances and in the position 
that the employee would have held but for such 
dismissal; and 



Q>) 



to pay to the employee compensation for loss of 
employment in an amount not exceeding the amount 
that, in the opinion of the magistrate, is equivalent 
to the wages that would have accrued to the employee 
but for such dismissal. 









(3) An employer who fails to comply with an order rnade^®^- 

under subsection 2 is guiltv of an offence and on summary to comply 
.... _ ' .. Af ._ r • i ' i with order 

conviction is liable to a fine not exceeding S50 for each day 
during which the failure continues. New. 



36. — (1) Every person who, 



. 



Penalty 



(a) furnishes false or misleading information in any 
application under this Act or in any statement or 
return required to be furnished under this Act or 
the regulations; 

(b) fails to comply with any order, direction or require- 
ment under this Act or the regulations; or 

(c) contravenes any provision of this Act or the regula- 
tions for which no penalty is otherwise provided, 

is guilty of an offence and on summary conviction is liable to 
a fine of not more than $1,000. 



130 



16 



Offence in 
respect 
of each 
employee 



(2) Where an employer is convicted of an offence respecting 
the wages, hours of work, vacation, vacation pay or conditions 
of work of one or more employees, the offence against each 
employee shall be deemed to be a separate offence for the 
purposes of subsection 1. New. 



Order for 
payment 



(3) Where an employer is convicted of an offence including 
the failure to pay wages or vacation pay in accordance with 
this Act, the magistrate making the conviction shall, in addi- 
tion to any other penalty, assess the amount of wages or vaca- 
tion pay so unpaid in respect of the employee and shall order 
the employer to pay the amount so assessed to the Director 
who shall collect and distribute to the employees the amount 
ordered to be paid. 



Enforce- 
ment in 
Division 
Court 



(4) A final order for payment under subsection 3 may be 
filed by the Director in a division court and thereupon the 
order shall be deemed to be an order of the division court 
for the purposes of enforcement. R.S.O. 1960, c. 181, s. 12; 
R.S.O. 1960, c. 240, s. 12, amended. 



PART XII 



MISCELLANEOUS 



c*"i8i' 196 °' ****• lh e Hours of Work and Vacations with Pay Act, The 

19 Is 62, Hours of Work and Vacations with Pay Amendment Act, 

1964.' c 42. 1961-62, The Hours of Work and Vacations with Pay Amend- 

r.s.6. i960, ment Act, 1964, The Hours of Work and Vacations with Pay 

1962-63. Amendment Act, 1966, The Minimum Wage Act and The 

c. 83, 
repealed 



Minimum Wage Amendment Act, 1962-63 are repealed. 



Commence- 
ment 



38. This Act comes into force on a day to be named by 
the Lieutenant Governor by his proclamation. 



Short title 



39. This Act may be cited as The Employment Standards 
Act, 1968. 



130 



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Vl 

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BILL 130 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Employment Standards Act, 1968 



Mr. Bales 



{Reprinted as amended by the Committee of the Whole House) 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The purpose of the Bill is to enact new provisions respecting employ- 
ment standards and to consolidate, revise and up-date The Hours of Work 
and Vacations with Pay Act, The Minimum Wage Act and certain provisions 
of The Industrial Safety Act, 1964, The Ontario Human Rights Code, 1961-62 
and The Wages Act. 



130 



BILL 130 1968 



The Employment Standards Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows : 

INTERPRETATION 

1. In this Act, &*w 

(a) "Department" means the Department of Labour; 

(b) "Director" means the Director of Employment 
Standards appointed for the purposes of this Act; 

(c) "employee" includes every person who performs 
any work or services in an establishment for an 
employer, and includes any person doing homework ; 

(d) "employer" includes every person who as the owner, 
proprietor, manager, superintendent or overseer of 
any establishment, 

(i) has control or direction of, or is directly or 
indirectly responsible for the employment of, 
an employee therein, or 

(ii) employs or permits any person to work 
therein ; 

(e) "establishment" means any place of business, work, 
trade, occupation or profession other than those 
designated in the regulations; 

(/) "holiday" means New Year's Day, Good Friday, 
Victoria Day, Dominion Day, Labour Day, Thanks- 
giving Day and Christmas Day and where New 
Year's Day, Dominion Day or Christmas Day falls 
on a Sunday, the day next following is in lieu thereof 
a holiday; 

130 



(g) "homework" means the doing of any work in the 
manufacture, preparation, improvement, repair, 
alteration, assembly or completion of any article 
or thing or any part thereof by a person for wages 
in premises occupied primarily as living accommoda- 
tion, and "homeworker" has a corresponding 
meaning; 

(h) "Minister" means the Minister of Labour or such 
member of the Executive Council as is for the time 
being charged with the administration of this Act; 

(i) "regular rate" means, 

(i) the hourly rate paid to an employee for his 
normal non-overtime work week, or 

(ii) in the case of an employee to whom sub- 
clause i does not apply, the amount obtained 
by dividing his total earnings for the week 
by the number of hours he worked in the week ; 

0) "regulations" means the regulations made under 
this Act; 

(k) "wages" includes any form of remuneration for work 
or services performed, but does not include tips and 
other gratuities. R.S.O. 1960, c. 240, s. 1 ; 1962-63, 
c. 83, s. 1; R.S.O. 1960, c. 181, s. 1, amended. 

PART I 

GENERAL 



Minister 

responsible 

for admin- of this Act 

istration 



2. — (1) The Minister is responsible for the administration 



to be tor (2) A Director of Employment Standards shall be appointed 

appointed f or the purposes of this Act. New. 



Agreements 
or waivers 
contrary 
to Act 

Standards 

as 

minimums 



3. This Act applies notwithstanding any agreement or 
waiver to the contrary. R.S.O. 1960, c. 240, s. 7, amended. 

4. — (1) The standards for rates of wages and vacations 
with pay required under this Act are minimum standards only 
and nothing in this Act shall affect any rights or benefits of 
an employee under any law, custom, agreement or arrange- 
ment that is more favourable to him than his rights or benefits 
under this Act. New. 



Sith fl other (2) Where there is conflict between the rate of wages, 

Acts vacations with pay or payment in lieu thereof, or hours of 

work determined under this Act or the regulations and those 



130 



determined under any other Act or any regulation or order ^"fgQ- 1960, 
made thereunder, or any schedule under The Industrial 
Standards Act, the greater rate of wages and vacations with 
pay and the lesser hours of work shall prevail. R.S.O. 1960, 
c. 181, s. 13, amended. 



5. — (1) The Director may, 



Director 
may hold 
inquiry 



(a) hold an inquiry into the facts concerning any persons 
employed in or about an establishment as members 
or alleged members of a partnership or association, 
or in the execution of any agreement or scheme of 
profit-sharing or co-operative or joint contract or 
undertaking, including the investigation of the 
contractual and other relations of the persons so 
employed, as between themselves or as between 
them and their employer; and 

(b) make such order as he deems proper declaring any 
of such persons or any class or group thereof to be 
employers and any of such persons or any class or 
group thereof to be employees for the purposes of 
this Act, provided that, in his opinion, the partner- 
ship, association, agreement or scheme is intended 
or has the effect, directly or indirectly, of defeating 
the true intent and purpose of this Act. R.S.O. 
1960, c. 181, s. 7, part, amended. 

(2) The Director may, by notice in writing, require the^^^to 
attendance before him of any person at the time and place attendance 
named in the notice, and examine such person under oath in 
respect of any matter concerning wages, hours of work, 
vacations with pay or any matter mentioned in subsection 1. 

(3) The Director may refer any matter to the Industry and Industry by 
Labour Board appointed under The Department of Labour Act and ^abour 
for a hearing and the Board shall hold the hearing and report r. so. i960, 
its findings and recommendations to the Director. c- 97 

6. Where the Director is unable to act or there is a vacancy j^?* 1 etor 
in the office, the powers and duties of the Director shall be 
exercised and performed by such employee of the Depart- 
ment as the Minister designates. New. 

PART II 

HOURS OF WORK 

7. — (1) Subject to subsection 2, the working hours of an Maximum 
employee shall not exceed eight in the day and forty-eight in 
the week. R.S.O. 1960, c. 181, s. 2 (1), amended. 



130 



4 



Exceptions (2) Subsection 1 does not apply to an employee whose only 
work is supervisory or managerial in character, or of a char- 
acter exempted by the regulations. R.S.O. 1 ( )60, c. 181, s. 3, 
amended. 



Variation 
of working 
day 



8. — (1) Subject to subsection 2, an employer may, with 
the approval of the Director, and upon such terms and 
conditions as the Director prescribes, adopt a working day 
in excess of eight hours, but the working hours of his employees 
shall not exceed forty-eight hours in a week. 



working™ (2) The maximum working hours of an employee in a day 

hours prescribed by section 7 is subject to any schedule in force 

?i86' 1960 ' under The Industrial Standards Act. New. 

e ? xce88 t ho f ur8 ® # — (*) The Director may issue a permit authorizing hours 
of work in an establishment in excess of those prescribed by 
section 7 or under section 8, but the excess working hours 
shall not exceed, 

(a) in the case of an engineer, fireman, full-time mainten- 
ance man, receiver, shipper, delivery truck driver 
or his helper, watchman or other person, who in 
the opinion of the Director, is engaged in a similar 
occupation, twelve hours in each week for each 
employee; and 

(b) in the case of all other employees, 100 hours in each 
year for each employee. 



Idem 



(2) Notwithstanding subsection 1, the Director may issue 
a permit for work in excess of the maximum hours prescribed 
by subsection 1 where he is satisfied that the nature of the 
work or perishable nature of raw material being processed 
requires the excess hours. 



work" 1 ? 6 (3) Notwithstanding subsections 1 and 2, the overtime 

employee work of a female employee under the age of eighteen years 
shall not exceed six hours in a week. 



Exceeding 
maximum 
in case of 
accident 



Terms and 
conditions 
of overtime 
work 



(4) The limit of hours of work prescribed by subsection 1 
of section 7 may be exceeded in case of accident, or in case 
of work urgently required to be done to machinery or plant, 
but only so far as may be necessary to avoid serious inter- 
ference with the ordinary working of the establishment. 
New. 

10. A permit issued under section 9 shall contain such 
terms and conditions as the Director prescribes. New. 



130 






11. — (1) No employer may require or permit work, and ^". ee ™® nts 
no employee may work or agree to work, any hours that maximums 
exceed the maximum hours determined under this Act. 

(2) The issuance of a permit under section 9 does notdoesnot 
require an employee to work any hours in excess of those employee 
prescribed by section 7 without the consent or agreement of 
the employee or his agent. New. 

12. — (1) Xo female employee under the age of eighteen m^of" 
years shall work in an establishment between the hours of*® 01 * 1 ® 8 
12 o'clock midnight and 6 o'clock in the forenoon of any day. 
1964, c. 42, s. 2, part, amended. 

(2) Where the work period of a female employee ends Employer 
oetween 12 o'clock midnight and 6 o'clock in the forenoon, transporta- 
the employer shall provide her with private transportation 

to her residence at his expense. 

(3) Where the work period of a female employee begins Idem 
between 12 o'clock midnight and 6 o'clock in the forenoon, 

the employer shall provide her with private transportation 
from her residence to the place of employment at his expense. 
New. 

13. Every employer shall provide eating periods of at p^od* 
least one-half hour, or such shorter period as is approved 
by the Director, at such intervals as will result in no employee 
working longer than five consecutive hours without an eating 
period, but where immediately before this Act comes into 
force an employer provides eating periods that are shorter 
than one-half hour, he may continue such eating periods, 
unless ordered to do otherwise by the Director. 1964, c. 42, 
s. 2, part, amended. 



PART III 

OVERTIME PAY 

14. — (1) Where an employee works for an employer in°^® rtime 
excess of forty-eight hours in any week, he shall be paid for 
each hour worked in excess of forty-eight hours an amount 
not less than one and one-half times his regular rate. 

(2) Where an employee works on a holiday, he shall be on holida y 8 
paid for each hour worked an amount not less than one and 
one-half times his regular rate. New. 

130 



PART IV 



Employees 
may not 
waive the 

Act 



MINIMUM WAGES 

15. No employee is competent to agree to waive or to 
forego any provision of this Act, and no employer is com- 
petent to enter into any agreement, arrangement or under- 
standing with an employee or with any other person that 
results in the whole or any part of the wages paid to an 
employee or to the Director on behalf of an employee being 
returned to or accepted by the employer, either directly or 
indirectly, and every such agreement, arrangement and under- 
taking is void. R.S.O. 1960, c. 240, s. 7, amended. 



Statutory 

agreement 

for 

minimum 

wage 



16. Every employer who permits any employee to perform 
any work with respect to which a minimum wage is established 
shall be deemed to have agreed to pay to the employee at 
least the minimum wage established and the minimum wage 
shall be paid to the employee only by cash or by cheque 
payable at par at the place where the employee performed 
the work. R.S.O. 1960, c. 240, s. 6. 



Handicap- 
ped em- 
ployees 



17. For the purpose of enabling a handicapped person to be 
gainfully employed, the Director may, upon the application 
of the handicapped person or his employer and with the 
consent of the handicapped person, his parent or guardian, 
authorize the employment of such handicapped person at 
a wage lower than the minimum wage prescribed under a 
regulation. R.S.O. 1960, c. 240, s. 4, amended. 



Application 
of Part 
1964. c. 3 



18. This Part does not apply to apprentices to whom 
The Apprenticeship and Tradesmen' s Qualification Act, 1964, 
applies. New. 



PART V 



Equal |»ay 
for equal 
work 



EQUAL PAY FOR EQUAL WORK 

19. — (1) No employer or person acting on behalf of an 
employer shall discriminate between his male and female 
employees by paying a female employee at a rate of pay less 
than the rate of pay paid to a male employee, or vice versa, 
employed by him for the same work performed in the same 
establishment, the performance of which requires equal skill, 
effort, and responsibility, and which is performed under 
similar working conditions, except where such payment is 
made pursuant to, 



(a) a seniority system; 

(b) a merit system; 



130 



(c) a system that measures earnings by quantity or 
quality of production; or 

(d) a differential based on any factor other than sex. 
1961-62, c. 93, s. 5 (1), amended. 

(2) No employer shall reduce the rate of pay of an employee f a De not 
in order to comply with subsection 1. reduced 

(3) No organization of employers or employees, as the case not ^o° be r 
may be, or its agents shall cause or attempt to cause an^^atene 
employer to pay to his employees rates of pay that are in subs - 1 
contravention of subsection 1. 

(4) Where in the opinion of the Director an employer has uon e by Una " 
not complied with subsection 1, the Director may determine Director 
the amount of moneys owing to an employee, and such amount 

shall be deemed to be unpaid wages. 

(5) This section applies to the Crown and every agency fppnes to 
thereof. New. Crown 



20.— (1) Where the Director is unable to effect a deter- menfof" 

>ard oi 
quiry 



mination under subsection 4 of section 19, the Minister, onj^^ 
the recommendation of the Director, may appoint a board of 
inquiry, composed of one or more persons, to investigate 
the matter. 

(2) The Director shall communicate the names of the^^ere*" 
members of the board to the parties concerned. to be . co . m ' 

1 municated 

(3) The board shall have the powers of a conciliation ^°^ V ^5 S 
board under section 28 of The Labour Relations Act. c'262' 

(4) The board shall give the parties full opportunity to Duties 
present evidence and to make submissions and shall rec- 
ommend to the Director the course of action that ought to be 
taken. 



(5) If the board is composed of more than one person, ^ c a j ^. lty 

inda 
pre\ 



recom- 

the recommendations of the majority are the recommenda- {£ e pr e a vaii ns 
tions of the board. 



(6) After the board has made its recommendations, the c }* r j?\?* tion 

m x ' 'of recom- 

Director may direct it to clarify or amplify any of them mendations 
and they shall be deemed not to have been received by the 
Director until they have been so clarified or amplified. 

(7) The rate of remuneration of the chairman and members ^®™ unera ~ 
of a board of inquiry appointed under this section shall be 

the rate paid from time to time to the chairman and members 

of a conciliation board under The Labour Relations Act. New. Jfo?' 196 °' 

130 



8 



PART VI 



Vacations 



Idem 



When 

vacation 

taken 



Vacation 
pay 



Payment 
in lieu of 
vacation 



VACATIONS WITH PAY 

21. — (1) Every employee in an establishment shall be 
given, 

(a) an annual vacation of at least one week with pay 
upon the completion of each twelve months' employ- 
ment during the first thirty-six months of his employ- 
ment; or 

(b) an annual vacation of at least two weeks with pay 
upon the completion of each twelve months' employ- 
ment thereafter. 

(2) Where an employee has completed thirty-six months 
of non-continuous employment during any period of five 
consecutive years subsequent to the year 1963, he shall be 
given an annual vacation of at least two weeks with pay 
upon the completion of each twelve months' employment 
thereafter. 1966, c. 67, s. 1, part, amended. 

22. The employer shall determine the period when an 
employee may take the vacation provided by section 21, 
which, in the case of a two-week vacation, may be a two-week 
period or two periods of one week each, but in any case the 
employee shall be given his vacation not later than ten months 
after the end of the year for which the vacation was given. 
1966, c. 67, s. 1, part, amended. 

23. In the case of a one-week vacation, the amount of 
pay for the vacation shall not be less than an amount equal 
to 2 per cent of the pay of the employee for all work done 
by him in the year for which the vacation is given, and, in 
the case of a two-week vacation, the amount of pay for the 
vacation shall not be less than an amount equal to 4 per cent 
of the pay of the employee for all work done by him in the 
year for which the vacation is given. 1966, c. 67, s. 1, part. 

24. Where an employee's employment terminates, the 
employer shall, in lieu of the vacation required by section 21, 
pay to the employee the proportion of the vacation pay 
determined under section 23 that is referable to any year or 
part of a year in respect of which no vacation has been given. 
New. 



Agreements 
for pay 
in lieu of 
vacation 



25. Any agreement between the employer and his em- 
ployees respecting the method of providing funds for paying 
vacation pay, or payment in lieu of vacation, or of any 
arrangements for the taking of vacation, is subject to the 
approval of the Director. New. 



130 






PART VII 

HOME WORKERS 

26.- -(.1) An application for a permit to employ home- f£ pl )££\t n 
workers shall be made by the employer to the Director. 

(2) No person shall employ a homeworker without a permit Permlt8 
therefor issued by the Director. 

(3) The Director may issue a permit on such terms and renditions 1 
conditions as he considers advisable. 

(4) The Director may revoke or suspend a permit for a^^g^ 1011 
breach of a term or condition thereof, or where the holder pension 

is liable for a nuisance within the meaning of The Public f"^' 1960, 
Health Act, or a breach of any Act. 1964, c. 45, s. 27, part, 
amended. 

(5) Every employer shall keep a register and enter therein oVhome- 
the name and address of every homeworker to whom he gives w <> rk ers 
homework, and the wages paid therefor. 1964, c. 45, s. 29 (1), 
amended. 



PART VIII 

WAGE PROTECTION 

27. Every employer shall furnish to every employee at p t |^ T ement 
the time wages are paid to the employee, a statement in 
writing which can be retained by the employee, setting forth, 

(a) the period of time or the work for which the wages 
are being paid; 

(b) the rate of wages to which the employee is entitled 
unless such information is furnished to the employee 
in some other manner; 

(c) the amount of the wages to which the employee is 
entitled ; 

(d) the amount of each deduction from the wages of 
the employee and the purpose for which each deduc- 
tion is made; 

(e) any living allowance or other payment to which 
the employee is entitled; and 

(/) the net amount of money being paid to the employee. 
1962-63, c. 143, s. 1, part, amended. 



130 



II) 

uon e o" llna ~ ^*** — (^ Where an employer has failed to pay an employee, 

amounts 

(a) the amount of wages due; 

(b) any pay to which the employee is entitled under 
section 14; or 

(c) any vacation pay to which the employee is entitled 
under Part VI, 

the Director may determine the difference between the 
amount paid to the employee and the amount to which the 
employee is entitled. 

employer, (2) The Director shall notify an employer of any deter- 

etc - mination made under subsection 1, and may require the 

employer to pay to him in trust unpaid wages, overtime pay 

or vacation pay, not exceeding $1,000, owing to an employee 

as determined under subsection 1. 



Employer 
may appeal 
to Minister 



(3) Where the Director has collected from an employer 
unpaid wages, overtime pay or vacation pay, the employer 
may, within twenty-one days of the date of the notice under 
subsection 2, appeal to the Minister for a review of the deter- 
mination of the Director. 



Hearing and (4) The Minister or a person designated by him shall, 

tion of 

owing nt (<*) review the matter at a hearing; 

(b) give the employer full opportunity to present 
evidence and make submissions; and 

(c) determine the amount owing to the employee. 

Strecto? by &) Where no appeal has been made to the Minister, the 
Director shall pay to the employee all moneys collected on 
his behalf. 

idem (6) Where an appeal has been made to the Minister, the 

Director shall pay to the employee the amount owing to him 
as determined under subsection 4 and shall pay to the em- 
ployer the balance, if any, of the moneys collected from him. 
New. 

PART IX 

REGULATIONS 

Regulations 29. — (1) The Lieutenant Governor in Council may make 
regulations for carrying out the purposes of this Act and, 
without restricting the generality of the foregoing, may make 
regulations, 



130 






11 

(a) establishing minimum rates of wages for employees; 

(b) designating or defining any establishment or part 
thereof to which the regulation is applicable; 

(c) designating or defining the zone or zones within 
Ontario in which any regulation or provision thereof 
is applicable; 

(d) designating any place of business, work, trade, 
occupation or profession or any class thereof for 
the purposes of clause e of section 1 ; 

(e) prescribing conditions of employment; 

(/) exempting any class of employers or employees from 
the application of this Act or the regulations or any 
provision thereof; 

(g) prescribing what constitutes the performance of work 
in respect of which minimum wages shall be paid ; 

(h) specifying the deductions that may be made from 
the minimum wage paid to employees; 

(i) providing for a system of vacation-with-pay credit 
stamps for use in the construction industry as defined 
in the regulations, and providing for the sale and 
redemption of such stamps; 

(J) prescribing the maximum number of hours that may 
elapse between the commencement and the termina- 
tion of the daily work period or periods of an em- 
ployee ; 

(k) prescribing the records that shall be kept and the 
returns that shall be made by employers; 

(/) governing the production and inspection of records 
required to be kept by employers; 

(w) requiring employers in any establishment or branch 
thereof to notify employees, by the publication of 
such notices, in such manner as may be prescribed, 
of the provisions of this Act or any regulation or 
permit made thereunder; 

(n) providing for the setting up of a consultative or 
advisory committee to advise the Minister on any 
matters arising in relation to the administration of 
this Act; 



130 



12 

vo) prescribing forms and providing for their use; 

(p) respecting any matter necessary or advisable to 
carry out effectively the intent and purpose of this 
Act. 

Application ^) A regulation made under subsection 1 or any provision 
thereof may be confined in its application to any class of 
employer, employee or establishment defined in the regula- 
tion. R.S.O. 1960, c. 240, s. 3, amended. 

PART X 

ADMINISTRATION 

notice? **0* E ver Y employer shall post and keep posted any notice 

required by the Director in a conspicuous place where his 
employees are engaged in their duties. 1961-62, c. 58, s. 4, 
part, amended. 

Records 31.— (1) Every employer shall, 

(a) make and keep for a period of eighteen months after 
work is performed by an employee complete and 
accurate records in respect of the employee showing, 

(i) his name and address, 

(ii) his age, if under eighteen years of age, 

(iii) the number of hours worked by him in each 
day and week, 

(iv) the number of hours worked by him in any 
day or week in excess of the hours prescribed 
by this Act or the regulations, 

(v) wage rate and actual earnings; and 

(b) make and keep for a period of five years after work 
is performed by an employee complete and accurate 
records in respect of the employee showing, 

(i) his name and address, 

(ii) the date of commencement of his present 
term of employment and the anniversary date 
thereof, and 

(iii) his earnings during each pay period and his 
vacations with pay or payment to him in lieu 
thereof. 1962-63, c. 83, s. 5, part, amended. 

130 









13 

(2) Subclause iii of clause a of subsection 1 does not apply Exception 
in respect of the salaried employees of an employer who 
perform work of a clerical or administrative nature where 
the employer establishes a regular working day in accordance 
with section 7 and makes and keeps a record showing the 
number of hours worked by such employees in excess of eight 
hours a day and forty-eight hours a week. New. 

32. An employer shall, JfSSSS 11 

(a) produce the records required under this Act for 
inspection by the Director or any person authorized 
by the Minister, and shall for this purpose provide 
access to his premises for the Director or such person 
at all reasonable times and at any time his employees 
are engaged in their work; and 

(b) furnish such information from the records at such 
time and place as the Director requires. R.S.O. 
1960, c. 181, s. 8 (1); 1961-62, c. 58, s. 1. 

33.— (1) The Director may, information 

(a) require any employer to make or furnish such full 
and correct statements, either orally or in writing 
as the Director requires, respecting the wages, hours 
of work, vacations with pay and conditions of work 
of any of his employees, and require the statements 
to be made by the employer on oath or to be verified 
by his statutory declaration; 

(6) require any employee to make such full and correct 
statements, either orally or in writing as the Director 
requires, respecting his wages, hours of work, vaca- 
tions with pay and other matters relating to his 
employment, and require such statements to be made 
on oath or verified by his statutory declaration. 

(2) The Director or any person authorized by the Minister ^£ n ,I of na " 

may, records. 



inspection of 
premises 



(a) inspect and examine all books, payrolls and other 
records of an employer that in any way relate to the 
wages, hours of work, vacations with pay or condi- 
tions of work of his employees; 

(b) take extracts from or make copies of any entry in 
the books, payrolls and other records mentioned in 
clause a ; 



130 



14 



R.S.O. 1960. 
0. 887 



(c) at any reasonable time, enter any establishment or 
business or other premises for the purpose of making 
an inspection, provided, however, that he shall not 
enter any room or place actually used as a dwelling 
without the consent of the occupier except under the 
authority of a search warrant issued under section 14 
of The Summary Convictions Act; and 



(d) question any employee apart from his employer. 
R.S.O. 1960, c. 181, s. 9; 1961-62, c. 58, s. 2, 
amended. 



Notice to 

furnish 

information 



34. — (1) Where the Director is authorized under this Act 
or the regulations to require a person to furnish information, 
the Director may require the information to be furnished by 
a notice to that effect served personally or sent by registered 
mail addressed to the last known place of abode of the person 
for whom the notice is intended, and such person shall furnish 
the information within such reasonable time as is specified in 
the notice. 



Proof of 
service of 
notice 



(2) A certificate of the Director certifying that the notice 
was sent by registered mail to the person to whom it was 
addressed, accompanied by and identifying the post office 
certificate of the registration and a true copy of the notice 
is admissible as prima facie proof of the mailing and receipt 
of the notice. 



Proof of 
failure 
to comply 



(3) Where the Director is authorized to require a person 
to furnish information under this Act, a certificate of the 
Director certifying that the information has not been furnished 
is admissible as prima facie proof that in such case the person 
did not furnish the information. 



Proof of 
documents 



(4) A certificate of the Director certifying that a document 
annexed thereto is a document or true copy of a document 
made by or on behalf of the Director is admissible as prima 
facie proof of the nature and contents of the document and 
shall be received in evidence in the place and stead of the 
original and has the same force and effect as the original 
document would have had if produced and proved. 



Proof of 
authority 



(5) A certificate under this section signed or purporting 
to be signed by the Director is admissible as prima facie 
proof of the facts stated therein and of the authority of the 
person giving or making the certificate without any proof of 
appointment or signature. 1961-62, c. 58, s. 4, part; 1962-63, 
c. 83, s. 8, amended. 



130 






15 
PART XI 

ENFORCEMENT 

35. — (1) Every employer who dismisses or threatens to° 3 ff ®P£j- b , 
dismiss or otherwise discriminates against an employee employer 
because the employee has sought the enforcement of this Act 
or the regulations or has given information to a person 
authorized to require it under this Act is guilty of an offence 
and on summary conviction is liable to a fine of not more than 
$1,000. R.S.O. 1960, c. 240, s. 8, amended. 

(2) Where an employer is convicted of the offence of ^fnstate- 
dismissing an employee under one of the circumstances ment 
mentioned in subsection 1, the magistrate making the con- 
viction shall, in addition to the penalty, order the employer, 

(a) to reinstate the employee in his employ at such date 
as in the opinion of the magistrate is just and 
proper in the circumstances and in the position 
that the employee would have held but for such 
dismissal; and 

(b) to pay to the employee compensation for loss of 
employment in an amount not exceeding the amount 
that, in the opinion of the magistrate, is equivalent 
to the wages that would have accrued to the employee 
but for such dismissal. 

(3) An employer who fails to comply with an order made j?^£ e ' 
under subsection 2 is guilty of an offence and on summary to comply 

. . •••I, f %' **m r ,i with order 

conviction is liable to a fine not exceeding $50 for each day 
during which the failure continues. New. 

36.— (1) Every person who, Penalty 

(a) furnishes false or misleading information in any 
application under this Act or in any statement or 
return required to be furnished under this Act or 
the regulations; 

(b) fails to comply with any order, direction or require- 
ment under this Act or the regulations; or 

(c) contravenes any provision of this Act or the regula- 
tions for which no penalty is otherwise provided, 

is guilty of an offence and on summary conviction is liable to 
a fine of not more than $1,000. 

130 



16 



Offence in 
respect 
of each 
employee 



(2) Where an employer is convicted of an offence respecting 
the wages, hours of work, vacation, vacation pay or conditions 
of work of one or more employees, the offence against each 
employee shall be deemed to be a separate offence for the 
purposes of subsection 1. New. 



Order for 
payment 



(3) Where an employer is convicted of an offence including 
the failure to pay wages or vacation pay in accordance with 
this Act, the magistrate making the conviction shall, in addi- 
tion to any other penalty, assess the amount of wages or vaca- 
tion pay so unpaid in respect of the employee and shall order 
the employer to pay the amount so assessed to the Director 
who shall collect and distribute to the employees the amount 
ordered to be paid. 



Enforce- 
ment in 
Division 
Court 



(4) A final order for payment under subsection 3 may be 
filed by the Director in a division court and thereupon the 
order shall be deemed to be an order of the division court 
for the purposes of enforcement. R.S.O. 1960, c. 181, s. 12; 
R.S.O. 1960, c. 240, s. 12, amended. 



PART XII 



MISCELLANEOUS 



c*'i8i : 196 °' ^' ^ e Hours of Work and Vacations with Pay Act, The 
1961-62, Hours of Work and Vacations with Pay Amendment Act, 
1964,* c. 42. 1961-62, The Hours of Work and Vacations with Pay Amend- 

1 Qfifi f* ft7 ■ 

r.s.6. i960, ment Act, 1964, The Hours of Work and Vacations with Pay 
1962^63 Amendment Act, 1966, The Minimum Wage Act and The 

c. 83. 
repealed 



Minimum Wage Amendment Act, 1962-63 are repealed. 



Commence- 
ment 



38. This Act comes into force on a day to be named by 
the Lieutenant Governor by his proclamation. 



Short title 



39. This Act may be cited as The Employment Standards 
Act, 1968. 



130 



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BILL 130 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Employment Standards Act, 1968 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 130 1968 



The Employment Standards Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

INTERPRETATION 
1. In this Act, {nterpre- 

(a) "Department" means the Department of Labour; 

(b) "Director" means the Director of Employment 
Standards appointed for the purposes of this Act; 

(c) "employee" includes every person who performs 
any work or services in an establishment for an 
employer, and includes any person doing homework; 

(d) "employer" includes every person who as the owner, 
proprietor, manager, superintendent or overseer of 
any establishment, 

(i) has control or direction of, or is directly or 
indirectly responsible for the employment of, 
an employee therein, or 

(ii) employs or permits any person to work 
therein ; 

(e) "establishment" means any place of business, work, 
trade, occupation or profession other than those 
designated in the regulations; 

(f) "holiday" means New Year's Day, Good Friday, 
Victoria Day, Dominion Day, Labour Day, Thanks- 
giving Day and Christmas Day and where New 
Year's Day, Dominion Day or Christmas Day falls 
on a Sunday, the day next following is in lieu thereof 
a holiday; 

130 



(g) "homework" means the doing of any work in the 
manufacture, preparation, improvement, repair, 
alteration, assembly or completion of any article 
or thing or any part thereof by a person for wages 
in premises occupied primarily as living accommoda- 
tion, and "homeworker" has a corresponding 
meaning; 

(h) "Minister" means the Minister of Labour or such 
member of the Executive Council as is for the time 
being charged with the administration of this Act; 

(*) "regular rate" means, 

(i) the hourly rate paid to an employee for his 
normal non-overtime work week, or 

(ii) in the case of an employee to whom sub- 
clause i does not apply, the amount obtained 
by dividing his total earnings for the week 
by the number of hours he worked in the week; 

0) "regulations" means the regulations made under 
this Act; 

(k) "wages" includes any form of remuneration for work 
or services performed, but does not include tips and 
other gratuities. R.S.O. 1960, c. 240, s. 1 ; 1962-63, 
c. 83, s. 1; R.S.O. 1960, c. 181, s. 1, amended. 

PART I 

GENERAL 



Minister 
responsible 
for admin- 
istration 

Director 
to be 
appointed 



2. — (1) The Minister is responsible for the administration 
of this Act. 

(2) A Director of Employment Standards shall be appointed 
for the purposes of this Act. New. 



or g wa[vers t8 **• This Act applies notwithstanding any agreement or 
contrary waiver to the contrary. R.S.O. 1960, c. 240, s. 7, amended. 



Standards 

as 
minimums 



4. — (1) The standards for rates of wages and vacations 
with pay required under this Act are minimum standards only 
and nothing in this Act shall affect any rights or benefits of 
an employee under any law, custom, agreement or arrange- 
ment that is more favourable to him than his rights or benefits 
under this Act. New. 



w?th fl other (2) Where there is conflict between the rate of wages, 

Acts vacations with pay or payment in lieu thereof, or hours of 

work determined under this Act or the regulations and those 



130 



determined under any other Act or any regulation or order l }?&- 19H0t 
made thereunder, or any schedule under The Industrial 
Standards Act, the greater rate of wages and vacations with 
pay and the lesser hours of work shall prevail. R.S.O. 1960, 
c. 181, s. 13, amended. 

5. — (1) The Director may, Director 

s ' • may hold 

inquiry 

(a) hold an inquiry into the facts concerning any persons 
employed in or about an establishment as members 
or alleged members of a partnership or association, 
or in the execution of any agreement or scheme of 
profit-sharing or co-operative or joint contract or 
undertaking, including the investigation of the 
contractual and other relations of the persons so 
employed, as between themselves or as between 
them and their employer; and 

(b) make such order as he deems proper declaring any 
of such persons or any class or group thereof to be 
employers and any of such persons or any class or 
group thereof to be employees for the purposes of 
this Act, provided that, in his opinion, the partner- 
ship, association, agreement or scheme is intended 
or has the effect, directly or indirectly, of defeating 
the true intent and purpose of this Act. R.S.O. 
1960, c. 181, s. 7, part, amended. 

(2) The Director may, by notice in writing, require the Pow ? r to 
attendance before him of any person at the time and place attendance 
named in the notice, and examine such person under oath in 
respect of any matter concerning wages, hours of work, 
vacations with pay or any matter mentioned in subsection 1. 

(3) The Director may refer any matter to the Industry and {J^"*^ by 
Labour Board appointed under The Department of Labour Act^ d labour 
for a hearing and the Board shall hold the hearing and report r.s.o. i960, 
its findings and recommendations to the Director. °- 97 

6. Where the Director is unable to act or there is a vacancy ^? ttn f 
in the office, the powers and duties of the Director shall be 
exercised and performed by such employee of the Depart- 
ment as the Minister designates. New. 

PART II 

HOURS OF WORK 

7. — (1) Subject to subsection 2, the working hours of an Maximum 
employee shall not exceed eight in the day and fortv-eight in 
the week. R.S.O. 1960, c. 181, s. 2 (1), amended. 

130 



Exception* (2) Subsection 1 does not apply to an employee whose only 
work is supervisors - or managerial in character, or of a char- 
acter exempted by the regulations. R.S.O. 1%0, c. 181, s. 3, 
amended. 



Variation 
of working 
day 



8. — (1) Subject to subsection 2, an employer may, with 
the approval of the Director, and upon such terms and 
conditions as the Director prescribes, adopt a working day 
in excess of eight hours, but the working hours of his employees 
shall not exceed forty-eight hours in a week. 



workVng" 1 (2) 'I he maximum working hours of an employee in a day 

hours prescribed by section 7 is subject to any schedule in force 

r.s.o. i960. unt ] er j ne Industrial Standards Act. New. 

ex^es^houre ®* — (1) The Director may issue a permit authorizing hours 
of work in an establishment in excess of those prescribed by 
section 7 or under section 8, but the excess working hours 
shall not exceed, 

(a) in the case of an engineer, fireman, full-time mainten- 
ance man, receiver, shipper, delivery truck driver 
or his helper, watchman or other person, who in 
the opinion of the Director, is engaged in a similar 
occupation, twelve hours in each week for each 
employee; and 

(b) in the case of all other employees, 100 hours in each 
year for each employee. 



Idem 



(2) Notwithstanding subsection 1, the Director may issue 
a permit for work in excess of the maximum hours prescribed 
by subsection 1 where he is satisfied that the nature of the 
work or perishable nature of raw material being processed 
requires the excess hours. 



work t or e (3) Notwithstanding subsections 1 and 2, the overtime 

employee work of a female employee under the age of eighteen years 
shall not exceed six hours in a week. 



Exceeding 
maximum 
in case of 
accident 



(4) The limit of hours of work prescribed by subsection 1 
of section 7 may be exceeded in case of accident, or in case 
of work urgently required to be done to machinery or plant, 
but only so far as may be necessary to avoid serious inter- 
ference with the ordinary working of the establishment. 
New. 



Terms and 
conditions 
of overtime 
work 



lO. A permit issued under section 9 shall contain such 
terms and conditions as the Director prescribes. New. 



130 






11. — (1) No employer may require or permit work, and ^"^Tt" 1 * 
no employee may work or agree to work, any hours that maximum* 
exceed the maximum hours determined under this Act. 

(2) The issuance of a permit under section 9 does notdoesnot 
require an employee to work any hours in excess of those employe 
prescribed by section 7 without the consent or agreement of 
the employee or his agent. New. 

12. — (1) Xo female employee under the age of eighteen meni°ot~ 
years shall work in an establishment between the hours of f « m{ M^* 

, « . . . «*t night 

12 o clock midnight and 6 o'clock in the forenoon of any day. 
1964, c. 42, s. 2, part, amended. 

(2) Where the work period of a female employee ends Employer 

i^»ii-i-i to provide 

oetween 12 o clock midnight and 6 o clock in the forenoon, transporta- 
the employer shall provide her with private transportation 
to her residence at his expense. 

(3) Where the work period of a female employee begins Idem 
between 12 o'clock midnight and 6 o'clock in the forenoon, 

the employer shall provide her with private transportation 
from her residence to the place of employment at his expense. 
New. 

13. Every employer shall provide eating periods of at^"^ 
least one-half hour, or such shorter period as is approved 
by the Director, at such intervals as will result in no employee 
working longer than five consecutive hours without an eating 
period, but where immediately before this Act comes into 
force an employer provides eating periods that are shorter 
than one-half hour, he may continue such eating periods, 
unless ordered to do otherwise by the Director. 1964, c. 42, 
s. 2, part, amended. 



PART III 

OVERTIME PAY 

14. — (1) Where an employee works for an employer in° a v ^ rtime 
excess of forty-eight hours in any week, he shall be paid for 
each hour worked in excess of forty-eight hours an amount 
not less than one and one-half times his regular rate. 

(2) Where an employee works on a holiday, he shall be on hollda >" 
paid for each hour worked an amount not less than one and 
one-half times his regular rate. New. 

130 



PART IV 



Employees 
may not 
waive the 
Act 



MINIMUM WAGES 

15. No employee is competent to agree to waive or to 
forego any provision of this Act, and no employer is com- 
petent to enter into any agreement, arrangement or under- 
standing with an employee or with any other person that 
results in the whole or any part of the wages paid to an 
employee or to the Director on behalf of an employee being 
returned to or accepted by the employer, either directly or 
indirectly, and every such agreement, arrangement and under- 
taking is void. R.S.O. 1960, c. 240, s. 7, amended. 



Statutory 

agreement 

for 

minimum 

wage 



16. Every employer who permits any employee to perform 
any work with respect to which a minimum wage is established 
shall be deemed to have agreed to pay to the employee at 
least the minimum wage established and the minimum wage 
shall be paid to the employee only by cash or by cheque 
payable at par at the place where the employee performed 
the work. R.S.O. 1960, c. 240, s. 6. 



Handicap- 
ped em- 
ployees 



17. For the purpose of enabling a handicapped person to be 
gainfully employed, the Director may, upon the application 
of the handicapped person or his employer and with the 
consent of the handicapped person, his parent or guardian, 
authorize the employment of such handicapped person at 
a wage lower than the minimum wage prescribed under a 
regulation. R.S.O. 1960, c. 240, s. 4, amended. 



Application 
or Part 
1964. c. 3 



18. This Part does not apply to apprentices to whom 
The Apprenticeship and Tradesmen's Qualification Act, 1964, 
applies. New. 



PART Y 

EQUAL PAY FOR EQUAL WORK 

Equal pay 19. — (l) Ps'o employer or person acting on behalf of an 

work employer shall discriminate between his male and female 

employees by paying a female employee at a rate of pay less 
than the rate of pay paid to a male employee, or vice versa, 
employed by him for the same work performed in the same 
establishment, the performance of which requires equal skill, 
effort, and responsibility, and which is performed under 
similar working conditions, except where such payment is 
made pursuant to, 



(a) a seniority system; 

(b) a merit system; 



130 






(c) a system that measures earnings by quantity or 
quality of production; or 

id) a differential based on any factor other than sex. 
1961-62, c. 93, s. 5 (1), amended. 

(2) No employer shall reduce the rate of pay of an employee l'*^ ot 
in order to comply with subsection 1. reduced 

(3) No organization of employers or employees, as the case not to* b| r 
may be, or its agents shall cause or attempt to cause an contravene 
employer to pay to his employees rates of pay that are in 8Uhs - l 
contravention of subsection 1. 

(4) Where in the opinion of the Director an employer has uon 6 ™" 18 " 
not complied with subsection 1, the Director may determine Direotor 
the amount of moneys owing to an employee, and such amount 

shall be deemed to be unpaid wages. 

(5) This section applies to the Crown and every agency applies to 
thereof. New. Crown 

Appoint- 



20. — (1) Where the Director is unable to effect a deter- ^ent of 

i o 

ry 



mination under subsection 4 of section 19, the Minister, on^ ^^ 
the recommendation of the Director, may appoint a board of 
inquiry, composed of one or more persons, to investigate 
the matter. 

(2) The Director shall communicate the names of the timber / 
members of the board to the parties concerned. *° .**? °°™- 

^ murueated 

(3) The board shall have the powers of a conciliation ^°' ve ** 3 
board under section 28 of The Labour Relations Act. c'262" 

(4) The board shall give the parties full opportunity to Dut,ea 
present evidence and to make submissions and shall rec- 
ommend to the Director the course of action that ought to be 
taken. 

(5) If the board is composed of more than one person, r x e I < f<jm- lty 
the recommendations of the majority are the recommenda- J n ) e " d e a v ^? 1 ns 
tions of the board. 

(6) After the board has made its recommendations, the Clarification 
Director may direct it to clarify or amplify any of them mendations 
and they shall be deemed not to have been received by the 
Director until they have been so clarified or amplified. 

(7) The rate of remuneration of the chairman and members ^ e n nunera - 
of a board of inquiry appointed under this section shall be 

the rate paid from time to time to the chairman and members 

of a conciliation board under The Labour Relations Act. New. JVfo?' 196 °" 

130 



8 



PART VI 



Vacations 



Idem 



When 

vacation 

taken 



Vacation 
pay 



Payment 
in lieu of 
vacation 



Agreements 
for pay 
in lieu of 
vacation 



VACATIONS WITH PAY 

21. — (1) Every employee in an establishment shall be 
given, 

(a) an annual vacation of at least one week with pay 
upon the completion of each twelve months' employ- 
ment during the first thirty-six months of his employ- 
ment; or 

(b) an annual vacation of at least two weeks with pay 
upon the completion of each twelve months' employ- 
ment thereafter. 

(2) Where an employee has completed thirty-six months 
of non-continuous employment during any period of five 
consecutive years subsequent to the year 1963, he shall be 
given an annual vacation of at least two weeks with pay 
upon the completion of each twelve months' employment 
thereafter. 1966, c. 67, s. 1, part, amended. 

22. The employer shall determine the period when an 
employee may take the vacation provided by section 21, 
which, in the case of a two- week vacation, may be a two-week 
period or two periods of one week each, but in any case the 
employee shall be given his vacation not later than ten months 
after the end of the year for which the vacation was given. 
1966, c. 67, s. 1, part, amended. 

23. In the case of a one-week vacation, the amount of 
pay for the vacation shall not be less than an amount equal 
to 2 per cent of the pay of the employee for all work done 
by him in the year for which the vacation is given, and, in 
the case of a two- week vacation, the amount of pay for the 
vacation shall not be less than an amount equal to 4 per cent 
of the pay of the employee for all work done by him in the 
year for which the vacation is given. 1966, c. 67, s. 1, part. 

24. Where an employee's employment terminates, the 
employer shall, in lieu of the vacation required by section 21, 
pay to the employee the proportion of the vacation pay 
determined under section 23 that is referable to any year or 
part of a year in respect of which no vacation has been given. 
New. 

25. Any agreement between the employer and his em- 
ployees respecting the method of providing funds for paying 
vacation pay, or payment in lieu of vacation, or of any 
arrangements for the taking of vacation, is subject to the 
approval of the Director. New. 



130 



PART VII 

HOMEWORKERS 

26.-— (1) An application for a permit to employ home- Application 
workers shall be made by the employer to the Director. 

(2) No person shall employ a homeworker without a permit Permit8 
therefor issued by the Director. 

(3) The Director may issue a permit on such terms and condition!? 
conditions as he considers advisable. 

(4) The Director may revoke or suspend a permit for a **£ ° B ^. ion 
breach of a term or condition thereof, or where the holder pension 

is liable for a nuisance within the meaning of The Public™ f^?' 1960, 
Health Act, or a breach of any Act. 1964, c. 45, s. 27, part, 
amended. 

(5) Every employer shall keep a register and enter therein ffS^me- 
the name and address of every homeworker to whom he gives work e re 
homework, and the wages paid therefor. 1964, c. 45, s. 29 (1), 
amended. 

PART VIII 

WAGE PROTECTION 

27. Every employer shall furnish to every employee at^|^ ement 
the time wages are paid to the employee, a statement in 
writing which can be retained by the employee, setting forth, 

(a) the period of time or the work for which the wages 
are being paid; 

(b) the rate of wages to which the employee is entitled 
unless such information is furnished to the employee 
in some other manner; 

(c) the amount of the wages to which the employee is 
entitled ; 

(d) the amount of each deduction from the wages of 
the employee and the purpose for which each deduc- 
tion is made; 

(e) any living allowance or other payment to which 
the employee is entitled; and 

(/) the net amount of money being paid to the employee. 
1962-63, c. 143, s. 1, part, amended. 

130 



10 



Determina- 
tion of 
amounts 
payable 



Notice to 
employer, 
etc. 



28. — (1) Where an employer has failed to pay an employee, 

(a) the amount of wages due; 

(b) any pay to which the employee is entitled under 
section 14; or 

(c) any vacation pay to which the employee is entitled 
under Part VI, 

the Director may determine the difference between the 
amount paid to the employee and the amount to which the 
employee is entitled. 

(2) The Director shall notify an employer of any deter- 
mination made under subsection 1, and may require the 
employer to pay to him in trust unpaid wages, overtime pay 
or vacation pay, not exceeding $1,000, owing to an employee 
as determined under subsection 1. 



Employer^ (3) Where the Director has collected from an employer 
to Minister unpaid wages, overtime pay or vacation pay, the employer 
may, within twenty-one days of the date of the notice under 
subsection 2, appeal to the Minister for a review of the deter- 
mination of the Director. 



Payment by 
Director 



Idem 



Hearing and (4) The Minister or a person designated by him shall, 

determina- r 

tion of 

owing" 1 (#) review the matter at a hearing; 

(b) give the employer full opportunity to present 
evidence and make submissions; and 

(c) determine the amount owing to the employee. 

(5) Where no appeal has been made to the Minister, the 
Director shall pay to the employee all moneys collected on 
his behalf. 

(6) Where an appeal has been made to the Minister, the 
Director shall pay to the employee the amount owing to him 
as determined under subsection 4 and shall pay to the em- 
ployer the balance, if any, of the moneys collected from him. 
New. 

PART IX 

REGULATIONS 

Regulations 29. — (1) The Lieutenant Governor in Council may make 
regulations for carrying out the purposes of this Act and, 
without restricting the generality of the foregoing, may make 
regulations, 

130 






11 



(a) establishing minimum rates of wages for employees; 

(b) designating or denning any establishment or part 
thereof to which the regulation is applicable; 

(c) designating or defining the zone or zones within 
Ontario in which any regulation or provision thereof 
is applicable; 

(d) designating any place of business, work, trade, 
occupation or profession or any class thereof for 
the purposes of clause e of section 1 ; 

(e) prescribing conditions of employment; 

(/) exempting any class of employers or employees from 
the application of this Act or the regulations or any 
provision thereof; 

(g) prescribing what constitutes the performance of work 
in respect of which minimum wages shall be paid; 

(h) specifying the deductions that may be made from 
the minimum wage paid to employees; 

(i) providing for a system of vacation-with-pay credit 
stamps for use in the construction industry as defined 
in the regulations, and providing for the sale and 
redemption of such stamps; 

(J) prescribing the maximum number of hours that may 
elapse between the commencement and the termina- 
tion of the daily work period or periods of an em- 
ployee ; 

(k) prescribing the records that shall be kept and the 
returns that shall be made by employers; 

(/) governing the production and inspection of records 
required to be kept by employers; 

(m) requiring employers in any establishment or branch 
thereof to notify employees, by the publication of 
such notices, in such manner as may be prescribed, 
of the provisions of this Act or any regulation or 
permit made thereunder; 

(n) providing for the setting up of a consultative or 
advisory committee to advise the Minister on any 
matters arising in relation to the administration of 
this Act; 



130 



12 



Application 



Poallag 

BOttl PS 



Records 



(o) prescribing forms and providing for their use; 

(P) respecting any matter necessary or advisable to 
carry out effectively the intent and purpose of this 
Act. 

(2) A regulation made under subsection 1 or any provision 
thereof may be confined in its application to any class of 
employer, employee or establishment defined in the regula- 
tion. R.S.O. 1960, c. 240, s. 3, amended. 

PART X 

ADMINISTRATION 

30. Every employer shall post and keep posted any notice 
required by the Director in a conspicuous place where his 
employees are engaged in their duties. 1961-62, c. 58, s. 4, 
part, amended. 

31. — (1) Every employer shall, 

(a) make and keep for a period of eighteen months after 
work is performed by an employee complete and 
accurate records in respect of the employee showing, 

(i) his name and address, 

(ii) his age, if under eighteen years of age, 

(iii) the number of hours worked by him in each 
day and week, 

(iv) the number of hours worked by him in any 
day or week in excess of the hours prescribed 
by this Act or the regulations, 

(v) wage rate and actual earnings; and 

(b) make and keep for a period of five years after work 
is performed by an employee complete and accurate 
records in respect of the employee showing, 

(i) his name and address, 

(ii) the date of commencement of his present 
term of employment and the anniversary date 
thereof, and 

(iii) his earnings during each pay period and his 
vacations with pay or payment to him in lieu 
thereof. 1962-63, c. 83, s. 5, part, amended. 



130 






13 

(2) Subclause iii of clause a of subsection 1 does not apply Exception 
in respect of the salaried employees of an employer who 
perform work of a clerical or administrative nature where 
the employer establishes a regular working day in accordance 
with section 7 and makes and keeps a record showing the 
number of hours worked by such employees in excess of eight 
hours a day and forty-eight hours a week. New. 

32. An employer shall, JfSSSSS" 

(a) produce the records required under this Act for 
inspection by the Director or any person authorized 
by the Minister, and shall for this purpose provide 
access to his premises for the Director or such person 
at all reasonable times and at any time his employees 
are engaged in their work; and 

(b) furnish such information from the records at such 
time and place as the Director requires. R.S.O. 
1960, c. 181, s. 8 (1); 1961-62, c. 58, s. 1. 

33.— (1) The Director may, information 

(a) require any employer to make or furnish such full 
and correct statements, either orally or in writing 
as the Director requires, respecting the wages, hours 
of work, vacations with pay and conditions of work 
of any of his employees, and require the statements 
to be made by the employer on oath or to be verified 
by his statutory declaration; 

(b) require any employee to make such full and correct 
statements, either orally or in writing as the Director 
requires, respecting his wages, hours of work, vaca- 
tions with pay and other matters relating to his 
employment, and require such statements to be made 
on oath or verified by his statutory declaration. 

(2) The Director or any person authorized by the Minister ^* n ^ 1 f na - 

may, records. 

■* inspection of 

premises 

(a) inspect and examine all books, payrolls and other 
records of an employer that in any way relate to the 
wages, hours of work, vacations with pay or condi- 
tions of work of his employees; 

(b) take extracts from or make copies of any entry in 
the books, payrolls and other records mentioned in 
clause a; 



130 



14 



R.8.O. 1960. 



it any reasonable time, enter any establishment or 
business or other premises for the purpose of making 
an inspection, provided, however, that he shall not 
enter any room or place actually used as a dwelling 
without the consent of the occupier except under the 
authority of a search warrant issued under section 14 
of The Summary Convictions Act; and 



(d) question any employee apart from his employer. 
R.S.O. 1960, c. 181, s. 9; 1961-62, c. 58, s. 2, 
amended. 



Notice to 

furnish 

information 



34. — (1) Where the Director is authorized under this Act 
or the regulations to require a person to furnish information, 
the Director may require the information to be furnished by 
a notice to that effect served personally or sent by registered 
mail addressed to the last known place of abode of the person 
for whom the notice is intended, and such person shall furnish 
the information within such reasonable time as is specified in 
the notice. 



Proof of 
service of 
notice 



(2) A certificate of the Director certifying that the notice 
was sent by registered mail to the person to whom it was 
addressed, accompanied by and identifying the post office 
certificate of the registration and a true copy of the notice 
is admissible as prima facie proof of the mailing and receipt 
of the notice. 



Proof of 
failure 
to comply 



(3) Where the Director is authorized to require a person 
to furnish information under this Act, a certificate of the 
Director certifying that the information has not been furnished 
is admissible as prima facie proof that in such case the person 
did not furnish the information. 



Proof of 
document 



(4) A certificate of the Director certifying that a document 
annexed thereto is a document or true copy of a document 
made by or on behalf of the Director is admissible as prima 
facie proof of the nature and contents of the document and 
shall be received in evidence in the place and stead of the 
original and has the same force and effect as the original 
document would have had if produced and proved. 



Proof of 
authority 



(5) A certificate under this section signed or pur|>orting 
to be signed by the Director is admissible as prima facie 
proof of the facts stated therein and of the authority of the 
person giving or making the certificate without any proof of 
appointment or signature. 1961-62, c. 58, s. 4, part; 1962-63, 
c. 83, s. 8, amended. 



130 



15 



TART XI 

ENFORCEMENT 

35. — (1) Every employer who dismisses or threatens to {;£ primal' by 
dismiss or otherwise discriminates against an employee employer 
because the employee has sought the enforcement of this Act 
or the regulations or has given information to a person 
authorized to require it under this Act is guilty of an offence 
and on summary conviction is liable to a fine of not more than 
$1,000. R.S.O.' 1960, c. 240, s. 8, amended. 

(2) Where an employer is convicted of the offence of ^fnstate- 
dismissing an employee under one of the circumstances ment 
mentioned in subsection 1, the magistrate making the con- 
viction shall, in addition to the penalty, order the employer, 

(a) to reinstate the employee in his employ at such date 
as in the opinion of the magistrate is just and 
proper in the circumstances and in the position 
that the employee would have held but f or such 
dismissal; and 

(b) to pay to the employee compensation for loss of 
employment in an amount not exceeding the amount 
that, in the opinion of the magistrate, is equivalent 
to the wages that would have accrued to the employee 
but for such dismissal. 

(3) An employer who fails to comply with an order made j^u"^' 

under subsection 2 is guiltv of an offence and on summarv to . c < )m P 1 y 
• • • !• ii t- i- *r« * i . ' Wlth order 

conviction is liable to a fine not exceeding S50 for each day 

during which the failure continues. New. 



36. — (1) Ever}* person who, 



Penalty 



(a) furnishes false or misleading information in any 
application under this Act or in any statement or 
return required to be furnished under this Act or 
the regulations; 

(b) fails to comply with any order, direction or require- 
ment under this Act or the regulations; or 

(c) contravenes any provision of this Act or the regula- 
tions for which no penalty is otherwise provided, 

is guilty of an offence and on sum man,' conviction is liable to 
a fine of not more than $1,000. 



130 



16 



Offeix «■ i" 
respect 
of ein-h 
employee 



Order Tor 
payment 



(2) Where an employer is convicted of an offence respecting 
the wages, hours of work, vacation, vacation pay or conditions 
of work of one or more employees, the offence against each 
employee shall be deemed to be a separate offence for the 
purposes of subsection 1. New. 

(3) Where an employer is convicted of an offence including 
the failure to pay wages or vacation pay in accordance with 
this Act, the magistrate making the conviction shall, in addi- 
tion to any other penalty, assess the amount of wages or vaca- 
tion pay so unpaid in respect of the employee and shall order 
the employer to pay the amount so assessed to the Director 
who shall collect and distribute to the employees the amount 
ordered to be paid. 



Enforce- 
ment in 
! >i vision 
Court 



(4) A final order for payment under subsection 3 may be 
filed by the Director in a division court and thereupon the 
order shall be deemed to be an order of the division court 
for the purposes of enforcement. R.S.O. 1960, c. 181, s. 12; 
R.S.O. 1960, c. 240, s. 12, amended. 



PART XII 



MISCELLANEOUS 



R.S.O. 1960, 
c. 181; 
1961-62. 
c. 58; 

1964. c. 42; 
1966. c. 67; 
R.S.O. 1960, 
c. 240; 
1962-63. 
c. 83, 
repealed 



Commence- 
ment 



37. The Hours of Work and Vacations with Pay Act, The 
Hours of Work and Vacations with Pay Amendment Act, 
1961-62, The Hours of Work and Vacations with Pay Amend- 
ment Act, 1964, The Hours of Work and Vacations with Pay 
Amendment Act, 1966, The Minimum Wage Act and The 
Minimum Wage Amendment Act, 1962-63 are repealed. 

38. This Act comes into force on a day to be named by 
the Lieutenant Governor by his proclamation. 



Short title 



39. This Act may be cited as The Employment Standards 
Act, 1968. 



130 






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BILL 131 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Wages Act 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The section being repealed will be re-enacted with certain amend- 
ments in The Employment Standards Act, 1968. 



131 



BILL 131 1968 



An Act to amend The Wages Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Section 10 of The Wages Act, as enacted by section 1 of c .'42i,'s. io' 
The Wages Amendment Act, 1962-63, is repealed. c^iti'^'i). 

repealed 

2. This Act comes into force on a day to be named by commence- 

• ^ i i • i • ment 

the Lieutenant Governor by his proclamation. 

3. This Act may be cited as The Wages Amendment Act, short tltle 
1968 (No. 2). 



131 



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BILL 131 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Wages Act 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 131 



1968 



An Act to amend The Wages Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

R. M O 1 960 

1. Section 10 of The Wages Act, as enacted by section 1 of c .42i."s. io' 
The Wages Amendment Act, 1962-63, is repealed. cl'ill'^'i). 

repealed 

2. This Act comes into force on a day to be named by ^°nt mence 
the Lieutenant Governor by his proclamation. 

3. This Act may be cited as The Wages Amendment Act, short titIe 
1968 (No. 2). 



131 





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BILL 132 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Industrial Safety Act, 1964 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The sections being repealed will be re-enacted with certain amend- 
ments in The Employment Standards Act, 1968. 



132 



BILL 132 



1968 



An Act to amend 
The Industrial Safety Act, 1964 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows : 

1964, c. 45, 

1. Part II of The Industrial Safety Act, 1964 is repealed. f^ rt 27-30), 

repealed 

2. This Act comes into force on a day to be named by ment men ° e 
the Lieutenant Governor by his proclamation. 

3. This Act may be cited as The Industrial Safety Amend- short title 
ment Act, 1968 (No. 2). 



132 



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BILL 132 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Industrial Safety Act, 1964 



Mr. Bales 



TORONTO 

Printed and Published by Frank Fogg, Queen's Printer 



BILL 132 1968 



An Act to amend 
The Industrial Safety Act, 1964 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1964, c. 45, 

1. Part II of The Industrial Safety Act, 1964 is repealed. (sl rt 27-30), 

repealed 

2. This Act comes into force on a day to be named byCommence- 
the Lieutenant Governor by his proclamation. 

3. This Act may be cited as The Industrial Safety Amend- Short title 
ment Act, 1968 (No. 2). 



132 









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BILL 133 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Ontario Human Rights Code, 1961-62 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 









Explanatory Note 

The section being repealed will be re-enacted with certain amend- 
ments in The Employment Standards Act, 1968. 



133 



BILL 133 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 






An Act to amend The Ontario Human Rights Code, 1961-62 



Mr. Bales 



TORONTO 
Pkin ted and Published by Frank Fogg, Queen's Printer 






Explanatory Note 

The section being repealed will be re-enacted with certain amend- 
ments in The Employment Standards Act, 1968. 



133 



BILL 133 1968 



An Act to amend 
The Ontario Human Rights Code, 1961-62 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Section 5 of The Ontario Human Rights Code, 1961-62 is^ 9 |^" 6 a 2 ' 5 

repealed. repealed 

2. This Act comes into force on a day to be named by Commence - 
the Lieutenant Governor by his proclamation. 

3. This Act may be cited as The Ontario Human Rights short title 
Code Amendment Act, 1968. 



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BILL 133 1968 



An Act to amend 
The Ontario Human Rights Code, 1961-62 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Section 5 of The Ontario Human Rights Code, 1961-62 is 19 £i- 6 o 2 - 

repealed. repealed 

2. This Act comes into force on a day to be named by Commence - 
the Lieutenant Governor by his proclamation. 

3. This Act may be cited as The Ontario Human Rights short title 
Code Amendment Act, 1968. 






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BILL 133 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 






An Act to amend The Ontario Human Rights Code, 1961-62 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 133 



1968 



An Act to amend 
The Ontario Human Rights Code, 1961-62 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Section 5 of The Ontario Human Rights Code, 1961-62 is£ 9 |^~ 6 8 2, 5 

repealed. repealed 

2. This Act comes into force on a day to be named by commence- 
the Lieutenant Governor by his proclamation. 

3. This Act may be cited as The Ontario Human Rights Snort title 
Code Amendment Act, 1968. 



133 



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BILL 134 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Pension Benefits Act, 1965 



Mr. MacNaughton 



TORONTO 

Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 

Section 1 . The amendment is intended to clarify the rules applicable 
pertaining to the deferred life annuity prescribed in subsection 1 of sec- 
tion 21 ofthe Act when the pension plan is wound-up or terminated. 



134 






BILL 134 1968 



An Act to amend 
The Pension Benefits Act, 1965 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Subsection 7 of section 21 of The Pension Benefits Act, g 9 |f' c - 96, 

1965 is repealed and the following substituted therefor: subs.' 7. ■ 

r ■ re-enacted, 

(7) Notwithstanding any provision of a pension plan, winding-up 
upon termination or winding-up of the pension plan 
all contributions made after the qualification date 
in respect of the deferred life annuity prescribed in 
subsection 1 to which any person is entitled shall be 
applied, subject to subsection lb and to the extent 
not already applied, towards the provision of the 
pension benefits prescribed in subsection 1. 

(7a) For the purpose of determining the pension benefits tto n e £f" na ~ 
to which a person may be entitled under subsec- benefits on 

« , . f • i- , winding-up 

tion 1 at the date of termination or winding-up of of plan 
the pension plan, 

(a) each employee shall be deemed to have 
terminated his employment prior to attaining 
retirement age on the date of the termination 
or winding-up of the plan; and 

(b) each former employee who retired on pension 
from the service of the employer shall be 
deemed to have terminated his employment 
prior to attaining retirement age but on the 
date of his retirement. 

(7b) Notwithstanding subsections 1 and 2 and notwith- J^addSonai 
standing any provision of a pension plan, upon the benefits 
termination or winding-up of a pension plan where, 

134 



(a) the benefits arising from the deferred life 
annuities prescribed in subsection 1 include 
additional pension benefits provided by an 
amendment to the terms of the plan made 
after the qualification date or by the creation 
of a plan after the qualification date, in 
respect of service prior to such amendment or 
creation ; and 

(b) the funding of such additional pension 
benefits, as required by the regulations, has 
not been completed, 

the amount of such additional pension benefits may 
be reduced in accordance with the regulations. 

amended 96, ^' ^ ne ^ ens ^ on Benefits Act, 1965 is amended by adding 
thereto the following section: 



Declaration 
of Commis- 
sion that 
a plan Is 
wound-up 



22c. — (1) The Commission, when it is of the opinion 
that an employer has discontinued or is in the 
process of discontinuing a part or all of his business 
operations in which a substantial number of his 
employees who are members of a pension plan are 
employed, may declare the pension plan wound-up 
in whole or in part for the purposes of this Act on 
such date as the Commission in its discretion deems 
such business operations are discontinued. 



Notification 



(2) The Commission shall notify the employer by 
registered mail that the pension plan is wound-up 
in whole or in part under subsection 1. 



Notice of 
objection 



(3) Where the employer objects to the declaration made 
by the Commission under subsection 1, he may 
within sixty days from the day of mailing of the 
notification of the Commission under subsection 2, 
serve on the Commission a notice of objection in 
duplicate in the prescribed form setting out the 
reasons for the objection and all relevant facts. 



c 9 ||' s 23 **• Subsection 2 of section 23 of The Pension Benefits Act, 

Amended ^^ * 8 amen ded Dv inserting after "under" in the first line 

"section 22c or", so that the subsection shall read as follows: 

(2) A notice of objection under section 22c or this 
section shall be served by being sent by registered 
mail addressed to the Commission at Toronto. 

c 96, a. 24. 4. — (1) Subsection 1 of section 24 of The Pension Benefits 
re-enacted Act, 1965 is repealed and the following substituted therefor: 



134 



Section 2. This new section provides that where an employer 
appears to be discontinuing his business, the Commission may deem the 
pension plan wound-up. The amendment also provides the employer 
with the right to appeal from the Commission's decision. 



Section 3. The section is amended to provide for the filing of a 
notice of objection from the decision of the Commission under section 22c 



Section 4. The amendment is complementary to those contained 
in sections 2 and 3. 



134 



Section 5. The amendment will allow the Lieutenant Governor in 
Council to make regulations specifying service that shall be deemed not 
to be service in a designated province. 



134 



(1) Where an employer has served a notice of objection cour^of 
under section 22c or 23, he may appeal to the Court Appeal 
of Appeal, 

(a) within ninety days after the Commission has 
confirmed its opinion ; or 

(b) after ninety days and before 180 days have 
elapsed after service of the notice of objection 
and the Commission has not notified the 
employer that it has confirmed or varied its 
opinion. 

(2) Subsection 7 of the said section 24 is amended by Jf ||; g< 2 4, 
inserting after "registration" in the second line and in the|^^J ed 
fourth line "or re-instatement", so that the subsection shall 
read as follows: 

(7) Where the Court allows an appeal under this section, fifiEjjT* 
the Commission shall accept the pension plan for of court 
registration or re-instatement in accordance with the 
direction of the Court, which may include conditions 
precedent to qualification for registration or re- 
instatement of the plan imposed upon the appellant. 

5. Section 25 of The Pension Benefits Act, 1965 is amended 1 9 qq\ s . 25, 
by adding thereto the following clause: amended 

(ga) specifying service that shall be deemed not to be 
service in a designated province. 

6. This Act comes into force on the day it receives Royal m en\ menoe " 
Assent. 

7. This Act may be cited as The Pension Benefits Amend- 8hort titIe 
ment Act, 1968. 



134 



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BILL 134 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Pension Benefits Act, 1965 



Mr. MacNaughton 



TORONTO 

Printed and Published by Frank Fogg, Queen's Printer 



BILL 134 1968 



An Act to amend 
The Pension Benefits Act, 1965 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Subsection 7 of section 21 of The Pension Benefits Act, \^\- c - 96> 
1965 is repealed and the following substituted therefor: subs.' 7. 

r ° re-enacted, 

(7) Notwithstanding any provision of a pension plan, winding-up 
upon termination or winding-up of the pension plan 
all contributions made after the qualification date 
in respect of the deferred life annuity prescribed in 
subsection 1 to which any person is entitled shall be 
applied, subject to subsection lb and to the extent 
not already applied, towards the provision of the 
pension benefits prescribed in subsection 1. 

(7a) For the purpose of determining the pension benefits £jo n e ™ lina " 
to which a person may be entitled under subsec- benefits on 

. , , , . ,. winding-up 

tion 1 at the date ot termination or winding-up of of plan 
the pension plan, 

(a) each employee shall be deemed to have 
terminated his employment prior to attaining 
retirement age on the date of the termination 
or winding-up of the plan ; and 

(6) each former employee who retired on pension 
from the service of the employer shall be 
deemed to have terminated his employment 
prior to attaining retirement age but on the 
date of his retirement. 

(76) Notwithstanding subsections 1 and 2 and notwith- oVa^monai 
standing any provision of a pension plan, upon the beneflts 
termination or winding-up of a pension plan where, 

134 



(a) the benefits arising from the deferred life 
annuities prescribed in subsection 1 include 
additional pension benefits provided by an 
amendment to the terms of the plan made 
after the qualification date or by the creation 
of a plan after the qualification date, in 
respect of service prior to such amendment or 
creation; and 

(b) the funding of such additional pension 
benefits, as required by the regulations, has 
not been completed, 

the amount of such additional pension benefits may 
be reduced in accordance with the regulations. 

amended 96, ^' The Pension Benefits Act, 1965 is amended by adding 
thereto the following section: 



Declaration 
of Commis- 
sion that 
a plan is 
wound-up 



22c. — (1) The Commission, when it is of the opinion 
that an employer has discontinued or is in the 
process of discontinuing a part or all of his business 
operations in which a substantial number of his 
employees who are members of a pension plan are 
employed, may declare the pension plan wound-up 
in whole or in part for the purposes of this Act on 
such date as the Commission in its discretion deems 
such business operations are discontinued. 



Notification 



(2) The Commission shall notify the employer by 
registered mail that the pension plan is wound-up 
in whole or in part under subsection 1. 



Notice of 
objection 



(3) Where the employer objects to the declaration made 
by the Commission under subsection 1, he may 
within sixty days from the day of mailing of the 
notification of the Commission under subsection 2, 
serve on the Commission a notice of objection in 
duplicate in the prescribed form setting out the 
reasons for the objection and all relevant facts. 



c 9 96 s. 23 «*• Subsection 2 of section 23 of The Pension Benefits Act, 

amended ^^ IS amen ded D >' inserting after "under" in the first line 

"section 22c or", so that the subsection shall read as follows: 



Service 



(2) A notice of objection under section 22c or this 
section shall be served by being sent by registered 
mail addressed to the Commission at Toronto. 



1965. 

c. 96, S. 24. 

re-enacted Act, 1965 is repealed and the following substituted therefor: 



4. — (1) Subsection 1 of section 24 of The Pension Benefits 



134 



(1) Where an employer has served a notice of objection ^pp^*^ 
under section 22c or 23, he may appeal to the Court Appeal 
of Appeal, 

(a) within ninety days after the Commission has 
confirmed its opinion; or 

(b) after ninety days and before 180 days have 
elapsed after service of the notice of objection 
and the Commission has not notified the 
employer that it has confirmed or varied its 
opinion. 

(2) Subsection 7 of the said section 24 is amended by* 9 ^; s 2 a, 
inserting after "registration" in the second line and in the l^f^ J ed 
fourth line "or re-instatement", so that the subsection shall 
read as follows: 

(7) Where the Court allows an appeal under this section, d^s"^^ 116 
the Commission shall accept the pension plan for of court 
registration or re-instatement in accordance with the 
direction of the Court, which may include conditions 
precedent to qualification for registration or re- 
instatement of the plan imposed upon the appellant. 

5. Section 25 of The Pension Benefits Act, 1965 is amended l?%%\ 6 . 25, 
by adding thereto the following clause: amended 

(ga) specifying service that shall be deemed not to be 
service in a designated province. 

6. This Act comes into force on the day it receives Royal ,nen\ mence " 
Assent. 

7. This Act may be cited as The Pension Benefits Amend- sh0Tt title 
ment Act, 1968. 



134 



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BILL 135 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Consumer Protection Act, 1966 



Mr. Rowntree 



TORONTO 

Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 

Section 1. At present the itinerant sellers regulated are those 
selling from door to door on credit. The amendment extends this to all 
door to door sales. 



Section 2 — Subsection 1. The amendment requires an itemized 
break-down of the price of goods or services in an executory contract. 



Subsection 2. The new provision covers the case where a contract 
is entered into subject to adjustment if the liens against a trade-in prove 
to be different from that represented by the buyer. 



135 



BILL 135 1968 



An Act to amend 
The Consumer Protection Act, 1966 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause h of section 1 of The Consumer Protection Act, 19 66, c. 23, 
1966 is amended by striking out "a contract for the sale of amended' 
goods or services in which credit is extended" in the fourth 
and fifth lines and inserting in lieu thereof "an executory 
contract for the sale of goods or services", so that the clause 
shall read as follows: 

(h) "itinerant seller" means a seller whose business 
includes soliciting, negotiating or arranging for the 
signing by a buyer, at a place other than the seller's 
permanent place of business, of an executory con- 
tract for the sale of goods or services, whether 
personally or by his agent or employee. 

2. — (1) Clause c of subsection 1 of section 16 of The Con-l 9 %%- a 1A 
sumer Protection Act, 1966 is amended by inserting after subs, l, 
"the" where it occurs the first time in the first line "itemized", amended 
so that the clause shall read as follows: 

(c) the itemized price of the goods or services and a 
detailed statement of the terms of payment. 

(2) The said section 16 is amended by adding thereto the^ 9 !!' 8 . 16, 

following subsection: amended 

(3) Where the amount to be paid by a buyer under an Allowance 

.,.,,,, for trade-in 

executory contract is determined after an allowance subject to 
for a trade-in and is stated in the contract to be a JU8 
subject to adjustment after the existence or amount 
of liens against the trade-in is ascertained or con- 
firmed, the statement of the terms of payment and 
the statement of the cost of credit shall be based 
upon the amount as determined upon the information 

135 



provided by the buyer but, upon any subsequent 
adjustment, the rate of interest or the price shown 
in the contract shall not be changed. 

19 2a' s is **' — (*) Subsection 1 of section 18 of The Consumer Protec- 
8Ub8 'd'd f ' on ^ ct ' ^^ ls amen ded D Y striking out "and under which 

credit is extended" in the third and fourth lines, so that the 

subsection shall read as follows: 



EUaatMton 

of certain 
executory 
contracts 
within 
two dayB 



1966. 

c. 23, 8. 18. 

subs. 2, 
cl. a, 
re-enacted 



(1) Where a seller solicits, negotiates or arranges for the 
signing by a buyer of an executory contract at a 
place other than the seller's permanent place of 
business, the buyer may rescind the contract by 
delivering a notice of rescission in writing to the 
seller within two days after the duplicate original 
copy of the contract first comes into the possession 
of the buyer, and the buyer is not liable for any 
damages in respect of such rescission. 

(2) Clause a of subsection 2 of the said section 18 is repealed 
and the following substituted therefor: 

(a) the buyer shall immediately return any goods 
received under the contract and the seller shall bear 
the expense of the return, not exceeding the expense 
of returning the goods from the place where the 
buyer received their delivery; and 



19 oo* „ „ 4- Subsection 4 of section 32 of The Consumer Protection 
sube. 4 Act, 1966, as enacted by section 5 of The Consumer Protection 

c 13.8. 5). Amendment Act, 1967, is repealed and the following sub- 
stituted therefor: 



Deviations 
from forms 



(4) For the purposes of this section, an error or omission 
in any form prescribed or information required to be 
given by this Act or the regulations shall not be 
deemed to be in contravention of this Act or the 
regulations where the person against whom the 
contravention is alleged proves that the error or 
omission is a bona fide accidental or clerical error 
or omission or beyond his control. 



1966. c. 23, 
amended 



5. The Consumer Protection Act, 1966 is amended by adding 
thereto the following section: 



Protection 
from 

Eersonal 
ability 



32a. No action or other proceeding for damages shall be 
instituted against the Director or the Registrar or 
any person acting under his authority for anj 



135 



Section 3 — Subsection 1. At present the two-day cooling-off period 
applies only to contracts with itinerant sellers where credit is extended. 
The amendment extends this to all executory contracts with itinerant 
sellers. 



Subsection 2. At present a seller is liable to pay the costs of returning 
the goods after the buyer rescinds the contract. The amendment confines 
the liability to the cost of returning the goods from the place to which 
he originally delivered them. 



Section 4. The amendment extends relief against bona fide clerical 
error to include such errors made in the statutory requirements for exec- 
utory contracts. 



Section 5. Self-explanatory. 



135 



done in good faith in the execution or intended 
execution of his duty under this or any other Act 
or for any alleged neglect or default in the execution 
in good faith of any such duty. 

6. — (1) This Act, except section 1 and subsection 1 of Snt mence " 
section 3, comes into force on the day it receives Royal Assent. 

(2) Section 1 and subsection 1 of section 3 come into force Idera 
on the 1st day of October, 1968. 

7. This Act may be cited as The Consumer Protection short tltle 
Amendment Act, 1968. 



135 



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BILL 135 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Consumer Protection Act, 1966 



Mr. Rowntree 



{Reprinted as amended by the Committee of the Whole House) 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 

Section 1. At present the itinerant sellers regulated are those 
selling from door to door on credit. The amendment extends this to all 
door to door sales. 



Section 2 — Subsection 1. The amendment requires an itemized 
break-down of the price of goods or services in an executory contract. 



Subsection 2. The new provision covers the case where a contract 
is entered into subject to adjustment if the liens against a trade-in prove 
to be different from that represented by the buyer. 



135 



BILL 135 1968 



An Act to amend 
The Consumer Protection Act, 1966 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause h of section 1 of The Consumer Protection Act, £ 9 ^ 6, cl c - A 23 - 
1966 is amended by striking out "a contract for the sale of amended' 
goods or services in which credit is extended" in the fourth 
and fifth lines and inserting in lieu thereof "an executory 
contract for the sale of goods or services", so that the clause 
shall read as follows: 

(h) "itinerant seller" means a seller whose business 
includes soliciting, negotiating or arranging for the 
signing by a buyer, at a place other than the seller's 
permanent place of business, of an executory con- 
tract for the sale of goods or services, whether 
personally or by his agent or employee. 

2. — (1) Clause c of subsection 1 of section 16 of The Con-* 9 ™> e 
sumer Protection Act, 1966 is amended by inserting aftersubs.'i, 
"the" where it occurs the first time in the first line "itemized", amended 
so that the clause shall read as follows: 

(c) the itemized price of the goods or services and a 
detailed statement of the terms of payment. 

(2) The said section 16 is amended by adding thereto the* 9 !!; 8 . 16i 

following Subsection: amended 

(3) Where the amount to be paid by a buyer under an Allowance 

v ' • i • i c ii for trade-in 

executory contract is determined after an allowance subject to 
for a trade-in and is stated in the contract to be a 
subject to adjustment after the existence or amount 
of liens against the trade-in is ascertained or con- 
firmed, the statement of the terms of payment and 
the statement of the cost of credit shall be based 
upon the amount as determined upon the information 

135 



L966, 

o. 23, b. 18. 

subs. 1, 

amended 



Rescission 
of certain 
executory 
contracts 
within 
two days 



1966, 

c. 23, s. 18, 

subs. 2, 

cl. a, 

re-enacted 



provided by the buyer but, upon any subsequent 
adjustment, the percentage rate by which the cost 
of borrowing is expressed, the total number of 
instalments required to pay the total indebtedness 
or the price shown in the contract shall not be 
changed. 

3. — (1) Subsection 1 of section 18 of The Consumer Protec- 
tion Act, 1966 is amended by striking out "and under which 
credit is extended" in the third and fourth lines, so that the 
subsection shall read as follows: 

(1) Where a seller solicits, negotiates or arranges for the 
signing by a buyer of an executory contract at a 
place other than the seller's permanent place of 
business, the buyer may rescind the contract by 
delivering a notice of rescission in writing to the 
seller within two days after the duplicate original 
copy of the contract first comes into the possession 
of the buyer, and the buyer is not liable for any 
damages in respect of such rescission. 

(2) Clause a of subsection 2 of the said section 18 is repealed 
and the following substituted therefor: 

(a) the buyer shall immediately return any goods 
received under the contract and the seller shall bear 
the expense of the return, not exceeding the expense 
of returning the goods from the place where the 
buyer received their delivery; and 



1966, 

c. 23, s. 32, 

subs. 4 

(1967. 

c. 13. 8. 6). 

re-enacted 



Deviations 
from forms 



1966. c. 23, 
amended 



Protection 
from 
personal 
liability 



4. Subsection 4 of section 32 of The Consumer Protection 
Act, 1966, as enacted by section 5 of The Consumer Protection 
Amendment Act, 1967, is repealed and the following sub- 
stituted therefor: 

(4) For the purposes of this section, an error or omission 
in any form prescribed or information required to be 
given by this Act or the regulations shall not be 
deemed to be in contravention of this Act or the 
regulations where the person against whom the 
contravention is alleged proves that the error or 
omission is a bona fide accidental or clerical error 
or omission or beyond his control. 

5. The Consumer Protection Act, 1966 is amended by adding 
thereto the following section : 

32a. No action or other proceeding for damages shall be 
instituted against the Director or the Registrar or 
any person acting under his authority for any act 



135 



Section 3 — Subsection 1 . At present the two-day cooling-off period 
applies only to contracts with itinerant sellers where credit is extended. 
The amendment extends this to all executory contracts with itinerant 
sellers. 



Subsection 2. At present a seller is liable to pay the costs of returning 
the goods after the buyer rescinds the contract. The amendment confines 
the liability to the cost of returning the goods from the place to which 
he originally delivered them. 



Section 4. The amendment extends relief against bona fide clerical 
error to include such errors made in the statutory requirements for exec- 
utory contracts. 



Section 5. Self-explanatory. 



135 



done in good faith in the execution or intended 
execution of his duty under this or any other Act 
or for any alleged neglect or default in the execution 
in good faith of any such duty. 

6.— (1) This Act, except section 1 and subsection 1 of £ent mence " 
section 3, comes into force on the day it receives Royal Assent. 

(2) Section 1 and subsection 1 of section 3 come into force Idem 
on the 1st day of October, 1968. 

7. This Act may be cited as The Consumer Protection** * 1 utl * 
Amendment Act, 1968. 




135 



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BILL 135 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Consumer Protection Act, 1966 



Mr. Rowntree 






TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 135 1968 



An Act to amend 
The Consumer Protection Act, 1966 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause h of section 1 of The Consumer Protection Act, 19 66. c. 23. 
1966 is amended by striking out "a contract for the sale of amended' 
goods or services in which credit is extended" in the fourth 
and fifth lines and inserting in lieu thereof "an executory 
contract for the sale of goods or services", so that the clause 
shall read as follows: 

(h) "itinerant seller" means a seller whose business 
includes soliciting, negotiating or arranging for the 
signing by a buyer, at a place other than the seller's 
permanent place of business, of an executory con- 
tract for the sale of goods or services, whether 
personally or by his agent or employee. 



c. 23, s. 16, 



2. — (1) Clause c of subsection 1 of section 16 of The Con-™™ 
sumer Protection Act, 1966 is amended by inserting after s ubs.'i, 
"the" where it occurs the first time in the first line "itemized", amended 
so that the clause shall read as follows: 

(c) the itemized price of the goods or services and a 
detailed statement of the terms of payment. 

(2) The said section 16 is amended by adding thereto the£ 9 ff' s 16 

following subsection : amended 

(3) Where the amount to be paid by a buyer under an Allowance 

.,.,,,, for trade-in 

executory contract is determined after an allowance subject to 
for a trade-in and is stated in the contract to be a JUS 
subject to adjustment after the existence or amount 
of liens against the trade-in is ascertained or con- 
firmed, the statement of the terms of payment and 
the statement of the cost of credit shall be based 
upon the amount as determined upon the information 

135 



L966, 

o. 23, s. 18. 
subs. 1. 
amended 



Rescission 
of certain 
executory 
contracts 
within 
two days 



L966, 

c. 23. s. 18, 
subs. 2, 
cl. a, 
re-enacted 



provided by the buyer but, upon any subsequent 
adjustment, the percentage rate by which the cost 
of borrowing is expressed, the total number of 
instalments required to pay the total indebtedness 
or the price shown in the contract shall not be 
changed. 

3. — (1) Subsection 1 of section 18 of The Consumer Protec- 
tion Act, 1966 is amended by striking out "and under which 
credit is extended" in the third and fourth lines, so that the 
subsection shall read as follows: 

(1) Where a seller solicits, negotiates or arranges for the 
signing by a buyer of an executory contract at a 
place other than the seller's permanent place of 
business, the buyer may rescind the contract by 
delivering a notice of rescission in writing to the 
seller within two days after the duplicate original 
copy of the contract first comes into the possession 
of the buyer, and the buyer is not liable for any 
damages in respect of such rescission. 

(2) Clause a of subsection 2 of the said section 18 is repealed 
and the following substituted therefor: 

(a) the buyer shall immediately return any goods 
received under the contract and the seller shall bear 
the expense of the return, not exceeding the expense 
of returning the goods from the place where the 
buyer received their delivery; and 



1966, 

c. 23, S. 32, 

subs. 4 

(1967, 

c. 13, 8. 5), 

re-enacted 



Deviations 
from forms 



1966. c. 23, 
amended 



Protection 
from 
personal 
liability 



4. Subsection 4 of section 32 of The Consumer Protection 
Act, 1966, as enacted by section 5 of The Consumer Protection 
Amendment Act, 1967, is repealed and the following sub- 
stituted therefor: 

(4) For the purposes of this section, an error or omission 
in any form prescribed or information required to be 
given by this Act or the regulations shall not be 
deemed to be in contravention of this Act or the 
regulations where the person against whom the 
contravention is alleged proves that the error or 
omission is a bona fide accidental or clerical error 
or omission or beyond his control. 

5. The Consumer Protection Act, 1966 is amended by adding 
thereto the following section: 

32a. No action or other proceeding for damages shall be 
instituted against the Director or the Registrar or 
any person acting under his authority for any act 



135 



done in good faith in the execution or intended 
execution of his duty under this or any other Act 
or for any alleged neglect or default in the execution 
in good faith of any such duty. 

6.— (1) This Act, except section 1 and subsection 1 of£°™ t mence " 
section 3, comes into force on the day it receives Royal Assent. 



(2) Section 1 and subsection 1 of section 3 come into force Idem 
on the 1st day of October, 1968. 

7. This Act may be cited as The Consumer Protection Short tltle 
Amendment Act, 1968. 



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BILL 136 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Income Tax Act, 1961-62 



Mr. MacNaughton 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The amendment provides that the tax payable by individuals for the 
1969 taxation year shall be 28 per cent of the tax payable under the federal 
Act lor that taxation year. 



136 



BILL 136 



1968 



An Act to amend The Income Tax Act, 1961-62 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Subsection 3 of section 3 of The Income Tax Act, 1961-62, c 9 lo 6 s 2, 3 
as amended by section 1 of The Income Tax Amendment Act, l^^ded 
1965, section 2 of The Income Tax Amendment Act, 1966 

and section 2 of The Income Tax Amendment Act, 1967, is 
further amended by striking out "and" at the end of clause e 
in the amendment of 1966 and by adding "and" at the end 
of clause/ in the amendment of 1967, and by adding thereto 
the following clause: 

(g) 28 per cent in respect of the 1969 taxation year. 

2. This Act comes into force on the day it receives Royal commence- 
Assent. 

3. This Act may be cited as The Income Tax Amendment Short tltle 
Act, 1968. 



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BILL 136 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Income Tax Act, 1961-62 



Mr. MacNaughton 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 136 



1968 



An Act to amend The Income Tax Act, 1961-62 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Subsection 3 of section 3 of The Income Tax Act, 1961-62, c 9 |o~ 6 8 2, 3 
as amended by section 1 of The Income Tax Amendment Act, suhB - ?• 

9. 1"P 6 P Q 6 Q 

1965, section 2 of The Income Tax Amendment Act, 1966 
and section 2 of The Income Tax Amendment Act, 1967, is 
further amended by striking out "and" at the end of clause e 
in the amendment of 1966 and by adding "and" at the end 
of clause/ in the amendment of 1967, and by adding thereto 
the following clause: 

(g) 28 per cent in respect of the 1969 taxation year. 

2. This Act comes into force on the day it receives Royal commence- 

- J J ment 

Assent. 

3. This Act may be cited as The Income Tax Amendment Short title 
Act, 1968. 



136 






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BILL 137 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Financial Administration Act 



Mr. MacNaughton 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



E X l'LANATOK Y N OTES 

GBNBKAL: Upon the recommendation of the Ontario Committee 
OH Taxation, the functions of the present Treasury Department will be 
divided generally into those concerning all facets of fiscal and economic 
policy and those concerning the administration of the provincial revenue 
statutes. This Bill establishes the Department of Treasury and Economics 
which will manage the financial and economic affairs of Ontario. A com- 
plementary Bill to establish the Department of Revenue will also be 
introduced. 

Section 1 — Subsection 1. The amendment is complementary to 
the amendment contained in section 10 of this Bill. 



Subjection 2. Self-explanatory. 



Subsection 3. Self-explanatory. 



Subsection 4. Self-explanatory. 



137 



BILL 137 



1968 



An Act to amend 
The Financial Administration Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause b of section 1 of The Financial Administra-^s.o. i960, 

. . c.l42,S.l, 

Hon Act is amended by adding at the end thereof "or in the<--i. b, 
name of any agency of the Crown approved by the Lieutenant 
Governor in Council", so that the clause shall read as follows: 

(b) "Consolidated Revenue Fund" means the aggregate 
of all public moneys that are on deposit at the 
credit of the Treasurer or in the name of any agency 
of the Crown approved by the Lieutenant Governor 
in Council. 

(2) The said section 1 is amended by adding thereto the* 1 ^- * 960 ' 

following clauses: amended 

(ba) "Crown" means the Crown in right of Ontario; 



(ca) "Deputy Treasurer" means the Deputy Treasurer of 
Ontario and Deputy Minister of Economics. 



(3) Clause h of the said section 1 is amended by striking^ ^°- * 960, 
out "means'" 
"includes". 



in the first line and inserting in lieu thereof cl - *• 

° amended 



(4) Clause m of the said section 1 is amended by adding ^•^•] 9 ^°« 
at the end thereof "and Minister of Economics", so that ** m >. 
the clause shall read as follows: 

(m) "Treasurer" means the Treasurer of Ontario and 
Minister of Economics. 



137 



K.S.O. 1960, 
0. 142. 8. 2, 

Mil*. 'A 
(1!>66. 
<•. 57. 8. 1). 
a mended 



2. Subsection 3 of section 2 of The Financial Administra- 
tion Act, as re-enacted by section 1 of The Financial Admin- 
istration Amendment Act, 1966, is amended by adding at the 
end thereof "and the Secretary of the Treasury Board shall 
rank as and have all the powers of a deputy minister of a 
department", so that the subsection shall read as follows: 



itury 



(3) The Lieutenant Governor in Council shall appoint 
an officer to be called the Secretary of the Treasury 
Board, who shall perform such functions as the 
Treasury Board may assign to him, and the Secretary 
of the Treasury Board shall rank as and have all 
the powers of a deputy minister of a department. 



?'?4t*« g l?' 3. Section 3 of The Financial Administration Act, as 
re-ena. u <i amended by section 2 of The Financial Administration Amend- 
ment Act, 1966, is repealed and the following substituted 
therefor : 



: uties of 
Treasury 
Hoard 



3. — (1) The Treasury Board shall act as a committee 
of the Executive Council on all matters relating to 
finance, revenues, estimates, expenditures, financial 
commitments, terms of employment of Crown 
employees, organization and staff establishments 
and on any other matter concerning general admin- 
istrative policy in the public service that is referred 
to the Board by the Executive Council or on which 
the Board considers it desirable to report to the 
Executive Council. 



Nomination 
>m Crown 
employee* 



i »6i «;^ 

C. 121 



(2) The Treasury Board shall nominate and recommend 
to the Lieutenant Governor in Council the Crown 
employees who shall constitute the official side of 
the Joint Council appointed under section 19a of 
The Public Service Act, 1961-62, and such appointees 
shall be responsible to the Treasury Board. 



" t42,'ii 9 5 0, "*■• Section 5 of The Financial Administration Act, as 
amended amended by section 2 of The Financial Administration Amend- 
ment Act, 1965, is further amended by adding thereto the 
following clause: 



i!>«;i-62. 
. 121 



(ab) prescribing salaries of Crown employees that have 
been determined through negotiation under 
tion 19a or 196 of The Public Service Act, 1961-62. 



R.S.O. 1960 
O. 142. B. 6. 
re-enacted 



5. Section 6 of The Financial Administration Act is repealed 
and the following substituted therefor: 



137 



Section 2. The amendment clarifies the rank and status of the 
Secretary of the Treasury Board. 



Section 3 — Subsections 1 and 2. The amendments in these two 
subsections are intended to clarify the existing duties of the Treasury 
Board. 



Section 4. This amendment is complementary to that contained in 
section 3 of the Bill. 



Section 5. This section establishes the Department of Treasury 
and Economics which is administered by the Treasurer. The section 
repealed referred to the Treasury Department which will no longer exist 
as a department. 



137 



Section 6. The amendment defines the duties of the Treasurer and 
provides for the delegation of his powers and duties. 



Section 7. The amendment defines the duties of the Deputy 
Treasurer. 



Section 8. The sections repealed contained the provisions for the 
statutory appointments of the Comptroller of Accounts, Comptroller of 
Finance and Comptroller of Revenue. The repeal of these sections results 
from the re-organization of the Treasury Department. 



137 



DEPARTMENT OK TREASURY AND ECONOMICS 



6. There shall be a department of the public service l) f e '^ art "?, e " t 

r r of I reasury 

called the Department of Treasury and Economics and 

, . , it. t> i it -j Economic* 

over which the 1 reasurer shall preside. 
6. Section 7 of The Financial Administration Act is repealed R ?:°/ 19 £°- 

* c. 142, 8. 7, 

and the following substituted therefor: re-enacted 



— (1) The Treasurer shall direct and control 
Department of Treasury and Economics, recommend 
to the Executive Council financial, economic, 
accounting and taxation policy, advise on federal- 
provincial affairs, manage the Consolidated Revenue 
Fund and all public money and supervise, direct and 
control all financial, economic, statistical and 
accounting functions not by law or by the Lieutenant 
Governor in Council otherwise assigned. 



fU Duties of 
c Treasurer 



(2) The Treasurer is responsible for the administration {stered d by in " 
of this Act, and the Acts that are assigned to him Treasurer 
by the Legislature or by the Lieutenant Governor 

in Council. 

(3) Any power or duty conferred on the Treasurer by J f e p e g were n 
this or any other Act may be delegated by him to*"^^®^! 
the Deputy Treasurer or to any officer of the Depart- 
ment of Treasury and Economics who may act 

for him in his place and stead, and, when the Deputy 
Treasurer or such other officer acts in the place and 
stead of the Treasurer, it shall be presumed con- 
clusively that he acted in accordance with such a 
delegation. 

7. Section 9 of The Financial Administration Act is repealed R f 4 °; g 9 ^ 0, 
and the following substituted therefor: re-enacted 



shall Deputy 

Sllclll Treasurer 



9. — (1) The Lieutenant Governor in Council 

appoint a Deputy Treasurer and Deputy Minister and Deputy 
of Economics to be the deputy head of the Depart- Economics 
ment of Treasury and Economics. 



(2) Under the direction of the Treasurer, the Deputy 
Treasurer shall perform such duties as the Treasurer 
may assign or delegate to him. 

8. Sections 10 and 11, section 12, as amended by section 3 R ^ 4 °/ 1960, 
of The Financial Administration Amendment Act, 1965, and ss - 10 ; 1 ^- 

. m _ re p Gci led 

sections 13, 14, 15 and 16 of The Financial Administration 
Act are repealed. 



137 



?142b. 9 i2" ®' Section 19 of The Financial Administration Act is 
re-ena'rted repealed and the following substituted therefor: 

I'ubiw- 19. — (i) Subject to this Part, all public money shall be 

to be deposited to the credit of the Treasurer. 

deposited 

nient b or h * ^ ^ ne Treasurer shall establish in the name of the 

Treasurer of Ontario or in the name of any agency 
of the Crown approved by the Lieutenant Governor 
in Council, accounts with such banks as he designates 
for the deposit of public money. 

person^ (3) Every person who collects or receives public money 

(oiiejting shall pay all money coming into his hands to the 

money credit of the Treasurer of Ontario through such 

officers, banks or persons and in such manner as 
the Treasurer directs and shall keep a record of 
receipts and deposits thereof in such form and 
manner as the Treasurer directs. 

c^fi^'s^o* *0 # Subsection 1 of section 20 of The Financial Administra- 
eube. i. tion Act is repealed and the following substituted therefor: 

'm£y* unr 20. — (1) The Treasurer, when he deems it advisable for 

securities tne s 01111 ^ an d efficient management of public money 

or of the public debt or of any sinking fund may 
from time to time and on such terms and conditions 
as he may deem advisable, purchase, acquire and 
hold, 

(a) securities issued by or guaranteed as to 
principal and interest by Ontario, any other 
province of Canada, Canada or the United 
Kingdom; and 

(6) securities issued by the United States of 
America; and 

(c) securities issued or guaranteed by the Inter- 
national Bank for Reconstruction and De- 
velopment payable in Canadian or United 
States currency; and 

(d) deposit receipts, deposit notes, certificates of 
deposits, acceptances and other similar in- 
struments issued or endorsed by any chartered 

c?S? (Can.) bank to which the Bank Act (Canada) applies, 

and pay therefor out of the Consolidated Revenue 
Fund. 

137 






Section 9. The amendment provides that, subject to the approval 
of the Lieutenant Governor in Council, agencies of the Crown may open 
bank accounts in their own names. 



Section 10. The amendment will allow the Treasurer to invest in 
securities issued or guaranteed by the International Bank for Reconstruc- 
tion and Development and in various negotiable instruments issued or 
endorsed by a bank which is subject to the Bank Act (Canada). 



137 



SKTIOli 11. The amendment confirms present practice 



Section 12. Section 22a which is repealed by this section of the 
Bill will be included in the Act to establish the Department of Provincial 
Revenue. 



Section 13. The subsection repealed is redundant as a result of 
the re-organization of the Department. 

Section 14 — Subsection 1. In substance, the subsection remains 
the same. The re-enactment was necessary as a result of the re-organiza- 
tion of the Department. 



Subsection 2. The subsection repealed referred to a statutory duty 
of the Comptroller of Accounts. The amendment is complementary to 
that contained in section 9 of this Bill. 

Section 15 — Subsection 1. The amendment is complementary to 
that contained in sections 5 and 9 of this Bill. 



Subsection 2. The subsection repealed is redundant as a result of 
the re-organization of the Department. 

Sixmos 16. The amendment will permit the Lieutenant Governor 
in Council to also raise money by way of the sale of interest bearing 
treasury bills. 



137 



11. Subsection 3 of section 22 of The Financial Administra-^-f^- i 9 |g- 
lion Act is amended by striking out "surplus account" in thesubs. 3 
second line and inserting in lieu thereof "Public Accounts", 

so that the subsection shall read as follows: 

(3) The losses deleted from the accounts during any ^° p ^ ed in 
fiscal vear shall be reported in the Public Accounts Public 

. • . Accounts 

for that year. 

12. Section 22a of The Financial Administration Act, as R -^9- 1960, 

c. 142, 

enacted by section 3 of The Financial Administration Amend-*- 22a 
ment Act, 1966, is repealed. c. 57, 's. 3), 

repealed 

13. Subsection 2 of section 25 of The Financial Administra-^-^^^ 9 ^' 
tion Act is repealed. subs. 2. 

repealed 

14. — (1) Subsection 1 of section 27 of The Financial ^f^^' 3 ™- 
Administration Act is repealed and the following substituted subs *•■ 

r ° re-enacted 

therefor : 

(1) Every payment out of the Consolidated Revenue payments 
Fund shall be made by cheque which shall be signed out of Fund 
by the Treasurer and by the Deputy Treasurer or 
such other officer of the Department of Treasury 
and Economics who is for the time being authorized 
by the Treasurer to sign cheques. 

R.S.O. I960, 
c. 142 s. 27 

(2) Subsection 3 of the said section 27 is repealed. subs. 3,' 

repealed 

15. — (1) Subsection 1 of section 33 of 'The Financial R f-°} 9 £0. 
Administration Act is amended by striking out "the Comp-subs. 1 
troller of Accounts to make" in the second line, so that the' 
subsection shall read as follows: 



(1) On the application of a minister, the Treasurer may A ^°^"*^ ble 
authorize an accountable advance out of the Con- 
solidated Revenue Fund for the purpose of meeting 
disbursements for travelling expenses or other 
contingencies or of making payments on account of 
expenses incurred or to be incurred. 



R.S.O. I960, 

(2) Subsection 3 of the said section 33 is repealed. subs' a, 

repealed 



16. Paragraph 2 of section 39 of The Financial Admin-™ f^',*^, 
istration Act is amended by inserting after "of" in the first ^J 1 ,;^ 
line "interest bearing treasury bills and", so that the para- 
graph shall read as follows: 

2. By the issue and sale of interest bearing treasury 
bills and non-interest bearing treasury bills which 
may be in such form and for such separate sums and 

137 



6 

may be payable at such place or places and at such 
time or times, not later than twelve months after 
the date thereof, as the Lieutenant ( iovernor in 
Council deems expedient. 

<*■! m ( 2 .' s.^o ,' IT. Subsection 1 of section 40 of The Financial Admin- 
re enal'ted titration Act is repealed and the following substituted therefor: 

Raising of n\ \ n addition to all monev authorized to be raised by 

Joans for v ' • « ■ * • 

refunding way of loan by anv other Act, the Lieutenant 

purposes J _ ■ t . , . 

Governor in Council may raise money by way of 

loan in such manner and at such times as is deemed 

expedient by the issue and sale of any class or classes 

of securities in such amounts as will realize the net 

sum required for any or all of the following purposes: 

1. Payment, refunding or renewal from time 
to time of the whole or any part of any loan 
raised or securities issued under this or any 
other Act, or the re-imbursement of the 
Consolidated Revenue Fund for expenditures 
made therefrom for the payment of such 
security within a period of one year after 
maturity date of such security, notwith- 
standing that the issue of securities for such 
purpose may have the effect of increasing the 
amount of the public debt or of extending the 
term of years, if any, fixed by the Act authoriz- 
ing the raising of the loan or the issue of the 
securities being paid, refunded or renewed. 

2. Payment of the whole or any part of any 
loan or of any liability or of any bonds, 
debentures or other obligations, payment 
whereof is guaranteed or assumed by Ontario. 

R-8-O. i960. 18. Section 41 of The Financial Administration Act is 
re-enacted ' repealed and the following substituted therefor: 

may r be ies **• Any securities issued under the authority of this or 

subject any other Act heretofore or hereafter passed may be 

made redeemable or payable in advance of maturity 
upon such terms and conditions, at such time or 
times, and at such price or prices as the Lieutenant 
Governor in Council provides at the time of the 
issue thereof. 

*'t&i*$' 19# Section 42 of The Financial Administration Act is 
re-enacted ' repealed and the following substituted therefor: 

137 



Skciion 17. The present section 40 has been amended to allow the 
Lieutenant Governor in Council to raise money for the purpose of re- 
imbursing the Consolidated Revenue Fund for money already expended 
therefrom to retire securities at maturity to the extent that such moneys 
are not provided for in the annual Ontario Loan Act. This procedure 
would give more flexibility to the lining of the sales of debentures of the 
Province. 



SECTION 18. The amendment provides for the redemption of secu- 
rities in advance of maturity not only at the option of the Province, as is 
presently the case, but also at the option of the holder, upon such terms 
and conditions as the Lieutenant Governor in Council may provide at 
the time of the issue. 



Section 19. In substance the section remains the same, but, in 
addition to the changes required by the re-organization, the amendment 
will permit officers of the Department of Treasury and Economics who are 
authorized by the Lieutenant Governor in Council to execute agreements 
for the raising of money. 



137 



> 



Section 20. The amendment permits authorized officers of the 
Department of Treasury and Economics to sign securities. 



SECTION 21. This is a new section which provides that the rights of 
holders of securities previously executed by the Treasurer of Ontario 
will not be affected by the re-organization of the department and the 
renaming of the Treasurer to that of Treasurer of Ontario and Minister of 
Economics. 

Section 22. Self-explanatory. 



137 



42. The Lieutenant Governor in Council may authorize Contracts 

rr i^v and agree- 

the Treasurer or any officer of the Department of'^ents for 
Treasury and Economics to enter into such contracts of loans 
and agreements relating to the raising of loans or 
the issue and sale of securities as the Lieutenant 
Governor in Council approves, but where the 
Lieutenant Governor in Council authorizes the 
raising of a loan by the issue and sale of interest 
bearing treasury bills or of non-interest bearing 
treasury bills, he may authorize the Treasurer to 
offer any such treasury bills for sale on a competitive 
or other basis and upon such terms and conditions, 
including the date of issue and the date of maturity 
thereof, as the Treasurer deems expedient and to 
sell any or all of such treasury bills in such principal 
amount or amounts and for such price or prices as 
the Treasurer accepts. 

20. Section 47 of The Financial Administration Act is^f^.g 9 /?,' 
repealed and the following substituted therefor: re-enacted 

47. — (1) Securities issued under the authority of this^®^V nties - 
Act shall be signed by the Treasurer and shall be executed 
countersigned by the Deputy Treasurer or such 
officer of the Department of Treasury and Economics 
who is authorized by the Lieutenant Governor in 
Council to so countersign. 

(2) The Lieutenant Governor in Council may provide ldem 
that the signatures upon the securities and the 
coupons attached thereto may be engraved, litho- 
graphed, printed or otherwise mechanically re- 
produced. 

21. Nothing in this Act impairs or prejudicially affects £ Iretofore 
the rights of any holder of any securities issued before this i88ued 
Act comes into force. 

22. The Treasurer shall exercise the powers and perform dutieTof™ 
the duties of the Minister of Trade and Development under Mil1ister 
The Regional Development Councils Act, 1966 or The Statistics 1966, c ' : ' 
Act, 1962-63 or any regulation made under either of suchc. 133 6 ' 
Acts. 

23. This Act comes into force on a day to be named by ni en\ m< 
the Lieutenant Governor by his proclamation. 

24. This Act may be cited as The Financial Administration M 
Amendment Act, 1968. 



137 



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BILL 137 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Financial Administration Act 



Mr. MacNaughton 



(Reprinted as amended by the Committee of the Whole House) 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 






Explanatory Notes 

General: Upon the recommendation of the Ontario Committee 
on Taxation, the functions of the present Treasury Department will be 
divided generally into those concerning all facets of fiscal and economic 
policy and those concerning the administration of the provincial revenue 
statutes. This Bill establishes the Department of Treasury and Economics 
which will manage the financial and economic affairs of Ontario. A com- 
plementary Bill to establish the Department of Revenue will also be 
introduced. 

Section 1 — Subsection 1. The amendment is complementary to 
the amendment contained in section 10 of this Bill. 



Subsection 2. Self-explanatory. 



Subsection 3. Self-explanatory. 



Subjection 4. Self-explanatory. 



137 






BILL 137 1968 



An Act to amend 
The Financial Administration Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause b of section 1 of The Financial Administra- R fO- 19 ?o. 

c 142 S 1 

tion Act is amended by adding at the end thereof "or in theci. &. 
name of any agency of the Crown approved by the Lieutenant 
Governor in Council", so that the clause shall read as follows: 

(b) "Consolidated Revenue Fund" means the aggregate 
of all public moneys that are on deposit at the 
credit of the Treasurer or in the name of any agency 
of the Crown approved by the Lieutenant Governor 
in Council. 

(2) The said section 1 is amended by adding thereto the^^^ 9 ^ - 

following clauses: amended 

(ba) "Crown" means the Crown in right of Ontario; 



(ca) "Deputy Treasurer" means the Deputy Treasurer of 
Ontario and Deputy Minister of Economics. 

(3) Clause h of the said section 1 is amended by striking^ 1 ^<d. i960, 
out "means" in the first line and inserting in lieu thereof ci- *. ' ] 

... i , ,, amended 

includes . 

(4) Clause m of the said section 1 is amended by adding^ 1 -^o. 19 ^°- 
at the end thereof "and Minister of Economics", so that '- ■».! 

the clause shall read as follows: 

(m) "Treasurer" means the Treasurer of Ontario and 
Minister of Economics. 

137 



R.8.O. I960, 

c. 142, 8. 2. 

sube. 3 

(1966, 

o. 67. s. 1), 

amended 



2. Subsection 3 of section 2 of The Financial Administra- 
tion Act, as re-enacted by section 1 of The Financial Admin- 
istration Amendment Act, 1966, is amended by adding at the 
end thereof "and the Secretary of the Treasury Board shall 
rank as and have all the powers of a deputy minister of a 
department", so that the subsection shall read as follows: 



Secretary 



(3) The Lieutenant Governor in Council shall appoint 
an officer to be called the Secretary of the Treasury 
Board, who shall perform such functions as the 
Treasury Board may assign to him, and the Secretary 
of the Treasury Board shall rank as and have all 
the powers of a deputy minister of a department. 



< R 'i42" a 9 ! ' **• Sectkm 3 of The Financial Administration Act, as 
re-ena'cted amended by section 2 of The Financial Administration Amend- 
ment Act, 1966, is repealed and the following substituted 
therefor: 



Duties of 
Treasury 
Board 



3. — (1) The Treasury Board shall act as a committee 
of the Executive Council on all matters relating to 
finance, revenues, estimates, expenditures, financial 
commitments, terms of employment of Crown 
employees, organization and staff establishments 
and on any other matter concerning general admin- 
istrative policy in the public service that is referred 
to the Board by the Executive Council or on which 
the Board considers it desirable to report to the 
Executive Council. 



Nomination 
of Crown 
employees 



LM1-61 

c. 121 



(2) The Treasury Board shall nominate and recommend 
to the Lieutenant Governor in Council the Crown 
employees who shall constitute the official side of 
the Joint Council appointed under section 19a of 
The Public Service Act, 1961-62, and such appointees 
shall be responsible to the Treasury Board. 



cVi42.' a. 9 ! 0, *• Section 5 of The Financial Administration Act, as 
amended amended by section 2 of The Financial Administration Amend- 
ment Act, 1965, is further amended by adding thereto the 
following clause: 



1961-62. 
c. 121 



(ab) prescribing salaries of Crown employees that have 
been determined through negotiation under sec- 
tion 19a or 196 of The Public Service Act, 1961-62. 



cVi42.' i 9 6? 5. Section 6 of The Financial Administration Act is repealed 
re-enacted anc j t ^ e following substituted therefor: 



137 



Section 2. The amendment clarifies the rank and status of the 
Secretary of the Treasury Board. 



Section 3 — Subsections 1 and 2. The amendments in these two 
subsections are intended to clarify the existing duties of the Treasury 
Board. 



Section 4. This amendment is complementary to that contained in 
section 3 of the Bill. 



Section 5. This section establishes the Department of Treasury 
and Economics which is administered by the Treasurer. The section 
repealed referred to the Treasury Department which will no longer exist 
as a department. 



137 



Section 6. The amendment defines the duties of the Treasurer and 
provides for the delegation of his powers and duties. 






Section 7. The amendment defines the duties of the Deputy 
Treasurer. 



Section 8. The sections repealed contained the provisions for the 
statutory appointments of the Comptroller of Accounts, Comptroller of 
Finance ana Comptroller of Revenue. The repeal of these sections results 
from the re-organization of the Treasury Department. 



137 






DEPARTMENT OF TREASURY AND ECONOMICS 

6. There shall be a department of the public service ^freasifry 
called the Department of Treasury and Economics » n d 
over which the Treasurer shall preside. 

6. Section 7 of The Financial Administration Act is repealed ^-^j' a 9 ? 0, 
and the following substituted therefor: re-enacted' 

7.— (1) The Treasurer shall direct and control the TreSrer 
Department of Treasury and Economics, recommend 
to the .Executive Council financial, economic, 
accounting and taxation policy, advise on federal- 
provincial affairs, manage the Consolidated Revenue 
Fund and all public money and supervise, direct and 
control all financial, economic, statistical and 
accounting functions not by law or by the Lieutenant 
Governor in Council otherwise assigned. 

(2) The Treasurer is responsible for the administration istered d by in " 
of this Act, and the Acts that are assigned to him Treasurer 
by the Legislature or by the Lieutenant Governor 

in Council. 

(3) Any power or duty conferred on the Treasurer by of e powere n 
this or any other Act may be delegated by him to of Treasurer 
the Deputy Treasurer or to any officer of the Depart- 
ment of Treasury and Economics who may act 

for him in his place and stead, and, when the Deputy 
Treasurer or such other officer acts in the place and 
stead of the Treasurer, it shall be presumed con- 
clusively that he acted in accordance with such a 
delegation. 

7. Section 9 of The Financial Administration Act is repealed ^42 ,' s. 9 9?' 
and the following substituted therefor: re-enacted 

9. — (1) The Lieutenant Governor in Council shall Treasurer 
appoint a Deputy Treasurer and Deputy Minister a nd Deputy 
of Economics to be the deputy head of the Depart- Economics 
ment of Treasury and Economics. 

(2) Under the direction of the Treasurer, the Deputy 
Treasurer shall perform such duties as the Treasurer 
may assign or delegate to him. 

8. Sections 10 and 11, section 12, as amended by section 3^^; 1960, 
of The Financial Administration Amendment Act, 1965, and 8 ^ pealed' 
sections 13, 14, 15 and 16 of The Financial Administration 

Act are repealed. 

137 



O. Section 19 of The Financial Administration Act is 



R.S.O. I960. 
O. 142, 8. 19, 

re-enacted repealed and the following substituted therefor: 



Public 
money 
to be 
deposited 

Establish- 
ment of 
bank 
accounts 



19. — (1) Subject to this Part, all public money shall be 
deposited to the credit of the Treasurer. 

(2) The Treasurer shall establish in the name of the 
Treasurer of Ontario or in the name of any agency 
of the Crown approved by the Lieutenant Governor 
in Council, accounts with such banks as he designates 
for the deposit of public money. 



Duty of 

person 

collecting 

public 

money 



(3) Every person who collects or receives public money 
shall pay all money coming into his hands to the 
credit of the Treasurer of Ontario through such 
officers, banks or persons and in such manner as 
the Treasurer directs and shall keep a record of 
receipts and deposits thereof in such form and 
manner as the Treasurer directs. 



lO. Subsection 1 of section 20 of The Financial Administra- 



R.S.O. I960. 
0. 142, 8. 20, 

subs, l, tion Act is repealed and the following substituted therefor: 



Treasurer 
may 

purchase 
securities 



20. — (1) The Treasurer, when he deems it advisable for 
the sound and efficient management of public money 
or of the public debt or of any sinking fund may 
from time to time and on such terms and conditions 
as he mav deem advisable, purchase, acquire and 
hold, 



1966-67, 
c. 87 (Can.) 



(a) securities issued by or guaranteed as to 
principal and interest by Ontario, any other 
province of Canada, Canada or the United 
Kingdom; and 

(b) securities issued by the United States of 
America; and 

(c) securities issued or guaranteed by the Inter- 
national Bank for Reconstruction and De- 
velopment payable in Canadian or United 
States currency; and 

(d) deposit receipts, deposit notes, certificates of 
deposits, acceptances and other similar in- 
struments issued or endorsed by any chartered 
bank to which the Bank Act (Canada) applies, 

and pay therefor out of the Consolidated Revenue 
Fund. 



137 



Section 9. The amendment provides that, subject to the approval 
of the Lieutenant Governor in Council, agencies of the Crown may open 
bank accounts in their own names. 



Section 10. The amendment will allow the Treasurer to invest in 
securities issued or guaranteed by the International Bank for Reconstruc- 
tion and Development and in various negotiable instruments issued or 
endorsed by a bank which is subject to the Bank Act (Canada). 



137 



Section 11. The amendment confirms present practice. 



Section 12. Section 22c which is repealed by this section of the 
Bill will be included in the Act to establish the Department of Provincial 
Revenue. 



Section 13. The subsection repealed is redundant as a result of 
the re-organization of the Department. 

Section 14 — Subsection 1. In substance, the subsection remains 
the same. The re-enactment was necessary as a result of the re-organiza- 
tion of the Department. 



Subsection 2. The subsection repealed referred to a statutory duty 
of the Comptroller of Accounts. The amendment is complementary to 
that contained in section 9 of this Bill. 

Section 15 — Subsection 1. The amendment is complementary to 
that contained in sections 5 and 9 of this Bill. 



Subsection 2. The subsection repealed is redundant as a result of 
the re-organization of the Department. 

Section 16. The amendment will permit the Lieutenant Governor 
in Council to also raise money by way of the sale of interest bearing 
treasury bills. 



137 






11. Subsection 3 of section 22 of The Financial Administra- K f£>- 19 ££. 

... c - 142, 8. 22, 

Hon Act is amended by striking out "surplus account" in thesubs. 3 
second line and inserting in lieu thereof "Public Accounts", 
so that the subsection shall read as follows: 

(3) The losses deleted from the accounts during anyk°^£* din 
fiscal year shall be reported in the Public Accounts Public 

r . r Accounts 

for that year. 

12. Section 22a of The Financial Administration Act, as R -?:9* 1960, 

C. 142, 

enacted by section 3 of The Financial Administration Amend-*- 220 
ment Act, 1966, is repealed. c 57, s. 3), 

repealed 

13. Subsection 2 of section 25 of The Financial Administra-™-^- i 9 |°- 
tion Act is repealed. subs. 2, 

repealed 



14. — (1) Subsection 1 of section 27 of The Financial^f^^ 9 ^- 
Iminis 
therefor : 



Administration Act is repealed and the following substituted 8Ubs - 1 

r ° re-enacted 



(1) Every payment out of the Consolidated Revenue payments 
Fund shall be made by cheque which shall be signed out of Fund 
by the Treasurer and by the Deputy Treasurer or 
such other officer of the Department of Treasury 
and Economics who is for the time being authorized 
by the Treasurer to sign cheques. 

R.S.O. I960, 
c 142 S. 27 

(2) Subsection 3 of the said section 27 is repealed. subs. 3, 

repealed 

15.— (1) Subsection 1 of section 33 of The Financial™ f^ ' 8 19 33' 
Administration Act is amended by striking out "the Comp-subs. 1 
troller of Accounts to make" in the second line, so that the 
subsection shall read as follows: 

(1) On the application of a minister, the Treasurer may^^™*^ 16 
authorize an accountable advance out of the Con- 
solidated Revenue Fund for the purpose of meeting 
disbursements for travelling expenses or other 
contingencies or of making payments on account of 
expenses incurred or to be incurred. 

R.S.O. I960. 

(2) Subsection 3 of the said section 33 is repealed. subs. 3,' v 

repealed 

16. Paragraph 2 of section 39 of The Financial Admin- f['f^' t ^39' 
istration Act is amended by inserting after "of" in the first Amended 
line "interest bearing treasury bills and", so that the para- 
graph shall read as follows: 

2. By the issue and sale of interest bearing treasury 
bills and non-interest bearing treasury bills which 
may be in such form and for such separate sums and 

137 



may be payable at such place or places and at such 
time or times, not later than twelve months after 
the date thereof, as the Lieutenant Governor in 
Council deems expedient. 

cVfijj.'s^fo.' II* Subsection 1 of section 40 of The Financial Admin- 
re-enac'ted istration Act is repealed and the following substituted therefor: 

roan8 n for° f 0-) ^ n addition to all money authorized to be raised by 

refunding way of loan by any other Act, the Lieutenant 

purposes _' . ~ .«■ . , , 

Governor in Council may raise money by way of 
loan in such manner and at such times as is deemed 
expedient by the issue and sale of any class or classes 
of securities in such amounts as will realize the net 
sum required for any or all of the following purposes: 

1. Payment, refunding or renewal from time 
to time of the whole or any part of any loan 
raised or securities issued under this or any 
other Act, or the re-imbursement of the 
Consolidated Revenue Fund for expenditures 
made therefrom for the payment of such 
security within a period of one year after 
maturity date of such security, notwith- 
standing that the issue of securities for such 
purpose may have the effect of increasing the 
amount of the public debt or of extending the 
term of years, if any, fixed by the Act authoriz- 
ing the raising of the loan or the issue of the 
securities being paid, refunded or renewed. 

2. Payment of the whole or any part of any 
loan or of any liability or of any bonds, 
debentures or other obligations, payment 
whereof is guaranteed or assumed by Ontario. 

R 'i42B 19 4i ) ' **** Section 41 of The Financial Administration Act is 
re-enacted ' repealed and the following substituted therefor: 

may'be 68 **• Any securities issued under the authority of this or 

subject any other Act heretofore or hereafter passed may be 

made redeemable or payable in advance of maturity 
upon such terms and conditions, at such time or 
times, and at such price or prices as the Lieutenant 
Governor in Council provides at the time of the 
issue thereof. 

f. 1 42 's 1 . 9 4? '! 19 ' Section 42 of The Financial Administration Act is 
re-enacted repealed and the following substituted therefor: 

137 



Section 17. The present section 40 has been amended to allow the 
Lieutenant Governor in Council to raise money for the purpose of re- 
imbursing the Consolidated Revenue Fund for money already expended 
therefrom to retire securities at maturity to the extent that such moneys 
are not provided for in the annual Ontcrta Loan Act. This procedure 
would give more flexibility to the timing j ithe sales of debentures of the 
Province. 




Section 18. The amendment provides for the redemption of secu- 
rities in advance of maturity not only at the option of the Province, as is 
presently the case, but also at the option of the holder, upon such terms 
and conditions as the Lieutenant Governor in Council may provide at 
the time of the issue. 



Section 19. In substance the section remains the same, but, in 
addition to the changes required by the re-organization, the amendment 
will permit officers of the Department of Treasury and Economics who are 
authorized by the Lieutenant Governor in Council to execute agreements 
for the raising of money. 

137 






Section 20. The amendment permits the Lieutenant Governor in 
Council to provide for the manner of executing securities. 



Section 21. This is a new section which provides that the rights of 
holders of securities previously executed by the Treasurer of Ontario 
will not be affected by the re-organization of the department and the 
renaming of the Treasurer to that of Treasurer of Ontario and Minister of 
Economics. 

Skction 22. Self-explanatory. 



137 






42. The Lieutenant Governor in Council may authorize Contracts 

and agree- 

the Treasurer or any officer of the Department of m e n tsfor 

_, . _ J . . , the raising 

1 reasury and Economics to enter into such contracts of loans 
and agreements relating to the raising of loans or 
the issue and sale of securities as the Lieutenant 
Governor in Council approves, but where the 
Lieutenant Governor in Council authorizes the 
raising of a loan by the issue and sale of interest 
bearing treasury bills or of non-interest bearing 
treasury bills, he may authorize the Treasurer to 
offer any such treasury bills for sale on a competitive 
or other basis and upon such terms and conditions, 
including the date of issue and the date of maturity 
thereof, as the Treasurer deems expedient and to 
sell any or all of such treasury bills in such principal 
amount or amounts and for such price or prices as 
the Treasurer accepts. 

20. Section 47 of The Financial Administration Act is R -, s -9- 19 . 6 i ) - 

c. 142, s. 47, 

repealed and the following substituted therefor: re-enacted 

47. The Lieutenant Governor in Council may provide Execution 
for the manner of executing securities and the securities 
coupons, if any, attached thereto, and may provide 
that any signature or signatures upon the securities 
and the coupons attached thereto may be engraved, 
lithographed, printed or otherwise mechanically 
reproduced. ~^PI 

21. Nothing in this Act impairs or prejudicially affects heretofore 
the rights of any holder of any securities issued before this issued 
Act comes into force. 

22. The Treasurer shall exercise the powers and perform d > u > ti|J s f nd 
the duties of the Minister of Trade and Development under Minister 
The Regional Development Councils Act, 1966 or The Statistics 1966, c - 135 
Act, 1962-63 or any regulation made under either of such cfils 
Acts. 

23. This Act comes into force on a day to be named by ££™ t mence " 
the Lieutenant Governor by his proclamation. 

24. This Act may be cited as The Financial Administration short 
Amendment Act, 1968. 



137 



a. 



I 





- 


—^ 


to 


»- 

<* 


o 


5 


5 
1 


— — 


S 


S 


& 


? 


0. 



£ a- 
3 






> 
O 

> 

a 
a 

3 
2; 



00 



o 



00 



a 



BILL 137 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Financial Administration Act 



Mr. MacNaughton 



TORONTO 
Printed and Published by Frank Fcxk;, Queen's Printer 



BILL 137 1968 



An Act to amend 
The Financial Administration Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Clause b of section 1 of The Financial Administra- K ^^^ 9 f°- 
tion Act is amended by adding at the end thereof "or in theci. b, ' 
name of any agency of the Crown approved by the Lieutenant 
Governor in Council", so that the clause shall read as follows: 

(b) "Consolidated Revenue Fund" means the aggregate 
of all public moneys that are on deposit at the 
credit of the Treasurer or in the name of any agency 
of the Crown approved by the Lieutenant Governor 
in Council. 

(2) The said section 1 is amended by adding thereto the^-^o s 9 i°' 

following clauses: amended 

(ba) "Crown" means the Crown in right of Ontario; 



(ca) "Deputy Treasurer" means the Deputy Treasurer of 
Ontario and Deputy Minister of Economics. 

(3) Clause h of the said section 1 is amended by striking^ 1 -^°- l 9 f 0, 
out "means" in the first line and inserting in lieu thereof cl - *. 
"includes". amended 

(4) Clause m of the said section 1 is amended by adding f-f^~ l 9 f ' 
at the end thereof "and Minister of Economics", so thatci- ■». 

t_ i . amended 

the clause shall read as follows: 

(m) "Treasurer" means the Treasurer of Ontario and 
Minister of Economics. 

137 



R.S.O. 1960. 

o. 142. 8. 2. 

nubs. 3 

(1M| 

0. 57, 8. 1). 

amended 



2. Subsection 3 of section 2 of The Financial Administra- 
tion Act, as re-enacted by section 1 of The Financial Admin- 
istration Amendment Act, 1966, is amended by adding at the 
end thereof "and the Secretary of the Treasury Board shall 
rank as and have all the powers of a deputy minister of a 
department", so that the subsection shall read as follows: 



Secretary 



(3) The Lieutenant Governor in Council shall appoint 
an officer to be called the Secretary of the Treasury 
Board, who shall perform such functions as the 
Treasury Board may assign to him, and the Secretary 
of the Treasury Board shall rank as and have all 
the powers of a deputy minister of a department. 



o*'i42'8 9 3 0, **• Section 3 of The Financial Administration Act, as 
re-enacted amended by section 2 of The Financial Administration Amend- 
ment Act, 1966, is repealed and the following substituted 
therefor: 



Duties of 
Treasury 
Board 



3. — (1) The Treasury Board shall act as a committee 
of the Executive Council on all matters relating to 
finance, revenues, estimates, expenditures, financial 
commitments, terms of employment of Crown 
employees, organization and staff establishments 
and on any other matter concerning general admin- 
istrative policy in the public service that is referred 
to the Board by the Executive Council or on which 
the Board considers it desirable to report to the 
Executive Council. 



Nomination 
of Crown 
em ployees 



1961-62, 
O. 121 



(2) The Treasury Board shall nominate and recommend 
to the Lieutenant Governor in Council the Crown 
employees who shall constitute the official side of 
the Joint Council appointed under section 19a of 
The Public Service Act, 1961-62, and such appointees 
shall be responsible to the Treasury Board. 



R.S.O. I960. 
0. 142. s. 5, 
amended 



4. Section 5 of The Financial Administration Act, as 
amended by section 2 of The Financial Administration Amend- 
ment Act, 1965, is further amended by adding thereto the 
following clause: 



1961-a, 

0. 121 



(ab) prescribing salaries of Crown employees that have 
been determined through negotiation under sec- 
tion 19a or 19b of The Public Service Act, 1961-62. 



R.S.O. I960 
c. 142, 8. 6, 
re-enacted 



5. Section 6 of The Financial Administration Act is repealed 
and the following substituted therefor: 



137 



DEPARTMENT OF TREASURY AND ECONOMICS 

6. There shall be a department of the public service Department 
called the Department of Treasury and Economics and 

l- l j.1. t> i. 11 -j Economics 

over which the I reasurer shall preside. 

6. Section 7 of The Financial Administration Act is repealed R ?:2- 19 S 0, 

c. 142, 8. 7, 

and the following substituted therefor: re-enacted 

7. — (1) The Treasurer shall direct and control the^^,.^ 
Department of Treasury and Economics, recommend 
to the Executive Council financial, economic, 
accounting and taxation policy, advise on federal- 
provincial affairs, manage the Consolidated Revenue 
Fund and all public money and supervise, direct and 
control all financial, economic, statistical and 
accounting functions not by law or by the Lieutenant 
Governor in Council otherwise assigned. 

(2) The Treasurer is responsible for the administration j^tered^by 11 " 
of this Act, and the Acts that are assigned to him Treasurer 
by the Legislature or by the Lieutenant Governor 

in Council. 

(3) Any power or duty conferred on the Treasurer by o^po^enT 
this or any other Act may be delegated by him to of Treasurer 
the Deputy Treasurer or to any officer of the Depart- 
ment of Treasury and Economics who may act 

for him in his place and stead, and, when the Deputy 
Treasurer or such other officer acts in the place and 
stead of the Treasurer, it shall be presumed con- 
clusively that he acted in accordance with such a 
delegation. 

7. Section 9 of The Financial Administration Act is repealed ^f^,' s. 9 9?' 
and the following substituted therefor: re-enacted' 

9. — (1) The Lieutenant Governor in Council shall Treasurer 
appoint a Deputy Treasurer and Deputy Minister and Deputy 
of Economics to be the deputy head of the Depart- Economics 
ment of Treasury and Economics. 

(2) Under the direction of the Treasurer, the Deputy 
Treasurer shall perform such duties as the Treasurer 
may assign or delegate to him. 

8. Sections 10 and 11, section 12, as amended by section Sfi'f&l 1960, 
of The Financial Administration Amendment Act, 1965, an< ^Tl'l&ied' 
sections 13, 14, 15 and 16 of The Financial Administration 

Act are repealed. 

137 



c 1 m2*b 9 io' ®" Section 19 of The Financial Administration Act is 
re-enacted repealed and the following substituted therefor: 



Public 

money 
to be 
deposited 

Establish- 
ment of 
bank 
accounts 



19. — (1) Subject to this Fart, all public money shall be 
deposited to the credit of the Treasurer. 

(2) The Treasurer shall establish in the name of the 
Treasurer of Ontario or in the name of any agency 
of the Crown approved by the Lieutenant Governor 
in Council, accounts with such banks as he designates 
for the deposit of public money. 



Duty of 

person 

collecting 

public 

money 



(3) Every person who collects or receives public money 
shall pay all money coming into his hands to the 
credit of the Treasurer of Ontario through such 
officers, banks or persons and in such manner as 
the Treasurer directs and shall keep a record of 
receipts and deposits thereof in such form and 
manner as the Treasurer directs. 



c^ii^'s 9 2<? ' ^* Subsection 1 of section 20 of The Financial Administra- 
subs, l, tion Act is repealed and the following substituted therefor: 

re-enacted r ° 



Treasurer 
may 

purchase 
securities 



1966-67. 
c. 87 (Can.) 



20. — (1) The Treasurer, when he deems it advisable for 
the sound and efficient management of public money 
or of the public debt or of any sinking fund may 
from time to time and on such terms and conditions 
as he mav deem advisable, purchase, acquire and 
hold, 

(a) securities issued by or guaranteed as to 
principal and interest by Ontario, any other 
province of Canada, Canada or the United 
Kingdom; and 

(b) securities issued by the United States of 
America; and 

(c) securities issued or guaranteed by the Inter- 
national Bank for Reconstruction and De- 
velopment payable in Canadian or United 
States currency; and 

(d) deposit receipts, deposit notes, certificates of 
deposits, acceptances and other similar in- 
struments issued or endorsed by any chartered 
bank to which the Bank Act (Canada) applies, 

and pay therefor out of the Consolidated Revenue 
Fund. 



137 



11. Subsection 3 of section 22 of The Financial Administra-^f-^- i 96 °- 

C. N-. S. — — , 

Hon Act is amended bv striking out "surplus account" in the su bs. 3. 

... , . . • i- i c nn i f a ». amended 

second line and inserting in lieu thereof Public Accounts , 
so that the subsection shall read as follows: 

(3) The losses deleted from the accounts during any ^sses^ in 
fiscal year shall be reported in the Public Accounts Public 

, r Accounts 

for that year. 

12. Section 22a of The Financial Administration Act, as R -?-0- 1960, 

• A 1 • • • A 142, 

enacted by section 3 of The Financial Administration Amend-*- 22a 
ment Act, 1966, is repealed. c. 57, 's. 3), 

repealed 

13. Subsection 2 of section 25 of The Financial Administra- n -S-o • i960, 

c. 142, 8. 25, 

Hon Act is repealed. subs. 2, 

repealed 

14. — (1) Subsection 1 of section 27 of The Financial R ' f '£• g 19 ^' 
Administration Act is repealed and the following substituted subs - 1 » 

, ~ ° re-enacted 

therefor : 

(1) Every payment out of the Consolidated Revenue payments 
Fund shall be made by cheque which shall be signed out of Fund 
by the Treasurer and by the Deputy Treasurer or 
such other officer of the Department of Treasury 
and Economics who is for the time being authorized 
by the Treasurer to sign cheques. 

R.S.O. 1960, 
c. 142 s. 27 

(2) Subsection 3 of the said section 27 is repealed. subs. 3,' 

repealed 

15. — (1) Subsection 1 of section 33 of The Financial n f:9-} 9 ^' 

x ' C 142, S. 36, 

Administration Act is amended by striking out "the Comp-subs. 1 
troller of Accounts to make" in the second line, so that the 
subsection shall read as follows: 

(1) On the application of a minister, the Treasurer may advances 1516 
authorize an accountable advance out of the Con- 
solidated Revenue Fund for the purpose of meeting 
disbursements for travelling expenses or other 
contingencies or of making payments on account of 
expenses incurred or to be incurred. 

R.S.O. I960, 

(2) Subsection 3 of the said section 33 is repealed. subs. 3, ' * 

repealed 

16. Paragraph 2 of section 39 of The Financial Admin-^fi®, s 9 39,' 
istration Act is amended by inserting after "of" in the first denied 
line "interest bearing treasury bills and", so that the para- 
graph shall read as follows: 

2. By the issue and sale of interest bearing treasury 
bills and non-interest bearing treasury bills which 
may be in such form and for such separate sums and 

137 



may be payable at such place or places and at such 
time or times, not later than twelve months after 
the date thereof, as the Lieutenant Governor in 
Council deems expedient. 

0**1*42 'a 1 . 9 *!?' IT* Subsection 1 of section 40 of The Financial Admin- 
* u . be ' Hed istration Act is repealed and the following substituted therefor: 

Raising of (\\ \ n addition to all monev authorized to be raised by 

loans for v ' . J 

refunding way of loan by any other Act, the Lieutenant 

Governor in Council may raise money by way of 
loan in such manner and at such times as is deemed 
expedient by the issue and sale of any class or classes 
of securities in such amounts as will realize the net 
sum required for any or all of the following purposes: 

1. Payment, refunding or renewal from time 
to time of the whole or any part of any loan 
raised or securities issued under this or any 
other Act, or the re-imbursement of the 
Consolidated Revenue Fund for expenditures 
made therefrom for the payment of such 
security within a period of one year after 
maturity date of such security, notwith- 
standing that the issue of securities for such 
purpose may have the effect of increasing the 
amount of the public debt or of extending the 
term of years, if any, fixed by the Act authoriz- 
ing the raising of the loan or the issue of the 
securities being paid, refunded or renewed. 

2. Payment of the whole or any part of any 
loan or of any liability or of any bonds, 
debentures or other obligations, payment 
whereof is guaranteed or assumed by Ontario. 

R«-o. i960, 18. Section 41 of The Financial Administration Act is 
re-enacted ' repealed and the following substituted therefor: 

rnay r be ie8 **• Any securities issued under the authority of this or 

■ubject any other Act heretofore or hereafter passed may be 

made redeemable or payable in advance of maturity 
upon such terms and conditions, at such time or 
times, and at such price or prices as the Lieutenant 
Governor in Council provides at the time of the 
issue thereof. 

r.s.o. i960. i9 # Section 42 of The Financial Administration Act is 

C. 14*, S. 4J, 

re-enacted repealed and the following substituted therefor: 
137 



42. The Lieutenant Governor in Council may authorize SL°J lt /;?i2f 

^^ allQ agiUV* 

the Treasurer or any officer of the Department offnents for 

_ T_ * , r . the raising 

Treasury and Economics to enter into such contracts of loans 
and agreements relating to the raising of loans or 
the issue and sale of securities as the Lieutenant 
Governor in Council approves, but where the 
Lieutenant Governor in Council authorizes the 
raising of a loan by the issue and sale of interest 
bearing treasury bills or of non-interest bearing 
treasury bills, he may authorize the Treasurer to 
offer any such treasury bills for sale on a competitive 
or other basis and upon such terms and conditions, 
including the date of issue and the date of maturity 
thereof, as the Treasurer deems expedient and to 
sell any or all of such treasury bills in such principal 
amount or amounts and for such price or prices as 
the Treasurer accepts. 

20. Section 47 of The Financial Administration Act is ?•?:?• 19 .®?- 

C. 14<2, 8. 47, 

repealed and the following substituted therefor: re-enacted 

47. The Lieutenant Governor in Council may provide Execution 
for the manner of executing securities and the securities 
coupons, if any, attached thereto, and may provide 
that any signature or signatures upon the securities 
and the coupons attached thereto may be engraved, 
lithographed, printed or otherwise mechanically 
reproduced. 

21. Nothing in this Act impairs or prejudicially affects heretofore 
the rights of any holder of any securities issued before this issued 
Act comes into force. 



22. The Treasurer shall exercise the powers and perform dutte8 S of nd 
the duties of the Minister of Trade and Development under Minister 
The Regional Development Councils Act, 1966 or The Statistics 1 ***- c 
Act, 1962-63 or any regulation made under either of such, 
Acts. 



1962-63. 
133 



23. This Act comes into force on a day to be named by^ommence- 
the Lieutenant Governor by his proclamation. 

24. This Act may be cited as The Financial Administration short title 
Amendment Act, 1968. 



137 



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BILL 138 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to establish the Department of Revenue 



Mr. MacXaughton 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



% 



Explanatory Note 

This Bill implements the recommendations of the Ontario Committee 
on Taxation that the Government of Ontario establish a Department of 
Revenue responsible for the administration of all revenue statutes now 
administered by the Treasury Department. 



138 



BILL 138 



1968 



An Act to establish 
the Department of Revenue 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, 

(a) "Department" means the Department of Revenue; 

(b) "Minister" means the Minister of Revenue. 



Interpre- 
tation 



2. There shall be a department of the public service to be department 

GSt S Dll8n^Q 

known as the Department of Revenue. 

3. The Minister shall preside over and have charge of the hal^charge 
Department. 

4. The Minister is responsible for the administration of Minister's 
this Act, any Acts that are assigned to him by the Legislature 

or by the Lieutenant Governor in Council, and the following 
Acts: 



1 . The Corporations Tax A ct. 

2. The Gasoline Tax Act. 

3. The Hospitals Tax Act. 

4. The Income Tax Act, 1961-62. 

5. The Land Transfer Tax Act. 

6. The Logging Tax Act. 

7. The Motor Vehicle Fuel Tax Act. 

8. The Motor Vehicle Fuel Tax Act, 1965. 
138 



R.S.O. 
c. 73 


1960, 


R.S.O. 
c. 162 


1960, 


R.S.O. 
c. 178 


I960, 


1961-62, 
c. 60 


R.S.O. 
c. 205 


1960, 


R.S.O. 
c. 224 


1960. 


R.S.O. 
c. 248 


1960. 


1965, c 


. 76 




R.S.O LMO, 



1960 t.l 

o. 91 

R.S.O. 1960. 
c. 364 

R.S.O. 1960, 
O. 386 

1965. «•. ISO 



9. The Race Tracks Tax Act. 

10. 17ie Retail Sales Tax Act, 1960-61. 

11. The Security Transfer Tax Act. 

12. The Succession Duty Act. 

13. The Tobacco Tax Act, 1965. 



^Treasurer *• — 0) A reference to the Treasurer in any Act mentioned 
Master in sect ' on ^ or m an Y regulation made under such Act shall be 
deemed to be a reference to the Minister, except where 
inconsistent, so long as the Minister administers such Act. 



References 
to Deputy, 
eto. 



(2) In any Act mentioned in section 4 or in any regulation 
made under such Act, a reference to the Deputy Provincial 
Treasurer shall be deemed to be a reference to the Deputy 
Minister of Revenue, a reference to any officer of the Treasury 
Department shall be deemed to be a reference to any officer 
of the Department of Revenue and a reference to the Treasury 
Department shall be deemed to be a reference to the Depart- 
ment of Revenue, so long as the Minister administers such 
Act. 



Deputy 

Minister 



Deputy 

Minister's 

duties 



Officers 
and staff 
1961-62, 
c. 121 



Seal 



Id»m 



I nterpre- 
tation 



6. — (1) The Lieutenant Governor in Council shall appoint 
a Deputy Minister of Revenue as deputy head of the De- 
partment. 

(2) Under the direction of the Minister, the Deputy 
Minister of Revenue shall perform such duties as the Min- 
ister may assign to him. 

7. There shall be appointed pursuant to The Public Service 
Act, 1961-62 such other officers, clerks and servants as the 
Minister deems necessary for the proper conduct of the 
business of the Department. 

8. — (1) The Lieutenant Governor in Council may authorize 
a seal for the Minister. 

(2) Such seal may be reproduced by engraving, litho- 
graphing, printing or any other method of mechanical re- 
production, and when so reproduced has the same force and 
effect as if manually affixed. 

9. — (1) In this section, 

(a) "penalty" includes any forfeiture or pecuniary 
penalty imposed or authorized to be imposed by 
any Act of the Legislature for any contravention 



138 



of the laws relating to the collection of the revenue 
or to the management of any public work producing 
toll or revenue, notwithstanding that part of such 
forfeiture or penalty is payable to any other person; 

(b) "tax" includes any tax, impost, duty or toll payable 
to Her Majesty, imposed or authorized to be imposed 
by any Act of the Legislature. 

(2) Notwithstanding any other Act, the Lieutenant Gov- Jf e t2JS° n 
ernor in Council, on the recommendation of the Minister, etc - 
may, if he considers it in the public interest, remit any tax, 

fee or penalty. 

(3) A remission pursuant to this section may be total or^®" 1 ^ 
partial, conditional or unconditional, and may be granted, partial, 

(a) before, after or pending any suit or proceeding for 
the recovery of the tax, fee or penalty in respect of 
which it is granted; 

(b) before or after any payment thereof has been made 
or enforced by process or execution; or 

(c) in the case of a tax or fee, in any particular case or 
class of case and before the liability therefor arises. 

(4) A remission under this section may be granted, former 

(a) by forbearing to institute a suit or proceeding for 
the recovery of the tax, fee or penalty in respect of 
which the remission is granted; 

(b) by delaying, staying or discontinuing any suit or 
proceeding already instituted ; 

(c) for forbearing to enforce, staying or abandoning any 
execution or process upon any judgment; 

(d) by the entry of satisfaction upon any judgment; or 

(e) by repaying any sum of money paid to or recovered 
by the Minister for the tax, fee or .penalty. 

(5) Where a remission is granted under this section subject idem. 

... , , .... . , . , conditional 

to a condition and the condition is not performed, it may be 
enforced or all proceedings may be had as if there had been 
no remission. 

(6) A conditional remission, upon performance of the^®}itionai 
condition, and an unconditional remission, have effect as if remission 
the remission was made after the tax, fee or penalty in respect 

of which it was granted had been sued for and recovered. 

138 



Pay menu (7) Remissions granted under this or any other Act may be 

paid out of the Consolidated Revenue Fund. 

Report (g) a statement of each remission of $1,000 or more 

granted under this section shall be reported to the Legislature 
in the public accounts. 



Remission 
has effect 
of pardon 



(9) Where a penalty imposed by any law relating to the 
revenue has been wholly and unconditionally remitted under 
this section, the remission has the effect of a pardon for the 
offence for which the penalty was incurred, and thereafter 
the offence has no legal effect prejudicial to the person to 
whom the remission was granted. 



Regulations 10. The Lieutenant Governor in Council may make regula- 
tions, 

(a) authorizing or requiring the Deputy Minister of 
Revenue or any officer of the Department to exercise 
any power or perform any duty conferred or imposed 
upon the Minister by this or any Act; 

(b) respecting any matter necessary or advisable to 
carry out effectively the intent and purpose of this 
Act. 



Interpre- 
tation 



11. — (1) In this section "Treasurer of Ontario" means the 
Treasurer of Ontario who presided over and administered the 
Treasury Department. 



not'atferted (^) This Act does not impair or prejudicially affect any 
assessment of tax made by the Treasurer of Ontario or 
authorized officer of the Treasury Department pursuant to 
any Act mentioned in section 4. 

R ff 8 ct 8 d not ^ Nothing in this Act impairs or prejudicially affects any 

rights given to a person under any Act mentioned in section 4 
before this Act comes into force. 



l'roi>erty 
vested in 
Minister 



(4) Where any security, obligation, covenant or any in- 
terest in real or personal property was given to the Treasurer 
of Ontario by virtue of his office pursuant to any Act men- 
tioned in section 4, the security, obligation, covenant, and any 
right of action in respect thereto, and all the interest in rv.d 
or personal property vests, subject to the same trust 
they were respectively subject to, in the Minister and may be 
proceeded on by action or in any other manner, or may be 
assigned, transferred or discharged, in the name of the Min- 
ister. 



13S 



12. This Act comes into force on a day to be named byCommence- 
the Lieutenant Governor by his proclamation. 

13. This Act may be cited as The Department of Revenue short title 
Act, 1968. 



138 



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BILL 138 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to establish the Department of Revenue 



Mr. MacNaughton 




TORONTO 

Printed and Published by Frank Fogg, Queen's Printer 



\ 



BILL 138 



1968 



Interpre- 
tation 



An Act to establish 
the Department of Revenue 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, 

(a) "Department" means the Department of Revenue; 

(b) "Minister" means the Minister of Revenue. 



2. There shall be a department of the public service to be !^]?^ 16 ^ 1 
known as the Department of Revenue. 

3. The Minister shall preside over and have charge of the have iS charge 
Department. 

4. The Minister is responsible for the administration of-^ Iinisters 
this Act, any Acts that are assigned to him by the Legislature 

or by the Lieutenant Governor in Council, and the following 
Acts : 



1. The Corporations Tax Act. 

2. The Gasoline Tax Act. 

3. The Hospitals Tax Act. 

4. The Income Tax Act, 1961-62. 

5. The Land Transfer Tax Act. 

6. The Logging Tax Act. 

7. The Motor Vehicle Fuel Tax Act. 

8. The Motor Vehicle Fuel Tax Act, 1965. 



R.S.O. 
C. 73 


1960, 


R.S.O. 
c. 162 


1960. 


R.S.O. 
e. 178 


1960, 


1961-62, 
c. 60 


R.S.O. 
C. 205 


1960, 


R.S.O. 
c. 224 


1960, 


R.S.O. 
e. 248 


1960, 


1965, c 


. 76 



138 



> 1960. 

1960-61. 
0. 91 

R.S.O. 1960. 
. . 864 

R.S.O. 1960. 
. 386 



1965. 0. L80 



9, The Race Tracks Tax Act. 

10. The Retail Sales Tax Act, 1960-61. 

11. The Security Transfer Tax Act. 
\1. The Succession Duty Act. 

13. The Tobacco Tax Act, 1965. 



^Treasurer *• — 0) A reference to the Treasurer in any Act mentioned 
deemed in section 4 or in any regulation made under such Act shall be 

deemed to be a reference to the Minister, except where 
inconsistent, so long as the Minister administers such Act. 



References 
to Deputy, 
etc. 



(2) In any Act mentioned in section 4 or in any regulation 
made under such Act, a reference to the Deputy Provincial 
Treasurer shall be deemed to be a reference to the Deputy 
Minister of Revenue, a reference to any officer of the Treasury 
Department shall be deemed to be a reference to any officer 
of the Department of Revenue and a reference to the Treasury 
Department shall be deemed to be a reference to the Depart- 
ment of Revenue, so long as the Minister administers such 
Act. 



Deputy 
Minister 



Deputy- 
Minister's 
duties 



Officers 
and staff 
1961-62. 
c. 121 



Seal 



Idem 



Interpre- 
tation 



6. — (1) The Lieutenant Governor in Council shall appoint 
a Deputy Minister of Revenue as deputy head of the De- 
partment. 

(2) Under the direction of the Minister, the Deputy 
Minister of Revenue shall perform such duties as the Min- 
ister may assign to him. 

7. There shall be appointed pursuant to The Public Service 
Act, 1961-62 such other officers, clerks and servants as the 
Minister deems necessary for the proper conduct of the 
business of the Department. 

8. — (1) The Lieutenant Governor in Council may authorize 
a seal for the Minister. 

(2) Such seal may be reproduced by engraving, litho- 
graphing, printing or any other method of mechanical re- 
production, and when so reproduced has the same force and 
effect as if manually affixed. 

9. — (1) In this section, 

(a) "penalty" includes any forfeiture or pecuniary 
penalty imposed or authorized to be imposed by 
any Act of the Legislature for any contravention 



138 



of the laws relating to the collection of the revenue 
or to the management of any public work producing 
toll or revenue, notwithstanding that part of such 
forfeiture or penalty is payable to any other person ; 

(b) "tax" includes any tax, impost, duty or toll payable 
to Her Majesty, imposed or authorized to be imposed 
by any Act of the Legislature. 

(2) Notwithstanding any other Act, the Lieutenant Gov- ? f e t ™5S on 
ernor in Council, on the recommendation of the Minister, e *c. 
may, if he considers it in the public interest, remit any tax, 

fee or penalty. 

(3) A remission pursuant to this section may be total or^em, 

IHELV D6 

partial, conditional or unconditional, and may be granted, partial, 

(a) before, after or pending any suit or proceeding for 
the recovery of the tax, fee or penalty in respect of 
which it is granted; 

(b) before or after any payment thereof has been made 
or enforced by process or execution; or 

(c) in the case of a tax or fee, in any particular case or 
class of case and before the liability therefor arises. 

(4) A remission under this section may be granted, form 1 of 

(a) by forbearing to institute a suit or proceeding for 
the recovery of the tax, fee or penalty in respect of 
which the remission is granted; 

(b) by delaying, staying or discontinuing any suit or 
proceeding already instituted; 

(c) for forbearing to enforce, staying or abandoning any 
execution or process upon any judgment; 

(d) by the entry of satisfaction upon any judgment; or 

(e) by repaying any sum of money paid to or recovered 
by the Minister for the tax, fee or penalty. 

(5) Where a remission is granted under this section subject idem, 

... , , .... . . . J . conditional 

to a condition and the condition is not performed, it may be 
enforced or all proceedings may be had as if there had been 
no remission. 

(6) A conditional remission, upon performance of the conditional 
condition, and an unconditional remission, have effect as if remission 
the remission was made after the tax, fee or penalty in respect 

of which it was granted had been sued for and recovered. 

138 



Payments (7) Remissions granted under this or any other Act may be 

paid out of the Consolidated Revenue Fund. 

Report (g) j{ statement of each remission of $1,000 or more 

granted under this section shall be reported to the Legislature 
in the public accounts. 



He mission 
has effect 
of pardon 



(9) Where a penalty imposed by any law relating to the 
revenue has been wholly and unconditionally remitted under 
this section, the remission has the effect of a pardon for the 
offence for which the penalty was incurred, and thereafter 
the offence has no legal effect prejudicial to the person to 
whom the remission was granted. 



Regulations 10. The Lieutenant Governor in Council may make regula- 
tions, 

(a) authorizing or requiring the Deputy Minister of 
Revenue or any officer of the Department to exercise 
any power or perform any duty conferred or imposed 
upon the Minister by this or any Act; 

(b) respecting any matter necessary or advisable to 
carry out effectively the intent and purpose of this 
Act. 

tation )re " H* — (1) ^ n tms sect i° n "Treasurer of Ontario" means the 

Treasurer of Ontario who presided over and administered the 
Treasury Department. 

noTaff^cted 8 (^) This Act does not impair or prejudicially affect any 
assessment of tax made by the Treasurer of Ontario or 
authorized officer of the Treasury Department pursuant to 
any Act mentioned in section 4. 

aff g ct 8 d not ^ Nothing in this Act impairs or prejudicially affects any 

rights given to a person under any Act mentioned in section 4 
before this Act comes into force. 



Property 
vested in 
Minister 



(4) Where any security, obligation, covenant or any in- 
terest in real or personal property was given to the Treasurer 
of Ontario by virtue of his office pursuant to any Act men- 
tioned in section 4, the security, obligation, covenant, and any 
right of action in respect thereto, and all the interest in real 
or personal property vests, subject to the same trusts as 
they were respectively subject to, in the Minister and may be 
proceeded on by action or in any other manner, or may be 
assigned, transferred or discharged, in the name of the Min- 
ister. 



138 



12. This Act comes into force on a day to be named by £°™ mence - 
the Lieutenant Governor by his proclamation. 

13. This Act may be cited as The Department of Revenue Short title 
Act, 1968. 




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BILL 139 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Public Service Act, 1961-62 






Mr. MacXaughton 



TORONTO 
Printed and Published by Frank Fck;g, Queen's Printer 



Explanatory Notes 

Section 1. The amendment limits the responsibility for salary 
recommendations by the Civil Service Commission to classes not subject 
to negotiation and to new classes, and is complementary to an amendment 
to The Financial Administration Act. 



Section 2. The amendment is complementary to an amendment 
to The Financial Administration Act concerning the appointment of persons 
to the official side of the Joint Council. 



Section 3. The amendment is complementary to the amendment 
in section 1. 



139 



BILL 139 1968 



An Act to amend 
The Public Service Act, 1961-62 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause 6 of section 4 of The Public Service Act, 1961-62 i 9 ?^ 62 - , 

' „ C. 121, 8. 4, 

is amended by adding at the end thereof "except a previously <*. b - 
established classification for which a salary range is determined 
through negotiation under section 19a or 196", so that the 
clause shall read as follows: 

(b) recommend to the Lieutenant Governor in Council 
the salary range for each classification, except a 
previously established classification for which a 
salary range is determined through negotiation under 
section 19a or 196. 

2. Clause a of subsection 1 of section 19a of The Public I s 'i^ 2. 
Service Act, 1961-62, as re-enacted by subsection 1 of section 21^°^ 
of The Public Service Amendment Act, 1966, is amended by( 19< »6, 
inserting after "Council" in the second line "on the recom-subs. i). 
mendation of the Treasury Board", so that the clause shall amended 
read as follows: 

(a) three Crown employees appointed by the Lieutenant 
Governor in Council on the recommendation of the 
Treasury Board, to be known as the "official side"; 
and 



3. Clause b of subsection 1 of section 20 of The Public^Wi^s. 20. 
Service Act, 1961-62 is amended by adding at the end thereof s c ^- *■ 
"except salaries for previously established classifications for amended 
which salaries are determined through negotiation under 
section 19a or 196", so that the clause shall read as follows: 

139 



(6) prescribing classifications for positions, including 
qualifications, duties and salaries, except salaries for 
previously established classifications for which sal- 
aries are determined through negotiation under 
section 19a or 196. 

commence- 4. This Act comes into force on a day to be named by 
the Lieutenant Governor by his proclamation. 

5. This Act may be cited as The Public Service Amendment 
Act, 1968. 



139 



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BILL 139 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Public Service Act, 1961-62 



Mr. MacXalghton 






TORONTO 
Printed and Published by Frank Fo>.h, Queen's Printer 



BILL 139 1968 



An Act to amend 
The Public Service Act, 1961-62 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. Clause 6 of section 4 of The Public Service Act, 1961-62 19 ?£; 62 - . 

c. 121, 8. 4, 

is amended by adding at the end thereof "except a previously cl - *. 
established classification for which a salary range is determined 
through negotiation under section 19a or 196", so that the 
clause shall read as follows: 

(b) recommend to the Lieutenant Governor in Council 
the salary range for each classification, except a 
previously established classification for which a 
salary range is determined through negotiation under 
section 19a or 196. 

2. Clause a of subsection 1 of section 19a of The Public] 9 121?' 
Service Act, 1961-62, as re-enacted by subsection 1 of section 2^^°^ 

of The Public Service Amendment Act, 1966, is amended by( 19 66, g ^ 
inserting after "Council" in the second line "on the recom-subs. i). 
mendation of the Treasury Board", so that the clause shall amended 
read as follows: 

(a) three Crown employees appointed by the Lieutenant 
Governor in Council on the recommendation of the 
Treasury Board, to be known as the "official side"; 
and 



3. Clause b of subsection 1 of section 20 of The Public^Wi^B .20. 
Service Act, 1961-62 is amended by adding at the end thereof B £ h *- *■ 
"except salaries for previously established classifications for amended 
which salaries are determined through negotiation under 
section 19a or 196", so that the clause shall read as follows: 

139 



(b) prescribing classifications for positions, including 
qualifications, duties and salaries, except salaries for 
previously established classifications for which sal- 
aries are determined through negotiation under 
section 19a or 196. 

commence- 4. This Act comes into force on a day to be named by 
the Lieutenant Governor by his proclamation. 

short title 5 # -phis Act may be cited as The Public Service Amendment 
Act, 1968. 



139 






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BILL 140 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Schools Administration Act 



Mr. Davis 



TORONTO 
Punted and Published by Frank Fogg, Queen's Printer 



k 



Explanatory Note 

SECTION 1. The new section 35d authorizes the establishment of 
French-language elementary schools and classes and, where French is the 
language of instruction, authorizes the establishment of English-language 
elementary schools and classes. 



140 



BILL 140 



1968 



An Act to amend 
The Schools Administration Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 



1. The Schools Administration Act is amended by adding ^f^- 196 °- 
thereto the following section : 



amended 



35d. — (1) A divisional board of education, public school French- 
board or separate school board may establish and elementary 
maintain elementary schools or classes in elementary classes 8 a 
schools, including kindergarten classes, for the pur- 
pose of providing for the use of the French language 
in instruction of French-speaking pupils. 

(2) Where ten or more French-speaking ratepayers of agents* for 
school division, school section or separate school French- 
zone apply in writing to the board thereof for the use school or 
of the French language in instruction of French- ' 
speaking pupils, and, 



(a) the parents or guardians of thirty or more 
French-speaking pupils in the primary, junior 
or intermediate division elect to have such 
pupils taught in the French language, and 
such pupils can be assembled for this purpose 
in a class or classes as part of a school, the 
board shall provide for the use of the French 
language in instruction in such class or classes, 
and 

(b) in the opinion of the board the number of 
such French-speaking pupils so warrants, the 
board shall provide for the use of the French 
language in instruction in a French-language 
elementary school. 



140 



Request by 

turents for 
Ingllsh- 
language 
school or 
oil 



(3) Where French is the language of instruction in a 
public or separate school and ten or more English- 
speaking ratepayers of the school division, school 
section or separate school zone apply in writing to 
the board thereof for the use of the English language 
in instruction of English-speaking pupils, and, 



kj 



(a) the parents or guardians of thirty or more 
English-speaking pupils in the primary, junior 
or intermediate division elect to have such 
pupils taught in the English language, and 
such pupils can be assembled for this purpose 
in a class or classes as part of a school, the 
board shall provide for the use of the English 
language in instruction in such class or classes, 
and 



(b) in the opinion of the board the number of 
such English-speaking pupils so warrants, the 
board shall provide for the use of the English 
language in instruction in an English-language 
elementary school. 



English 
subject of 
instruction 



(4) Notwithstanding subsections 1 and 2, English may 
be a subject of instruction in any grade and in any 
case shall be a subject of instruction in Grades 5, 
6, 7 and 8. 



Admission 
of pupils 
other than 
French- 
speaking 
pupils 



Commence- 
ment 



(5) On the request of a parent or guardian of a pupil, 
a board may admit such pupil to classes formed by it 
under subsection 1 or 2 if such pupil has a right to 
attend a school operated by the board and the 
principal is satisfied that the attendance of such 
pupil will not delay the progress of the French- 
speaking pupils. 

2. This Act comes into force on the 1st day of January, 
1969. 



Short title 



3. This Act may be cited as The Schools Administration 
Amendment Act, 1968. 



140 



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BILL 140 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Schools Administration Act 



Mr. Davis 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 140 1968 



An Act to amend 
The Schools Administration Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. The Schools Administration Act is amended by adding ^f^- 1960> 
thereto the following section : amended 

35d. — (1) A divisional board of education, public school French- 
board or separate school board may establish and elementary 
maintain elementary schools or classes in elementary dSSSSm and 
schools, including kindergarten classes, for the pur- 
pose of providing for the use of the French language 
in instruction of French-speaking pupils. 

(2) Where ten or more French-speaking ratepayers of a Re q u « 8t *>y 
school division, school section or separate school French- 
zone apply in writing to the board thereof for the use schoof or 
of the French language in instruction of French- cla88es 
speaking pupils, and, 

(a) the parents or guardians of thirty or more 
French-speaking pupils in the primary, junior 
or intermediate division elect to have such 
pupils taught in the French language, and 
such pupils can be assembled for this purpose 
in a class or classes as part of a school, the 
board shall provide for the use of the French 
language in instruction in such class or classes, 
and 

(b) in the opinion of the board the number of 
such French-speaking pupils so warrants, the 
board shall provide for the use of the French 
language in instruction in a French-language 
elementary school. 

140 



Request by 
parents for 
English- 
language 
school or 
iMMt 



(3) Where French is the language of instruction in a 
public or separate school and ten or more English- 
speaking ratepayers of the school division, school 
section or separate school zone apply in writing to 
the board thereof for the use of the English language 
in instruction of English-speaking pupils, and, 



(a) the parents or guardians of thirty or more 
English-speaking pupils in the primary, junior 
or intermediate division elect to have such 
pupils taught in the English language, and 
such pupils can be assembled for this purpose 
in a class or classes as part of a school, the 
board shall provide for the use of the English 
language in instruction in such class or classes, 
and 



English 
subject of 
instruction 



Admission 
of pupils 
other than 
French- 
speaking 
pupils 



Commence- 
ment 



Short title 



(b) in the opinion of the board the number of 
such English-speaking pupils so warrants, the 
board shall provide for the use of the English 
language in instruction in an English-language 
elementary school. 

(4) Notwithstanding subsections 1 and 2, English may 
be a subject of instruction in any grade and in any 
case shall be a subject of instruction in Grades 5, 
6, 7 and 8. 

(5) On the request of a parent or guardian of a pupil, 
a board may admit such pupil to classes formed by it 
under subsection 1 or 2 if such pupil has a right to 
attend a school operated by the board and the 
principal is satisfied that the attendance of such 
pupil will not delay the progress of the French- 
speaking pupils. 

2. This Act comes into force on the 1st day of Januarv, 
1969. 

3. This Act may be cited as The Schools Administration 
Amendment Act, 1968. 



140 



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BILL 141 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Secondary Schools 
and Boards of Education Act 



Mr. Davis 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Note 

The new Part VIII provides for the establishment of French-language 
committees for secondary school purposes, and for the establishment of 
French-language secondary schools and classes. 



141 



BILL 141 1968 



An Act to amend The Secondary Schools 
and Boards of Education Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. The Secondary Schools and Boards of Education Act^-^^ 1960 - 
is amended by adding thereto the following Part: amended 

PART VIII 

FRENCH -LANGUAGE SECONDARY SCHOOLS 

112. In this Part, SSm*** 

(a) "board" means a divisional board of education; 

(b) "committee" means a French -language committee 
for secondary school purposes formed under this 
Part. 

113. — (1) A board may establish and maintain secondary j^fguage 
schools or classes in secondary schools for the purpose of schools or 
providing for the use of the French language in instruction, 
or may enter into an agreement with another board to provide 
for such instruction in the school or schools maintained by 
the latter board for resident pupils of the first-mentioned 
board. 

(2) Where for secondary school purposes in a school divi- Idem 
sion a sufficient number of pupils who elect to be taught in 
the French language can be assembled for this purpose in 
classes or groups of twenty or more in each programme or branch, 
the board shall provide for the use of the French language 
in instruction in such classes or groups, and where, in the 
opinion of the board, the number of such pupils so warrants, 
the board shall provide for the use of the French language 
in instruction in a composite school. 

141 



Establish- 
ment of 
committee 



114.— (1) Where, 



tu 



(a) ten or more French-speaking ratepayers of a school 
division apply in writing to the board for the estab- 
lishment or extension in a secondary school of a class, 
group or programme in which the French language 
is or is to be used in instruction; or 

(b) the board establishes or extends or decides to 
establish or extend a class, group or programme in 
which the French language is or is to be used in 
instruction, 

the board shall, within two months of the application, estab- 
lishment, extension or decision to establish or extend, provide 
for the establishment of a committee, which shall be an 
advisory committee of the board. 

composition (2) The committee shall consist of seven members and shall 
be composed of, 

(a) three members of the board appointed by the board ; 
and 

(b) four French-speaking ratepayers who are not members 
of the board but have the qualifications required for 
members of the board, elected by the French- 
speaking ratepayers of the school division, except 
that a ratepayer elected to the committee may be 
a member of an elementary school board. 



Term of 
office 



First 

meeting of 
French- 
speaking 
ratepayers 



Additional 
members 



Idem 



(3) A member of a committee shall hold office during the 
term of the members of the board and until a new board is 
organized. 

(4) The board shall make provision for a meeting of the 
French-speaking ratepayers of the school division to elect 
members to the committee, and shall advertise in each of its 
schools the place and time of the meeting, and shall take 
such additional action to publicize the meeting as it deems 
expedient. 

(5) The committee may, in any year, at a meeting called 
for the purpose and for which notice has been given to all 
members, appoint to the committee one or two additional 
French-speaking ratepayers as it may deem necessary, who 
shall have the qualifications of an elected member. 

(6) The board shall appoint to the committee one or two 
additional members of the divisional board, as the case may be, 
to equal the number of additional members appointed under 
subsection 5. 



141 



115. Where a committee has been established and a new T™?!:} 1 ' 

speaking 

board has been elected, a meeting of the French-speaking ratepayers 

• I lit*** i 1 i C16C't 811 '->- 

ratepayers in the school division, to elect members to the sequent 
committee and to consider any other matters brought before committee 
it, shall be held on the second Wednesday following the 
first meeting of the newly-elected board, commencing at 
8 o'clock in the afternoon at such place as the board may 
determine, and the provisions of subsection 4 of section 114 
respecting the publicizing of the meeting apply. 

116.— (1) The secretary of the board shall call to order SHSg^Jf 
the meetings of the French-speaking ratepayers under sec- meeting 
tions 114 and 115 and shall preside at the meeting for the 
purpose of electing a chairman of the meeting. 

(2) The chairman of the meeting shall appoint a secretary meetfnT ° f 
who shall record the proceedings of the meeting and perform 

such other duties as are required by the chairman. 

(3) The chairman shall preside at the meeting and shall aYmeeUngs 
hold the election of members of the committee and submit 

all motions to the meeting in the manner desired by the 
majority, and the chairman is entitled to vote on any motion, 
and, in the case of a tie vote with respect to the election of 
members of the committee, the chairman shall provide for 
drawing lots to determine which of the candidates is elected, 
and, in the case of a tie vote on a question, the question is 
deemed to be negatived. 

(4) Notice in writing shall be given by the secretary ofr^ uit e f f 
the meeting to the secretary of the board designating by their eleetlon 
names and addresses the persons elected as members of the 
committee. 

117. — (1) At the first meeting of the committee, the mem- committee 
bers shall elect one of themselves as chairman. 

(2) A majority of all the members constituting the com- Quorum 
mittee is necessary to form a quorum, and the vote of a 
majority of the members present at a meeting is necessary 

to bind the committee. 

(3) On every question, the chairman may vote, and any ^airman, 
question on which there is an equality of votes shall be deemed o? vo'tes 
to be negatived. 

(4) A special meeting of the committee may be called by the m'eeUng 
chairman of the committee and shall be called by the chair- 
man upon the request in writing of two members of the com- 
mittee who shall specify the objects for which the meeting is 

141 



Vacancies 



to be held, and the objects shall be stated in the notice calling 
the meeting. 

118. Every vacancy on a committee for any cause shall be 
filled by appointment by the board in the case of appointed 
members and by the elected members of the committee in 
the case of elected members, and every person so appointed 
shall hold office for the unexpired term of the member whose 
seat has become vacant. 



% 



to°report ee ^^. — (*) ^he committee shall report at each regular meet- 
to board j n g of the board. 

mendations &) The committee shall make recommendations to the 
board with respect to ways and means of meeting the educa- 
tional needs of the French-speaking pupils, and shall co- 
operate with all committees of the board with respect to, 



(a) suitable sites, accommodation and equipment for the 
purposes of section 113; 

(b) the use of the French language in instruction and the 
related courses of study; 

(c) the appointment of the required teaching, super- 
visory and administrative staff; 

(d) the establishment of special classes for adults in a 
French-language secondary school; and 

(e) the use of any facilities for instruction in the French 
language that are considered desirable to foster the 
educational and cultural needs of the French- 
speaking community. 

(3) The board shall consider any report or recommendation 
submitted to it by the committee, and shall not refuse its 
approval without having given the committee an opportunity 
to be heard by the board or by any committee thereof to which 
such report or recommendation is referred. 

bTpnwided 12 °- — 0) The board shall make available to the committee 
by board such personnel and services as the board deems necessary for 
the proper functioning of the committee. 

expensea um ( 2 ) ^ board may pay to each member of the committee who 
is not a member of the board, an honorarium not exceeding 
$25 for each month that he is a member of the committee, and 

c* fei ' 196 °" subsections 4, 5 and 6 of section 36 of The Schools Administra- 
tion Act apply mutatis mutandis to the members of the com- 
mittee. 



Board to 
consider 
report and 
recom- 
mendations 



141 



121. Notwithstanding any other provisions in this Part,^, 1 }? 1 ^ 
English shall be an obligatory daily subject of instruction ^q^ed^in 
for all pupils of Grades 9 to 12 inclusive and shall be a required to 12 
subject for each certificate and diploma issued for standing 

in these grades. 

122. Where a board has established a secondary school or^^sh- 
classes in a secondary school under section 113 and where a classes 

. * ... where 

sufficient number of pupils who elect instruction in the French- 
English language can be assembled, the board shall provide schoof or 
such instruction, and the provisions of section 113 shall apply established 
mutatis mutandis in respect of such pupils. 



123. On the request of a parent or guardian of a pupil, a^^p 8 ]™ 
board of a school division may admit such pupil to classes ^er^ than 
formed under section 113 if such pupil has a right to attend speaking 
a secondary school in the school division and the principal 
is satisfied that the attendance of such pupil will not delay 
the progress of the French-speaking pupils. 



pupils 



2. This Act comes into force on the 1st day of January, ment mence 



1969. 



3. This Act may be cited as The Secondary Schools and 
Boards of Education Amendment Act, 1968 (No. 3). 



Short title 



141 






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BILL 141 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Secondary Schools 
and Boards of Education Act 



Mr. Davis 



(Reprinted as amended by the Committee on Education and University Affairs) 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



>■ 



Explanatory Note 

The new Part VIII provides for the establishment of French-language 
committees for secondary school purposes, and for the establishment of 
French-language secondary schools and classes. 



141 



BILL 141 1968 



An Act to amend The Secondary Schools 
and Boards of Education Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. The Secondary Schools and Boards of Education Act b..s.o. i960, 
is amended by adding thereto the following Part: amended 

PART VIII 

FRENCH-LANGUAGE SECONDARY SCHOOLS 

112. In this Part, £*£?»" 

(a) "board" means a divisional board of education or a 
board of education of an area municipality as defined 

in The Municipality of Metropolitan Toronto Act; ^"Iro' 196 °' 

(b) "committee" means a French-language committee 
for secondary school purposes formed under this 
Part. 

113. — (1) A board may establish and maintain secondary French- 
schools or classes in secondary schools for the purpose of schools or 
providing for the use of the French language in instruction, 
or may enter into an agreement with another board to provide 
for such instruction in the school or schools maintained by 
the latter board for resident pupils of the first-mentioned 
board. 

(2) Where for secondary school purposes in a school divi- Idem 
sion a sufficient number of pupils who elect to be taught in 
the French language can be assembled for this purpose in 
classes or groups of twenty or more in each programmeor branch, 
the board shall provide for the use of the French language 
in instruction in such classes or groups, and where, in the 
opinion of the board, the number of such pupils so warrants, 
the board shall provide for the use of the French language 
in instruction in a composite school. 

141 



Application 
to boards 
of educa- 
tion, etc. 



Establish- 
ment of 
committee 






(3) Subsection 1 applies mutatis mutandis to boards of 
education and high school boards. ""SI 



114— (1) Where, 

(a) ten or more French-speaking ratepayers of a school 
division apply in writing to the board for the estab- 
lishment or extension in a secondary school of a class, 
group or programme in which the French language 
is or is to be used in instruction; or 

(b) the board establishes or extends or decides to 
establish or extend a class, group or programme in 
which the French language is or is to be used in 
instruction, 



the board shall, within two months of the application, estab- 
lishment, extension or decision to establish or extend, provide 
for the establishment of a committee, which shall be an 
advisory committee of the board. 

composition (2) The committee shall consist of seven members and shall 
be composed of, 

(a) three members of the board appointed by the board ; 
and 

(b) four French-speaking ratepayers who are not members 
of the board but have the qualifications required for 
members of the board, elected by the French- 
speaking ratepayers of the school division, except 
that a ratepayer elected to the committee may be 
a member of an elementary school board. 



Term of 
office 



First 

meeting of 
French- 
speaking 
ratepayers 



Additional 
members 



(3) A member of a committee shall hold office during the 
term of the members of the board and until a new board is 
organized. 

(4) The board shall make provision for a meeting of the 
French-speaking ratepayers of the school division to elect 
members to the committee, and shall advertise in each of its 
schools the place and time of the meeting, and shall take 
such additional action to publicize the meeting as it deems 
expedient. 

(5) The committee may, in any year, at a meeting called 
for the purpose and for which notice has been given to all 
members, appoint to the committee one or two additional 
French-speaking ratepayers as it may deem necessary, who 
shall have the qualifications of an elected member. 



141 



(6) The board shall appoint to the committee one or two Idem 
additional members of the divisional board, as the case may be, 
to equal the number of additional members appointed under 
subsection 5. 

115. Where a committee has been established and a new Fren e. h - 
board has been elected, a meeting of the French-speaking ratepayers 
ratepayers in the school division, to elect members to the sequent 
committee and to consider any other matters brought before corranfttee 
it, shall be held on the second Wednesday following the 
first meeting of the newly-elected board, commencing at 
8 o'clock in the afternoon at such place as the board may 
determine, and the provisions of subsection 4 of section 114 
respecting the publicizing of the meeting apply. 

116. — (1) The secretary of the board shall call to order 5J®jJ^ n i f 
the meetings of the French-speaking ratepayers under sec- meetin « 
tions 114 and 115 and shall preside at the meeting for the 
purpose of electing a chairman of the meeting. 

(2) The chairman of the meeting shall appoint a secretary meeting 5 ' ° f 
who shall record the proceedings of the meeting and perform 

such other duties as are required by the chairman. 

(3) The chairman shall preside at the meeting and shall Procedure 

ii.i i r i r i • i i • at meetings 

hold the election of members of the committee and submit 
all motions to the meeting in the manner desired by the 
majority, and the chairman is entitled to vote on any motion, 
and, in the case of a tie vote with respect to the election of 
members of the committee, the chairman shall provide for 
drawing lots to determine which of the candidates is elected, 
and, in the case of a tie vote on a question, the question is 
deemed to be negatived. 

(4) Notice in writing shall be given by the secretary oi™ e °u\Tof T 
the meeting to the secretary of the board designating by their election 
names and addresses the persons elected as members of the 
committee. 

117. — (1) At the first meeting of the committee, the mem- c ^ m ^t e 1 e of 
bers shall elect one of themselves as chairman. 

(2) A majority of all the members constituting the com-Q uorum 
mittee is necessary to form a quorum, and the vote of a 
majority of the members present at a meeting is necessary 

to bind the committee. 

(3) On every question, the chairman may vote, and any v h °^ m an. 
question on which there is an equality of votes shall be deemed {$ votes 
to be negatived. 

141 



Special 
mwtlag 



(4) A special meeting of the committee may be called by the 
chairman of the committee and shall be called by the chair- 
man upon the request in writing of two members of the com- 
mittee who shall specify the objects for which the meeting is 
to be held, and the objects shall be stated in the notice calling 
the meeting. 



Vacancies 



\i 



118. Every vacancy on a committee for any cause shall be 
filled by appointment by the board in the case of appointed 
members and by the elected members of the committee in 
the case of elected members, and every person so appointed 
shall hold office for the unexpired term of the member whose 
seat has become vacant. 



to feport ee H9* — (1) ^ ne comrn ittee shall report at each regular meet- 
to board i n g of the board. 



Recom- 
mendations 



(2) The committee shall make recommendations to the 
board with respect to ways and means of meeting the educa- 
tional and cultural needs of the French-speaking pupils, and 
shall co-operate with all committees of the board with respect 
to, 

(a) suitable sites, accommodation and equipment for the 
purposes of section 113; 

(b) the use of the French language in instruction and the 
related courses of study; 

(c) the appointment of the required teaching, super- 
visory and administrative staff; 

(d) the establishment of special classes for adults in a 
French-language secondary school; and 

(e) the use of any facilities for instruction in the French 
language that are considered desirable to foster the 
educational and cultural needs of the French- 
speaking community. 



Board to 
consider 
report and 
recom- 
mendations 



(3) The board shall consider any report or recommendation 
submitted to it by the committee, and shall not refuse its 
approval without having given the committee an opportunity 
to be heard by the board or by any committee thereof to which 
such report or recommendation is referred. 



be r pro^lded *20. — (1) The board shall make available to the committee 
by board such personnel and services as the board deems necessary for 



the proper functioning of the committee. 



141 



(2) A board may pay to each member of the committee who^°°°^ ium 
is not a member of the board, an honorarium not exceeding 
$25 for each month that he is a member of the committee, and 
subsections 4, 5 and 6 of section 36 of The Schools Administra-f-^ei' 1960, 
tion Act apply mutatis mutandis to the members of the com- 
mittee. 

121. Notwithstanding any other provisions in this Part.^j 1 ^ 
English shall be an obligatory daily subject of instruction q^™^ 111 
for all pupils of Grades 9 to 12 inclusive and shall be a required to 12 
subject for each certificate and diploma issued for standing 

in these grades. 

122. Where a board has established a secondary school or^l^g 
classes in a secondary school under section 113 and where amasses 
sufficient number of pupils who elect instruction in the French- 
English language can be assembled, the board shall provide schoof or 
such instruction, and the provisions of section 113 shall apply established 
mutatis mutandis in respect of such pupils. 



123. On the request of a parent or guardian of a pupil, a^ f dml 



pupils 



pupils 



board of a school division may admit such pupil to classes p*,. 11 ®^^ 811 
formed under section 113 if such pupil has a right to attend speaking 
a secondary school in the school division and the principal 
is satisfied that the attendance of such pupil will not delay 
the progress of the French-speaking pupils. 



2. This Act comes into force on the day it receives Royal ment meiu ' e ~ 
Assent. 



3. This Act may be cited as The Secondary Schools and 
Boards of Education Amendment Act, 1968 (No. J). 



Short title 



141 



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BILL 141 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Secondary Schools 
and Boards of Education Act 



Mr. Davis 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 






BILL 141 1968 



An Act to amend The Secondary Schools 
and Boards of Education Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. The Secondary Schools and Boards of Education ic/R.s.o. i960, 
is amended by adding thereto the following Part: amended 

PART VIII 

FRENCH-LANGUAGE SECONDARY SCHOOLS 

112. In this Part, *$"?*- 

(a) "board" means a divisional board of education or a 
board of education of an area municipality as defined 

in The Municipality of Metropolitan Toronto Act; ^"liso" 196 °' 

(b) "committee" means a French-language committee 
for secondary school purposes formed under this 
Part. 

113. — (1) A board may establish and maintain secondary ^fl^" 
schools or classes in secondary schools for the purpose of schools or 
providing for the use of the French language in instruction, 
or may enter into an agreement with another board to provide 
for such instruction in the school or schools maintained by 
the latter board for resident pupils of the first-mentioned 
board. 

(2) Where for secondary school purposes in a school divi- Idem 
sion a sufficient number of pupils who elect to be taught in 
the French language can be assembled for this purpose in 
classes or groups of twenty or more in each programme or branch, 
the board shall provide for the use of the French language 
in instruction in such classes or groups, and where, in the 
opinion of the board, the number of such pupils so warrants, 
the board shall provide for the use of the French language 
in instruction in a composite school. 

141 



Application 
to boards 
of educa- 
tion, etc. 



Establish- 
ment of 
committee 



2 

(3) Subsection 1 applies mutatis mutandis to boards of 
education and high school boards. 

114.— (1) Where, 






(a) ten or more French-speaking ratepayers of a school 
division apply in writing to the board for the estab- 
lishment or extension in a secondary school of a class, 
group or programme in which the French language 
is or is to be used in instruction; or 

(b) the board establishes or extends or decides to 
establish or extend a class, group or programme in 
which the French language is or is to be used in 
instruction, 



the board shall, within two months of the application, estab- 
lishment, extension or decision to establish or extend, provide 
for the establishment of a committee, which shall be an 
advisory committee of the board. 

Composition (2) The committee shall consist of seven members and shall 
be composed of, 

(a) three members of the board appointed by the board; 
and 

(6) four French-speaking ratepayers who are not members 
of the board but have the qualifications required for 
members of the board, elected by the French- 
speaking ratepayers of the school division, except 
that a ratepayer elected to the committee may be 
a member of an elementary school board. 



offlc m ° f W A member of a committee shall hold office during the 

term of the members of the board and until a new board is 



First 

meeting of 
French- 
speaking 
ratepayers 



Additional 

members 



organized. 

(4) The board shall make provision for a meeting of the 
French-speaking ratepayers of the school division to elect 
members to the committee, and shall advertise in each of its 
schools the place and time of the meeting, and shall take 
such additional action to publicize the meeting as it deems 
expedient. 

(5) The committee may, in any year, at a meeting called 
for the purpose and for which notice has been given to all 
members, appoint to the committee one or two additional 
French-speaking ratepayers as it may deem necessary, who 
shall have the qualifications of an elected member. 



141 



(6) The board shall appoint to the committee one or two rdem 
additional members of the divisional board, as the case may be, 
to equal the number of additional members appointed under 
subsection 5. 

115. Where a committee has been established and a new French- 
board has been elected, a meeting of the French-speaking ratepayers 
ratepayers in the school division, to elect members to thesequent 8 
committee and to consider any other matters brought before J^mfttee 
it, shall be held on the second Wednesday following the 
first meeting of the newly-elected board, commencing at 
8 o'clock in the afternoon at such place as the board may 
determine, and the provisions of subsection 4 of section 114 
respecting the publicizing of the meeting apply. 

116. — (1) The secretary of the board shall call to order Election of 

\ ' J m chairman of 

the meetings of the French-speaking ratepayers under sec- mee ting 
tions 114 and 115 and shall preside at the meeting for the 
purpose of electing a chairman of the meeting. 

(2) The chairman of the meeting shall appoint a secretary meeting^ ° f 
who shall record the proceedings of the meeting and perform 

such other duties as are required by the chairman. 

(3) The chairman shall preside at the meeting and shall Procedure 

iiii i r i r i • i i • at meetings 

hold the election ot members of the committee and submit 
all motions to the meeting in the manner desired by the 
majority, and the chairman is entitled to vote on any motion, 
and, in the case of a tie vote with respect to the election of 
members of the committee, the chairman shall provide for 
drawing lots to determine which of the candidates is elected, 
and, in the case of a tie vote on a question, the question is 
deemed to be negatived. 

(4) Notice in writing shall be given by the secretary of^* 1 , 1 ^^ 
the meeting to the secretary of the board designating by their election 
names and addresses the persons elected as members of the 
committee. 

117. — (1) At the first meeting of the committee, the mem-J h ^> nof 
bers shall elect one of themselves as chairman. 

(2) A majority of all the members constituting the com-Q uorum 
mittee is necessary to form a quorum, and the vote of a 
majority of the members present at a meeting is necessary 

to bind the committee. 

(3) On every question, the chairman may vote, and any ^^^n. 
question on which there is an equality of votes shall be deemed ^ u v a ^y 
to be negatived. 

141 



Special 
meeting 



Vacancies 






(4) A special meeting of the committee may be called by the 
chairman of the committee and shall be called by the chair- 
man upon the request in writing of two members of the com- 
mittee who shall specify the objects for which the meeting is 
to be held, and the objects shall be stated in the notice calling 
the meeting. 

118. Every vacancy on a committee for any cause shall be 
filled by appointment by the board in the case of appointed 
members and by the elected members of the committee in 
the case of elected members, and every person so appointed 
shall hold office for the unexpired term of the member whose 
seat has become vacant. 



to°i^port ee *^* — (*) ^ ne comm ittee shall report at each regular meet- 
to board i n g of the board. 



Recom- 
mendations 



(2) The committee shall make recommendations to the 
board with respect to ways and means of meeting the educa- 
tional and cultural needs of the French-speaking pupils, and 
shall co-operate with all committees of the board with respect 
to, 



(a) suitable sites, accommodation and equipment for the 
purposes of section 113; 

(b) the use of the French language in instruction and the 
related courses of study; 

(c) the appointment of the required teaching, super- 
visory and administrative staff; 

(d) the establishment of special classes for adults in a 
French -language secondary school; and 

(e) the use of any facilities for instruction in the French 
language that are considered desirable to foster the 
educational and cultural needs of the French- 
speaking community. 



Board to 
consider 
report and 
recom- 
mendations 



(3) The board shall consider any report or recommendation 
submitted to it by the committee, and shall not refuse its 
approval without having given the committee an opportunity 
to be heard by the board or by any committee thereof to which 
such report or recommendation is referred. 



Services to 
be provided 
by board 



120. — (1) The board shall make available to the committee 
such personnel and services as the board deems necessary for 
the proper functioning of the committee. 



141 



(2) A board may pay to each member of the committee who^°^ n ^ ium 
is not a member of the board, an honorarium not exceeding 
$25 for each month that he is a member of the committee, and 
subsections 4, 5 and 6 of section 36 of The Schools Administra-^fo^- 1960, 
tion Act apply mutatis mutandis to the members of the com- 
mittee. 

121. Notwithstanding any other provisions in this Part,^? 1 ^ 
English shall be an obligatory daily subject of instruction Q^desV 11 
for all pupils of Grades 9 to 12 inclusive and shall be a required to 12 
subject for each certificate and diploma issued for standing 

in these grades. 

122. Where a board has established a secondary school or^nfuage 
classes in a secondary school under section 113 and where a classes 

wiifir© 

sufficient number of pupils who elect instruction in the French- 
English language can be assembled, the board shall provide schoof or 
such instruction, and the provisions of section 113 shall apply established 
mutatis mutandis in respect of such pupils. 

123. On the request of a parent or guardian of a pupil, a^ f d ^ l ™{° n 
board of a school division may admit such pupil to classes o^® 1 ^ 5 * 11 
formed under section 113 if such pupil has a right to attend speaking 
a secondary school in the school division and the principal 

is satisfied that the attendance of such pupil will not delay 
the progress of the French-speaking pupils. 

2. This Act comes into force on the day it receives Royal men\ mence 
Assent. 

3. This Act may be cited as The Secondary Schools and shorttiUe 
Boards of Education Amendment Act, 1968 (No. 3). 



141 



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BILL 142 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



The Ontario Labour-Management Arbitration 
Commission Act, 1968 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 






Explanatory Note 



The Bill establishes the Ontario Labour-Management Arbitration 
Commission to perform the duties and functions set out. 



142 






BILL 142 1968 



The Ontario Labour-Management 
Arbitration Commission Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, IXSr- 

(a) "Commission" means The Ontario Labour-Manage- 
ment Arbitration Commission; 

(b) "Minister" means the Minister of Labour; 

(c) "regulations" means the regulations made under 
this Act. 

2. — (1) There is hereby established a commission to be^°^|g^g5 n 
known as The Ontario Labour-Management Arbitration 
Commission. 

(2) The Commission shall consist of seven members composition 
appointed by the Lieutenant Governor in Council, of whom 

one shall be designated as chairman to hold office during the 
pleasure of the Lieutenant Governor in Council. 

(3) Three members of the Commission shall be represent- Idem 
atives of employers and three members shall be representatives 

of employees. 

(4) The representatives of employers and employees on the q^^ of 
Commission shall be appointed for terms of one, two or three 
years and are eligible for re-appointment. 

(5) Vacancies in the membership of the Commission caused vacancies 
by death, resignation or otherwise may be filled by the 
Lieutenant Governor in Council. 

(6) The members of the Commission shall receive such ^® munera " 
remuneration and expenses as the Lieutenant Governor in 
Council determines. 

142 



Staff 



(7) The Commission may appoint such officers and clerks 
as are necessary for the proper conduct of its work and, 
subject to the approval of the Lieutenant Governor in Council, 
may fix their salaries. 



Approval 



3. — (1) The Commission may issue its approval to any 
person whom it deems suitable to act as an arbitrator. 



appro t ved° f &) The Commission shall cause to be entered in a register 
persons maintained for the purpose the name of every person to whom 

its approval is issued under subsection 1. 






Refusal, etc. (3) The Commission may, after a hearing which may be 
either public or in camera as it deems proper, refuse to issue 
its approval or may suspend or revoke its approval. 



Record 



(4) There shall be a verbatim record of every such hearing. 



Appeal (5) Where the Commission refuses to issue its approval to 

any person or suspends or revokes its approval of any person, 
he may, within fifteen days after receipt of the decision of 
the Commission, appeal to a county or district judge of the 
county or district court of the county or district in which 
he resides and if the judge finds, upon the record or other 
evidence admitted by his leave, that there has been a denial 
of natural justice occasioned by the action of the Commission 
he may make such order as he deems proper, and thereupon 
the Commission shall act accordingly. 

arbitrators ^» — (*) The Commission may employ on a full-time basis 
such persons as it deems necessary to act as arbitrators and 
may fix their salaries. 

arbitrators 0-) In order to ensure adequate levels of remuneration for 
arbitrators who act part-time, the Commission may schedule 
assignments and adopt such other methods and procedures 
as it deems proper. 



Duties and 
functions of 
Commission 



5. The duties and functions of the Commission are to, 

(a) maintain for the use of parties to an arbitration a 
register of approved arbitrators; 

(6) assist arbitrators by making the administrative 
arrangements required for the conduct of arbitra- 
tions; 

(c) sponsor training programmes for arbitrators; 



142 



(d) sponsor the publication and distribution of informa- 
tion in respect of arbitration processes and awards; 
and 

(e) sponsor research in respect of arbitration processes 
and awards. 

6. — (1) The Commission may collect such fees for services Fees 
provided to employers and employees as are fixed by the 
regulations. 

(2) Fees collected by the Commission shall be expended to Expenditure 
defray its expenses in carrying out its duties and functions. 

7. — (1) The Commission shall report annually to the^™^ 1 
Minister upon the affairs of the Commission. 

(2) The Minister shall submit the annual report to the^ 1 ^ gof 
Lieutenant Governor in Council and shall then lay the report 
before the Assembly if it is in session or, if not, at the next 
ensuing session. 

8. The moneys required for the purposes of this Act shall, Mone > rs 
until the 31st day of March, 1969, be paid out of the Consol- 
idated Revenue Fund and thereafter shall be paid out of the 
moneys appropriated therefor by the Legislature. 

9. Subject to the approval of the Lieutenant Governor in Regulations 
Council, the Commission may make regulations, 

(a) governing the assignment of arbitrators to conduct 
arbitrations and the carrying out and completion of 
such assignments; 

(b) providing for and fixing the remuneration and 
expenses payable in respect of arbitrations carried 
out by arbitrators registered with the Commission 
and providing for the payment of such fees and 
expenses by the parties to the arbitration; 

(c) providing for and fixing fees for services provided 
to employers and employees by the Commission; 

(d) governing the conduct of hearings and prescribing 
procedures therefor; 

(e) prescribing forms and providing for their use; 

(/) respecting any matter necessary or advisable to 
carry out effectively the intent and purpose of this 
Act. 

142 



ment men °* *®* This Act comes into force on a day to be named by 
the Lieutenant Governor by his proclamation. 

short title n. This Act may be cited as The Ontario Labour- Manage- 

ment Arbitration Commission Act, 1968. 



+s 



142 



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BILL 142 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 






The Ontario Labour-Management Arbitration 
Commission Act, 1968 



Mr. Bales 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 






BILL 142 1968 



The Ontario Labour-Management 
Arbitration Commission Act, 1968 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. In this Act, l£%r- 

(a) "Commission" means The Ontario Labour-Manage- 
ment Arbitration Commission; 

(b) "Minister" means the Minister of Labour; 

(c) "regulations" means the regulations made under 
this Act. 

2. — (1) There is hereby established a commission to be £tabHshed n 
known as The Ontario Labour-Management Arbitration 
Commission. 

(2) The Commission shall consist of seven members composition 
appointed by the Lieutenant Governor in Council, of whom 

one shall be designated as chairman to hold office during the 
pleasure of the Lieutenant Governor in Council. 

(3) Three members of the Commission shall be represent- Idem 
atives of employers and three members shall be representatives 

of employees. 

(4) The representatives of employers and employees on the J^ r c m of 
Commission shall be appointed for terms of one, two or three 
years and are eligible for re-appointment. 

(5) Vacancies in the membership of the Commission caused vacancies 
by death, resignation or otherwise may be filled by the 
Lieutenant Governor in Council. 

(6) The members of the Commission shall receive such ^on" unera 
remuneration and expenses as the Lieutenant Governor in 
Council determines. 

142 



Stan- 



Approval 



(7) The Commission may appoint such officers and clerks 
as are necessary for the proper conduct of its work and, 
subject to the approval of the Lieutenant Governor in Council, 
may fix their salaries. 

3. — (1) The Commission may issue its approval to any 
person whom it deems suitable to act as an arbitrator. 



a^pro^ed 01 ^ (^) The Commission shall cause to be entered in a register 
persons maintained for the purpose the name of every person to whom 

its approval is issued under subsection 1. 

Refusal, etc. (3) The Commission may, after a hearing which may be 
either public or in camera as it deems proper, refuse to issue 
its approval or may suspend or revoke its approval. 



Record 



(4) There shall be a verbatim record of every such hearing. 



Appeal (5) Where the Commission refuses to issue its approval to 

any person or suspends or revokes its approval of any person, 
he may, within fifteen days after receipt of the decision of 
the Commission, appeal to a county or district judge of the 
county or district court of the county or district in which 
he resides and if the judge finds, upon the record or other 
evidence admitted by his leave, that there has been a denial 
of natural justice occasioned by the action of the Commission 
he may make such order as he deems proper, and thereupon 
the Commission shall act accordingly. 

ar U bitraTors "*• — 0) The Commission may employ on a full-time basis 
such persons as it deems necessary to act as arbitrators and 
may fix their salaries. 

arbitrators (2) I* 1 order to ensure adequate levels of remuneration for 
arbitrators who act part-time, the Commission may schedule 
assignments and adopt such other methods and procedures 
as it deems proper. 



Duties and 
functions of 
Commission 



5. The duties and functions of the Commission are to, 

(a) maintain for the use of parties to an arbitration a 
register of approved arbitrators; 

(b) assist arbitrators by making the administrative 
arrangements required for the conduct of arbitra- 
tions; 

(c) sponsor training programmes for arbitrators; 



142 



(d) sponsor the publication and distribution of informa- 
tion in respect of arbitration processes and awards; 
and 

(e) sponsor research in respect of arbitration processes 
and awards. 

6. — (1) The Commission may collect such fees for services Fees 
provided to employers and employees as are fixed by the 
regulations. 

(2) Fees collected by the Commission shall be expended to Expenditure 
defray its expenses in carrying out its duties and functions. 

7. — (1) The Commission shall report annually to the^po"* 1 
Minister upon the affairs of the Commission. 

(2) The Minister shall submit the annual report to thej£j£*£ e oT 
Lieutenant Governor in Council and shall then lay the report 
before the Assembly if it is in session or, if not, at the next 
ensuing session. 

8. The moneys required for the purposes of this Act shall, Mone y 8 
until the 31st day of March, 1969, be paid out of the Consol- 
idated Revenue Fund and thereafter shall be paid out of the 
moneys appropriated therefor by the Legislature. 

9. Subject to the approval of the Lieutenant Governor in Regulations 
Council, the Commission may make regulations, 

(a) governing the assignment of arbitrators to conduct 
arbitrations and the carrying out and completion of 
such assignments; 

(b) providing for and fixing the remuneration and 
expenses payable in respect of arbitrations carried 
out by arbitrators registered with the Commission 
and providing for the payment of such fees and 
expenses by the parties to the arbitration; 

(c) providing for and fixing fees for services provided 
to employers and employees by the Commission; 

(d) governing the conduct of hearings and prescribing 
procedures therefor; 

(e) prescribing forms and providing for their use; 

(/") respecting any matter necessary or advisable to 
carry out effectively the intent and purpose of this 
Act. 

142 



ment me ' <e *®* ^ ls ^ ct comes into force on a day to be named by 
the Lieutenant < iovernor by his proclamation. 

Short title H. This Act may be cited as 'I'he Ontario labour- Manage- 

ment Arbitration Commission Act, 1Q68. 






142 



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BILL 143 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Corporations Tax Act 



Mr. MacNaughton 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



Explanatory Notes 

GBNBRAL. The amendments contained in the Bill fall generally 
into two categories, those which result from the amendments to the 
Income Tax Act (Canada) and those which result from the re-organization 
of the Treasury Department. 

S b CT I OM 1. The Bill eliminates the reference to the Treasurer of 
Ontario whose duties are given to the Minister of Revenue. This amend- 
ment is complementary to the Act to establish the Department of Revenue. 



Sacrum 2. A corporation incorporated outside of Canada in a 
jurisdiction which has not entered into a Tax Convention or Treaty wilh 
Canada shall he deemed to have a permanent establishment in Ontario, 
if il owns land in Ontario. 



143 



BILL 143 1968 



An Act to amend The Corporations Tax Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Paragraph 16 of subsection 1 of section 1 of ^fjfVif 0, 
The Corporations Tax Act is amended by striking out "Treas-^ 8 ^' 
urer" in the tenth line and inserting in lieu thereof "Minister", amended 

(2) Paragraph 29 of subsection 1 of the said section 1 is^-f^g 1 ? 60, 
amended by striking out "Treasurer" in the third line and^ 8 ^- 
inserting in lieu thereof "Minister". amended 

(3) Paragraph 32 of subsection 1 of the said section 1 is^^s 1 ? 60 ' 
amended by striking out "Treasurer" in the third line and 8 "^*- 
inserting in lieu thereof "Minister". amended 

R S O 1960 

(4) Paragraph 42 of subsection 1 of the said section 1 isc'73, s. 1. 

v , , fe K subs. 1. 

repealed. par. 42, 

repealed 

(5) Subsection 1 of the said section 1, as amended by ^ f^g 1 ? 60, 
subsection 1 of section 1 of The Corporations Tax Amendment &uba. 1 

amended 
Act, 1961-62 and section 1 of The Corporations Tax Amend- 
ment Act, 1965, is further amended by adding thereto the 
following paragraph: 

24a. "Minister" means the Minister of Revenue. 

2. Section 2 of The Corporations Tax Act, as amended by ^'f^s. 1 !? ' 
subsection 1 of section 2 of The Corporations Tax Amendment amended 
Act, 1961-62 and section 1 of The Corporations Tax Amend- 
ment Act, 1967, is further amended by adding thereto the 
following subsections: 

(7a) Where a corporation, not otherwise having a per- Idem 
manent establishment in Canada, is incorporated 
under the laws of a jurisdiction outside of Canada, 
which jurisdiction has not entered into a Tax Con- 
vention or Treaty with Canada for the fiscal year, 

143 



-• 



and owns land in a province, such land shall be 
deemed to be a permanent establishment in the 
province. 



Interpre- 
tation 



(76) For the purposes of subsections 7 and 7a, a corpora- 
tion "owns land" if it has a legal, equitable Of 
beneficial interest in the land. 



R.S.O. I960, 
c. 73, 8. 4, 
buds. 6, 
amended 



3. — (1) Subsection 6 of section 4 of The Corporations Tax 
Act, as amended by subsection 1 of section 3 of The Corpora- 
tions Tax Amendment Act, 1961-62, is further amended by 
striking out "and" at the end of clause h, by adding "and" 
at the end of clause i and by adding thereto the following 
clause: 



(j) where land which constitutes a permanent establish- 
ment in a province under subsections 7 and la of 
section 2 is sold, and the profit derived therefrom 
is included in the corporation's income, the gross 
revenue of the corporation derived from such sales 
for the fiscal year shall be attributed to that per- 
manent establishment. 

R ?i°' 1 ? 60, (2) Subsection 33 of the said section 4 is amended by 

e. / d, 8. 4, v ' , M J 

subs. 33 striking out "Treasurer" in the fifth line and inserting in lieu 

amended ° . . ,, ° 

thereof Minister . 



c 1 '?^ ^ 1 ! 60, W Clause o of subsection 37 of the said section 4, as re- 
subs.' 37, enacted by subsection 5 of section 3 of The Corporations Tax 
(1961-62, Amendment Act, 1961-62, is repealed and the following sub- 

C. 23. 8. 3, . , , , K ** 

subs. 5). stituted therefor: 

re-enacted 



pension 
corporation 



(o) a corporation established or incorporated solely in 
connection with, or for the administration of, a 
registered pension fund or plan, not less than 90 per 
cent of the income of which for the period was, 



(i) from sources in Canada, 



R.8.C. 1952. 
c. 19 



143 



(ii) from bonds, debentures or other securities 
issued or guaranteed by the International 
Bank for Reconstruction and Development 
established by the Agreement for an Interna' 
tional Bank for Reconstruction and Develop- 
ment approved by subsection 1 of section 2 
of the Bretton Woods Agreements Act (Canada), 
the income from which securities is payable 
in Canadian currency, or 






Section 3 — Subsection 1. The amendment is complementary to 
the amendment in section 2. It provides that if the profit from the sale 
of land is included in the income of a corporation described in section 2, 
subsection 7 and la of the Act, the gross income of the corporation shall be 
attributed to the permanent establishment. 



Subsection 2. Complementary to section 1. 



Subsection 3. The amendment provides that a corporation estab- 
lished or incorporated solely in connection with or for the administration 
of a registered pension fund or plan can derive up to 90 per cent of its 
income from certain securities of the International Bank for Reconstruc- 
tion and Development and still remain exempt from corporations tax 
under Part I of the Act. A similar amendment has been made to sec- 
tion 62 (1) (g) of the Income Tax Act (Canada). 



143 



Subsection 4. Complementary to section 1. 



Subsection 5. The new subsections which are complementary to 
section 2 of the Bill will now tax those corporations which own land in 
the province and those non-resident corporations which elect to be taxed 
under the federal Income Tax Act on the basis of taxable income, rather 
than on the basis of 15 per cent withholding tax on gross revenue. Pre- 
viously, such corporations were not subject to tax. 



Section 4. The amendment is complementary to that contained in 
sections 2 and 3 (5) of the Bill. It extends the definition of paid-up 
capital of non-resident corporations. 



143 



(iii) from sources in Canada and from bonds, 
debentures or other securities described in 
subclause ii. 

(4) Clause p of subsection 37 of the said section 4 is amended ^.'^'b 1 ^ ' 
by striking out "Treasurer" in the third line and inserting ^ b |- 37 - 

in lieu thereof "Minister". amended 

(5) The said section 4, as amended by section 3 of The^'^g 1 ^ 0, 
Corporations Tax Amendment Act, 1961-62, section 1 f amended 
The Corporations Tax Amendment Act, 1962-63 and section 2 

of The Corporations Tax Amendment Act, 1967, is further 
amended by adding thereto the following subsections: 

(34a) Where a corporation that is not subject to taxation Idem 

under section 31 of the Income Tax Act (Canada) ^'i4g' 1952, 

owns land in Ontario or owns land in Ontario and 

other provinces and territories of Canada and 

does not otherwise have a permanent establishment 

in Canada, this section applies as though the portion 

of its taxable income arising from the sale of land 

in Canada were its total taxable income and such 

taxable income were allocated among the provinces 

and territories of Canada in accordance with those 

provisions of subsection 34 as are applicable. 

(34&) Where a corporation that has elected to be taxed Idem 
under section 31 of the Income Tax Act (Canada) 
pursuant to the provisions of section 110 of the 
Income Tax Act (Canada) owns land in Ontario or 
owns land in Ontario and other provinces and ter- 
ritories of Canada and does not otherwise have a 
permanent establishment in Canada, this section 
applies as though the portion of its taxable income 
arising from the sale or rental of land in Canada 
were its total taxable income, and such taxable 
income were allocated among the provinces and 
territories of Canada in accordance with those 
provisions of subsection 34 as are applicable. 

4. Subsection 16 of section 5 of The Corporations Tax Act^^ B 1 ^ ' 
is repealed and the following substituted therefor: re-enacted 

(16) In the case of a corporation to which subsection 34, capftai P 

34a or 346 of section 4 applies the paid-up capital fo™^^^ 
thereof shall, notwithstanding section 68, be deemed 
to be either, 

(a) the amount of which the portion of its tax- 
able income which is subjected to taxation 
under section 31 of the Income Tax Act c.'iks' 

143 



..« 



(Canada) or the amount of which the portion 
of its taxable income is subjected to taxation 
under subsection 34a of section 4 would be 
8 per cent; or 

(b) the amount that equals the difference between, 

(i) the amount of the total assets of the 
corporation in Canada, and 

(ii) the amount of the indebtedness of the 
corporation relating to its permanent 
establishments in Canada but exclud- 
ing therefrom all amounts that are 
advanced or loaned to its permanent 
establishments in Canada by the cor- 
poration itself or by any other cor- 
poration and all other indebtedness 
that is represented by bonds, bond 
mortgages, debentures, income bonds, 
income debentures, mortgages, lien 
notes and any other securities to which 
the property in Canada or any of it is 
subject, 

whichever is greater, and, in such case, this 
section shall apply as though the paid-up 
capital as so determined were the total paid- 
up capital of the corporation and as though 
the corporation had no permanent establish- 
ments outside of Canada. 



r -?a°- 1 ? 60, 5. Clause b of subsection 7 of section 6 of The Corporations 

C. 7o, 8. O, . „ „ .. . . ._ ... * m m 

subs. 

amended line and inserting in lieu thereof "Minister". 



subs.' 7,' Tax Act is amended by striking out "Treasurer" in the fourth 



c^fiPs 1 ? 60 ' ®* Subsection 2 of section 7 of The Corporations Tax Act 
subs.' 2.' ' is amended by striking out "Treasurer" in the third line and 



amended 



inserting in lieu thereof "Minister". 



c^'TiPs 1 ?? 0, -' Section 17 of The Corporations Tax Act, as amended 
amended by section 5 of The Corporations lax Amendment Act, 1961-62, 
section 2 of The Corporations Tax Amendment Act, 1962-63, 
section 2 of The Corporations Tax Amendment Act, 1964 and 
section 4 of The Corporations Tax Amendment Act, 1965, is 
further amended by adding thereto the following clause: 

reserve 8 ror ( ea ) tne amount deducted as a reserve under clause ha 

quadrennial of subsection 1 of section 22 in computing the cor- 

survey, etc. ... , .. ■• i j- 

poration s income for the immediately preceding 



year. 



143 



Section 5. Complementary to section 1. 



Section 6. Complementary to section 1. 



Section 7. The new clause provides for the inclusion in the income 
of a corporation for the fiscal year of amounts deducted as a reserve under 
the new clause ha of subsection 1 of section 22 of the Act as set out in 
section 11 (2) of the Bill. A similar amendment has been made to sec- 
tion 6(1) (eb) of the Income Tax Act (Canada). 



143 



Section 8. The new section 17a of the Act is analogoua I 
tion 137 (2) and (3) of (he federal Income Tax Act. It brings into the 
income of ■ corporation, for t.i\ purposes^ indirect payments or tr.> 
to a corporation, where such indire< t payments or transfers confer a I 
on a corporation. 



i 



Section 9. Complementary to section 1. 



Section 10. This section provides that a grant paid to a corporation 
under the Area Development Incentives Act (Canada) and the Industrial 
Research and Development Incentives Act (Canada) shall be exempt from 
income tax. A corresponding exemption has been provided for the pur- 
poses of the Income Tax Act (Canada). 



Section 11 — Subsection 1. The amendment provides, subject to 
the approval of the Minister, for the deductibility of interest that may be 
payable by a corporation on grants received by it under the federal Pro- 
gram for the Advancement of Industrial Technology or under the Northern 
Mineral Exploration Assistance Regulations. This amendment is related 
to the amendments proposed in sections 20 and 28 of the Bill. A similar 
amendment has been made to section 11 (1) (c) of the Income Tax Act 
(Canada). 



143 



5 
8. The Corporations Tax Act is amended by adding thereto f-^- 1960, 

the following section: amended 

17a. — (1) Where the result of one or more sales, exchanges, payment 
declarations of trust, or other transactions of any or transfer 
kind whatsoever is that a person confers a benefit 
on a corporation, that person shall be deemed to have 
made a payment to the corporation equal to the 
amount of the benefit conferred notwithstanding 
the form or legal effect of the transactions or that 
one or more other persons were also parties thereto; 
and whether or not there was an intention to avoid 
or evade taxes under this Act, the payment shall be 
included in computing the income of the corporation. 

(2) Where it is established that a sale, exchange or other £ n m t h 
transaction was entered into by a corporation and 
other persons dealing at arm's length, bona fide and 
not pursuant to, or as part of, any other transaction 
and not to effect payment in whole or in part of an 
existing or future obligation, no party thereto shall be 
regarded, for the purpose of this section and for the 
purpose of subsection 5 of section 23, as having 
conferred a benefit on a corporation who was party 
thereto. 



9. Section 20 of The Corporations Tax Act is amended by, 11 ' 1 



striking out "Treasurer" in the ninth line and 
in lieu thereof "Minister". 



c. 73, s. 20, 
inserting amended 



10. Clause d of section 21 of The Corporations Tax Act, f'^k 1 ^' 
as enacted by section 2 of The Corporations Tax Amendment <*■■<£ 
Act, 1966, is amended by adding at the end thereof "or thee. 30,'s. 2), 
Industrial Research and Development Incentives Act (Canada)", 
so that the clause shall read as follows: 

(d) an amount paid to a corporation on account of a^^iop- 
development grant under the Area Development™^ grants 
Incentives Act (Canada) or the Industrial Research*?. 12 (Can.) 
and Development Incentives Act (Canada). c. 82* (Can.) 

11.— (1) Clause a of subsection 1 of section 22 of The*^^}^' 
Corporations Tax Act is amended by striking out "or" at^ ,b £- 1> 
the end of subclause i, by adding "or" at the end of subclause ii, amended 
and by adding thereto the following subclause: 

(iii) subject to the approval of the Minister, an amount 
paid to the corporation under, 

(A) an Appropriation Act (Canada) for the pur- 
pose of advancing or sustaining the technolog- 



143 



ical capability of Canadian manufacturing or 
other industry, or 

(B) the Northern Mineral Exploration Assistance 
Regulations made under an Appropriation 
Act (Canada), 



R.S.O. I960, 
c. 73, s. 22. 
subs. 1, 
amended 



(2) Subsection 1 of the said section 22, as amended by 
subsection 1 of section 7 of The Corporations Tax Amendment 
Act, 1961-62, section 3 of The Corporations Tax Amendment 
Act, 1962-63, subsections 1 and 2 of section 5 of The Cor- 
porations Tax Amendment Act, 1965 and subsection 1 of 
section 3 of The Corporations Tax Amendment Act, 1966, is 
further amended by adding thereto the following clause: 



reserve for 

quadrennial 

survey 



R.S.C. 1952, 
o. 29 



R.S.O. 1960, 
c. 73. s. 22, 
subs. 1, 
cl. r, 
amended 

contribution 
under 
registered 
supplemen- 
tary unem- 
ployment 
benefit 
plan 

R.S.O. 1960, 
c. 73, s. 22, 
subs. 5, 
amended 



(ha) such amount as may be prescribed as a reserve for 
expenses to be incurred by the corporation by reason 
of quadrennial or other special surveys required 
under the Canada Shipping Act (Canada), or the 
regulations thereunder or under the rules of any 
society or association for the classification and 
registry of shipping approved by the Minister of 
Transport of Canada for the purpose of the Canada 
Shipping Act (Canada). 

(3) Clause r of subsection 1 of the said section 22 is amended 
by inserting after "a" where it occurs the third time in the 
first line "registered", so that the clause shall read as follows: 

(r) an amount paid by a corporation to a trustee under 
a registered supplementary unemployment benefit 
plan as permitted by section 53. 

(4) Subsection 5 of the said section 22 is amended by 
striking out "Treasurer" in the fifth line and inserting in lieu 
thereof "Minister". 



r -5a°- 1 2S 0> (5) Subsection 8 of the said section 22 is amended by 

c 73 8 22 

subs.' 8," striking out "Treasurer" in the ninth line and inserting in 
lieu thereof "Minister". 



R.S.O. I960, 
c. 73. s. 23, 
subs. 1, 
amended 



limitation 
on con- 
tribution 



12. — (1) Subsection 1 of section 23 of The Corporations 
Tax Act, as amended by section 8 of The Corporations Tax 
Amendment Act, 1961-62 and section 4 of The Corporations 
Tax Amendment Act, 1964, is further amended by adding 
thereto the following clause: 

(J) an amount paid by a corporation to a trustee under 
a supplementary unemployment benefit plan except 
as permitted by section 53. 



143 



Subsection 2. The amendment provides for a deduction in com- 
puting the income of a corporation for a fiscal year of a prescribed amount 
as a reserve in respect of the expense of a quadrennial or other survey. 
An analogous provision was formerly contained in section 33 of the Act, 
which is repealed by section 15 of this Bill. The analogous federal provi- 
sion was formerly contained in the Canada Vessel Construction Assistance 
Act, now repealed, however, now a similar amendment has been made 
to section 11 (1) of the Income Tax Act (Canada). Therefore, in line 
with the previous practice, the same provision has been made in The Cor- 
porations Tax Act. 



Subsection 3. The amendment provides that an amount paid by 
a corporation to a trustee under a supplementary unemployment benefit 
plan would be deductible in computing the income of the corporation if 
the plan is registered in accordance with section 53 of the Act, as amended 
by section 25 of the Bill. A similar amendment has been made to sec- 
tion 11 (1) (s) of the Income Tax Act (Canada). 



Subsections 4 and 5. Complementary to section 1. 



Section 12 — Subsection 1. This amendment provides that an 
amount paid by a corporation to a trustee under a supplementary unem- 
ployment benefit plan will not be deductible in computing the income of 
a corporation unless such a deduction is permitted by section 53. A 
similar amendment has been made to section 12(1) (ha) of the Income Tax 
Act (Canada). 



143 



Subsection 2. This .amendment provides that no deduction can be 
made in respect of an expense which would artificially reduce the income 
of a corporation. It is analogous to the existing section 137 (1) of the 
Income Tax Act (Canada). 



Section 13. Complementary to section 1. 



Section 14 — Subsection 1. The definitions set out were already 
contained in section 32 of the Act. However, in line with the amendments 
to the Income Tax Act (Canada), they have been re-enacted as part of 
section 31. Section 32 of the Act is repealed by section 15 of the Bill. 



Subsection 2. The purpose of the amendment is to extend the 
application of the provision of the Act to allow the use of insurance proceeds 
for replacement of property without capital cost recapture to insurance 
proceeds received on the loss or destruction of a vessel. A similar amend- 
ment has been made to section 20 (5c) of the Income Tax Act (Canada). 



143 



(2) The said section 23 is amended by adding thereto the^^g ^ 1 !! * 

following subsection : amended 

(5) In computing income, no deduction may be made ^nsactlon 
in respect of a disbursement or expense made or 
incurred in respect of a transaction or operation that, 
if allowed, would unduly or artificially reduce the 
income. 

13. Subsection 2 of section 24 of The Corporations Tax R.s.o. i960, 

c 73 8 24 

Act is amended by striking out "Treasurer" in the first line subs.' 2." 
and inserting in lieu thereof "Minister". 

14u — (1) Subsection 4 of section 31 of The Corporations 'cVfiPs. 1 iff' 
Tax Act, as amended by section 3 of The Corporations Tax 8 ^- *• . 

... iiii- amended 

Amendment Act, 1967, is further amended by re-lettering 
clause a as clause aa and by adding thereto the following 
clauses: 

(a) "conversion", in respect of a vessel, means a con- 
version or major alteration in Canada by a corpora- 
tion in accordance with plans approved in writing 
by the Minister of Industry of Canada for the 
purposes of the Income Tax Act (Canada) and by^^ 1952 - 
the Minister, and "conversion cost" means the cost 
of conversion as determined by the Minister; 



if) "vessel" means a vessel as defined in the Canada ^^ 1952 ' 
Shipping Act (Canada). 

(2) Clauses a and b of subsection 5 of the said section 31 ^f^g 1 ! 60, 
are repealed and the following substituted therefor : cis^a 5 i> 

re-enacted 

(a) it shall, to the extent that it has been expended by 
the corporation, 

(i) in the fiscal year immediately following the 
initial fiscal year on acquiring property of the 
same class, 

(ii) in the fiscal year immediately following the 
initial fiscal year on acquiring, if the property 
destroyed was a building, a building of a 
prescribed class, or 

(iii) within the time certified by the Minister to be 
a reasonable time following the initial fiscal 
year, on acquiring, if the property destroyed 
was a vessel, a vessel of a prescribed class, 

not be included in computing the income of the cor- 
poration for the initial fiscal year; and 



143 



8 



(6) it shall, to the extent that it has not been included 
in computing the income of the corporation for the 
initial fiscal year, be deemed to be proceeds of a 
disposition made, 

(i) in the case of a vessel, in the fiscal year in 
which it is in whole or in part expended in 
accordance with clause a, but only to the 
extent that it is so expended in that year and 
only if such year is within the time certified 
by the Minister under subclause iii of clause a, 
and 

(ii) in the case of any other property in the fiscal 
year immediately following the initial year, 

of depreciable property of the corporation of the 
same class as the property so acquired. 



R.S.O. I960, 
c. 73, s. 31, 
subs. 56 
(1960-61, 
0. 14. 8. 3), 
amended 



(3) Subsection 5b of the said section 31, as enacted by sec- 
tion 3 of The Corporations Tax Amendment Act, 1960-61, is 
amended by striking out "Treasurer" in the twelfth line and 
in the thirteenth line and inserting in lieu thereof in each 
instance "Minister". 



(4) Subsection 9 of the said section 31, as enacted by sec- 
tion 5 of The Corporations Tax Amendment Act, 1966, is 



R.S.O. I960 
o. 78, s. 31, 

subs. 9 
( 1 Mfifi 

c 3o.'s. 5) repealed and the following substituted therefor: 

re-enacted 



1965, 

0. 12 (Can.) 

1966, 

c. 82 (Can.) 



(9) Paragraph 8 of subsection 6 does not apply in 
respect of a grant authorized to be paid under the 
Area Development Incentives Act (Canada) or the 
Industrial Research and Development Incentives Act 
(Canada) and approved by the Minister. 



R '78 i 1 8i 0, (**) ^ ne sa ' c ^ section 31, as amended by section 3 of The 
amended Corporations Tax Amendment Act, 1960-61, section 6 of 
The Corporations Tax Amendment Act, 1964, section 8 of 
The Corporations Tax Amendment Act, 1965, section 5 of The 
Corporations Tax Amendment Act, 1966 and section 3 of 'The 
Corporations Tax Amendment Act, 1967, is further amended 
by adding thereto the following subsections: 



Application 
where 
deduction 
under 

R.8.C. 1962. 
c. 43 



(11) Notwithstanding subsection 8, where a deduction 
has been made under the Canadian Vessel Construc- 
tion Assistance Act (Canada) for any year, sub- 
section 1 is applicable in respect of the prescribed 
class created by that Act or any other prescribed 
(lass to which the vessel may have been transferred. 



143 



Subsection 3. Complementary to section 1. 



Subsection 4. The amendment provides that where a corporation 
receives a development grant in respect of property under the Area Develop- 
ment Incentives Act (Canada) and the Industrial Research and Development 
Incentives Act (Canada), the approved capital cost of such property shall 
not be reduced by the amount of such grant. Similar provisions have been 
made in the Income Tax Act (Canada). 



Subsection 5. The provisions contained in this amendment were 
already contained in sections 32 and 33 of the Act. They have been 
re-enacted as part of section 31 for reasons outlined in section 11, subsec- 
tion 2 of this Bill. A similar amendment has been made to section 20 of 
the Income Tax Act (Canada). 



143 



(12) For the purpose of this section and regulations made ^gt™™" 011 
under clause a of subsection 2 of section 22, a vessel vessel 

in respect of which any conversion cost is incurred prescribed 

• r • fla88 

after the coming into force of this subsection shall, 
to the extent of the conversion cost, be deemed to 
be included in a separate prescribed class. 

(13) Where a vessel owned by a corporation on the 1st f ppficibYe* 
day of January, 1966, or constructed pursuant to a[^^ rtain 
construction contract entered into by the taxpayer 

prior to 1966 and not completed by that date is 
disposed of by the corporation before 1974, 

(a) subsection 1 does not apply to the proceeds 
of disposition, 

(i) to the extent that they are used by any 
corporation before 1974 for replace- 
ment under conditions satisfactory to 
the Minister, or 

(ii) if the corporation has on terms satis- 
factory to the Minister, deposited on or 
before the day on which it is required 
to file a return under this Act for the 
fiscal year in which the vessel was dis- 
posed of, an amount at least equal to 
the tax that would but for this sub- 
section be payable by the corporation 
under this Part in respect of the pro- 
ceeds of disposition, or satisfactory 
security therefor, as a guarantee that 
the proceeds of disposition will be used 
before 1974 for replacement; and 

(b) the corporation may within the time pre- 
scribed for the filing of a return under this 
Act for the fiscal year in which the vessel was 
disposed of, elect to have the vessel constituted 
a prescribed class, or, if any conversion cost 
in respect of the vessel has been included in a 
separate prescribed class, have it transferred 
to that class, and, if it so elects, the vessel 
shall be deemed to have been so transferred 
immediately before the disposition thereof but 
this clause does not apply unless the proceeds 
of disposition of the vessel exceed the amount 
that would be the undepreciated capital cost 
of property of the class to which it would be 
so transferred. 



143 



10 



Election in 
respect of 
proi Mdl of 
disposition 
of a vessel 



Prescribed 
class con- 
stituted by 
conversion 
cost 
deemed 
part of 
class con- 
stituted by 
vessel on 
disposition 

R.S.C. 1952, 
0. 43 



Re-assess- 
ments 



Disposition 
of deposits 



(14) Where a vessel owned by a corporation is disposed 
of by it, it may, if subsection 13 does not apply to 
the proceeds of disposition or if the corporation does 
not make an election under clause b of subsection 13, 
within the prescribed time for the filing of a return 
under this Act for the fiscal year in which the vessel 
is disposed of, elect to have the proceeds that would 
be included in its income under subsection 1 treated 
as proceeds of disposition of property of another 
prescribed class that includes a vessel owned by it. 

(15) Where a separate prescribed class has been con- 
stituted either under this Act or the Canadian Vessel 
Construction Assistance Act (Canada) by virtue of 
the conversion of a vessel owned by a corporation 
and the vessel is disposed of by it, if no election is 
made under clause b of subsection 13, the separate 
prescribed class constituted by virtue of the con- 
version shall be deemed to have been transferred to 
the class in which the vessel was included im- 
mediately before the disposition thereof. 

(16) Notwithstanding any other provision of this Act, 
where a corporation, 

(a) expended an amount as described in sub- 
clause iii of clause a of subsection 5 ; or 

(b) made an election under clause b of subsec- 
tion 13 with respect to a vessel and the 
proceeds of disposition of the vessel have been 
used before 1974 for replacement under con- 
ditions satisfactory to the Minister, 

such re-assessments of returns of income shall be 
made as are necessary to give effect to subsections 5 
and 13. 

(17) All or any part of a deposit made under subclause ii 
of clause a of subsection 13 may be paid out to or on 
behalf of any corporation which, under conditions 
satisfactory to the Minister and as a replacement for 
the vessel disposed of, acquires a vessel before 1974, 

(a) that was constructed in Canada and is regis- 
tered in Canada or is registered under con- 
ditions satisfactory to the Minister in any 
country or territory to which the British 
Commonwealth Merchant Shipping Agree- 
ment (signed at London on December 10, 
1931) applies; and 



143 



Section 15. The provisions contained in sections 32, 33 and 34 
have been re-enacted as amendments to other sections of the Act. This 
has been done to keep The Corporations Tax Act in line with the Income 
Tax Act (Canada). Previously, the provisions contained in the repealed 
sections were found in the Canadian Vessel Construction Assistance Act 
(Canada) which has since been repealed, and its provisions incorporated 
into the Income Tax Act (Canada). 

Section 16. Complementary to section 1. 

Section 17 — Subsection 1. Complementary to section 1. 



Subsection 2. This amendment allows corporations which make 
gifts to Ontario or to Her Majesty in right of Canada to deduct from 
income the full amount thereof, and allows them the right to carry forward 
undeductible amounts in respect of such gifts for one year. A similar 
amendment has been made to section 27 ( 1) (c) (Hi) of the Income Tax Act 
(Canada). 



143 






11 

(b) in respect of the capital cost of which no 
allowance has been made to any other tax- 
paver under this Act or the Canadian Vessel R s :9 • }?% 2, 

r ' CC. 43, 148 

Construction Assistance Act (Canada) or the 
Income Tax Act (Canada), 

or incurs any conversion cost with respect to a vessel 
of the corporation that is registered in Canada or is 
registered under conditions satisfactory to the 
Minister in any country or territory to which the 
said British Commonwealth Merchant Shipping 
Agreement applies, but the ratio of the amount paid 
out to the amount of the deposit shall not exceed 
the ratio of the capital cost to it of the vessel or the 
conversion cost to it of the vessel, as the case may be, 
to the proceeds of disposition of the vessel disposed 
of; and any deposit or part of a deposit not so paid 
out before 1974 shall be paid to the Treasurer of 
Ontario. 

15. Sections 32, 33 and 34 of The Corporations Tax yle/RSX). i960, 
are repealed. ss. 32-34. 

r repealed 

16. Section 38 of The Corporations Tax Act, as re-enacted c^f-j ^ 1 !! 0, 
by section 13 of The Corporations Tax Amendment Act, 1961-62, ( H^/~ 62 ; 3> 
is amended by striking out "Treasurer" in the eighth line and amended 
inserting in lieu thereof "Minister". 

17. — (1) Paragraph 1 of subsection 1 of section 39 of The^^ s x ^' 
Corporations Tax Act, as re-enacted by subsection 1 of sec-sub 8 ' 1 - 
tion 4 of The Corporations Tax Amendment Act, 1967, is(i967, 
amended by striking out "Treasurer" in the twenty -seventh subs." lj, 
line and inserting in lieu thereof "Minister". amended 



(2) Paragraph 2 of subsection 1 of the said section 39 is ^73° s. 1 IE?' 

subs. 1, 
par. 2, 
re-enacted 



repealed and the following substituted therefor: 



The aggregate of gifts made by the corporation in the gifts to 
fiscal year and in the immediately preceding fiscal Majesty 
year, to the extent of the amount thereof that was 
not deductible under this Act in computing the 
taxable income of the corporation for that im- 
mediately preceding fiscal year to Her Majesty in 
right of Canada and of Ontario, not exceeding the 
amount remaining, if any, when the amount deduct- 
ible for the fiscal year under paragraph 1 is deducted 
from the income of the corporation for the fiscal year, 
if payment of the amounts given is proven by filing 
receipts or photostatic reproductions thereof with 
the Minister. 




143 



12 

JMiPi. 1 !? ' W Subsection 6 of the said section 39, as enacted by sub- 
age^ 6 section 2 of section 4 of The Corporations Tax Amendment Act, 
o. is. 's. 4. 1967, is amended by striking out "Treasurer" in the fourteenth 
amended line and inserting in lieu thereof "Minister". 

c*"73°e 1 39°' W Subsection 7 of the said section 39, as enacted by sub- 
asie^ 7 section 2 of section 4 of The Corporations Tax Amendment Act, 

c is. *s. 4. 1967, is amended by striking out "Treasurer" in the first line 

su lis 2) ^* 

amended and inserting in lieu thereof "Minister". 

R *73°b 1 39°' ^ Subsection 8 of the said section 39, as enacted by sub- 
sube.V v section 2 of section 4 of The Corporations Tax Amendment Act, 

(1967 • . . 

c 15. a. 4. 1967, is amended by striking out "Treasurer" in the first line 
amended and inserting in lieu thereof "Minister". 

R-S.o. i960. 18. Subsection 2 of section 45 of The Corporations Tax 
8ub6."2." Act, as amended by section 5 of The Corporations Tax Amend- 
ment Act, 1967, is further amended by adding thereto the 
following paragraph: 

7. It has paid the taxes payable for a fiscal year under 
£'?48' 1962, Part I °f tne Income Tax Act (Canada), as provided 

by subsection 2 of section 70 thereof. 

^'?3°' 1960, 19. — (1) Clause a of subsection 2 of section 46a of The 
a . -jr.j: Corporations Tax Act, as enacted by section 11 of The Cor- 

o. 22, 's. id, porations Tax Amendment Act, 1965, is amended by striking 
el. a, " out "Treasurer" in the first line and inserting in lieu thereof 

amended 'M; n i ster ". 

(2) Clause e of subsection 2 of the said section 46a, as 
Bub8. ffl 2. re-enacted by section 6 of The Corporations Tax Amendment 
U967. Act, 1967, is amended by striking out "Treasurer" in the sixth 
ame 5 nd 8 ed 6) ' nne anc * inserting in lieu thereof "Minister". 

H. *■* O 1 960 

(3) Subsection 6 of the said section 46a is amended by 
(1966 striking out "Treasurer" in the first line and inserting in 
8ub 8 2 «. U) " lieu thereof "Minister". 

amended 

,** "TrvVfeja' (4) Subsection 7 of the said section 46a is amended by 
( (1 22 5 's id striking out "Treasurer" in the third line and inserting in 
sin*, t lieu thereof "Minister". 

amended 
R 8 O 1960 

. .7:1. b. 46a' (5) Clause d of subsection 8 of the said section 46a is 
e! 22%. id. amended by striking out "Treasurer" in the first line and 
crt.' * inserting in lieu thereof "Minister". 

amended 

o 1960. 20.— (1) Subsection 1 of section 47 of The Corporations 

subB.'i.' Tax Act, as amended by subsections 1 and 2 of section 16 

of The Corporations Tax Amendment Act, 1961-62 and sub- 

143 



Subsections 3, 4 and 5. Complementary to section 1. 



Section 18. This amendment further defines a non-resident-owned 
investment corporation for the purposes of the Act. 



Section 19. Complementary to section 1. 



Section 20. The purpose of these amendments is to provide that 
amount that a corporation may deduct under subsection 1 of section 47 
in computing its income for a fiscal year shall be reduced by grants received 
by it in the fiscal year under the Program for the Advancement of Industrial 
Technology and increased by repayments made by it in the fiscal year of 
any such grants. A similar amendment has been made to section 72 of 
the Income Tax Act (Canada). 

143 



13 

sections 1 and 2 of section 6 of The Corporations Tax Amend- 
ment Act, 1962-63, is repealed and the following substituted 
therefor: 

(1) In computing the income for a fiscal year of ^f^^ch° 
corporation that had a permanent establishment in deductions 
Canada and made expenditures in respect of scien- income 
tific research in the fiscal year, there may be deducted 
the amount by which the aggregate of, 

(a) all expenditures of a current nature made in 
Canada in the fiscal year, 

(i) on scientific research related to the 
business and directly undertaken by 
or on behalf of the corporation, 

(ii) by payments to an approved asso- 
ciation that undertakes scientific re- 
search related to the class of business 
of the corporation, 

(iii) by payments to an approved univer- 
sity, college, research institute or other 
similar institution to be used for scien- 
tific research related to the class of 
business of the corporation, 

(iv) by payments to a corporation resident 
in Canada and exempt from tax on 
taxable income by clause ea of sub- 
section 37 of section 4, 

(v) by payments to a corporation resident 
in Canada for scientific research related 
to the business of the corporation; 

(b) such amount as may be claimed by the cor- 
poration not exceeding the lesser of, 

(i) the expenditures of a capital nature 
made in Canada, by acquiring property 
other than land, in the fiscal year and 
any previous fiscal year ending after 
1958 on scientific research relating to 
the business and directly undertaken 
by or on behalf of the corporation, or 

(ii) the undepreciated capital cost to the 
corporation of the property so acquired 
as of the end of the fiscal year, before 

143 



14 



1966-67. 
o. 82 (Can.) 



making any deduction under this clause 
in computing the income of the cor- 
poration for the fiscal year; and 

(c) all expenditures in the year by way of repay- 
ments of amounts paid to the corporation 
under the Industrial Research and Develop- 
ment Incentives Act (Canada) and approved 
by the Minister for the purpose of advancing 
or sustaining the technological capability of 
Canadian manufacturing or other industry, 

exceeds the aggregate of amounts paid to the cor- 
poration in the fiscal year under the Industrial 
Research and Development Incentives Act (Canada). 



c 1 "?^ !} 1 !? ' (2) Clause a of subsection 4 of the said section 47 is am- 
Bubs.'4. ended by striking out "Treasurer" and inserting in lieu 
amended thereof "Minister". 



R.S.O. I960, 
c. 73. 8. 47. 
subs. 5, 
re-enacted 

Expend- 
itures of 
a capital 
nature 



R.S.O. 1960, 
c-. 73, 8. 47a 
(1962-63. 
c. 26, 8. 7). 
BUbs. 2, 
para. 2, 
cl. b, 
subcl. i, 
re-enacted 



R.S.O. 1960, 
c. 73. 8. 47a 
(1962-63. 
c. 26. 8. 7), 
subs. 2, 
para. 2, 
cl. 6. 
subcl. ii. 

BUb- 

Bubcl. C, 
re-enacted 



(3) Subsection 5 of the said section 47 is repealed and the 
following substituted therefor: 

(5) An amount claimed under clause b of subsection 1 in 
computing a deduction under that subsection shall 
for the purpose of section 31 be deemed to be an 
amount allowed to the corporation in respect of the 
property acquired by the expenditures under the 
regulations made pursuant to clause a of subsection 2 
of section 22 and for that purpose the property 
acquired by the expenditures shall be deemed to be 
of a separate prescribed class. 

21. — (1) Subclause i of clause b of paragraph 2 of sub- 
section 2 of section 47a of The Corporations Tax Act, as enacted 
by section 7 of The Corporations Tax Amendment Act, 1962-63, 
is repealed and the following substituted therefor: 

(i) the base scientific expenditures of the corporation 
and of each corporation associated with the cor- 
poration in the fiscal year other than a corporation 
an amount equal to the base scientific expenditure 
of which is included, by virtue of paragraph 12 of 
subsection 2 of section 65, in the base scientific 
expenditure of another corporation that is also asso- 
ciated with the corporation in the fiscal year. 

(2) Sub-subclause C of subclause ii of clause b of paragraph 
2 of subsection 2 of the said section 47a is repealed and the 
following substituted therefor: 



143 



Section 21 — Subsections 1 and 2. The amendment is necessary to 
correct an anomaly in the present law by virtue of which the base scientific 
expenditure of a corporation that is associated with another corporation 
in a fiscal year of the other corporation may be included twice in computing 
the base scientific expenditure of the other corporation where the first 
corporation is involved in an amalgamation within the meaning of section 65 
of the Act. A similar amendment has been made to section 72A (2) of 
the Income Tax Act (Canada). 



143 



I 



Subsection 3. The amendment will not allow as a deduction from 
income an amount paid to a corporation by way of industrial research 
and development grants which have been expended on scientific research. 
A similar provision is contained in the Income Tax Act (Canada). 



Section 22. Complementary to section 1. 



Section 23. Complementary to section 1. 



Section 24. Complementary to section 1. 



Section 25. The purpose of this amendment is to require the 
registration of supplementary unemployment benefit plans before such 
plans can derive the tax advantages granted by section 53. The amend- 
ment would add a new definition of "registered supplementary unemploy- 
ment benefit plan" and would add the word "registered" to subsections 2 
and 3. A similar amendment has been made to section 79A of the Income 
Tax Act (Canada). 

143 



15 

(C) in respect of which substantially all the business 
that was carried on by such corporation in Canada 
in its last fiscal year that ended before the 11th day 
of April, 1962, was acquired in any manner what- 
soever, other than by an amalgamation within the 
meaning of section 65, by the corporation or one or 
more corporations associated with the corporation 
in the fiscal year, and 



(3) The said section 47a, as amended by section 10 of The R -**P- 1Q %°- 

v ' * c. id, 8. 47a 

Corporations Tax Amendment Act, 1964, is further amended (!962-63, 
by adding thereto the following subsection : amended 

(7) Where in a fiscal year a grant has been authorized 

to be paid to a corporation under the Industrial I 9 g^cam.) 
Research and Development Incentives Act (Canada) 
in respect of expenditures on scientific research and 
development as defined in the Industrial Research 
and Development Incentives Act (Canada), the cor- 
poration is not, and shall be deemed never to have 
been, entitled to make any deduction under this 
section in computing its income for that fiscal year. 

22.— (1) Clause b of subsection 5 of section 50 of The™"*£>- 19 *°- 
Corporations Tax Act is amended by striking out "Treasurer" s" 1 ^- 5, 
in the eleventh line and inserting in lieu thereof "Minister", amended 

(2) Paragraph 2 of subsection 9 of the said section 50 is^fo - 1 ^ - 
amended by striking out "Treasurer" in the sixth line and in subs - 1. 
the eighth line and inserting in lieu thereof in each instance amended 
"Minister". 



(3) Paragraph 3 of subsection 9 of the said section 50 is^f^g 1 ^ ' 
amended by striking out "Treasurer" in the tenth line and s ^;[- 1> 
inserting in lieu thereof "Minister". amended 



23. Subsection 1 of section 51 of The Corporations Tax Act^j^ 3 19 i 0, 
is amended by striking out "Treasurer" in the eleventh Hne|^^^ d 
and inserting in lieu thereof "Minister". 

24. Subsection 5 of section 52 of The Corporations Tax Act, c^f-j ^ 1 !!?' 
as enacted by section 17 of The Corporations Tax Amendment s "}*if 62 
Act, 1961-62, is amended by striking out "Treasurer" in the£. 23, s i7). 
second line and inserting in lieu thereof "Minister". 

25. Section 53 of The Corporations Tax Act is repealed and^'T^g 1 !!?' 
the following substituted therefor: re-enacted* 

143 



16 



: uti-i dic- 
tation 



registered 
Btipplemen- 
tary unem- 
ployment 
benefit 
plan 



53.— (1) In this Act, 

(a) "registered supplementary unemployment 
benefit plan" means a supplementary un- 
employment benefit plan accepted by the 
Minister for registration for the purposes of 
this Act in respect of its constitution and 
operations for the fiscal year under con- 
sideration ; and 



supplemen- 
tary unem- 
ployment 
benefit 
plan 



(b) "supplementary unemployment benefit plan" 
means an arrangement, other than an arrange- 
ment in the nature of a superannuation or 
pension fund or plan or an employees profit 
sharing plan, under which payments are made 
by a corporation to a trustee in trust exclu- 
sively for the payment of periodic amounts to 
employees or former employees of the cor- 
poration who are or may be laid off for any 
temporary or indefinite period. 



No tax 

while trust 
governed 
by plan 



(2) No tax is payable under section 4 upon the taxable 
income of the trust for a period during which the 
trust was governed by a registered supplementary 
unemployment benefit plan. 



Payments 
by cor- 
poration 

deductible 



(3) An amount paid by a corporation to a trustee under 
a registered supplementary unemployment benefit 
plan during a fiscal year or within thirty days there- 
after may be deducted in computing the income of 
the corporation for the fiscal year to the extent 
that it was not deductible in computing income for a 
previous fiscal year. 



R.S.O. I960, 
c. 73, s. 53a 
(1961-62, 
c. 23. s. 18). 
subs. 1, 
cl. a, 
amended 



26. — (1) Clause a of subsection 1 of section 53a of The 
Corporations Tax Act, as enacted by section 18 of The Cor- 
porations Tax Amendment Act, 1961-62, is amended by 
striking out "Treasurer" in the second line and inserting in 
lieu thereof "Minister". 



R.S.O. I960, 
c. 73, s. 53a 
(1961-62. 
0. 23. 8. 18). 
subs. 1. 
<1. b, 
re-enacted 



(2) Clause b of subsection 1 of the said section 53a is 
repealed and the following substituted therefor: 

(b) "profit sharing plan" means an arrangement under 
which payments computed by reference to the profits 
of a corporation from its business or by reference to 
the profits from its business and the profits, if any, 
from the business of a person with whom the cor- 
poration does not deal at arm's length are or have 
been made by the corporation to a trustee in trust 



143 



Section 26 — Subsection 1. Complementary to section 1. 



Subsection 2. The amendment includes within the definition of 
"profit sharing plan", plans to which payments have been made in the 
past even though such payments are no longer being made. A similar 
amendment has been made to section 79C (1) (b) of the Income Tax Act 
(Canada). 






143 



Subsections 3 and 4. Complementary to section 1. 






Subsection 5. A corporation's contributions made during a fiscal 
year or within 120 days thereafter could be deducted under section 53a 
up to a prescribed maximum in respect of each employee. The prescribed 
maximum is the least of the amount actually paid by the corporation in 
respect of the employee; $1,500 minus any amount deductible in the year 
by the corporation under section 22 (1) (j) or 20 per cent of remuneration 
paid to the employee in the fiscal year. A similar amendment has been 
made to section 79C (7) of the Income Tax Act (Canada). 



Subsection 6. Complementary to section 1. 



Section 27. Complementary to section 1. 



143 



17 



for the benefit of employees of that corporation or of 
any other person, whether or not payments are or 
have been also made to the trustee by the em- 
ployees. 



(3) Subsection 2 of the 
striking out "Treasurer' 



... . R.S.O. I960, 

said section 53a is amended by 9- 73. s. 53a 

i r i- i • i ••«««• (1961-62, 

in the first line and in the eighth line o. 23, s. 18), 
and inserting in lieu thereof in each instance "Minister". amended 

R.S.O. I960, 

(4) Subsection 3 of the said section 53a is amended by (igli-tk? 3a 
striking out "Treasurer" in the first line and inserting in lieu £{,£!; f* 18)> 
thereof "Minister". amended 

R.S.O. 1960, 
. , . c - 73 > 8 - 53a 

(5) Subsection 6 of the said section 53a is repealed and the (1 ? 2 6 3 1 " 62 i 8) 
following substituted therefor: subs.' 6,' 

re-enacted 

(6) There may be deducted in computing the income of Corpora- ° f 
a corporation for a fiscal year the aggregate of each tribution 1 " 
amount paid by the corporation in the year or deductible 
within 120 days after the end of the fiscal year, 
to a trustee under a deferred profit sharing plan for 
the benefit of employees of the corporation who are 
beneficiaries under the plan, not exceeding, however, 
in respect of each individual employee in respect of 
whom the amounts so paid by the corporation were 
paid by it, an amount equal to the least of, 

(a) the aggregate of each amount so paid by the 
corporation in respect of that employee; 

(b) $1,500, minus the amount, if any, deductible 
under clause j of subsection 1 of section 22 in 
respect of that employee in computing the 
income of the corporation for the fiscal year; 
or 

(c) 20 per cent of the salary or wages paid in the 
year to the employee by the corporation, 

to the extent that such amount was not deductible 
in computing the income of the corporation for a 
previous fiscal year. 

(6) Subsection 9 of the said section 53a is amended by R /73?s 1 53a' 
striking out "Treasurer" in the first line and inserting in lieu^^'^is), 
thereof "Minister". 8Ubs \?^ 

amended 

27.— (1) Subsection 10 of section 55 of The Corporations *-fjg g 19 J° '• 
Tax Act is amended by striking out "Treasurer" in the fourth ^^g^ded 
line and inserting in lieu thereof "Minister". 



143 



18 



"'tWS! 0, W Subsection 11 of the said section 55 is amended by 
subs." ii. striking out "Treasurer" in the first line and inserting in lieu 

amended , ° n*». • n 

thereof Minister . 

5 ■73?i. 1 67?' 28 «— C 1 ) Subsection 2 of section 57 of The Corporations 

^ ub8 *id'd ^ ax ^ ct ' as amen( ^ ec ^ by subsection 2 of section 8 of The 

Corporations Tax Amendment Act, 1962-63, is further amended 

by striking out "Treasurer" in the twentieth line and inserting 

in lieu thereof "Minister". 



c*'73?s. 1 57?' (2) Section 57 of The Corporations Tax Act, as amended by 
amended section 6 of The Corporations Tax Amendment Act, 1960-61, 
section 19 of The Corporations Tax Amendment Act, 1961-62, 
section 8 of The Corporations Tax Amendment Act, 1962-63, 
section 11 of The Corporations Tax Amendment Act, 1964 and 
section 9 of The Corporations Tax Amendment Act, 1966, is 
further amended by adding thereto the following subsection: 



Extended 
meaning of 
drilling 
and ex- 
ploration 
expenses 
and pros- 
pecting, 
exploration 
and de- 
velopment 
expenses 



(lOaa) For the purpose of this section and section 65, there 
shall be deducted in computing, 

(a) drilling and exploration expenses incurred by 
a corporation on or in respect of exploring or 
drilling for petroleum or natural gas in 
Canada; and 



(b) prospecting, exploration and development 
expenses incurred by a corporation in search- 
ing for minerals in Canada, 

subject to the approval of the Minister, any amount 
paid to the corporation under the Northern Mineral 
Exploration Assistance Regulations (Canada) made 
under an Appropriation Act (Canada) that provides 
for payments in respect of the Northern Mineral 
Grants Program, and there shall be included in com- 
puting such expenses, any amount, except an 
amount in respect of interest, paid by the corpora- 
tion under the Northern Mineral Exploration Assist- 
ance Regulations (Canada) to Her Majesty in right 
of Canada. 



R.S.O. 1960. 
c. 73. 8. 60. 
amended 



No deduc- 
tion in 
respect of 
sale of 

f>roperty 
n certain 
circum- 
stances 



29. — (1) Section 60 of The Corporations Tax Act, as 
amended by section 20 of The Corporations Tax Amendment 
Act, 1961-62, is further amended by adding thereto the 
following subsection: 

(7a) Clause d of subsection 1 does not apply to allow a 
deduction in computing the income of a corporation 
for a fiscal year from a business in respect of property 
sold in the course of business where the corporation 



143 



Section 28 — Subsection 1. Complementary to section 1. 



Subsection 2. The purpose of this amendment is to provide that 
drilling and exploration expenses, and prospecting exploration and develop- 
ment expenses of a corporation will be reduced by the amount of any grant 
received by the corporation under the Northern Mineral Exploration 
Assistance Regulations and will be increased by a repayment by the cor- 
poration of such grant. The effect would be to reduce the amount that 
may be deducted under section 57 in computing the income of the cor- 
poration by the amount of any such grant and to increase the amount 
that may be so deducted by the amount of any such repayment. 



Section 29. The purpose of this amendment is twofold. It is to 
provide that a deduction may not be allowed under clause d of subsec- 
tion 1 of section 60 in computing the income of a corporation for a fiscal 
year where that corporation ceases to have a permanent establishment in 
Ontario or becomes exempt from tax in that year or in the following year. 
Subsection 76 provides that where a corporation has set up a reserve 
under section 60 of the Act by accepting security as part payment for any 
property sold, it must notify the Minister prior to disposing of the security 
in any way. 



143 



i 



Section 30. Complementary to section 1. 



Section 31. Complementary to section 1. 



Section 32. Complementary to section 1. 



Section 33. Complementary to section 1. 



Section 34. Complementary to section 1. 



SECTION 35. Complementary to section 1. 



143 



19 

ceases to have a permanent establishment or becomes 
exempt from tax under any provision of this Act 
at any time in the fiscal year or in the immediately 
following fiscal year. 

(2) The said section 60 is further amended by adding thereto ^fjPg 1 ^ 0, 

the following subsection: amended 

(7b) No corporation shall sell, pledge, assign or in any ^jf u p r °t al of 
wav dispose of any security received bv it as payment where 

r©s©rv© 

in whole or in part for any property sold by it, where re sale of 
the corporation has set up a reserve in respect of the prc 
sale of the property under this section unless the 
corporation has provided the Minister, in writing, 
with the names of the purchaser, pledgee or assignee 
and with the amount of cash to be received by the 
corporation for the security. 

30. Subsection 2 of section 61 of The Corporations Tax Act^/j^^ei 0, 
is amended by striking out "Treasurer" in the fifth line and l^nl^ 
inserting in lieu thereof "Minister". 

31. Paragraph 2 of subsection 2 of section 62 of The Cor-™^^ 1 ^, 0, 
porations Tax Act is amended by striking out "Treasurer" s ^|- 1- 

in the second line, in the third line and in the seventh line and amended 
inserting in lieu thereof in each instance "Minister". 

32. Subsection 3 of section 63 of The Corporations Tax Act,™^^ 1 ^ 0, 
as re-enacted by subsection 2 of section 14 of The Corporations Q9I5 3 
Tax Amendment Act, 1965, is amended bv striking out c - 22,8. 14, 

subs 2) 

"Treasurer" in the ninth line and in the eleventh line and amended 
inserting in lieu thereof in each instance "Minister". 

33. Clause a of subsection 1 of section 69 of The Corpora- ^.'i£' s x %% ' 
tions Tax Act is amended by striking out "Treasurer" in the®" 1 ^; 1 * 
fourth line and inserting in lieu thereof "Minister". amended 

34. — (1) Subsection 1 of section 71 of The Corporations fj^^ 1 j^ - 
Tax Act is amended by striking out "Treasurer" in the sixth ^^died 
line, in the seventh line and in the eighth line and inserting 
in lieu thereof in each instance "Minister" and by striking out 
"Treasury Department" in the seventh line and inserting in 
lieu thereof "Department of Revenue". 

(2) Subsection 2 of the said section 71 is amended by^^g 1 ^ - 
striking out "Treasurer" in the tenth line and inserting in 8 " 08 - 2 -. 

i- 1 r hi •• • amended 

lieu thereof Minister . 

35. Section 73 of 7he Corporations Tax Act is amended by ^'f^Pa 1 ?! 0, 
striking out "Treasurer" in the first line and inserting in Ueu amended 
thereof "Minister". 

143 



20 

S?8?i. l 74?' 36.— (1) Subsection 2 of section 74 of The Corporations 

Bubs^j Tax Ad, as re-enacted by subsection 1 of section 9 of The 

0.16,8.9, Corporations Tax Amendment Act, 1967, is amended by 

amended inserting after "Treasurer" in the second line "of Ontario". 

K.S.O. I960, 

mi Sf.' 2 ' 74, (2) Clause a of subsection 2 of the said section 74 is amended 

8 9 by striking out "taxation" in the ninth line and inserting in 

Bubs.'ij, ' Heu thereof "fiscal". 

01. <l. 

amended 

RBLO.iSgd, 37.— (1) Subsection 1 of section 75 of The Corporations 

suns.' i." Tax Act is amended by striking out "6" in the eighth line and 



amended 



inserting in lieu thereof "9". 



R-8.0. i960, (2) Subsection 2 of the said section 75 is amended by 
6ub8.'2," ' striking out "6" in the fifth line and inserting in lieu thereof 



amended 



•Ml'' 



'ST 



c.78, b. 76.' (3) Subsection 6 of the said section 75, as re-enacted by 
(1967. 6 subsection 2 of section 10 of The Corporations Tax Amendment 

buds 5 '!). 10, Act, 1967, is repealed. 

repealed 

. R t^s. 1 ?!?' (4) Subsection 7 of the said section 75, as enacted by sub- 
(1967 7 section 3 of section 10 of The Corporations Tax Amendment 

c. is, 's lo, Act, 1967 is repealed and the following substituted therefor: 

Ml I >s . . i ) , 

re-ena<ted 

Payment of (7) For the purposes of calculating interest under sub- 

1 il8l tl 1 111 Gil tS s | « « | J 

section 2, where a corporation is required to pay a 
part or instalment of tax for a fiscal year as estimated 
by it on its taxable income and other subject of tax 
for a preceding fiscal year or on its estimated taxable 
income and other subject of tax for the fiscal year, 
it shall be deemed to have been liable to pay a part 
or instalment computed by reference to the taxable 
income and other subject of tax for, 

(a) the preceding fiscal year; or 

(b) the fiscal year, 

whichever is the lesser. 

< R 73V76 0, 38.— (1) Subsection 1 of section 76 of The Corporations 
eube.'i. Tax Act is amended by striking out "Treasurer" in the first 

amended ,. , . ..... ° r --,,. . ,, 

line and inserting in lieu thereof Minister . 

'V?!* 0, (2) Subsection 2 of the said section 76, as re-enacted by 
fi9eV 2 section 11 of The Corporations Tax Amendment Act, 1967, is 

•/i5.'b. id, amended by striking out "Treasurer" in the first line and 
inserting in lieu thereof "Minister". 

143 



Section 36. The amendment makes clear that taxes are payable 
to the Treasurer of Ontario, and corrects an error in terminology. 



Section 37 — Subsections 1 and 2. The rate of interest on unpaid 
tax is changed from 6 to 9 per cent. 



Subsection 3. The provisions for penalty interest are repealed in 
conjunction with the amendments contained in subsections 1 and 2. 



Subsection 4. The purpose of this amendment is to establish clearly 
a liability for instalment payments of tax by a corporation for purposes 
of calculating interest. This amendment is similar to that contained in 
section 54 of the Income Tax Act (Canada). 






Section 38. Complementary to section 1. 



143 



Section 39. Complementary to section 1. 



Section 40 — Subsections 1 and 2. Complementary to section 1. 



Subsection 3. Complementary to the amendments contained in 
section 37, this amendment provides that credit interest on over-paid tax 
will be changed from 3 to 4 per cent. 



Subsection 4. The credit interest allowed on a refund of tax from 
a re-assessment by the Minister as a result of a Notice of Objection is 
increased from 6 to 7 per cent. 



Section 41. Complementary to section 1. 



Section 42. Complementary to section 1. 



143 



21 

(3) Subsection 4 of the said section 76 is amended by^lg ^ 1 ^ ' 
striking out "Treasurer" in the first line and inserting in lieu subs.' 4, 

i ?«,»«• • fi amended 

thereof Minister . 

(4) Subsection 5 of the said section 76 is amended by cV^s. 1 ?!?' 
striking out "Treasurer" in the eighth line and inserting m^^^ d 
lieu thereof "Minister". 

(5) Subsection 6 of the said section 76 is amended by ^■f^s. 1 ?!?' 
striking out "Treasurer" in the first line and inserting in heu 1"^^ 
thereof "Minister". 

39. Subsection 2 of section 77 of The Corporations Tax Actf-f^^ 1 ?™' 
is amended by striking out "Treasurer" in the first line and in l^gricfed 
the third line and inserting in lieu thereof in each instance 
"Minister". 

40.— (1) Subsection 1 of section 78 of The Corporations f^^ - 
Tax Act is amended by striking out "Treasurer" in the fourth ^^ded 
line and inserting in lieu thereof "Minister". 

(2) Subsection 2 of the said section 78 is amended by f'j^e 1 ^' 
striking out "Treasurer" in the second line and inserting in amended, 
lieu thereof "Minister". 

(3) Subsection 3 of the said section 78 is amended by ^"fa^s. 1 ?!?' 
striking out "3" in the third line and inserting in lieu thereof landed 
"4". 

(4) Subsection 4 of the said section 78 is amended by ^'73, s. 1 ?!, ' 
striking out "Treasurer" in the first line and inserting in lieu landed 
thereof "Minister" and by striking out "6 per cent instead of 

at 3 per cent" in the ninth line and inserting in lieu thereof 
"7 per cent instead of at 4 per cent". 

41. — (1) Subsection 1 of section 79 of The Corporations ^^^so. 
Tax Act is amended by striking out "Treasurer" in the third sub 8 ' 1 - 
line and inserting in lieu thereof "Minister". 

(2) Subsection 2 of the said section 79 is amended by ^"f^s 1 ^ ' 
striking out "Comptroller" in the second line and inserting in 8Ubs - 2. 
lieu thereof "Minister". 

(3) Subsection 3 of the said section 79 is amended by ^f^g 1 !^ 0, 
striking out "Treasurer" in the first line and inserting in lieul"^^ 
thereof "Minister". 

42.— (1) Subsection 1 of section 80 of The Corporations ^f^g 1 ^ ' 
Tax Act is amended by striking out "Treasurer" in the fourth subs.' 1, 
line and in the seventh line and inserting in lieu thereof in 
each instance "Minister". 

143 






22 

•Vao 0, (^ Subsection 2 of the said section 80 is amended by 
suta.'a,' striking out "Treasurer" in the second line and inserting in 

amended ■• a # iii>> • . n 

lieu thereof Minister . 

r.s.o. i960. (3) Subsection 3 of the said section 80 is amended by 
•ubs.'a, striking out "Treasurer" in the first line and inserting in lieu 

thereof "Minister" and by striking out "Comptroller" in the 
second line and inserting in lieu thereof "Minister". 



(4) Subsection 5 of the said section 80 is amended by 
Treasurer" in the fifth and sixth lines and 



R.S.O. I960 
<.-. 73. S. 80. 

subs. 5. striking out 

inserting in lieu thereof "Minister" 



^'73°' 1 80°' (**) Subsection 6 of the said section 80 is amended by 
subs.' 6.' striking out "Treasurer" in the second line and inserting in 

amended .. , t <<<,.• • >. 

lieu thereot Minister . 

h.s.o. i960, 43. Subsection 1 of section 81 of The Corporations Tax Act 
subs.'i,' is amended by striking out "Treasurer" in the first line and in 

the sixth line and inserting in lieu thereof in each instance 

"Minister". 

r.s.o. i960, 44. — (1) Subclause iv of clause c of subsection 3 of section 

C 73 s 82 

subs.' 3.' 82 of The Corporations Tax Act is amended by striking out 
su'bci iv "Treasurer" in the first line and inserting in lieu thereof 
amended "Minister". 

r.s.o. 1960, (2) Subsection 4 of the said section 82 is amended by 

c 73 s 82 . 

subs.' 4,' striking out "Treasurer" in the third line and inserting in 
amended , ieu thereof "Minister". 

R s.o. 1960. 45. Section 83 of The Corporations Tax Act is amended 
amended by striking out "Treasurer" in the third line and inserting in 
lieu thereof "Minister". 

r.s.o. i960. 46. — (1) Subsection 1 of section 86 of The Corporations 
subs.'i. Tax Act is amended by striking out "Treasurer" in the first 

line and inserting in lieu thereof "Minister". 

R-S.CK1960. (2) Subsection 2 of the said section 86 is amended by 
8ubs.2.' striking out "Treasurer" in the first line and inserting in lieu 

amended , t .. . . . . ,, 

thereot Minister . 

. R T-^s 1 !! 0, (3) Subsection 3 of the said section 86 is amended by 
subs.' 3 striking out "Treasurer" in the first line and inserting in lieu 

amended , 7.iw • -. 

thereof Minister . 



R.S.O. I960, 
c. 73. s. 86. 
subs. 4, 
amended 



(4) Subsection 4 of the said section 86 is amended l>\ 
striking out "Treasurer" in the first line and inserting in 
lieu thereof "Minister" and by striking out "Office of the 
Comptroller of Revenue" in the fifth and sixth lines and 
inserting in lieu thereof "Department of Revenue". 



143 



Section 43. Complementary to section 1. 



Section 44. Complementary to section 1. 



Section 45. Complementary to section 1. 



Section 46. The amendments contained in this section are neces- 
sitated by the re-organization of the Treasury Department and the 
establishment of the Department of Revenue. 



143 



Section 47. Complementary to section 1. 



Section 48. Complementary to section 1. 



Section 49. Complementary to section 1 . 



Section 50. Complementary to section 1. 



143 






23 

(5) Subsection 5 of the said section 86 is amended by ^'^g 1 !! 0, 
striking out "Treasurer" in the first line and inserting in lieu subs - *. 

° amended 

thereof "Minister". 

(6) Subsection 6 of the said section 86 is amended by ^'^Ps 1 ^ 0, 
striking out "Treasurer" in the first line and inserting in subs. 6. 
lieu thereof "Minister" and by striking out "Office of Comp- 
troller of Revenue" in the third and fourth lines and inserting 

in lieu thereof "Department of Revenue". 

(7) Subsection 7 of the said section 86 is amended by ^'f^s 1 !^ ' 
striking out "Office of Comptroller of Revenue" in the fourth s ^ bs n J ed 
line and inserting in lieu thereof "Department of Revenue" 

and by striking out "Treasurer" in the sixth line and in the 
seventh line and inserting in lieu thereof in each instance 
"Minister". 

47. — (1) Subsection 1 of section 87 of The Corporations Tax R S£> i960, 
Act is amended by striking out "Treasurer" in the fifth line subs.' i,' 

i • . • • f i r ««■»»• • , it amended 

and inserting in lieu thereof Minister . 

(2) Subsection 2 of the said section 87 is amended by ^-i^g 1 ! 6 . ' 
striking out "Treasurer" in the third line and inserting in subs -2. 

° amended 

lieu thereof "Minister". 

(3) Subsection 3 of the said section 87 is amended by ^ fg ^ 1 ^ ' 
striking out "Treasurer" in the third line and inserting in lieu 8Ubs - 1, 

i ?<*»»• • >• amended 

thereof "Minister". 

48. Subsection 3 of section 90 of The Corporations Tax™-****^ 1 ^ - 
Act is amended bv striking out "Treasurer" in the first line subs - 3. 

i • ■ i- i r ii^w • »» amended 

and inserting in lieu thereof Minister . 

49. — (1) Subsection 1 of section 92 of The Corporations R § 3 °- 1 5| 0, 
Tax Act is amended by striking out "Treasurer" in the first subs.' i.' 
line and in the sixth and seventh lines and inserting in lieu 
thereof in each instance "Minister". 

(2) Subsection 2 of the said section 92 is amended by^^g ^ 1 !! 0, 
striking out "Treasurer" in the first line and inserting in lieu subs - 2, 
thereof "Minister". 

(3) Subsection 3 of the said section 92 is amended by^lg ^ 1 ^ 0, 

striking out "Treasurer" in the sixth line and inserting in lieu subs." 3. 
i ?,.,.. . .. amended 

thereof Minister . 

50. — (1) Clause a of subsection 1 of section 93 of The^f^^H - 
Corporations Tax Act is amended by striking out "Treasurer" sub s- i. 
in the first line and in the fifth line and inserting in lieu amended 
thereof in each instance "Minister". 

143 



24 



(2) Clause b of subsection 1 of the said section 93 is am- 



R.8.O. I960, 
c. 78, 8. 93, 

suh«. l. ended by striking out "Treasurer" in the first line and inserting 
amended in lieu thereof "Minister". 



R.S.O. I960, 
c. 73, 8. 93. 

subs. 2, 
amended 



(3) Subsection 2 of the said section 93 is amended by 
striking out "Treasurer" in the third line and in the seventh 
line and inserting in lieu thereof in each instance "Minister" 
and by striking out "Treasury Department" in the eighth 
line and inserting in lieu thereof "Department of Revenue". 



c^'fiPs 1 !! 0, ^' Subsection 1 of section 95 of The Corporations Tax Act 
subs.'i, is amended by striking out "Treasurer" in the seventh line 

amended , . .... , . ,,-,,. . ., 

and inserting in lieu thereof Minister . 



*s.o. i960, 52. Section 96 of The Corporations Tax Act is amended by 
mended striking out "Treasurer" in the fifth line and inserting in lieu 
thereof "Minister". 



thereof "Minister 



^•^P- 1 ^ ' 53. Section 98 of The Corporations Tax Act is amended by 
amended adding at the end thereof "of Ontario". 

c*"73 s 1 99°' ^' Clause a of section 99 of The Corporations Tax Act 

ci- a,' is repealed and the following substituted therefor: 

re-enacted r ° 

(a) authorizing or requiring the Deputy Minister of 
Revenue or any officer of the Department of Revenue 
to exercise any power or perform any duty conferred 
or imposed upon the Minister by this Act. 



Application 
of Act 



Idem 



[dam 



I(iei:i 



Idem 



[6*m 



55. — (1) Section 10 and subsection 3 of section 21 apply 
with respect to fiscal years ending in 1966 and subsequent 
fiscal years. 

(2) Subsection 3 of section 3, subsection 2 of section 11, 
subsection 4 of section 14 and subsection 3 of section 20 apply 
with respect to fiscal years ending in 1967 and subsequent 
fiscal years. 

(3) Section 8, subsection 2 of section 12, subsection 2 of 
section 17 and section 18 apply with respect to fiscal yean 
ending in 1968 and subsequent fiscal years. 

(4) Subsections 1 and 2 of section 21 apply with respect to 
1962 to 1966 fiscal years, inclusive. 

(5) Subsection 5 of section 26 applies with respect to fiscal 
years ending after the 21st day of December, 1966. 

(6) Clauses a and b of subsection 5 of section 31 of The 
Corporations Tax Act, as re-enacted by subsection 2 of section 
14, apply with respect to amounts payable after the 23rd day 
of March, 1967. 



143 



Section 51. Complementary to section 1. 



Section 52. Complementary to section 1. 



Section 53. The amendment makes it clear that fines are payable 
to the Treasurer of Ontario. 



Section 54. The amendment is required by reason of the establish- 
ment of the Department of Revenue. 



143 



25 

(7) Subsection la of section 60 of The Corporations Tax Idem 
Act, as enacted by subsection 1 of section 29, applies with 
respect to property sold in the course of a business pursuant 

to an agreement entered into after the 21st day of December, 
1966. 

(8) Clause ea of section 17 of The Corporations Tax Act, Idem 
as enacted by section 7, is analogous to the provisions of 
subsections 5 and 6 of section 33 of such Act and shall apply 

to require a corporation to include in computing its income 
for the fiscal period ending in the calendar year 1967 the 
amount of any reserve established by it at the end of the 
immediately preceding fiscal year pursuant to the provisions 
of subsection 4 of section 33 of such Act, as those provisions 
stood before the coming into force of this Act. 

(9) Clause ha of subsection 1 of section 22 of The Corpora- Idem 
tions Tax Act, as enacted by subsection 2 of section 11, is 
analogous to the provisions of subsection 4 of section 33 of 
such Act and shall, with respect to fiscal year ending in the 
calendar year 1967 and subsequent fiscal years, apply as it 
would have applied for those periods were it not for the 
repeal of subsection 4 of section 33 by section 15 of this Act. 

(10) Where an amount has been included in computing the Idem 
income of a corporation pursuant to the provisions of sub- 
section 1 of section 33 of The Corporations Tax Act and where, 
pursuant to the provisions of subsection 2 of that section, the 
income of the corporation for the fiscal year in which the 
vessel is sold is required to be reduced, those provisions shall 
continue to apply with respect to vessels disposed of prior 

to the 1st day of January, 1966. 

(11) Subsections 1 and 2 of section 53 of The Corporations Idem 
Tax Act, as re-enacted by section 25, apply with respect to 
fiscal years ending in 1966 and subsequent fiscal years, and 
subsection 3 of such section 53, as re-enacted by section 25, 
applies with respect to amounts paid after the 21st day of 
December, 1966. 

56. — (1) This Act, except section 2, subsections 1 and 5£°™ t mence - 
of section 3, section 4, subsection 1 of section 11, subsections 1 
and 5 of section 14, section 15, subsection 1 of section 20, 
subsection 2 of section 26, subsection 2 of section 28, subsec- 
tion 2 of section 29, section 37 and subsections 3 and 4 of 
section 40, comes into force on a day to be named by the 
Lieutenant Governor by his proclamation. 

(2) Subsection 2 of section 26 shall be deemed to have Idem 
come into force on the 21st day of December, 1966. 

143 



26 

Idem (3) Subsection 1 of section 11, subsections 1 and 5 of 

section 14, section 15, subsection 1 of section 20 and sub- 
section 2 of section 28 shall be deemed to have come into force 
on the 23rd day of March, 1967. 



Idem 



(4) Section 2, subsections 1 and 5 of section 3, section 4, 
subsection 2 of section 29, section 37 and subsections 3 and 4 
of section 40 come into force on the 1st day of July, 1968. 



short title 57. This Act may 
Amendment Act, 1968. 



be cited as The Corporations Tax 



143 



* 



8 



> 

n 

► 
a 
a 

56 
H 
O 
5? 






>3 

i 



5a en !5d 



3 


a' 


•o 


0"<» 


»a 


00 



ex 



BILL 143 



1st Session, 28th Legislature, Ontario 
17 Elizabeth II, 1968 



An Act to amend The Corporations Tax Act 



Mr. MacNaughton 



TORONTO 
Printed and Published by Frank Fogg, Queen's Printer 



BILL 143 1968 



An Act to amend The Corporations Tax Act 

HER MAJESTY, by and with the advice and consent of 
the Legislative Assembly of the Province of Ontario, 
enacts as follows: 

1. — (1) Paragraph 16 of subsection 1 of section 1 of*^ ;, 1 ? 60. 
The Corporations Tax Act is amended by striking out "Treas- 8 ^ 8 1 i- 
urer" in the tenth line and inserting in lieu thereof "Minister", amended 



(2) Paragraph 29 of subsection 1 of the said section 1 is^'f^s 1 ? 60, 
amended by striking out "Treasurer" in the third line an ^^ s ' 2 Q' 
inserting in lieu thereof "Minister". amended 



(3) Paragraph 32 of subsection 1 of the said section 1 is ^/j^ B *ff °' 
amended by striking out "Treasurer" in the third line and|^ s - 3 |' 
inserting in lieu thereof "Minister". amended 

/as r. i .^ t i • r i •, ^ • R.S.O. I960, 

(4) Paragraph 42 of subsection 1 of the said section 1 isc. 73, s. 1, 

1 , subs. 1, 

repealed. par. 42, 

repealed 

(5) Subsection 1 of the said section 1, as amended by^^ ^ 60 - 
subsection 1 of section 1 of The Corporations Tax Amendment subs .' 1, 
Act, 1961-62 and section 1 of The Corporations Tax Amend- 
ment Act, 1965, is further amended by adding thereto the 
following paragraph: 

24a. "Minister" means the Minister of Revenue. 

2. Section 2 of The Corporations Tax Act, as amended by ^•fjj^jjf 0, 
subsection 1 of section 2 of The Corporations Tax Amendment amended 
Act, 1961-62 and section 1 of The Corporations Tax Amend- 
ment Act, 1967, is further amended by adding thereto the 
following subsections: 

(7a) Where a corporation, not otherwise having a per- Idem 
manent establishment in Canada, is incorporated 
under the laws of a jurisdiction outside of Canada, 
which jurisdiction has not entered into a Tax Con- 
vention or Treaty with Canada for the fiscal year, 

143 



and owns land in a province, such land shall be 
deemed to be a permanent establishment in the 
province. 



Interpre- 
tation 



(7b) For the purposes of subsections 7 and la, a corpora- 
tion "owns land" if it has a legal, equitable or 
beneficial interest in the land. 



R.S.O. I960, 
c. 73, 8. 4, 
sube. 6, 
amended 



3. — (1) Subsection 6 of section 4 of The Corporations Tax 
Act, as amended by subsection 1 of section 3 of The Corpora- 
tions Tax Amendment Act, 1961-62, is further amended by 
striking out "and" at the end of clause h, by adding "and" 
at the end of clause i and by adding thereto the following 
clause: 



(J) where land which constitutes a permanent establish- 
ment in a province under subsections 7 and la of 
section 2 is sold, and the profit derived therefrom 
is included in the corporation's income, the gross 
revenue of the corporation derived from such sales 
for the fiscal year shall be attributed to that per- 
manent establishment. 



^fi ; 1 ? 60, (2) Subsection 33 of the said section 4 is amended by 

O. 7o, 8. 4, \ \ , T , ... 

subs. 33 striking out "Treasurer" in the fifth line and inserting in lieu 
thereof "Minister". 



c^f^Ps 1 ! 60, (3) Clause o of subsection 37 of the said section 4, as re- 
8ub8.'37, ' enacted by subsection 5 of section 3 of The Corporations Tax 
(1961-62, Amendment Act, 1961-62, is repealed and the following sub- 
subs.'sj, ' stituted therefor: 

re-enacted 



pension 
corporation 



(o) a corporation established or incorporated solely in 
connection with, or for the administration of, a 
registered pension fund or plan, not less than 90 per 
cent of the income of which for the period was, 



(i) from sources in Canada, 



R.S.C. 1952. 
o. 19 



(ii) from bonds, debentures or other securities 
issued or guaranteed by the International 
Bank for Reconstruction and Development 
established by the Agreement for an Interna- 
tional Bank for Reconstruction and Develop- 
ment approved by subsection 1 of section 2 
of the Bretton Woods Agreements Act (Canada), 
the income from which securities is payabl 
in Canadian currency, or 



143 



(iii) from sources in Canada and from bonds, 
debentures or other securities described in 
subclause ii. 

(4) Clause p of subsection 37 of the said section 4 is amended c^'f^s. 1 ^ 0, 
by striking out "Treasurer" in the third line and inserting ^ b |- 37> 

in lieu thereof "Minister". amended 

(5) The said section 4, as amended by section 3 of The ^"f^s. 1 !? 0. 
Corporations Tax Amendment Act, 1961-62, section 1 f amended 
The Corporations Tax Amendment Act, 1962-63 and section 2 

of The Corporations Tax Amendment Act, 1967, is further 
amended by adding thereto the following subsections: 

(34a) Where a corporation that is not subject to taxation Idem 

under section 31 of the Income Tax Act (Canada) f['f£z' 1952, 

owns land in Ontario or owns land in Ontario and 

other provinces and territories of Canada and 

does not otherwise have a permanent establishment 

in Canada, this section applies as though the portion 

of its taxable income arising from the sale of land 

in Canada were its total taxable income and such 

taxable income were allocated among the provinces 

and territories of Canada in accordance with those 

provisions of subsection 34 as are applicable. 

(346) Where a corporation that has elected to be taxed Idem 
under section 31 of the Income Tax Act (Canada) 
pursuant to the provisions of section 110 of the 
Income Tax Act (Canada) owns land in Ontario or 
owns land in Ontario and other provinces and ter- 
ritories of Canada and does not otherwise have a 
permanent establishment in Canada, this section 
applies as though the portion of its taxable income 
arising from the sale or rental of land in Canada 
were its total taxable income, and such taxable 
income were allocated among the provinces and 
territories of Canada in accordance with those 
provisions of subsection 34 as are applicable. 

4. Subsection 16 of section 5 of The Corporations Tax Actff^^l 60 ' 
is repealed and the following substituted therefor: subs.'ie ' 

(16) In the case of a corporation to which subsection 34, c^pftai P 
34a or 34b of section 4 applies the paid-up capital foreign' 

, r i ii • i T • ii corporations 

thereof shall, notwithstanding section 68, be deemed 
to be either, 

(a) the amount of which the portion of its tax- 
able income which is subjected to taxation 
under section 31 of the Income Tax Act c ."i48' 

143 



(Canada) or the amount of which the portion 
of its taxable income is subjected to taxation 
under subsection 34a of section 4 would be 
8 per cent; or 

(b) the amount that equals the difference between, 

(i) the amount of the total assets of the 
corporation in Canada, and 

(ii) the amount of the indebtedness of the 
corporation relating to its permanent 
establishments in Canada but exclud- 
ing therefrom all amounts that are 
advanced or loaned to its permanent 
establishments in Canada by the cor- 
poration itself or by any other cor- 
poration and all other indebtedness 
that is represented by bonds, bond 
mortgages, debentures, income bonds, 
income debentures, mortgages, lien 
notes and any other securities to which 
the property in Canada or any of it is 
subject, 

whichever is greater, and, in such case, this 
section shall apply as though the paid-up 
capital as so determined were the total paid- 
up capital of the corporation and as though 
the corporation had no permanent establish- 
ments outside of Canada. 

^■S'O-1960, 5. Clause b of subsection 7 of section 6 of The Corporations 
subs.' 7.' Tax Act is amended by striking out "Treasurer" in the fourth 

amended line and inserting in lieu thereof "Minister". 

c , "73°8 1 7 60, ®* Subsection 2 of section 7 of The Corporations Tax Act 
bu»8.'2.' is amended by striking out "Treasurer" in the third line and 



amended 



inserting in lieu thereof "Minister". 



^•fiPg 1 !? 0, 7. Section 17 of The Corporations Tax Act, as amended 
amended by section 5 of The Corporations Tax Amendment Act, 1961-62, 
section 2 of The Corporations Tax Amendment Act, 1962-63, 
section 2 of The Corporations Tax Amendment Act, 1964 and 
section 4 of The Corporations Tax Amendment Act, 1965, is 
further amended by adding thereto the following clause: 



survey, etc. 



II2?}°~%~ («*) the amount deducted as a reserve under clause ha 

reserve Tor x ' 

Quad/enniai of subsection 1 of section 22 in computing the cor- 

poration's income for the immediately preceding 
year. 

143 



8. The Corporations Tax Act is amended by adding thereto ^fg 0, 1960, 
the following section: amended 

17a. — (1) Where the result of one or more sales, exchanges, payment 
declarations of trust, or other transactions of any or transfer 
kind whatsoever is that a person confers a benefit 
on a corporation, that person shall be deemed to have 
made a payment to the corporation equal to the 
amount of the benefit conferred notwithstanding 
the form or legal effect of the transactions or that 
one or more other persons were also parties thereto; 
and whether or not there was an intention to avoid 
or evade taxes under this Act, the payment shall be 
included in computing the income of the corporation. 

(2) Where it is established that a sale, exchange or other length 
transaction was entered into by a corporation and 
other persons dealing at arm's length, bona fide and 
not pursuant to, or as part of, any other transaction 
and not to effect payment in whole or in part of an 
existing or future obligation, no party thereto shall be 
regarded, for the purpose of this section and for the 
purpose of subsection 5 of section 23, as having 
conferred a benefit on a corporation who was party 
thereto. 

9. Section 20 of The Corporations Tax Act is amended by^f^g 19 ^ 0, 
striking out "Treasurer" in the ninth line and inserting amended 

in lieu thereof "Minister". 

10. Clause d of section 21 of The Corporations Tax Act,^-^^ 1 ^ ' 
as enacted by section 2 of The Corporations Tax Amendment^- *' 

Act, 1966, is amended by adding at the end thereof "or thee. 30,'s. 2). 
Industrial Research and Development Incentives Act (Canada)", 
so that the clause shall read as follows: 

{d) an amount paid to a corporation on account of a ^felop- 
development grant under the Area Development ™**g 8 rants 
Incentives Act (Canada) or the Industrial Research 9- i| (Can.) 
and Development Incentives Act (Canada). c. 82' (Can.) 

11.— (1) Clause a of subsection 1 of section 22 of The ^f^Vli?' 
Corporations Tax Act is amended by striking out "or" at^» b |- l < 
the end of subclause i, by adding "or" at the end of subclause ii, amended 
and by adding thereto the following subclause: 

(iii) subject to the approval of the Minister, an amount 
paid to the corporation under, 

(A) an Appropriation Act (Canada) for the pur- 
pose of advancing or sustaining the technolog- 

143 



I 



ical capability of Canadian manufacturing or 
other industry, or 

(B) the Northern Mineral Exploration Assistance 
Regulations made under an Appropriation 
Act (Canada), 



R.S.O. I960, 
C. 73, 8. 22. 
subs. 1. 
amended 



(2) Subsection 1 of the said section 22, as amended by 
subsection 1 of section 7 of The Corporations Tax Amendment 
Act, 1961-62, section 3 of The Corporations Tax Amendment 
Act, 1962-63, subsections 1 and 2 of section 5 of The Cor- 
porations Tax Amendment Act, 1965 and subsection 1 of 
section 3 of The Corporations Tax Amendment Act, 1966, is 
further amended by adding thereto the following clause: 



reserve for 

quadrennial 

survey 



R.S.C. 1952, 
c. 29 



R.S.O. 1960, 
c. 73, s. 22. 
subs. 1, 
cl. r, 
amended 

contribution 
under 
registered 
supplemen- 
tary unem- 
ployment 
benefit 
plan 

R.S.O. 1960, 
c. 73, s. 22. 
subs. 6, 
amended 



(ha) such amount as may be prescribed as a reserve for 
expenses to be incurred by the corporation by reason 
of quadrennial or other special surveys required 
under the Canada Shipping Act (Canada), or the 
regulations thereunder or under the rules of any 
society or association for the classification and 
registry of shipping approved by the Minister of 
Transport of Canada for the purpose of the Canada 
Shipping Act (Canada). 

(3) Clause r of subsection 1 of the said section 22 is amended 
by inserting after "a" where it occurs the third time in the 
first line "registered", so that the clause shall read as follows: 

(r) an amount paid by a corporation to a trustee under 
a registered supplementary unemployment benefit 
plan as permitted by section 53. 

(4) Subsection 5 of the said section 22 is amended by 
striking out "Treasurer" in the fifth line and inserting in lieu 
thereof "Minister". 



r.s o. i960, (5) Subsection 8 of the said section 22 is amended by 

c T3 8 22 

Bubs.'8.' striking out "Treasurer" in the ninth line and inserting in 
lieu thereof "Minister". 



?'73 s 1 23 0, 12.— (1) Subsection 1 of section 23 of The Corporations 

8ub6 'd'd ^ ax ^ ci ' as amer, ded by section 8 of The Corporations Tax 

Amendment Act, 1961-62 and section 4 of The Corporations 

Tax Amendment Act, 1964, is further amended by adding 

thereto the following clause: 



limitation 
on con- 
tribution 



(J) an amount paid by a corporation to a trustee under 
a supplementary unemployment benefit plan except 
as permitted by section 53. 



143 



(2) The said section 23 is amended by adding thereto the^ 1 73°;, ^jj 0, 

following subsection : amended 

(5) In computing income, no deduction may be made transaction 
in respect of a disbursement or expense made or 
incurred in respect of a transaction or operation that, 
if allowed, would unduly or artificially reduce the 
income. 

13. Subsection 2 of section 24 of The Corporations Tax R.s.o. i960. 

c 73 s 24 

Act is amended by striking out "Treasurer" in the first line subs.' 2', 
and inserting in lieu thereof "Minister". 

14. — (1) Subsection 4 of section 31 of The Corporationsf-^g 19 ^' 
Tax Act, as amended by section 3 of The Corporations Tax landed 
Amendment Act, 1967, is further amended by re-lettering 
clause a as clause aa and by adding thereto the following 
clauses : 

(a) "conversion", in respect of a vessel, means a con- 
version or major alteration in Canada by a corpora- 
tion in accordance with plans approved in writing 
by the Minister of Industry of Canada for the 
purposes of the Income Tax Act (Canada) and by R -^. 1952, 
the Minister, and "conversion cost" means the cost 
of conversion as determined by the Minister; 



(/) "vessel" means a vessel as defined in the Canada™^ 1952 ' 
Shipping Act (Canada). 

(2) Clauses a and b of subsection 5 of the said section 31 c ^f 3 ^ > g 1 3f°' 
are repealed and the following substituted therefor : ^ubs^ 5 ^ 

re-enacted 

(a) it shall, to the extent that it has been expended by 
the corporation, 

(i) in the fiscal year immediately following the 
initial fiscal year on acquiring property of the 
same class, 

(ii) in the fiscal year immediately following the 
initial fiscal year on acquiring, if the property 
destroyed was a building, a building of a 
prescribed class, or 

(iii) within the time certified by the Minister to be 
a reasonable time following the initial fiscal 
year, on acquiring, if the property destroyed 
was a vessel, a vessel of a prescribed class, 

not be included in computing the income of the cor- 
poration for the initial fiscal year; and 

143 



8 



(b) it shall, to the extent that it has not been included 
in computing the income of the corporation for the 
initial fiscal year, be deemed to be proceeds of a 
disposition made, 

(i) in the case of a vessel, in the fiscal year in 
which it is in whole or in part expended in 
accordance with clause a, but only to the 
extent that it is so expended in that year and 
only if such year is within the time certified 
by the Minister under subclause iii of clause a, 
and 

(ii) in the case of any other property in the fiscal 
year immediately following the initial year, 

of depreciable property of the corporation of the 
same class as the property so acquired. 



R.S.O. I960, 
c. 73. 8. 31, 
subs. 56 
(1960-61. 
c. 14, 8. 3), 
amended 



(3) Subsection 5b of the said section 31, as enacted by sec- 
tion 3 of The Corporations Tax Amendment Act, 1960-61, is 
amended by striking out "Treasurer" in the twelfth line and 
in the thirteenth line and inserting in lieu thereof in each 
instance "Minister". 



(4) Subsection 9 of the said section 31, as enacted by sec- 



R.S.O. I960, 
c. 73, 8. 31, 

sube. 9 tion 5 of The Corporations Tax Amendment Act, 1966, is 

c 30, 's. 5) repealed and the following substituted therefor: 

re-enacted 



1965, 

c. 12 (Can.) 

1966. 

c. 82 (Can.) 



(9) Paragraph 8 of subsection 6 does not apply in 
respect of a grant authorized to be paid under the 
Area Development Incentives Act (Canada) or the 
Industrial Research and Development Incentives Act 
(Canada) and approved by the Minister. 



R ?o°i 1 5 60, (5) The said section 31, as amended by section 3 of The 
amended Corporations Tax Amendment Act, 1960-61, section 6 of 
The Corporations Tax Amendment Act, 1964, section 8 of 
The Corporations Tax Amendment Act, 1965, section 5 of The 
Corporations Tax Amendment Act, 1966 and section 3 of The 
Corporations Tax Amendment Act, 1967, is further amended 
by adding thereto the following subsections: 



Application 
where 
deduction 
under 

R.S.C. 1952. 
c. 43 



(11) Notwithstanding subsection 8, where a deduction 
has been made under the Canadian Vessel Construc- 
tion Assistance Act (Canada) for any year, sub- 
section 1 is applicable in respect of the prescribed 
class created by that Act or any other prescribed 
class to which the vessel may have been transferred. 



143 



(12) For the purpose of this section and regulations made ^t v e f rsion 
under clause a of subsection 2 of section 22, a vessel vessel 

c . . . deemed 

in respect of which any conversion cost is incurred prescribed 
after the coming into force of this subsection shall, 
to the extent of the conversion cost, be deemed to 
be included in a separate prescribed class. 

(13) Where a vessel owned by a corporation on the lstfppficabie* 
day of January, 1966, or constructed pursuant to aj^® rtain 
construction contract entered into by the taxpayer 

prior to 1966 and not completed by that date is 
disposed of by the corporation before 1974, 

(a) subsection 1 does not apply to the proceeds 
of disposition, 

(i) to the extent that they are used by any 
corporation before 1974 for replace- 
ment under conditions satisfactory to 
the Minister, or 

(ii) if the corporation has on terms satis- 
factory to the Minister, deposited on or 
before the day on which it is required 
to file a return under this Act for the 
fiscal year in which the vessel was dis- 
posed of, an amount at least equal to 
the tax that would but for this sub- 
section be payable by the corporation 
under this Part in respect of the pro- 
ceeds of disposition, or satisfactory 
security therefor, as a guarantee that 
the proceeds of disposition will be used 
before 1974 for replacement; and 

(b) the corporation may within the time pre- 
scribed for the filing of a return under this 
Act for the fiscal year in which the vessel was 
disposed of, elect to have the vessel constituted 
a prescribed class, or, if any conversion cost 
in respect of the vessel has been included in a 
separate prescribed class, have it transferred 
to that class, and, if it so elects, the vessel 
shall be deemed to have been so transferred 
immediately before the disposition thereof but 
this clause does not apply unless the proceeds 
of disposition of the vessel exceed the amount 
that would be the undepreciated capital cost 
of property of the class to which it would be 
so transferred. 



143 



10 



Election In 
respect of 
proceeds of 
disposition 
of a vessel 



Prescribed • 
class con- 
stituted by- 
conversion 
cost 
■deemed 
part of 
class con- 
stituted by- 
vessel on 
disposition 

R.S.C. 1952. 
c. 43 



(14) Where a vessel owned by a corporation is disposed 
of by it, it may, if subsection 13 does not apply to 
the proceeds of disposition or if the corporation does 
not make an election under clause b of subsection 13, 
within the prescribed time for the filing of a return 
under this Act for the fiscal year in which the vessel 
is disposed of, elect to have the proceeds that would 
be included in its income under subsection 1 treated 
as proceeds of disposition of property of another 
prescribed class that includes a vessel owned by it. 

(15) Where a separate prescribed class has been con- 
stituted either under this Act or the Canadian Vessel 
Construction Assistance Act (Canada) by virtue of 
the conversion of a vessel owned by a corporation 
and the vessel is disposed of by it, if no election is 
made under clause b of subsection 13, the separate 
prescribed class constituted by virtue of the con- 
version shall be deemed to have been transferred to 
the class in which the vessel was included im- 
mediately before the disposition thereof. 



Re-assess- 
ments 



Disposition 
of deposits 



(16) Notwithstanding any other provision of this Act, 
where a corporation, 

(a) expended an amount as described in sub- 
clause iii of clause a of subsection 5 ; or 

(b) made an election under clause b of subsec- 
tion 13 with respect to a vessel and the 
proceeds of disposition of the vessel have been 
used before 1974 for replacement under con- 
ditions satisfactory to the Minister, 

such re-assessments of returns of income shall be 
made as are necessary to give effect to subsections 5 
and 13. 

(17) All or any part of a deposit made under subclause ii 
of clause a of subsection 13 may be paid out to or on 
behalf of any corporation which, under conditions 
satisfactory to the Minister and as a replacement for 
the vessel disposed of, acquires a vessel before 1974, 

(a) that was constructed in Canada and is regis- 
tered in Canada or is registered under con- 
ditions satisfactory to the Minister in any 
country or territory to which the British 
Commonwealth Merchant Shipping Agree- 
ment (signed at London on December 10, 
1931) applies; and 



143 



11 

(b) in respect of the capital cost of which no 
allowance has been made to any other tax- 
payer under this Act or the Canadian Vessel Kii £ • ■ w% 2 - 

* . oc. 43, 148 

Construction Assistance Act (Canada) or the 
Income Tax Act (Canada), 

or incurs any conversion cost with respect to a vessel 
of the corporation that is registered in Canada or is 
registered under conditions satisfactory to the 
Minister in any country or territory to which the 
said British Commonwealth Merchant Shipping 
Agreement applies, but the ratio of the amount paid 
out to the amount of the deposit shall not exceed 
the ratio of the capital cost to it of the vessel or the 
conversion cost to it of the vessel, as the case may be, 
to the proceeds of disposition of the vessel disposed 
of; and any deposit or part of a deposit not so paid 
out before 1974 shall be paid to the Treasurer of 
Ontario. 

15. Sections 32, 33 and 34 of The Corporations Tax Act^-^- 1960 
are repealed. ss. 32-34. 

r repealed 

16. Section 38 of The Corporations Tax Act, as re-enacted ?f a ; 1 ?! 0, 
by section 13 of The Corporations Tax Amendment Act, 1961-62, (1 ^ 1 " 62 ; 3 v 
is amended by striking out "Treasurer" in the eighth line and amended 
inserting in lieu thereof "Minister". 

17. — (1) Paragraph 1 of subsection 1 of section 39 of rh^^^ B x %%°' 
Corporations Tax Act, as re-enacted by subsection 1 of sec- 8 "* 18 -' 1 - 
tion 4 of The Corporations Tax Amendment Act, 1967, is (1967, 

• . c 15 8 4 

amended by striking out "Treasurer" in the twenty-seventh subs.'i). 
line and inserting in lieu thereof "Minister". amended 

(2) Paragraph 2 of subsection 1 of the said section 39 is ^'f^s }%%°,' 
repealed and the following substituted therefor: par 8 ^ 1 ' 

re-enacted 

2. The aggregate of gifts made by the corporation in the^i" 8 *° 
fiscal year and in the immediately preceding fiscal Majesty 
year, to the extent of the amount thereof that was 
not deductible under this Act in computing the 
taxable income of the corporation for that im- 
mediately preceding fiscal year to Her Majesty in 
right of Canada and of Ontario, not exceeding the 
amount remaining, if any, when the amount deduct- 
ible for the fiscal year under paragraph 1 is deducted 
from the income of the corporation for the fiscal year, 
if payment of the amounts given is proven by filing 
receipts or photostatic reproductions thereof with 
the Minister. 



143 









12 

c 1 "™ * 1 !!! 0, (3) Subsection 6 of the said section 39, as enacted by sub- 
subs/ e section 2 of section 4 of The Corporations Tax Amendment Act, 
c is. 's. 4. 1967, is amended by striking out "Treasurer" in the fourteenth 
amended line and inserting in lieu thereof "Minister". 

e^fjPs 1 !*) ' W Subsection 7 of the said section 39, as enacted by sub- 
n^V 7 section 2 of section 4 of The Corporations Tax Amendment Act, 

o. lb'.'s. 4. 1967 , is amended by striking out "Treasurer" in the first line 
amended and inserting in lieu thereof "Minister". 

r -5a°- 19 .? 0, (5) Subsection 8 of the said section 39, as enacted by sub- 

c. T3 8. 39 

subs.' 8* section 2 of section 4 of The Corporations Tax Amendment Act, 

(1967 • • 

c. 15. 's. 4. 1967 , is amended by striking out "Treasurer" in the first line 
amended and inserting in lieu thereof "Minister". 

R.s.o. i960. 18. Subsection 2 of section 45 of The Corporations Tax 

c T3 s 4 y 

subs." 2,' Act, as amended by section 5 of The Corporations Tax Amend- 
ment Act, 1967, is further amended by adding thereto the 
following paragraph: 

7. It has paid the taxes payable for a fiscal year under 
?'?48' 1952 ' P art * °f tne Income Tax Act (Canada), as provided 

by subsection 2 of section 70 thereof. 

r.sx). i960. i9 # — (J) Clause a of subsection 2 of section 46a of The 
8 - 46a Corporations Tax Act, as enacted by section 11 of The Cor- 

c 22, 's. id. porations Tax Amendment Act, 1965, is amended by striking 
out "Treasurer" in the first line and inserting in lieu thereof 
amended "Minister". 

c'73. ' (2) Clause e of subsection 2 of the said section 46a, as 

8ubs. a 2. re-enacted by section 6 of The Corporations Tax Amendment 

(i'967. Act, 1967, is amended by striking out "Treasurer" in the sixth 

ame 5 nd 8 ed 6) ' ^ ne anc ^ inserting in lieu thereof "Minister". 

R.S.O. I960. ,_ x _ . . , , ., . ., . , , , 

c. 73. (3) Subsection 6 of the said section 46a is amended by 

(1965. striking out "Treasurer" in the first line and inserting in 

suS:l llh lieu thereof "Minister". 

amended 

cVfj^VSea' W Subsection 7 of the said section 46a is amended by 
c 1 !* 6 ^ id striking out "Treasurer" in the third line and inserting in 
subs.j, ' li eu thereof "Minister". 

amended 

c'73. s. 46a' (5) Clause d of subsection 8 of the said section 46a is 
c!22%. id. amended by striking out "Treasurer" in the first line and 
Bube. 8. inserting in lieu thereof "Minister". 

amended 

RSgO^ijeo. 20.— (1) Subsection 1 of section 47 of The Corporations 
Bube.'i. Tax Act, as amended bv subsections 1 and 2 of section 16 

ro * © t\ & ( ' t c? d 

of The Corporations Tax Amendment Act, 1961-62 and sub- 
143 



13 

sections 1 and 2 of section 6 of The Corporations Tax Amend- 
ment Act, 1962-63, is repealed and the following substituted 
therefor : 

(1) In computing the income for a fiscal year of a Research 
corporation that had a permanent establishment in deductions 

/~.i i i !• ■ r from 

Canada and made expenditures in respect of scien- income 
tific research in the fiscal year, there may be deducted 
the amount by which the aggregate of, 

(a) all expenditures of a current nature made in 
Canada in the fiscal year, 

(i) on scientific research related to the 
business and directly undertaken by 
or on behalf of the corporation, 

(ii) by payments to an approve