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Bill C-11

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2nd Session, 36th Parliament,
48-49 Elizabeth II, 1999-2000

The House of Commons of Canada

BILL C-11

An Act to authorize the divestiture of the assets of, and to dissolve, the Cape Breton Development Corporation, to amend the Cape Breton Development Corporation Act and to make consequential amendments to other Acts

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the Cape Breton Development Corporation Divestiture Authorization and Dissolution Act.

DISPOSAL OF ASSETS AND DISSOLUTION

Authoriza-
tion

2. (1) The Cape Breton Development Corporation (``the Corporation''), established by the Cape Breton Development Corporation Act, is authorized

    (a) to sell or otherwise dispose of all or substantially all of its assets; and

    (b) to do everything necessary for or incidental to closing out its affairs.

Provisions not applicable

(2) Subsections 99(2) to (5) of the Financial Administration Act do not apply to the authorization in subsection (1).

Commenceme nt of legal proceedings

3. (1) Any action, suit or other legal proceeding in respect of an obligation or liability incurred by the Corporation in closing out its affairs may be brought against Her Majesty in any court that would have had jurisdiction if the action, suit or other legal proceeding had been brought against the Corporation.

Continuation of legal proceedings

(2) Any action, suit or other legal proceeding to which the Corporation is party that is pending in any court on the coming into force of this section may be continued by or against Her Majesty in like manner and to the same extent as it could have been continued by or against the Corporation.

Dissolution

4. The Corporation is dissolved on a day to be fixed by order of the Governor in Council.

Declaration of general advantage

5. The works and undertakings operated or carried on by the Corporation on or after June 15, 1967 are declared to be works for the general advantage of Canada.

R.S., c. C-25

AMENDMENTS TO THE CAPE BRETON DEVELOPMENT CORPORATION ACT

6. (1) The definitions ``Coal Division'' and ``companies'' in section 2 of the Cape Breton Development Corporation Act are repealed.

(2) The definition ``Chairman'' in section 2 of the English version of the Act is repealed.

(3) Section 2 of the English version of the Act is amended by adding the following in alphabetical order:

``Chairperson' ' Version anglaise seulement

``Chairperson'' means the Chairperson of the Board;

7. (1) Section 3 of the English version of the Act is replaced by the following:

Corporation established

3. A corporation is hereby established to be called the Cape Breton Development Corporation, consisting of a Board of Directors comprised of a Chairperson, a President and five other directors to be appointed in the manner provided in section 4.

(2) Section 3 of the Act, as amended by subsection (1), is replaced by the following:

Corporation established

3. A corporation is hereby established to be called the Cape Breton Development Corporation, consisting of a Board of Directors comprised of a Chairperson, a President and a maximum of five other directors to be appointed in the manner provided in section 4.

R.S., c. 1 (4th Supp.), s. 44 (Sch. II, item 10)(E)

8. (1) Subsections 4(1) to (3) of the English version of the Act are replaced by the following:

Appointment of Chairperson and President

4. (1) The Chairperson and the President shall each be appointed by the Governor in Council, after consultation with the Lieutenant Governor in Council of Nova Scotia, to hold office during pleasure for the term that the Governor in Council considers appropriate.

Directors

(2) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term, not exceeding three years, that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one-half of the directors.

Recommende d appointments

(3) Two directors other than the Chairperson and the President shall be appointed on the recommendation of the Lieutenant Governor in Council of Nova Scotia.

(2) Section 4 of the Act, as amended by subsection (1), is replaced by the following:

Appointment of Chairperson and President

4. (1) The Chairperson and the President shall each be appointed by the Governor in Council to hold office during pleasure for the term that the Governor in Council considers appropriate.

Directors

(2) Each director, other than the Chairperson and the President, shall be appointed by the Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding three years.

Re-appointme nt

(3) The President is eligible for re-appointment on the expiration of the President's term of office, but any other director who has served two consecutive terms is not, during the twelve months following the completion of that director's second term, eligible for appointment except as President.

9. Section 5 of the English version of the Act is replaced by the following:

Chairperson to preside at meetings

5. The Chairperson shall preside at meetings of the Board but in the event of the absence or incapacity of the Chairperson, or if the office of Chairperson is vacant, the President shall preside at those meetings.

10. Subsection 7(1) of the English version of the Act is replaced by the following:

Salaries and fees

7. (1) The President shall be paid by the Corporation a salary to be fixed by the Governor in Council and the Chairperson and the other directors other than the President shall be paid by the Corporation the fees for attendances at meetings of the Board or any committee that are fixed by the Governor in Council.

R.S., c. 41 (4th Supp.), s. 47

11. Sections 8 to 14 of the Act are replaced by the following:

Staff

8. (1) The Corporation may employ the officers, employees and technical and professional advisers that it considers necessary for the proper conduct of its activities.

Remunera-
tion and terms and conditions of employment

(2) The persons employed pursuant to subsection (1) shall be paid by the Corporation the remuneration that is fixed or provided for by the Board and shall be employed on the terms and conditions that are fixed or provided for by by-law of the Corporation.

12. The headings before section 15 and sections 15 to 17 of the Act are replaced by the following:

OBJECTS AND POWERS

Objects

15. The objects of the Corporation are to conduct coal mining and related operations in the Sydney coal-field on a basis that is consistent with efficient mining practice and good mine safety.

Powers

16. In carrying out its objects, the Corporation may

    (a) rehabilitate, improve, open, operate and maintain any coal mines or related fixtures, machinery, equipment or property of any other nature acquired by the Corporation;

    (b) enter into contracts with any person or persons within or outside Canada or with Her Majesty in right of Canada or any province or any agent of Her Majesty in right of Canada or any province relating to the production of coal by the Corporation or to the marketing and shipping of coal acquired by or produced by the Corporation; and

    (c) do all other things that the Corporation considers incidental or conducive to the attainment of its objects.

R.S., c. 13 (4th Supp.), s. 1

13. Sections 18 to 21 of the Act are replaced by the following:

Pension arrangements

18. The Corporation shall by by-law provide for the establishment, management and administration of pension arrangements for the benefit of persons, and dependants of persons, employed by the Corporation in connection with the coal mining and related works and undertakings operated or carried on by the Corporation, for the contributions to the pension funds to be made by the Corporation, and for the investment of the pension fund moneys.

FINANCIAL PROVISIONS

Advances to Corporation for working capital

19. The Minister of Finance may, out of the Consolidated Revenue Fund, on the requisition of the Corporation and the Minister, authorize advances from time to time to the Corporation, on the terms that may be agreed on, for working capital for the Corporation, but the total amount of advances outstanding at any time under this section shall not exceed $50,000,000 or any other amount that may be established by an appropriation Act or other Act of Parliament.

R.S., c. 41 (4th Supp.), s. 49

14. Sections 26 and 27 of the Act are replaced by the following:

GENERAL

Head office and meetings

27. The head office of the Corporation shall be on the Island of Cape Breton, Nova Scotia, but meetings of the Board may be held in any place in Canada that the directors may decide.

15. Paragraph 28(e) of the Act is replaced by the following:

    (e) respecting the establishment, management and administration of a pension fund for the President, the officers and employees of the Corporation and the dependants of those persons, the contributions to the pension fund to be made by the Corporation and the investment of the pension fund moneys; and

16. Subsection 30(1) of the Act is replaced by the following:

Persons employed not servants of Her Majesty

30. (1) Persons employed by the Corporation pursuant to subsection 8(1) are not officers or servants of Her Majesty.

R.S., c. 41 (4th Supp.), s. 50

17. Sections 33 to 35 of the Act are replaced by the following:

REPEAL

Repeal - Order in Council

33. This Act or any of its provisions is repealed on a day or days to be fixed by order of the Governor in Council.

CONSEQUENTIAL AMENDMENTS

R.S., c. F-8; 1995, c. 17, s. 45(1)

Federal-Provincial Fiscal Arrangements Act

18. Schedule I to the Federal-Provincial Fiscal Arrangements Act is amended by striking out the following:

Cape Breton Development Corporation

    Société de développement du Cap-Breton

R.S., c. F-11

Financial Administration Act

19. Part I of Schedule III to the Financial Administration Act is amended by striking out the following:

Cape Breton Development Corporation

    Société de développement du Cap-Breton

R.S., c. M-13

Municipal Grants Act

20. Schedule I to the Municipal Grants Act is amended by striking out the following:

Cape Breton Development Corporation, with respect to real property owned by Her Majesty in right of Canada and occupied by the Department of Transport for purposes of the Canadian Coast Guard College.

21. Schedule III to the Act is amended by striking out the following:

Cape Breton Development Corporation

    Société de développement du Cap-Breton