Canada Marine Act (S.C. 1998, c. 10)

Marginal note:Powers to invest

32 A port authority may invest any moneys in its reserves or any moneys that it does not immediately require in

• (a) debentures, bonds, bankers’ acceptances or other debt obligations of or guaranteed by Her Majesty in right of Canada or any province or municipality in Canada or any member of the Canadian Payments Association; or

• (b) investments of a category prescribed by regulation by the Governor in Council for the purposes of this section.

Marginal note:Deemed knowledge of letters patent

33 A person who deals with a port authority, acquires rights from a port authority or directly or indirectly acquires rights relating to a port authority is deemed to know the contents of the letters patent of the port authority.

Annual Meeting

Marginal note:Annual meeting

34 The directors of a port authority shall call an annual meeting not later than eighteen months after the port authority comes into existence and subsequently not later than fifteen months after holding the last preceding annual meeting.

Marginal note:Meeting open to public

• 35 (1) The annual meeting of a port authority shall be open to the public and held in any of the municipalities where the port is situated, in premises large enough to accommodate the anticipated attendance.

• Marginal note:Notice of meeting

  (2) A port authority shall, at least thirty days before the annual meeting, have a notice published in a major newspaper published or distributed in the municipalities where the port is situated setting out the time and location of the meeting and specifying that the port authority’s financial statements are available to the public at its registered office.

• Marginal note:Availability to public

  (3) At the annual meeting, the board of directors shall ensure

  • (a) that there are available a sufficient number of copies of the most recent audited annual financial statements of the port authority for the persons present at the meeting; and

  • (b) that the chief executive officer and the directors are available to answer questions about the operations of the port authority posed by the persons present at the meeting.

Marginal note:Annual financial statements

36 The board of directors of a port authority shall present at every annual meeting

• (a) comparative financial statements that relate separately to

  • (i) the period that ended not more than six months before the annual meeting and that began on the date the port authority came into existence or, if the port authority has completed a fiscal year, immediately after the end of the last completed fiscal year, and

  • (ii) the immediately preceding fiscal year;

• (b) the report of the auditor of the port authority; and

• (c) any further information respecting the financial position of the port authority and its wholly-owned subsidiaries and the results of their operations required by this Act, any regulations made under this Act, the letters patent or the by-laws.

Financial Management

Marginal note:Public to get financial statements

• 37 (1) A port authority shall make available for inspection by the public, at its registered office during normal business hours at least thirty days before the annual meeting, its audited annual financial statements and those of its wholly-owned subsidiaries for the preceding fiscal year.

• Marginal note:Contents

  (2) The financial statements shall be prepared in accordance with generally accepted accounting principles and consist of at least the following:

  • (a) a balance sheet;

  • (b) a statement of retained earnings;

  • (c) a statement of income and expenses; and

  • (d) a statement of changes in financial position.

• Marginal note:Remuneration

  (3) The annual financial statements shall set out the total remuneration paid in money or in kind to each of the following persons in that year by the port authority or its wholly-owned subsidiary, including any fee, allowance or other benefit:

  • (a) the directors;

  • (b) the chief executive officer; and

  • (c) the officers and employees whose remuneration exceeds a prescribed threshold.

• Marginal note:Statements to be given to Minister

  (4) A port authority shall submit to the Minister its audited annual financial statements, and those of its wholly-owned subsidiaries, at least thirty days before the port authority’s annual meeting.

• Marginal note:Other information to be given to Minister

  (5) A port authority shall provide the Minister with such accounts, budgets, returns, statements, documents, records, books, reports or other information as the Minister may require, including information about any contingent liabilities of the port authority or of its wholly-owned subsidiaries.

Marginal note:Books and systems

• 38 (1) A port authority shall ensure that, in respect of itself and its wholly-owned subsidiaries,

  • (a) books of account and accounting records are kept; and

  • (b) financial and management control and information systems and management practices are maintained.

• Marginal note:Keeping of books

  (2) The books, records, systems and practices shall be kept and maintained in a manner that will provide reasonable assurance that

  • (a) the assets of the port authority are safeguarded and controlled;

  • (b) the transactions of the port authority are in accordance with this Part and the letters patent and by-laws of the port authority; and

  • (c) the financial, human and physical resources of the port authority are managed economically and efficiently and the operations of the port authority are carried out effectively.

Marginal note:Business plan

39 A port authority shall, within three months after the end of each fiscal year, submit to the Minister, in respect of itself and each of its wholly-owned subsidiaries, a five-year business plan containing any information that the Minister may require, including any material changes in respect of information provided in the previous business plan.

Marginal note:Manner of presenting information

40 The financial statements and business plan of a port authority shall be prepared in a form that clearly sets out information about each of the activities of the port authority and its wholly-owned subsidiaries, with the information about port activities referred to in paragraph 28(2)(a) set out separately from the information about other activities referred to in paragraph 28(2)(b).

Special Examinations

Marginal note:Special examinations

• 41 (1) A port authority shall have a special examination carried out to determine whether the books, records, systems and practices referred to in subsection 38(1) were, in the period under examination, maintained in a manner that provided reasonable assurance that they met the requirements of subsection 38(2).

• Marginal note:Time for examination

  (2) A special examination shall be carried out at least once every five years and at any additional times that the Minister may require.

• Marginal note:Plan

  (3) Before beginning a special examination, the examiner shall survey the systems and practices of the port authority and submit a plan for the examination, including a statement of the criteria to be applied, to the audit committee of the port authority, or if there is no audit committee, to the board of directors, and, in the case where the Minister has required the special examination to be carried out, to the Minister.

• Marginal note:Disagreements

  (4) Where the examiner and the audit committee or board of directors disagree about the plan, the Minister may make a final determination with respect to it.

• Marginal note:Reliance on internal audit

  (5) The examiner shall, to the extent the examiner considers it feasible, rely on an internal audit carried out by the port authority.

Marginal note:Report

• 42 (1) The examiner shall, on completion of the special examination, submit a report and a summary report of the findings to the Minister and to the board of directors.

• Marginal note:Contents

  (2) The examiner’s report shall include

  • (a) a statement as to whether in the examiner’s opinion, with respect to the criteria established under subsection 41(3), there is reasonable assurance that there are no significant deficiencies in the systems and practices examined; and

  • (b) a statement of the extent to which the examiner relied on internal audits.

• Marginal note:Notice of report

  (3) A port authority shall, as soon as is practicable after it receives the summary report, have notice of the summary report published in a major newspaper published or distributed in the place where the port is situated.

• Marginal note:Report available to public

  (4) A port authority shall make the summary report available for inspection by the public at its registered office during normal business hours.

Marginal note:Examiner — auditor

• 43 (1) Subject to subsection (2), a special examination shall be carried out by the auditor of a port authority.

• Marginal note:Examiner — other qualified auditor

  (2) Where, in the opinion of the Minister, a person other than the auditor of a port authority should carry out a special examination, the Minister may, after consulting with the board of directors appoint another auditor to do it and may, after again consulting with the board, remove that auditor at any time.

Property

Marginal note:Federal Real Property and Federal Immovables Act

• 44 (1) For the purposes of the Federal Real Property and Federal Immovables Act, the Minister has the administration of the federal real property and federal immovables of a port in respect of which letters patent have been issued to the port authority, other than property the administration of which is under any other member of the Queen’s Privy Council for Canada.

• Marginal note:Management

  (2) The Minister may, by letters patent or supplementary letters patent, give to a port authority the management of any federal real property or federal immovable that is administered by

  • (a) the Minister under subsection (1); or

  • (b) any other member of the Queen’s Privy Council for Canada, if the Minister has the consent of that other member.

• Marginal note:Non-application

  (3) If the Minister gives the management of any federal real property or federal immovable to a port authority, the Federal Real Property and Federal Immovables Act does not apply to that property, other than sections 3, 5, 12 to 14 and 16 to the extent that those sections are not inconsistent with this Act.

• Marginal note:Surplus Crown Assets Act

  (4) The Surplus Crown Assets Act does not apply to a port authority.

• Marginal note:Notice to Minister

  (5) If a port authority is of the opinion that any real property or immovable is no longer required for port purposes, it shall so inform the Minister.

• Marginal note:Holding of real property and immovables

  (6) A port authority may manage, occupy or hold only the real property and immovables set out in its letters patent.

Marginal note:Powers and obligations when management given

• 45 (1) When the Minister has given the management of any federal real property or federal immovable to a port authority, the port authority

  • (a) need not pay compensation for the use of that property;

  • (b) may retain and use the revenue received in respect of that property for the purpose of operating the port;

  • (c) shall undertake and defend any legal proceedings, subject to any instructions that may be provided by the Attorney General of Canada, with respect to that property; and

  • (d) shall discharge all obligations and liabilities with respect to that property.

• Marginal note:Legal proceedings

  (2) A civil, criminal or administrative action or proceeding shall be taken by or against a port authority and not by or against the Crown with respect to

  • (a) any personal property or movable owned by that port authority;

  • (b) any federal real property or federal immovable that it manages;

  • (c) any real property or immovable that it holds; and

  • (d) any act or omission relating to any property referred to in paragraphs (a) to (c).

• Marginal note:Leases and licences

  (3) A port authority may, for the purpose of operating the port, lease or license any federal real property or federal immovable that it manages, subject to the limits in the port authority’s letters patent on its authority to contract as agent for Her Majesty in right of Canada. The term of the lease or licence may not be more than the maximum term that the letters patent set out for such a lease or licence.

• Marginal note:Powers

  (3.1) The port authority may exercise the powers under subsection (3) to the same extent as Her Majesty could exercise those powers and may, instead of Her Majesty, execute and deliver the documents required for that purpose.

• Marginal note:Temporary use

  (3.2) A port authority may lease or license any federal real property or federal immovable it manages for temporary use under paragraph 28(2)(a).

• Marginal note:Application of provincial law

  (4) A lease or licence of any federal real property or federal immovable may be effected by any instrument by which, under the laws in force in the province in which that property is situated, real property or immovables may be leased or a licence may be granted by a private person.

Marginal note:Acquisition of real property and immovables

• 45.1 (1) Her Majesty in right of Canada may acquire any real property or immovable for the purpose of operating a port at the request of the port authority and the port authority may pay the price of the property in question.

• Marginal note:Removal of management

  (2) If the management of the real property or immovable acquired under subsection (1) is removed from the port authority, Her Majesty does not become liable to the port authority for any portion of the price paid by it.

Marginal note:Disposition of federal real property and federal immovables

• 46 (1) Subject to subsection 45(3), a port authority may not dispose of any federal real property or federal immovable that it manages but it may

  • (a) without the issuance of supplementary letters patent, grant a road allowance, an easement, a real servitude, a right of way or a licence for utilities, services or access; and

  • (b) to the extent authorized in the letters patent,

    • (i) exchange that property for other real property or immovables of comparable value, if supplementary letters patent that describe the other property as federal real property or federal immovables have been issued, and

    • (ii) dispose of fixtures on federal real property and federal immovables.

• Marginal note:Powers

  (1.1) The port authority may exercise the powers under paragraph (1)(a) or (b) to the same extent as Her Majesty could exercise those powers and may, instead of Her Majesty, execute and deliver the documents required for that purpose.

• Marginal note:Other real property and immovables

  (2) A port authority may dispose of any real property or immovable that it holds, other than federal real property or federal immovables, if supplementary letters patent have been issued, and, without the issuance of supplementary letters patent, it may grant a road allowance, an easement, a real servitude, a right of way or a licence for utilities, services or access.

• Marginal note:Acquisition, lease or license of real property and immovables

  (2.1) The port authority may acquire, lease as lessee or license as licensee real property or immovables other than federal real property or federal immovables, if supplementary letters patent have been issued.

• Marginal note:Acquisition of federal real property or federal immovables

  (2.11) A port authority may acquire federal real property or federal immovables, if supplementary letters patent have been issued. For greater certainty, the federal real property or federal immovables become, on acquisition, real property or immovables other than federal real property or federal immovables.

• Marginal note:Lease or licence — other real property and immovables

  (2.12) A port authority may, for the purpose of operating the port, lease or license any real property or immovable that it holds, other than federal real property or federal immovables, subject to the limits in the port authority’s letters patent. The term of the lease or licence may not be more than the maximum term that the letters patent set out for such a lease or licence.

• Marginal note:Temporary use

  (2.2) A port authority may lease or license any real property or immovable it holds, other than federal real property or federal immovables, for temporary use under paragraph 28(2)(b).

• Marginal note:Application of provincial law

  (3) A grant may be effected by any instrument by which an interest in real property or a right in an immovable may be granted by a private person under the laws in force in the province in which the federal real property or federal immovable is situated.