Canada Elections Act (S.C. 2000, c. 9)

Marginal note:Relieved of obligations

478.69 A leadership contestant who withdraws in accordance with section 478.67 or whose acceptance is withdrawn in accordance with section 478.68 is relieved of the obligation to provide returns under section 478.81 for any period after the withdrawal.

Marginal note:Notification of registered party

478.7 The Chief Electoral Officer shall, on becoming aware that a leadership contestant of a registered party has failed to comply with any requirement under this Division, notify the party accordingly.

SUBDIVISION BFinancial Administration of Leadership Contestants

Powers, Duties and Functions of Financial Agent

Marginal note:Duty of financial agent

478.71 A leadership contestant’s financial agent is responsible for administering the contestant’s financial transactions for their leadership campaign and for reporting on those transactions in accordance with this Act.

Marginal note:Bank account

• 478.72 (1) A leadership contestant’s financial agent shall open, for the sole purpose of the contestant’s leadership campaign, a separate bank account in a Canadian financial institution as defined in section 2 of the Bank Act, or in an authorized foreign bank as defined in that section that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act.

• Marginal note:Account holder name

  (2) The account shall name the account holder as follows: “(name of financial agent), financial agent”.

• Marginal note:Deposits into account

  (3) All of a leadership contestant’s financial transactions in relation to the contestant’s leadership campaign that involve the receipt of money are to be deposited to the account unless the transaction involves the receipt of the contestant’s own funds and those funds are used to pay a litigation expense or a personal expense.

• Marginal note:Payments from account

  (3.1) All of a leadership contestant’s financial transactions in relation to the contestant’s leadership campaign that involve the payment of money are to be paid from the account unless the transaction involves the payment out of the contestant’s own funds of a litigation expense or a personal expense.

• Marginal note:Closure of bank account

  (4) After the end of the leadership contest or the withdrawal or death of the leadership contestant, the contestant’s financial agent shall close the account once all unpaid claims and surplus leadership campaign funds have been dealt with in accordance with this Act.

• Marginal note:Final statement of bank account

  (5) The financial agent shall, on closing the account, provide the Chief Electoral Officer with the final statement of the account.

Marginal note:Prohibition — accepting contributions, borrowing

• 478.73 (1) No person or entity, other than a leadership campaign agent of a leadership contestant, shall accept contributions to the contestant’s leadership campaign or borrow money on the contestant’s behalf under section 373.

• Marginal note:Prohibition — accepting goods, services or funds or transferring funds

  (2) No person or entity, other than a leadership campaign agent of a leadership contestant, shall, on the contestant’s behalf,

  • (a) accept a provision of goods or services, or a transfer of funds, if the provision or transfer is permitted under section 364 or 365; or

  • (b) transfer funds, if the transfer is permitted under section 364.

• Marginal note:Prohibition — accepting certain transfers of funds

  (3) No leadership campaign agent of a leadership contestant shall, on the contestant’s behalf, accept a transfer of funds from a registered party or registered association, except the transfer by a registered party of an amount out of a directed contribution as defined in subsection 365(2).

• Marginal note:Prohibition — paying leadership campaign expenses

  (4) No person or entity, other than a leadership campaign agent of a leadership contestant, shall pay the contestant’s leadership campaign expenses except for

  • (a) a litigation expense;

  • (b) travel and living expenses;

  • (c) a personal expense; or

  • (d) a petty expense referred to in section 381.

• Marginal note:Prohibition — incurring leadership campaign expenses

  (5) No person or entity, other than the leadership contestant or one of their leadership campaign agents, shall incur the contestant’s leadership campaign expenses.

• Marginal note:Prohibition — paying contestant’s personal expenses, etc.

  (6) No person or entity, other than the leadership contestant or their financial agent, shall pay the contestant’s expenses referred to in any of paragraphs 4(a) to (c).

Recovery of Claims for Debts

Marginal note:Claim for payment

478.74 A person who has a claim to be paid for a leadership campaign expense shall send the invoice or other document evidencing the claim to the leadership contestant’s financial agent or, if there is no financial agent, to the leadership contestant.

Marginal note:Payment within three years

• 478.75 (1) If a claim for a leadership campaign expense is evidenced by an invoice or other document that has been sent under section 478.74, or if a claim for repayment of a loan is made to the leadership contestant under section 373, the claim shall be paid within three years after the day on which the leadership contest ends.

• Marginal note:Prohibition — payment without authorization

  (2) No leadership contestant and no financial agent of a leadership contestant shall pay a claim referred to in subsection (1) after the expiry of the three-year period referred to in that subsection unless authorized to do so under section 478.77 or 478.78, or ordered to do so as a result of proceedings commenced under section 478.79.

Marginal note:Unenforceable contracts

478.76 A contract in relation to a leadership campaign is not enforceable against the leadership contestant unless it was entered into by the contestant personally or by one of the contestant’s leadership campaign agents.

Marginal note:Irregular claims or payments — Chief Electoral Officer

• 478.77 (1) On the written application of a person who has a claim to be paid for a leadership campaign expense in relation to a leadership contestant or to be paid for a loan made to the contestant under section 373, or on the written application of the contestant’s financial agent or the contestant, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the contestant’s financial agent to pay the amount claimed if the payment of the expense or the repayment of the loan was not made within the three-year period referred to in subsection 478.75(1).

• Marginal note:Conditions

  (2) The Chief Electoral Officer may impose any term or condition that he or she considers appropriate on a payment authorized under subsection (1).

Marginal note:Irregular claims or payments — judge

478.78 On the application of a person who has a claim to be paid for a leadership campaign expense in relation to a leadership contestant or to be paid for a loan made to the contestant under section 373, or on the application of the contestant’s financial agent or the contestant, a judge may, on being satisfied that there are reasonable grounds for so doing, by order authorize the contestant’s financial agent to pay the amount claimed if

• (a) the applicant establishes that an authorization under subsection 478.77(1) has been refused and that the payment has not been made within the three-year period referred to in subsection 478.75(1); or

• (b) the amount claimed has not been paid in accordance with an authorization obtained under subsection 478.77(1) and the applicant establishes their inability to comply with the authorization for reasons beyond their control.

The applicant shall notify the Chief Electoral Officer that the application has been made.

Marginal note:Proceedings to recover payment

478.79 A person who has sent an invoice or other document evidencing a claim under section 478.74, or has a claim for repayment of a loan made to a leadership contestant under section 373, may commence proceedings in a court of competent jurisdiction to recover any unpaid amount

• (a) at any time, if the leadership contestant or their financial agent refuses to pay that amount or disputes that it is payable; and

• (b) after the end of the three-year period referred to in subsection 478.75(1) or any extension of that period authorized under subsection 478.77(1) or section 478.78, in any other case.

The leadership contestant shall notify the Chief Electoral Officer that the proceedings have been commenced.

Leadership Campaign Return

Marginal note:Leadership campaign return

• 478.8 (1) A leadership contestant’s financial agent shall provide the Chief Electoral Officer with the following in respect of a leadership contest:

  • (a) a leadership campaign return, in the prescribed form, on the financing and leadership campaign expenses for the leadership campaign;

  • (b) the auditor’s report on the return, if one is required under subsection 478.83(1);

  • (c) a declaration in the prescribed form by the financial agent that the return is complete and accurate; and

  • (d) a declaration in the prescribed form by the leadership contestant that the return is complete and accurate.

• Marginal note:Contents of return

  (2) The leadership campaign return shall set out

  • (a) a statement of leadership contest expenses;

  • (a.1) a statement of litigation expenses that includes an indication of which of those expenses were paid other than from the bank account referred to in subsection 478.72(1) and the source of the funds used to pay them;

  • (a.2) a statement of travel and living expenses;

  • (a.3) a statement of personal expenses that includes an indication of which of those expenses were paid other than from the bank account referred to in subsection 478.72(1) and the source of the funds used to pay them;

  • (a.4) a statement of leadership campaign expenses, other than the expenses referred to in paragraphs (a) to (a.3);

  • (b) a statement of claims that are the subject of proceedings under section 478.79;

  • (c) a statement of unpaid claims, including those resulting from loans made to the leadership contestant under section 373;

  • (d) a statement of the terms and conditions of each loan made to the leadership contestant under section 373, including the amount of the loan, the interest rate, the lender’s name and address, the dates and amounts of repayments of principal and payments of interest, the unpaid principal remaining at the end of each calendar year and, if there is a guarantor, the guarantor’s name and address and the amount guaranteed;

  • (e) the total amount of contributions received by the leadership contestant;

  • (f) the number of contributors;

  • (g) the name and address of each contributor who made contributions of a total amount of more than $200 to the leadership contestant, that total amount, as well as the amount of each of those contributions and the date on which the contestant received it;

  • (h) the name and address of each contributor who made a contribution that includes a directed contribution as defined in subsection 365(2) out of which an amount has been transferred by the party to the contestant, the amount of the contribution, the amount of the directed contribution and the amount transferred, as well as the dates of the receipt of the contribution and of the transfer;

  • (i) a statement of the funds transferred by the leadership contestant to a registered party or a registered association;

  • (j) a statement of the commercial value of goods or services provided and of funds transferred to the leadership contestant by a registered party or a registered association; and

  • (k) a statement of contributions received but returned in whole or in part to the contributors or otherwise dealt with in accordance with this Act.

• Marginal note:Supporting documents

  (3) Together with the leadership campaign return, the leadership contestant’s financial agent shall provide the Chief Electoral Officer with documents evidencing expenses set out in the return, including bank statements, deposit slips, cancelled cheques and the contestant’s written statement referred to in subsection 478.85(1).

• Marginal note:Additional supporting documents

  (4) If the Chief Electoral Officer is of the opinion that the documents provided under subsection (3) are not sufficient, he or she may require the financial agent to provide by a specified date any additional documents that are necessary for the financial agent to comply with that subsection.

• Marginal note:Report

  (5) If there is any amendment to the information in a statement referred to in paragraph (2)(d), including with respect to the giving of a guarantee or suretyship in respect of the loan, then the leadership contestant’s financial agent shall without delay provide the Chief Electoral Officer with a report on the amendment in the prescribed form.

• Marginal note:Publication

  (6) The Chief Electoral Officer shall, in the manner that he or she considers appropriate, publish the information in a statement made under paragraph (2)(d) and any report provided under subsection (5) as soon as feasible after receiving the information or report.

• Marginal note:Period for providing documents

  (7) The documents referred to in subsection (1) shall be provided to the Chief Electoral Officer within six months after the end of the leadership contest.

• Marginal note:Declaration of leadership contestant

  (8) A leadership contestant shall, within six months after the end of the leadership contest, send their financial agent the declaration referred to in paragraph (1)(d).

• Marginal note:Death of leadership contestant

  (9) If a leadership contestant dies without having sent the declaration within the period referred to in subsection (8),

  • (a) they are deemed to have sent the declaration in accordance with that subsection;

  • (b) the financial agent is deemed to have provided the declaration to the Chief Electoral Officer in accordance with subsection (1); and

  • (c) the Chief Electoral Officer is deemed to have received the declaration for the purpose of section 478.931.

• Marginal note:Payment of unpaid claims

  (10) If a claim — including one resulting from a loan — is paid in full after the return under paragraph (1)(a) is provided to the Chief Electoral Officer, the leadership contestant’s financial agent shall provide the Chief Electoral Officer with a report in the prescribed form on the payment of the claim within 30 days after the day on which the payment is made, including information indicating the source of the funds used to pay the claim.

• Marginal note:First update

  (11) The leadership contestant’s financial agent shall provide the Chief Electoral Officer with an updated version of the statement of unpaid claims referred to in paragraph (2)(c), as of the day that is 18 months after the end of the leadership contest, within the period that begins 18 months after the end of the leadership contest and ends 19 months after the end of the leadership contest. The updated version shall include the following information concerning the unpaid amount of a claim, including one resulting from a loan:

  • (a) whether any part of the unpaid amount is disputed and, if so, what steps the parties have taken to resolve the dispute;

  • (b) whether the claim is the subject of proceedings under section 478.79;

  • (c) whether the unpaid amount of a loan is the subject of proceedings to secure its payment, or of a dispute as to the amount that was to be paid or the amount that remains unpaid;

  • (d) whether the parties have agreed on a repayment schedule and, if so, whether repayments are being made according to the schedule;

  • (e) whether the unpaid amount has been written off by the creditor as an uncollectable debt in accordance with the creditor’s normal accounting practices; and

  • (f) any other relevant information that could help explain why the amount is unpaid.

• Marginal note:Second update

  (12) The leadership contestant’s financial agent shall provide the Chief Electoral Officer with an updated version of the statement of unpaid claims referred to in paragraph (2)(c), as of the day that is 36 months after the end of the leadership contest, within the period that begins 36 months after the end of the leadership contest and ends 37 months after the end of the leadership contest. The updated version shall include the information referred to in paragraphs (11)(a) to (f).

• Marginal note:Supporting documents

  (13) Together with the updated versions of the statement of unpaid claims referred to in subsections (11) and (12), the leadership contestant’s financial agent shall provide the Chief Electoral Officer with documents evidencing the matters referred to in paragraphs (11)(a) to (f), including, if paragraph (11)(d) applies, a copy of the repayment schedule.

• Marginal note:Additional supporting documents

  (14) If the Chief Electoral Officer is of the opinion that the documents provided under subsection (13) are not sufficient, he or she may require the financial agent to provide by a specified date any additional documents that are necessary for the financial agent to comply with that subsection.

• Marginal note:Irregular claims and payments

  (15) The leadership contestant’s financial agent shall provide the Chief Electoral Officer with a report in the prescribed form on the payment of a claim that was subject to an authorization to pay under section 478.77 or 478.78 or an order to pay resulting from proceedings commenced under section 478.79. The financial agent shall provide the report within 30 days after the day on which the payment is made and shall include in it information indicating the source of the funds used to pay the claim.