Filtered-Insightshttps://www.blg.com/fr/rss/insightsFiltered insightsfr© 2023 Borden Ladner Gervais S.E.N.C.R.L., S.R.L. («BLG»). Tous droits réservés{047D0A73-4BD9-4027-AFD2-D7CBB80352DE}https://www.blg.com/fr/insights/2023/ri/understanding-the-canadian-investment-regulatory-organization-ciro-a-quick-primerEverything you need to know about the Canadian Investment Regulatory Organization (CIRO): a dynamic resourceThe <a rel="noopener noreferrer" href="https://www.ciro.ca/" target="_blank">Canadian Investment Regulatory Organization</a> (CIRO), resulting from the amalgamation of the <a rel="noopener noreferrer" href="https://www.iiroc.ca/" target="_blank">Investment Industry Regulatory Organization of Canada</a> (IIROC) and the <a rel="noopener noreferrer" href="https://mfda.ca/" target="_blank">Mutual Fund Dealers Association of Canada</a> (MFDA), began operating on January 1, 2023. The introduction of the new self-regulatory organization (formerly known as the New Self-Regulatory Organization of Canada or New SRO) has led to significant changes in the oversight of investment dealers and mutual fund dealers across the country, as well as new opportunities. BLG and <a rel="noopener noreferrer" href="https://aumlaw.com/" target="_blank">AUM Law</a> have created this simple and informative tool to make it easier to find, understand and act on several important topics. We will update this website as new information becomes available.Mon, 29 Jan 2024 00:00:00 Z{37B7D81B-4FF9-4040-8E72-6E6DE6C1B331}https://www.blg.com/fr/insights/2023/09/canada-labour-code-changes-2024Adieux plus coûteux : préavis de licenciement en vertu du Code canadien du travail plus généreux à compter de février 2024<p>17 janvier 2024 : Le 26 septembre 2023, nous avons publié un article concernant les amendements au Code canadien du travail qui, entre autres changements, augmenteraient de façon généreuse le préavis de licenciement individuel auquel ont droit des employés travaillant pour des entreprises de compétence fédérale. À titre de rappel, ces amendements entreront en vigueur le 1er février 2024. <br /> <br /> Il faut noter que les modifications prévues aux dispositions portant sur licenciement collectif ne sont pas encore en vigueur, et aucune date n’a encore été publiée pour leur mise en vigueur.</p> <p>Le gouvernement fédéral a récemment annoncé qu’à compter du 1<sup>er</sup> février 2024, des modifications au <em>Code canadien du travail</em> (le « Code ») entreront en vigueur, permettant notamment à certains employés d’entreprise de compétence fédérale<sup>1</sup> d’obtenir des préavis de licenciement beaucoup plus généreux.</p> <h2>Droits à des préavis de licenciement plus longs</h2> <p>Les employeurs seront tenus de donner aux employés un préavis de licenciement graduel fondé sur leur durée d’emploi continu. De ce fait, le Code se collera davantage aux mécanismes que nous voyons dans les lois provinciales en matière de normes du travail.</p> <p>Actuellement, chaque employé, dès qu’il a au moins trois mois de service, n’a droit qu’à un <em>préavis de deux semaines</em>, peu importe son ancienneté<sup>2</sup>. Cependant, cette manière de calculer le préavis va bientôt changer.</p> <p>À compter du 1<sup>er</sup> février 2024, pour les employés ayant terminé <em>trois ans</em> d’emploi continu ou moins, ce droit à un préavis de deux semaines demeurera inchangé.</p> <p>Toutefois, une fois que les employés auront terminé <em>trois années d’emploi continu</em>, les délais de préavis <em>augmenteront</em>. Nous soulignons les changements dans le tableau ci-dessous :</p> <table> <tbody> <tr> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong><em>Emploi continu terminé</em></strong></p> </td> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong><em>Avis de licenciement</em></strong></p> </td> </tr> <tr> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong><em>3 mois</em></strong></p> </td> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><em>2 semaines</em></p> <p><em>(inchangé)</em></p> </td> </tr> <tr> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong>3 ans</strong></p> </td> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p>3 semaines</p> </td> </tr> <tr> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong>4 ans</strong></p> </td> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p>4 semaines</p> </td> </tr> <tr> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong>5 ans</strong></p> </td> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p>5 semaines</p> </td> </tr> <tr> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong>6 ans</strong></p> </td> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p>6 semaines</p> </td> </tr> <tr> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong>7 ans</strong></p> </td> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p>7 semaines</p> </td> </tr> <tr> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p><strong>8 ans et plus</strong></p> </td> <td style="border:1px solid #000000;padding: 5px; margin: 5px;"> <p>8 semaines</p> </td> </tr> </tbody> </table> <h2>Portée des modifications</h2> <p>Ces modifications au Code ne touchent la période de préavis que dans les situations de <em>licenciement individuel</em>. Les préavis en situation de licenciement collectif (c’est-à-dire lorsque 50 salariés ou plus dans un même établissement sont licenciés dans un délai de quatre semaines) restent inchangés.</p> <p>Les modifications précisent également que ces règles concernant l’avis de licenciement individuel ne s’appliquent pas en cas de congédiement justifié.</p> <p>De plus, les employeurs doivent garder à l’esprit que ces droits représentent le minimum prévu par la loi et qu’il faut tenir compte des autres droits applicables à un employé. Par exemple, les employés syndiqués ou non syndiqués peuvent bénéficier d’arrangements plus généreux, conformément à leur convention collective, à leur contrat de travail ou, le cas échéant, à un préavis raisonnable en vertu de la common law ou du droit civil.</p> <h2>Nouvelle exigence : relevé des prestations</h2> <p>Les employeurs seront également tenus de fournir un relevé de prestations aux employés dont l’emploi est supprimé. Ce relevé doit décrire :</p> <ul> <li>les indemnités de congé annuel;</li> <li>le salaire;</li> <li>l’indemnité de départ;</li> <li>toutes autres prestations auxquelles leur donne droit leur emploi.</li> </ul> <p>Nous notons que ce droit existe déjà pour les employés visés par un licenciement collectif. Ainsi, dorénavant, tous les employés visés par un licenciement profiteront du même droit.</p> <h2>Points à retenir pour les employeurs</h2> <p>Les employeurs devraient prendre bonne note de ces changements et tenir compte de leur incidence sur tout licenciement à venir. Il leur est également conseillé de mettre à jour leur documentation en matière d’emploi, comme les contrats de travail et les conventions collectives, ainsi que toute politique relative aux licenciements. Ceci étant dit, même si rien n’est fait, les nouveaux droits s’appliqueront à compter du 1<sup>er</sup> février 2024.</p> <p>Les employeurs voudront également considérer l’interaction entre ces nouveaux droit et le préavis raisonnable en vertu du Code civil du Québec et de la common law. Dans certains cas, le préavis statutaire pourra être inclus dans cette notion de préavis raisonnable, mais pas toujours.</p> <p>Les employeurs qui craignent d’être tenus de verser des indemnités de départ plus élevées peuvent envisager d’atténuer ces coûts en donnant plutôt des préavis travaillés aux employés. En effet, par définition, le préavis de licenciement n’est pas travaillé, à moins que l’employeur ne puisse pas ou ne souhaite pas offrir de telles conditions (intégralement ou non).</p> <p>Néanmoins, que le préavis soit travaillé, payé, ou une combinaison des deux, les employeurs voudront certainement planifier leurs licenciements de façon plus réfléchie que jamais à compter de février 2024, notamment, au niveau budgétaire.</p> <p>Comme toujours, notre <a href="/fr/services/practice-areas/labour-and-employment">groupe Travail et emploi</a> se fera un plaisir de vous aider pour tout problème ou question que vous pourriez avoir, y compris la révision de documents d’emploi existants et de relevés de prestations.</p> <hr /> <p><span style="font-size: 13px;"><sup>1</sup> Les milieux de travail visés par la partie I (Relations du travail) du<em> </em>Code, par exemple, les secteurs des banques, des télécommunications, de la radiodiffusion et du transport aérien, ferroviaire et maritime.</span></p> <p><span style="font-size: 13px;"><sup>2</sup> À part les indemnités de départ, le cas échéant.</span></p>Wed, 17 Jan 2024 00:00:00 Z{1BEF0E81-3BEA-437F-8212-0223E0E6084E}https://www.blg.com/fr/insights/2023/12/a-victory-for-meaningful-access-to-minority-language-education-across-canadaUne victoire majeure pour un accès significatif à l’éducation dans la langue officielle minoritaire au Canada<p>Le 8 décembre 2023, dans l’affaire <em>Commission scolaire francophone des Territoires du Nord-Ouest </em>c<em>. Territoires du Nord-Ouest (Éducation, Culture et Emploi)</em>, <a rel="noopener noreferrer" href="https://scc-csc.lexum.com/scc-csc/scc-csc/fr/item/20177/index.do" target="_blank">2023 CSC 31</a>, la Cour suprême du Canada (CSC) a confirmé à l’unanimité le rôle important des droits à l’instruction dans la langue officielle minoritaire en vertu de l’article 23 de la <a rel="noopener noreferrer" href="https://www.canlii.org/fr/ca/legis/lois/annexe-b-de-la-loi-de-1982-sur-le-canada-r-u-1982-c-11/derniere/annexe-b-de-la-loi-de-1982-sur-le-canada-r-u-1982-c-11.html" target="_blank">Charte canadienne des droits et libertés</a> (la Charte) pour tous les parents et gardiens d’enfants au Canada. Avec cette décision, la plus haute cour du Canada a envoyé un message fort aux tribunaux et aux décideurs administratifs pour s’assurer qu’ils prennent en compte le rôle essentiel que joue l’éducation dans la préservation de la langue officielle minoritaire quand ils prennent des décisions discrétionnaires liées aux protections constitutionnelles.</p> <h2>Les parents ayants droit contre les parents non‑ayants droit</h2> <p>Cette affaire concerne les Territoires du Nord-Ouest, où le français est une langue minoritaire, et porte sur les droits constitutionnels des parents « non‑ayants droit<em></em>» qui souhaitent envoyer leurs enfants dans une école francophone.</p> <p>En vertu de l’article 23 de la Charte, les citoyens canadiens qui ont appris et comprennent encore la langue officielle minoritaire de leur province, ou qui ont reçu un enseignement primaire ou secondaire dans la langue officielle minoritaire de leur province, ont le droit de faire en sorte que leurs enfants reçoivent un enseignement primaire et secondaire dans cette langue officielle minoritaire. Il s’agit de personnes dites titulaires de droits. Cependant, les parents ou les tuteurs légaux peuvent également être « non titulaires de droits » lorsqu’ils ne satisfont pas aux exigences spécifiques de l’article 23 pour diverses raisons, par exemple lorsqu’ils n’ont pas la citoyenneté canadienne ou lorsqu’ils ne parlent pas l’autre langue officielle en tant que deuxième langue.</p> <p>Dans cette affaire, plusieurs parents « non titulaires de droits » ayant des liens avec la communauté francophone ont cherché à faire admettre leurs enfants dans une école francophone. Leur admissibilité dépendait d’une directive ministérielle qui énonçait trois circonstances dans lesquelles les enfants de parents non-ayants droit pouvaient être admis : </p> <ol> <li>le parent ou le grand-parent de l’enfant aurait été titulaire de droits n’eût été du manque de possibilités de fréquenter une école francophone; </li> <li>le parent répondrait aux critères de l’article 23 s’il était citoyen canadien; et </li> <li>le parent est un nouvel immigrant dont l’enfant ne parle ni anglais ni français et qui s’inscrit pour la première fois dans une école canadienne.</li> </ol> <p>Les parents ne répondaient pas aux critères de la directive et ont demandé à la ministre d’exercer son pouvoir discrétionnaire résiduel, en dehors de la directive, pour admettre les enfants dans les écoles de français langue première. La ministre a refusé de le faire. Les parents, avec le soutien de la Commission scolaire francophone des Territoires du Nord-Ouest (CSFTNO), ont saisi la Cour d’appel d’une demande de contrôle judiciaire. La Cour d’appel a annulé la décision initiale, mais la majorité a néanmoins estimé qu’il n’y avait pas d’obligation légale ou constitutionnelle d’admettre l’enfant d’un parent non titulaire de droits (<a rel="noopener noreferrer" href="https://www.canlii.org/fr/nt/ntca/doc/2021/2021tnoca8/2021tnoca8.html" target="_blank">2021 NWTCA 8</a>). L’affaire a fait l’objet d’un recours devant la Cour suprême. </p> <h2>La question</h2> <p>La CSC a dû à son tour déterminer si les parents non titulaires de droits qui avaient néanmoins des liens avec la communauté francophone pouvaient faire admettre leurs enfants dans une école francophone.</p> <h2>Les Conseils scolaires de la minorité linguistique officielle sont essentiels aux communautés linguistiques minoritaires</h2> <p>La CSC a confirmé que les milieux scolaires sont des lieux de socialisation où les élèves peuvent développer leur potentiel dans leur propre langue et se familiariser avec leur culture. Ainsi, ils sont essentiels à la protection des droits linguistiques de la minorité. Au lieu d’adopter une interprétation étroite de l’article 23, la CSC a confirmé le droit à l’enseignement dans la langue officielle minoritaire aux enfants de parents non titulaires de droits, dans la mesure où ils font preuve d’un engagement véritable envers les communautés francophones. Ce faisant, elle a établi que le maintien des conseils scolaires de la minorité officielle linguistique favorise la vitalité des communautés linguistiques minoritaires dans lesquelles ils sont situés.</p> <p>À ce titre, la CSC a conclu que la ministre avait exagéré à la fois son obligation de prendre des décisions cohérentes et le coût des services envisagés, ce qui rendait la décision de la ministre déraisonnable.</p> <h2>Mises en garde et pistes à suivre</h2> <p>Cette décision est loin de permettre l’accès à l’enseignement dans la langue de la minorité officielle pour tous les enfants du pays. Avec cette décision, toutefois, la CSC insiste sur le fait que les demandes d’admission de personnes autrement inadmissibles doivent toujours être évaluées avec soin, analysées individuellement et comprises dans le contexte de la communauté linguistique minoritaire en question. Ce n’est qu’à cette condition que les droits linguistiques de la minorité et les communautés linguistiques minoritaires peuvent être véritablement protégés par la Charte.</p> <p>Cette décision a également réaffirmé l’actualité du cadre d’analyse de <a rel="noopener noreferrer" href="https://scc-csc.lexum.com/scc-csc/scc-csc/fr/item/7998/index.do" target="_blank"><em>Doré </em>c.<em> Barreau du Québec</em></a>, 2012 CSC 12 dans le droit administratif canadien, en clarifiant pour les décideurs qu’ils doivent considérer la pertinence des protections et des valeurs de la Charte – et accorder le poids nécessaire à ces considérations – même lorsque les demandeurs n’ont pas les connaissances nécessaires pour soulever ces questions de leur propre chef. La décision d’un décideur administratif sera déraisonnable et annulée s’il ne prend pas les mesures qui lui sont raisonnablement accessibles pour limiter la restriction des protections de la Charte.</p> <p>Pour plus d’information, n’hésitez pas à communiquer avec l’une des personnes-ressources dont le nom figure ci-dessous. Depuis des décennies, BLG sert les intérêts et les besoins des conseils scolaires francophones de tout l’Ontario. Les avocats de notre groupe de pratique national sur les conseils scolaires offrent une gamme complète de services aux conseils scolaires francophones, notamment en matière de travail et d’emploi, de droit de l’éducation, de gouvernance, de litige, de droit constitutionnel et de services immobiliers. Si vous avez des questions concernant cet article, les droits des francophones ou les autres services que nous offrons aux conseils scolaires, veuillez communiquer avec <a href="/fr/people/a/alexandrowicz-johnpaul">John-Paul Alexandrowicz</a>, le coprésident du groupe de pratique national des conseils scolaires, ou <a href="/fr/people/a/agyemang-kate">Kate Agyemang</a>, qui pratiquent le droit en français pour les conseils scolaires francophones et les associations de conseils scolaires. </p> <hr /> <p>Pour obtenir de plus amples renseignements sur <em>Commission scolaire francophone des Territoires du Nord-Ouest v. Northwest Territories (Education, Culture and Employment)</em>, 2023 SCC 31, <a href="/fr/insights/2023/12/dore-and-french-language-education-rights-affirmed-by-the-scc">vous pouvez consulter notre précédent article</a>.</p>Fri, 22 Dec 2023 00:00:00 Z{9CC45EFA-7CFB-475B-8EE3-8A4D5F53DCD9}https://www.blg.com/fr/insights/2023/12/board-diversity-executive-compensation-key-iss-policy-updates-for-2024Diversité au sein des conseils d’administration, rémunération des membres de la haute direction et autres mises à jour d’ISS pour 2024<p>Institutional Shareholder Services (« ISS ») a publié une mise à jour de ses <a rel="noopener noreferrer" href="https://www.issgovernance.com/file/policy/latest/updates/Executive-Summary-of-ISS-Policy-Updates-and-Process.pdf" target="_blank">lignes directrices sur sa politique de vote par procuration pour la saison 2024</a> (les « lignes directrices »), qui introduisent plusieurs nouvelles exigences en matière de communication d’information sur la diversité au sein des conseils d’administration et la rémunération de la haute direction. Les lignes directrices révisées s’appliquent aux assemblées d’actionnaires à compter du 1<sup>er</sup> février 2024.</p> <h2>Points à retenir</h2> <p>Les administrateurs de sociétés ouvertes canadiennes doivent prendre note des lignes directrices suivantes pour la période de sollicitations de procurations 2024 :</p> <ul> <li>Les sociétés de l’indice composé S&P/TSX doivent compter au sein de leur conseil d’administration <strong>au moins une personne issue de la diversité raciale ou ethnique</strong>, en plus de satisfaire aux autres exigences touchant le genre.</li> <li>Du côté de la Bourse de Toronto, les <strong>administrateurs qui ne font pas partie de la haute direction</strong> de sociétés émettrices cotées ne seront plus visés par les mêmes <strong>seuils d’octrois d’options; </strong>ces sociétés devront en outre respecter d’autres exigences quant à l’analyse des propositions de régimes de rémunération.</li> <li>Les lignes directrices sur les <strong>régimes de rémunération à base d’actions pour les sociétés de capital de risque</strong> ont aussi été modifiées afin d’indiquer à ces dernières ce qu’elles doivent faire lorsqu’elles adoptent un régime de participation sans solliciter l’approbation des actionnaires.</li> </ul> <h2>La communication d’information sur la diversité au sein des conseils et la rémunération de la haute direction toujours au sommet des priorités d’ISS pour 2024</h2> <h3>Communication d’information sur la diversité au sein des conseils</h3> <p><strong> </strong></p> <p>Comme annoncé précédemment – et comme nous l’avons abordé dans un <a href="https://www.blg.com/fr/insights/2022/12/iss-to-consider-racial-and-ethnic-diversity-in-making-voting-recommendations">précédent article</a>, ISS attend des sociétés de l’indice composé S&P/TSX, à partir de leur première assemblée suivant le 1<sup>er</sup> février 2024, que leur conseil d’administration compte au moins une personne issue de la diversité raciale ou ethnique, en plus de satisfaire à ses exigences touchant le genre. Lorsqu’un émetteur ne satisfait pas aux attentes d’ISS, l’organisme recommande en règle générale que l’on vote contre le ou la président·e du comité de candidatures (ou d’un comité à vocation similaire) ou que l’on s’abstienne de voter, à moins que le conseil ait compté une personne de la diversité raciale ou ethnique au cours de l’année précédente ou qu’il se soit publiquement engagé à nommer au moins une telle personne avant sa prochaine assemblée générale annuelle ou lors de celle-ci. Si l’émetteur ne s’est toujours pas conformé aux exigences de diversité d’ISS après deux ans ou plus, l’organisme déterminera s’il convient de recommander un vote négatif contre d’autres membres du conseil. Dans le cadre de cette nouvelle politique, ISS englobe dans sa définition de la diversité raciale ou ethnique les Autochtones (Premières Nations, Inuits et Métis) et les membres de minorités visibles (soit des personnes qui ne sont pas de race blanche ou qui n’ont pas la peau blanche).</p> <p>Les nouvelles lignes directrices font en sorte que la politique d’ISS sur la diversité raciale et ethnique s’appliquant aux sociétés de l’indice composé S&P/TSX concorde mieux avec celle s’appliquant aux sociétés américaines des indices Russell 3000 et S&P 1500. </p> <h3>Pratiques de rémunération de la haute direction</h3> <p>Dans ses nouvelles lignes directrices, ISS apporte également les changements suivants à ses politiques liées à la rémunération de la haute direction :</p> <ul> <li><strong>Sociétés cotées à la Bourse de Toronto – octrois individuels : </strong>ISS modifie ses exigences relatives aux seuils d’octrois d’options pour les administrateurs qui ne font pas partie de la haute direction afin de mieux refléter les pratiques du marché. Les lignes directrices de 2024 indiquent que les octrois individuels pour ces personnes ne devraient pas dépasser 150 000 $ tous régimes de rémunération à base d’actions confondus, dont 100 000 $ au maximum peuvent comprendre des options sur actions.</li> <li><strong>Sociétés cotées à la Bourse de Toronto – régimes de rémunération à base d’actions (administrateurs qui ne font pas partie de la société) : </strong>ces exigences sont similaires à celles susmentionnées. ISS ajuste les limites à garder en tête lors de l’analyse d’un régime de rémunération à base d’actions afin de mieux refléter les pratiques du marché.</li> <li><strong>Sociétés de capital de risque – régimes de rémunération à base d’actions : </strong>dans sa nouvelle politique, ISS explique ce que ces sociétés doivent faire lorsqu’elles approuvent un tel régime sans demander l’approbation des actionnaires; les sociétés cotées à la Bourse des valeurs canadiennes doivent obtenir l’approbation des actionnaires dans les trois années suivant la création d’un régime de rémunération à base d’actions à plafond variable (et tous les trois ans par la suite).</li> </ul> <h2>Prochaines étapes</h2> <p>À l’approche de la période de sollicitation de procurations 2024, nous vous encourageons à <a href="/fr/about-us/offices" target="_self">communiquer avec BLG</a> si vous avez des questions sur les mises à jour d’ISS ou pour en savoir plus sur d’autres initiatives relatives à la gouvernance d’entreprise.</p>Thu, 21 Dec 2023 00:00:00 Z{A33FC6F1-6E63-41EB-A971-83C5B8167E11}https://www.blg.com/fr/insights/2023/12/how-to-prepare-a-modern-slavery-report-in-canada-guidance-now-availablePublication de lignes directrices sur la préparation d’un rapport sur l’esclavage moderne au Canada<p>Des lignes directrices très attendues (les « lignes directrices ») ont été publiées par <a rel="noopener noreferrer" href="https://www.securitepublique.gc.ca/cnt/cntrng-crm/frcd-lbr-cndn-spply-chns/index-fr.aspx" target="_blank">Sécurité publique Canada</a> concernant la<a rel="noopener noreferrer" href="https://laws.justice.gc.ca/fra/lois/f-10.6/TexteComplet.html" target="_blank"><em>Loi sur la lutte contre le travail forcé et le travail des enfants dans les chaînes d’approvisionnement</em></a> (la « Loi »), anciennement appelée le projet de loi S-211, afin de fournir aux entreprises exerçant des activités au Canada des éclaircissements sur leurs obligations en matière de rapport en 2024. </p> <h2>Points à retenir</h2> <ul> <li>Les entités assujetties à des obligations de faire rapport en vertu de la Loi doivent remplir un <strong>questionnaire en ligne </strong>qui comprend une série de questions ouvertes et fermées sur les exigences législatives à respecter (le « questionnaire »). Elles doivent <strong>également </strong>produire un rapport comprenant divers renseignements exigés par la Loi (le « rapport »). </li> <li>Ce rapport ne doit pas dépasser <strong>10 pages</strong>, ou 20 pages<strong> </strong>s’il est présenté en anglais et en français; il doit en outre être soumis au ministère sous forme d’un <strong>fichier PDF </strong>dont la taille ne dépasse pas 100 Mo. À noter qu’il est recommandé de soumettre son rapport dans les deux langues. </li> <li>Les lignes directrices abordent d’importantes questions liées à l’<strong>interprétation de la Loi</strong>, expliquant notamment ce que signifie avoir un <strong>lieu d’activité</strong> ou une présence commerciale au Canada, comment calculer les seuils financiers, et ce qu’on entend par les termes<strong> production, vente, distribution et importation de marchandises</strong>. </li> </ul> <h2>Entités qui doivent remplir un questionnaire</h2> <p>Comme nous l’avons <a href="/fr/insights/2023/ri/bill-s-211-modern-slavery-resource-centre">expliqué dans un article précédent</a>, la Loi impose de nouvelles obligations en matière de rapport aux personnes morales, fiducies, société de personnes et autres organisations non constituées en personne morale considérées comme des « entités » au sens de la Loi et qui s’adonnent à la production, à la vente, à la distribution ou à l’importation de marchandises au Canada. La Loi est claire : les entités visées doivent, à la date limite du 31 mai de chaque année ou avant, soumettre un rapport à Sécurité publique Canada indiquant entre autres les mesures mises en place au cours de l’exercice financier précédent pour prévenir et atténuer le risque de recours au travail forcé ou au travail des enfants à l’une ou l’autre des étapes de la production de leurs marchandises, au Canada ou ailleurs, ou de leur importation au Canada.</p> <p>Il convient de souligner que les lignes directrices fournissent des précisions sur un élément qui n’est pas explicitement exigé par la Loi, c’est-à-dire le questionnaire en ligne visant à recueillir des renseignements sur la conformité législative au moyen d’une série de questions ouvertes et fermées. Mentionnons au passage que le rapport d’une entité peut s’accompagner de suppléments d’information, comme des tableaux ou des graphiques.</p> <p>Le questionnaire se compose d’une série de questions d’identification obligatoires et facultatives au sujet du nom légal de l’entité concernée, de l’exercice financier visé par le rapport et de l’endroit concerné, entre autres. Cet exercice permet aux entités de prouver leur conformité à la Loi et de fournir davantage de renseignements sur certaines questions fermées. Un autre des objectifs est de confirmer que le rapport a reçu les approbations requises et comprend une attestation signée.</p> <h2>Format des rapports</h2> <p>Jusqu’à maintenant, nos seules références pour la production de rapports sur l’esclavage moderne provenaient d’autres pays, par exemple de la législation britannique (<em>Modern Slavery Act 2015</em>) ou australienne (<em>Modern Slavery Act 2018</em>). Il existe toutefois plusieurs nuances entre les exigences de ces lois et celles de la nouvelle Loi canadienne, notamment pour ce qui touche le format et le contenu des rapports. Voici un résumé de ce qu’expliquent les lignes directrices à ce sujet : </p> <ul> <li><strong>Format : </strong>Pour être conforme, un rapport doit satisfaire aux exigences des paragraphes 11(1) et 11(3) de la Loi, avoir reçu les approbations nécessaires, s’accompagner d’une attestation signée, ne pas dépasser 10 pages (ou 20 s’il est rédigé dans les deux langues) et être un fichier PDF de moins de 100 Mo. </li> <li><strong>Langue : </strong>Bien que les rapports puissent être soumis dans l’une ou l’autre des langues officielles du Canada, il est recommandé de les présenter en français et en anglais. Une entité peut se voir demander des copies traduites de son rapport par le ministère. </li> <li><strong>Approbation et attestation :</strong> Les rapports doivent être approuvés et attestés par le corps dirigeant pertinent (par exemple le conseil d’administration de l’entité). L’attestation doit inclure la signature d’un membre du corps dirigeant et un énoncé qui indique que le rapport a été approuvé. Les lignes directrices précisent même la formulation à employer. </li> <li><strong>Rapports conjoints : </strong>Il est permis pour des entités appartenant au même groupe d’entreprises de soumettre un rapport conjoint, mais seulement si les renseignements qui y figurent s’appliquent à toutes les entités visées. Si des entités d’un même groupe d’entreprises ont des profils de risque différents ou n’ont pas pris les mêmes mesures relativement au travail forcé et au travail des enfants, elles ne pourront peut-être pas remplir un seul rapport. </li> <li><strong>Renseignements : </strong>Les lignes directrices se penchent également sur les attentes du ministère quant aux huit exigences du paragraphe 11 de la Loi que les rapports doivent respecter. Le questionnaire contient aussi des exemples de mesures que les entités pourraient avoir prises à cet égard.  </li> <li><strong>Niveau de détail :</strong> Le degré de précision attendu dans les rapports ou les questionnaires n’est actuellement pas défini clairement, mais la limite de pages, par exemple, peut s’avérer un indice pertinent. Les entités doivent considérer ce qu’il est approprié d’inclure dans le rapport en fonction de leur taille et de leur profil de risque. Il est par ailleurs possible d’inclure des liens vers des documents ou des sites Web accessibles au public pour compléter les renseignements fournis. Un langage clair, simple et facilement compréhensible est à privilégier.</li> </ul> <h2>Questions d’interprétation</h2> <p>Même au stade embryonnaire, la Loi soulevait déjà de nombreuses questions d’interprétation auprès des entreprises canadiennes. Les lignes directrices remédient à la situation en clarifiant plusieurs éléments, par exemple : </p> <ul> <li><strong>Qu’entend-on par « exercer des activités au Canada »? </strong>Plusieurs questions de droit fiscal et de droit de l’emploi entrent en jeu lorsque vient le temps pour une entité de déterminer si elle a un lieu d’activité, une présence commerciale ou des actifs au Canada, par exemple le sens ordinaire de ces expressions, de même que l’endroit où les marchandises, les employés, les livraisons, les actifs, les stocks et les comptes bancaires sont situés. Notablement, faire des affaires au Canada n’exige pas d’avoir un établissement au Canada. </li> <li><strong>Comment les entités doivent-elles évaluer les seuils financiers? </strong>Les seuils financiers entourant les actifs, les revenus et les employés d’une entité aux termes de la loi doivent être calculés de manière globale, sur la base des états financiers consolidés, et tenir compte des entités contrôlées (filiales). Une entité n’est toutefois pas tenue de compter parmi ses actifs, ses revenus et ses employés, ceux de sa société mère. </li> <li><strong>Dans quelles circonstances une entité est-elle considérée comme importatrice de marchandises?</strong> On juge qu’une entité se livre à des activités d’importation au Canada si elle est responsable de la comptabilisation de ces marchandises en vertu de la <a rel="noopener noreferrer" href="https://laws-lois.justice.gc.ca/fra/lois/c-52.6/" target="_blank"><em>Loi sur les douanes</em></a> fédérale. L’achat de marchandises auprès d’un tiers qui est considéré comme l’importateur aux fins de la<em> Loi sur les douanes</em> est exclu de cette définition. Les lignes directrices soulignent également qu’il n’y a pas de seuil prescrit pour la valeur minimale des marchandises qu’une entité doit importer pour que la Loi s’applique; les termes utilisés dans la Loi devraient être compris comme excluant les transactions très mineures. </li> <li><strong>Que signifie être une entité qui en contrôle une autre?</strong> Les lignes directrices indiquent que le terme « contrôle » doit être interprété de manière générale, conformément aux fins de la Loi. Ces instructions ne sont pas prescriptives, mais peuvent être utiles pour déterminer si une entité en contrôle une autre selon les normes comptables applicables. Le contrôle doit être considéré comme une question de substance plutôt que de forme. </li> </ul> <h2>Prochaines étapes</h2> <p>Si ce n’est pas déjà fait, les sociétés cotées en bourse au Canada ainsi que les autres entreprises exerçant des activités au pays qui atteignent les seuils financiers énoncés dans la Loi devraient penser à déterminer si elles doivent produire un rapport sur l’esclavage moderne. Les entités tenues de soumettre un rapport devraient déjà commencer à le préparer en vue de l’échéance du 31 mai 2024, en s’assurant de suivre les lignes directrices de Sécurité publique Canada. </p>Thu, 21 Dec 2023 00:00:00 Z{2D522D8C-3014-4897-9504-EBB47282C490}https://www.blg.com/fr/insights/2023/12/new-simplified-continuance-process-for-social-companiesNew, simplified continuance process for social companies<p>On Dec. 4, 2023, the <em>Less Red Tape, More Common Sense Act</em>, 2023 received Royal Assent, bringing an important amendment to the <em>Corporations Act</em> (Ontario) into force.</p> <p>As set out in a previous BLG Insight: <a href="/fr/insights/2021/09/nfp-corporations-act-2010-understanding-share-capital-social-clubs"><em>Not-for-Profit Corporations Act</em>, 2010 (ONCA): Understanding share capital social clubs</a>, social companies governed by the <em>Corporations Act</em> (Ontario) have until Oct.19, 2026 to decide whether to continue under the new <em>Not-for-Profit Corporations Act, </em>2010 (Ontario), the <em>Business Corporations Act</em> (Ontario) or the <em>Co-operative Corporations Act</em> (Ontario) or they will be dissolved.</p> <p>Section 2.1(4) of the <em>Corporations Act</em> (Ontario) previously provided that each class of shareholders needed to approve the continuance, but, as of Dec. 4, 2023, that section is repealed, and the continuance will only need to be approved by shareholders who hold shares that have the right to vote. This should greatly simplify the continuance process for clubs with legacy non-voting shareholders who are largely uninvolved in the club.</p> <p>If you have any questions about the continuance process, please email any of the authors or key contacts listed below, or any other member of our <a href="/fr/services/industries/government-and-public-sector/charities-and-not-for-profits">Charities & Not-For-Profit group</a>.</p>Thu, 21 Dec 2023 00:00:00 Z{24E67A4E-7FFB-4BC7-A446-F4BE0066A65B}https://www.blg.com/fr/insights/2023/12/amendments-to-the-bps-procurement-directive-effective-january-1-2024Amendments to the BPS Procurement Directive effective January 1, 2024<p style="text-align: center;"><strong>A Thumbnail Sketch on what Ontario Public Hospitals “Need to Know”</strong></p> <h2>A. Summary</h2> <p>This thumbnail sketch is directed to those procurement professionals already conversant with the Broader Public Sector (BPS) Procurement Directive as it applies to public hospitals and speaks to specific amendments for consideration at a high level.</p> <p>Generally, as of Jan. 1, 2024, the minimum dollar threshold requiring a competitive procurement has been increased from $100,000 to $121,200, where $100,000 had previously applied.  Overdue amendments to replace references to the “Agreement on Internal Trade” with the “Canadian Free Trade Agreement” and the “Canada-European Union Comprehensive Economic and Trade Agreement” have been made.  The ongoing “Interim Measures” applicable to Ontario public hospitals continue to require the public hospital to apply notification processes to inform the Ministry of Health if a public hospital either: (i) seeks to enter into a procurement for an agreement of more than two years duration; or (ii) where an available vendor of record arrangement is available but is not being applied by the public hospital.  Finally, there are provisions seeking to have public hospitals apply “Buy Ontario” measures where: (A) applicable trade agreement dollar limits have not been reached requiring their application; or (B) other exceptions are available for the procurement under such otherwise applicable trade agreements.</p> <p>A review of the administrative processes under the “Interim Measures” and the “Buy Ontario” provisions is recommended to confirm their appropriate incorporation and application to the public hospital’s current procurement practices.</p> <h2>B. Key amendments</h2> <p>The following items highlight certain fundamental (but not all) amendments:  </p> <h3>1. Effective date</h3> <p>in August 2023, the Ministry of Public and Business Service Delivery issued a revised BPS Procurement Directive (the New Directive) with effect as of January 1, 2024 - it replaces all previous versions of the Directive.</p> <h3>2. Update on list of applicable trade agreements</h3> <p>The Agreement on Internal Trade (AIT) was replaced by the Canadian Free Trade Agreement (CFTA) in 2017. Additionally, Ontario also became subject to the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) in 2017. Accordingly, these agreements are reflected in the New Directive under section 8, together with the previously listed Trade and Cooperation Agreement between Ontario and Quebec (OQTCA).</p> <h3>3. Exemptions, exceptions and non-applications under trade agreements</h3> <p>There may be circumstances where a public hospital may wish to not use either an invitational or an open competitive procurement though may otherwise be required to do so under the BPS Procurement Directive.</p> <p>The New Directive confirms the ability to elect to apply exemptions, exceptions, or non-applications provided for under applicable trade agreements to Ontario public hospitals conducting public procurements.  Reference to the Agreement on Internal Trade (AIT) has been deleted from the New Directive because it is no longer applicable and has been replaced with the term “applicable trade agreements”. </p> <h3>4. Consulting service</h3> <p>For a procurement for Consulting Services valued at zero dollars up to but not including $121,200, an invitational procurement applies to public hospitals. In this process, at least three qualified vendors are invited to submit a written proposal.  Unlike an open competitive process, this enables some, but not all suppliers to compete in a fair and open environment.</p> <h3>5. Non-consulting services, goods and construction</h3> <p>The New Directive also raises the threshold applicable to non-consulting services, goods, and construction. Organizations must now conduct an open competitive procurement process where the estimated value of procurement of goods or services is $121,200 or more.</p> <h3>6. Posting timelines</h3> <p>For the procurement of goods and services valued at $121,200 and up to $366,800, organizations must post the request for proposals for minimum of 15 calendar days.</p> <p>Where the procurement is of high complexity, risk, and/or dollar value, and subject to applicable trade agreements, organizations must consider, but are not required to, provide a minimum response time of 30 days.</p> <h3>7. Non-competitive procurement</h3> <p>In exceptional circumstances, only one supplier may be able or capable of providing the goods or services. In these circumstances, under the New Directive, organizations must justify a non-competitive procurement using one of the limited tendering or non-application provisions in an applicable trade agreement.</p> <h3>8. Interim measures</h3> <p>Vendor of Record (VOR) arrangements are generally established with suppliers, by example by the Ontario Provincial government, to increase procurement efficiency and obtain consistent competitive prices for goods and services. The New Directive maintains that a properly established VOR arrangement can be used as an open competitive method of procurement for individual procurements that do not exceed the ceiling price of the VOR arrangement.</p> <p>The New Directive mandates the use of existing VOR arrangements whenever possible and appropriate regardless of their value. Flexibility is provided, however, for public hospitals that determine not to use a VOR arrangement that is available to it or that do not wish to restrict its contract duration to two years. In these instances, the organization can be granted flexibility so long as the organization provides a procurement rationale report to the Ministry of Health at least 45 days before the procurement is released to the vendor community.  </p> <p>These interim measures apply to new procurements of goods and services (consulting and non-consulting) valued at $121,200. It does not apply where procurement relates to construction work or where procurement relates to goods being acquired for resale.</p> <h3>9. Building Ontario Businesses Initiative (BOBI)</h3> <p>The New Directive is the first of many steps to be taken by the Ontario government to solidify procurement policy changes introduced in 2022 to centralize the provincial procurement landscape. </p> <p>Under the New Directive, public hospitals and other public sector entities set out in section 1(1) of the <em>Broader Public Sector Accountability Act</em>, 2010, such as publicly funded organizations that received public funds of $10 million or more in the previous fiscal year, must whenever possible, give preference to Ontario companies when soliciting goods and services. Entitled the “Building Ontario Business Initiative” (BOBI), the requirement aims to reduce barriers and provide companies in Ontario with greater access to public procurement opportunities.”<sup>1</sup></p> <p>Despite mandating preference to Ontario suppliers, applicable public entities must also comply with CFTA, CETA, and other non-discrimination obligations under trade commitments when conducting procurement which require that suppliers from jurisdictions outside Ontario be treated the same way as Ontario-based suppliers. Generally, restrictions based on the origin of goods and services or on the location of a supplier, contractor or sub-contractor are prohibited.</p> <p>To avoid conflicting with these trade obligations the New Directive sets out that where below thresholds in applicable domestic trade agreements, BPS entities must procure goods and services from Ontario businesses wherever feasible, and likewise with respective thresholds in applicable international trade agreements. For those that are above these monetary thresholds, the New Directive provides a “set of strategies” that applicable entities must use wherever feasible. These include, among others, applying weighted domestic criteria in procurement evaluations (for example, demonstrating how they meet provincial environmental standards).  A discussion of the utility of such strategies in the context of such trade agreements is beyond the scope of this thumbnail sketch.</p> <h2>Next steps</h2> <p>The New Directive will be replacing the existing version as of Jan. 1, 2024, and applicable public hospitals conducting public procurement will be expected to comply. </p> <p>For guidance and counsel, please refer to BLG contacts below.</p> <hr /> <p> <span style="font-size: 10px;"><sup>1</sup> Ontario Government and Consumer Services, “<a rel="noopener noreferrer" href="https://news.ontario.ca/en/release/1001729/province-launches-building-ontario-businesses-initiative" target="_blank">Province Launches Building Ontario Businesses Initiative</a>”, News Release, March 9, 2022. </span></p>Wed, 20 Dec 2023 00:00:00 Z{E9CA6DF7-03B5-4B66-9610-CC059A648B85}https://www.blg.com/fr/insights/2023/12/do-fixed-term-independent-contractors-have-a-duty-to-mitigateDo fixed-term independent contractors have a duty to mitigate?<p>Fixed-term contracts are often complex and can create risk. Companies looking to terminate fixed-term contracts with their independent contractors can breathe a bit easier after an Ontario appeal court found that, generally, independent contractors under fixed-term contracts have a duty to mitigate their damages. This diverges from the approach the same court has applied for employees.</p> <h2>Trial Court – No duty to mitigate, like employees!</h2> <p>In <em><a rel="noopener noreferrer" href="https://www.canlii.org/en/on/onca/doc/2023/2023onca413/2023onca413.html" target="_blank">Monterosso v. Metro Freightliner Hamilton Inc.</a></em><a rel="noopener noreferrer" href="https://www.canlii.org/en/on/onca/doc/2023/2023onca413/2023onca413.html" target="_blank">, 2023 ONCA 413</a>, the Metro Truck Group of Companies (Metro) entered into a 72-month term fixed term contract with Antonio Monterosso o/a Truck Leasing Canada (Monterosso). Metro terminated the contract early, such that there were 65 months of the contract “remaining” after such termination. At trial, the court ruled that an independent contractor who had entered into a fixed-term contract was entitled to fees from the time of notice of termination to the end of the fixed term of the contractor’s fixed term contract. The total of these remaining monthly over the term amounted to $552,500 and that amount was awarded. The court noted, among other things, the contract did not have a termination provision.</p> <p>On appeal, Metro argued that the trial judge erred in a number of ways. The Ontario Court of Appeal rejected all of Metro’s argument except that it accepted Metro’s argument that the trial judge erred in holding that Monterosso was not required to mitigate his damages.</p> <h2>Appeal Court – Wait! Independent contractors generally do have a duty to mitigate</h2> <p>The Ontario Court of Appeal found that the trial judge erred by “conflating the situation of independent contractors with that of employees working under fixed-term contracts”.</p> <p>The court outlined that a duty to mitigate arises when a contract is breached, including contracts with independent contractors, unless the terms of a contract may provide otherwise. It found that nothing in this specific case took it outside the “normal circumstances in which mitigation is required”. It expressly noted that Monterosso was not in an exclusive, employee-like relationship with Metro, nor was he dependent on Metro, as the terms of the contract permitted Monterosso to perform services for other parties. So, there was the duty to mitigate in this case. However, it was somewhat of a pyrrhic “victory” for the appellant, as the court found that the appellant did not meet their burden of providing Monterosso failed to mitigate his damages.</p> <h2>Distinguishing earlier decisions of the same court</h2> <p>The court noted that it had <a rel="noopener noreferrer" href="https://www.canlii.org/en/on/onca/doc/2016/2016onca256/2016onca256.html" target="_blank">earlier ruled</a> that employees under fixed-term contracts are entitled to damages equal to the loss of remuneration for the balance of the fixed term, without a duty to mitigate. The court also stated that it had never decided this in the independent contractor context.</p> <p>The court also distinguished another <a rel="noopener noreferrer" href="https://www.canlii.org/en/on/onca/doc/2018/2018onca428/2018onca428.html" target="_blank">earlier case</a> in which the same court had found, on the specific facts of that case, that a contractor had no duty to mitigate in the specific circumstances of that case because the parties in that case intended compensation for the fixed term to be the consequence for failing to terminate the contract in good faith – effectively, a liquidated damages agreement.</p> <h2><span style="color: #3095b4;">Lessons learned</span></h2> <p>Companies looking to terminate a fixed-term contract with a true independent contractor might now have “less liability” because of this decision, providing potentially more flexibility. However, terminating a fixed-term contract prior to the end of its term is often fraught with risk. Early consideration during the drafting of any fixed-term contract and implementing an appropriate plan if early termination is needed, will almost always provide more certainty.</p> <hr /> <h2>Get in touch</h2> <p>BLG’s <a href="/fr/services/practice-areas/labour-and-employment" target="_self">Labour and Employment Group</a> has assisted many companies with drafting fixed-term independent contractor and fixed-term employee contracts, as well as providing appropriate legal advice when faced with a claim from contractors and employees. BLG’s <a href="/fr/services/practice-areas/labour-and-employment" target="_self">Labour and Employment Group</a> would be pleased to assist your organization with any fixed-term contracts, including the initial drafting which is often one of the most important steps. To get started, reach out to any of the authors or key contacts listed below.</p> <p><em>The authors would like to acknowledge the assistance of Noah Flavel, Summer Law Student, in the research and drafting of this article.</em></p>Wed, 20 Dec 2023 00:00:00 Z{C32A31A5-B3BA-47A1-964F-A9BD50F1B65A}https://www.blg.com/fr/insights/2023/12/words-of-caution-for-executing-mergersWords of caution for executing mergers<p>A plan of arrangement (referred to in this article as an Arrangement) is a procedure by which a corporation is restructured or merged with another entity to effect certain fundamental changes to the corporation. The process involves court oversight to ensure fairness to all stakeholders involved in the Arrangement, and the Court must ultimately approve the proposed Arrangement. Section 192 of the <em>Canada Business Corporations Act</em> and the equivalent provincial legislation (including section 193 of the Alberta <em>Business Corporations Act</em>) govern Arrangements.</p> <p>To determine whether a final order for an Arrangement should be granted, the Court must be satisfied that (a) statutory procedures have been met, (b) the Arrangement is put forward in good faith, and (c) the Arrangement is fair and reasonable. Determining whether an Arrangement is fair and reasonable involves consideration of the purpose and necessity of the Arrangement and any objections raised in relation to the Arrangement by relevant stakeholders.</p> <p>In <em>HEAL Global Holdings Corp (Re)</em>, 2023 ABKB 451 (<em>HEAL Global Holdings</em>), the Alberta Court of King’s Bench confirmed that while financial necessity is an important consideration in determining whether an Arrangement is fair and reasonable, it is not determinative. Instead, the Court will undertake a holistic evaluation of several factors, which may outweigh the impending insolvency of a party to the Arrangement.</p> <h2>Background</h2> <p>HEAL Global Holdings Corp (HEAL), Pathway Health Corp (Pathway) and The Newly Institute Inc (Newly) brought an application for a final order approving a proposed Arrangement. Under the Arrangement, Pathway would acquire all common shares of HEAL and all common shares of Newly, excluding common shares of Newly that were already held by HEAL.</p> <p>On April 25, 2023, an Interim Order was granted and set the procedure for the proposed Arrangement. On May 30, 2023, Newly held a special meeting with its shareholders to vote on the Arrangement. Only 54.5 per cent of Newly shareholders were represented at the special meeting, but 100 per cent of the votes cast were in favour of the Arrangement. Importantly, the Court noted that:</p> <ul> <li>Of the total number of Newly shares, 10.5 per cent exercised dissent rights and had no right to vote on the Arrangement, and another 3 per cent cast no vote and advised Newly they opposed the Arrangement. </li> <li>Of the 54.5 per cent of Newly shares that voted in favour of the plan, HEAL held 40.7 per cent and the directors/officers of Newly held 19.7 per cent</li> </ul> <p>While Newly was solvent at the time of the April Interim Order, its financial position had quickly deteriorated such that it was nearly insolvent as of May 31, one day after the Arrangement was passed in the special meeting. Newly’s shareholders were not aware of these concerning financial developments before voting at the special meeting.</p> <h2>The applicable test</h2> <p>In considering whether to grant a final order approving the Arrangement, Justice Sidnell applied the test from the Supreme Court decision in <em>BCE Inc v 1976 Debentureholders</em>, 2008 SCC 69 (<em>BCE</em>). Under the <em>BCE </em>test, the Court must be satisfied that:</p> <ol style="list-style-type: lower-alpha;"> <li>the statutory procedures have been met;</li> <li>the application has been put forward in good faith; and</li> <li>the Arrangement is fair and reasonable. </li> </ol> <p>To determine whether a proposed Arrangement is fair and reasonable, the Court must be satisfied that (i) the Arrangement has a valid business purpose, and (ii) the objections of those whose legal rights are being arranged are being resolved in a fair and balanced way. This analysis is applied from the perspective of the corporation being arranged, not from the perspective of any other party to the Arrangement.</p> <h2>Decision</h2> <p>At the outset, Justice Sidnell found the Arrangement was necessary to Newly’s continued operations because it was “on the brink of insolvency,” and therefore the Arrangement had a valid business purpose. However, after reviewing the non-exhaustive list of factors from <em>BCE</em> for whether an Arrangement has reasonably addressed the objections and conflicts between the different parties,<sup>1</sup> Justice Sidnell concluded that the Arrangement was not fair and reasonable because:</p> <ul> <li>many of the shares voting in favour of the Arrangement were held by HEAL, despite the fact that HEAL’s shares in Newly were not subject to the Arrangement;</li> <li>the information available to Newly’s shareholders regarding Newly’s financial position was prejudicially out of date, especially considering Newly’s directors and officers may have known of Newly’s deteriorating financial position at the time of the vote;</li> <li>the Arrangement would split the Newly shareholders into two groups with different rights, privileges, restrictions, and conditions. In particular, HEAL was not obligated to surrender its Newly shares or become a shareholder of Pathway, while remaining Newly shareholders would receive Pathway shares in exchange for Newly shares;</li> <li>Newly shareholders essentially lost all their dissent rights, as dissenting shareholders would have their shares automatically converted to shares in Pathway under the Arrangement;</li> <li>although not strictly necessary under the <em>Business Corporations Act</em>, Newly failed to appoint a special committee of independent directors to review the Arrangement, despite one of its directors having a material conflict of interest in the Arrangement; and</li> <li>although not strictly necessary under the <em>Business Corporations Act</em>, Newly failed to obtain an independent fairness opinion which would have assisted its shareholders, independent directors, and the Court in determining whether the Arrangement was fair and reasonable.</li> </ul> <p>Ultimately, Justice Sidnell concluded that while the Arrangement would provide for Newly’s continued existence and save the corporation from insolvency, the adverse effect on the rights of opposing and dissenting shareholders was too substantial to approve the Arrangement.</p> <h2>Takeaways</h2> <p><em>HEAL Global Holdings</em> demonstrates that even where an Arrangement may remedy a corporation’s pending insolvency or be motivated by some kind of financial necessity, it does not guarantee that the Arrangement will be approved by the Court. The determinative question remains whether the Arrangement is fair and reasonable, and the Court may consider factors such as:</p> <ul> <li>whether the Arrangement is voted on by shareholders who are not actually subject to the Arrangement;</li> <li>whether the Arrangement treats shareholders in the same class differently;</li> <li>whether the Arrangement removes or neutralizes shareholder dissent rights;</li> <li>whether the shareholders have accurate and up to date financial information when voting on a proposed Arrangement; </li> <li>whether the corporation has appointed a special committee to consider the Arrangement; and</li> <li>whether the corporation supports the Arrangement with a fairness opinion.</li> </ul> <p><em>HEAL Global Holdings</em> has yet to be considered by higher courts, but corporations considering effecting a merger by way of an Arrangement under the Alberta <em>Business Corporations Act</em> or <em>Canada Business Corporations Act</em> will want to take note of Justice Sidnell’s analysis regarding the fair and reasonable test.</p> <p>For more information on <em>HEAL Global Holdings </em>or considerations in effecting an Arrangement, please reach out to one of the key contacts below.</p> <hr /> <p><span style="font-size: 10px;"><sup>1</sup> See paragraph 43 of <em>HEAL Global Holdings </em>for the list of factors. </span></p>Wed, 20 Dec 2023 00:00:00 Z{D1D5D559-1A64-488B-8227-E06381910310}https://www.blg.com/fr/insights/2023/12/comments-on-the-purpose-and-spirit-of-derivative-actionsComments on the purpose and spirit of derivative actions<p>A derivative action allows a shareholder to bring an action on behalf of the corporation. The shareholder effectively “stands in the shoes” of the corporation and prosecutes the action when management of the corporation refuses to do so.</p> <p>In <em>1719349 Alberta Ltd v 1824766 Alberta Ltd</em>, 2023 ABKB 207 (<em>171 v 182</em>), the Alberta Court of King’s Bench confirmed that courts must be careful not to inappropriately interfere in the management of companies when analyzing a director’s decision and deciding whether a derivative action is in the interests of the corporation. This stems from the business judgment rule, which suggests that courts should grant deference to decisions made by directors because directors are often best suited to determine what is the interests of the corporation. In line with this rule, courts should not allow a derivative action to proceed if it arises from a director's decision that falls within the range of reasonable alternatives accessible to the director.</p> <h2>Background</h2> <p><em>171 v 182 </em>involved a dispute between shareholders and directors of 1824766 Alberta Ltd (182) over a real estate development project (the Project). The Project was completed in December 2015 and was significantly over budget. By 2016, the mortgages on the property had not been paid, and 182 had not repaid 171 for funds owing under the parties’ lending agreement. 182 subsequently sold off the units in the Project to pay off the mortgages and builders’ liens. The proceeds of these sales were paid in full to 182, which then used part of the proceeds to pay out the mortgages on the units. </p> <h2>The statutory tests for a derivative action</h2> <p>Justice Bensler noted that to bring a derivative action on behalf of a corporation under section 240 of the <a rel="noopener noreferrer" href="https://kings-printer.alberta.ca/documents/Acts/B09.pdf" target="_blank">Alberta <em>Business Corporations Act</em></a>, there are four statutory tests to be met:</p> <ul> <li>The applicant must meet the requirements to be a “complainant” under the <em>Business Corporations Act</em>;</li> <li>Adequate notice to the directors of the corporation must be given;</li> <li>The complainant must be acting in good faith in bringing the application; and</li> <li>The court must be satisfied that the derivative action would be in the interests of the corporation. </li> </ul> <p>Both parties accepted that 171 was a proper complainant under the<em> Business Corporations Act</em>, and that adequate notice was given in the application. Accordingly, the issues on the application were based on the third and fourth requirements from section 240, namely:</p> <ul> <li>Whether 171 acted in good faith in bringing the derivative action application; and </li> <li>Whether it was in the interests of 182 to grant leave to bring the derivative action.</li> </ul> <h2>The ‘good faith’ requirement</h2> <p>Justice Bensler highlighted that the primary concern when determining the existence of good faith is whether the proposed derivative action is frivolous or vexatious. A certain level of self-interest by the party proposing the derivative action is permissible, so long as this interest aligns with the interests of the corporation. Animosity alone is also not enough to determine that a complainant lacks good faith. In this instance, although the principals of 171 were potentially motivated by a personal vendetta against the principal of 182, it did not escalate to a level indicating bad faith. As a result, the good faith requirement was satisfied.</p> <h2>The ‘interests of the corporation’ requirement</h2> <p>Justice Bensler then considered whether the application brought by 171 was in 182’s interests. This evaluation requires a balancing exercise, including an analysis of the benefits and costs of bringing the derivative action. While it is never in the interests of a corporation to prosecute an action which is doomed to fail, the complainant must do more than simply demonstrate the action is <em>not </em>doomed to fail. For example, where an action will cost far more to prosecute than it can possibly yield in damages, or where pursuing a claim is not worth the reputational damage to the corporation, it is not in the corporation’s interests.</p> <p>Against this foundation, Justice Bensler found at the outset that it was likely the action would be barred by the section 3(1) of the <a rel="noopener noreferrer" href="https://kings-printer.alberta.ca/documents/acts/l12.pdf" target="_blank">Alberta <em>Limitations Act</em></a>. Pursuant to this section, if a claimant fails to bring an action within two years of when they knew or ought to have known of the existence of the claim, the action is barred, and the defendant is entitled to immunity from the action. In this case, the Court held that 171 would have had knowledge of the sale at the time they occurred in 2016. Because the limitation period expired two years later in July 2018, the derivative action was likely statute-barred and therefore not in 182’s interests.</p> <p>Notwithstanding the limitations issue, Justice Bensler also held that the derivative action was not in 182’s interests based a cost/benefit analysis. In particular, she found that the wrongdoing in these circumstances arose from the outstanding amounts owed to 171 under the parties’ lending agreement. Conversely, 182 did not suffer any loss as the investment vehicle for the Project because 182 was paid the full purchase price for the units. This meant that the derivative action was in 171’s interests as a lender to 182, but it was not in 182’s interests as the corporation which oversaw the development of the Project. In addition, pursuing damages again parties who paid a slightly reduced purchase price in line with market value did not justify the costs required to litigate the derivative action.</p> <p>Finally, Justice Bensler acknowledged that 182’s decision to sell the units was reasonable, given that the construction contractor and the subcontractors were demanding payment and there were outstanding mortgages against the Project units. The business judgment rule exists to prevent courts from inappropriately interfering with business decisions made by directors, so long as the decision lies within a reasonable range of alternatives. In this case, the decision to sell the units was deemed reasonable, particularly because 182’s principal was better positioned than the court to determine what served the interests of 182.</p> <h2>The Court’s residual discretion</h2> <p>Further to the above analysis, Justice Bensler noted that leave to grant a derivative action is an equitable remedy, meaning the Court retains a residual discretion to refuse a derivative action even where the statutory tests are met. Here, Justice Bensler indicated she would otherwise exercise her discretion and refuse leave for the derivative action because the pleadings failed to demonstrate a wrong to 182 that required redress. Again, the wrong was done to 171 as the unpaid party and not to 182, which was paid in full.</p> <h2>Takeaways</h2> <p><em>171 v 182 </em>demonstrates that for a derivative action to be in the interests of a corporation, the wrong must be done to the corporation itself, not to an aggrieved individual shareholder (or lender). Moreover, Courts should exercise caution when considering a derivative action against corporate directors, particularly where the directors' decisions fall within a spectrum of reasonable alternatives.</p> <p>Parties contemplating an application for leave to bring a derivative action will want to take note of Justice Bensler’s emphasis on the business judgment rule in determining what is in the corporation’s interests, as well as her comments on the Court’s residual discretion to decline a derivative action.</p> <p>BLG’s <a href="/fr/people/p/pozzobon-andrew">Andrew Pozzobon</a> represented 182 before the Court of King’s Bench and will be representing 182 on appeal. In the meantime, for more information on <em>171 v 182 </em>or considerations when bringing or defending a derivative action, please reach out to one of the key contacts below. </p>Tue, 19 Dec 2023 00:00:00 Z{034A3D4A-47F5-4878-A18A-B225E5A028D3}https://www.blg.com/fr/insights/2023/12/decoding-tomorrow-blg-primer-on-ai-governanceDéchiffrer demain : l'abécédaire sur la gouvernance de l'IA<p>Afin d'aider nos clients à comprendre les implications de la mise en œuvre d'un programme de gouvernance de l'IA, particulièrement en ce qui concerne l'IA générative et l'impact du <a href="/fr/insights/2021/11/quebec-privacy-law-reform-a-compliance-guide-for-organizations" target="_self">projet de loi C-27 au fédéral</a>, nous sommes heureux de partager avec vous notre Abécédaire sur la gouvernance de l'IA. Ce court document vise à fournir un aperçu de la façon dont les organisations peuvent proactivement aborder l'implantation de l'IA dans leurs opérations, atténuer les risques qui y sont associés et assurer leur conformité avec la réglementation à venir.</p> <p>Si vous avez des questions ou si vous souhaitez obtenir de l'information additionnelle sur le contenu de l'Abécédaire de l'IA, n'hésitez pas à nous contacter.</p>Tue, 19 Dec 2023 00:00:00 Z{4C14E5BE-63F0-4771-8C7C-84A50FA9CC1D}https://www.blg.com/fr/insights/2023/12/new-insights-from-kraft-on-the-necessary-course-of-business-exception-to-tippingAffaire Kraft – Clarifications de l’exception à l’interdiction de communiquer de l’information privilégiée fondée sur la notion de « cours normal des activités »<p>Au Canada, la communication d’information privilégiée concernant un émetteur est interdite pour ne pas compromettre l’intégrité des marchés financiers. Toutefois, les lois canadiennes sur les valeurs mobilières prévoient une exception importante : la transmission d’information privilégiée dans le « cours normal des activités ». Les personnes initiées des émetteurs assujettis se prévalent régulièrement de cette exception, même si les conditions exactes de son application étaient relativement floues.</p> <p>Le Tribunal des marchés financiers de l’Ontario (le « Tribunal ») a récemment levé cette ambiguïté pour la première fois en rendant sa décision dans l’affaire <a rel="noopener noreferrer" href="https://www.capitalmarketstribunal.ca/fr/instances/kraft-michael-paul-re/reasons-and-decision-matter-michael-paul-kraft-and-michael-brian-stein" target="_blank"><em>Kraft (Re)</em></a> (« <em>Kraft </em><em>»</em>). En effet, il s’est prononcé explicitement sur les critères de l’exception décrite au paragraphe 76(2) de la <a rel="noopener noreferrer" href="https://www.ontario.ca/fr/lois/loi/90s05#BK116" target="_blank"><em>Loi sur les valeurs mobilières</em></a> de l’Ontario (la « LVMO ») en ce qui concerne la notion de « cours normal des activités ».</p> <p>La décision <em>Kraft </em>fournit aux sociétés ouvertes et à leurs initiés des éclaircissements très attendus sur l’applicabilité de l’exception à l’interdiction de communication d’information privilégiée.</p> <h2>Ce que vous devez savoir</h2> <p>Dans sa décision dans l’affaire <em>Kraft</em>, le Tribunal a clarifié l’applicabilité de l’exception relative au cours normal des activités :</p> <ul> <li><em>Fardeau de présentation</em> : Toute personne qui cherche à se prévaloir de l’exception a la responsabilité de prouver qu’elle a communiqué de l’information privilégiée dans le « cours normal des activités ».</li> <li><em>Justification insuffisante </em>: La notion de « cours normal des activités » suppose que la communication de l’information privilégiée est essentielle ou indispensable au bon déroulement des activités de l’entreprise. </li> <li><em>Objectivité </em>: La nécessité de la démarche doit être établie objectivement. En pratique, cela signifie qu’un particulier ou une entreprise doit tenir compte du critère de nécessité objective dans sa décision avant de divulguer de l’information privilégiée sans fonder son raisonnement sur ses croyances ou intentions, même si elles sont honnêtes et de bonne foi.</li> <li><em>Interprétation étroite</em> : L’exception doit être interprétée et appliquée de manière raisonnablement stricte, en tenant compte de l’objectif primordial, soit le maintien de l’intégrité du marché.</li> <li><em>Aucune règle de démarcation nette : </em>L’Instruction générale 51-20, décrite plus bas, précise les circonstances dans lesquelles l’exception permet de justifier la divulgation d’information privilégiée; toutefois, il ne suffit pas de démontrer qu’il s’agit d’une divulgation sélective. Si la décision <em>Kraft</em> énonce d’autres facteurs que l’identité de l’initié secondaire pour déterminer l’applicabilité de l’exception fondée sur la notion de « cours normal des activités », elle n’établit aucune règle de démarcation nette.</li> </ul> <h2>Décision</h2> <p>WeedMD Inc., aujourd’hui Entourage Health Corp., est une société de production et de distribution de cannabis cotée à la Bourse de croissance TSX. En 2017, WeedMD a conclu une transaction avec Perfect Pick Farms Ltd. (la « transaction ») prévoyant une option d’achat d’un bien immobilier de Perfect Pick.</p> <p>En octobre de la même année, Michael Kraft, alors président du conseil d’administration de WeedMD, a transmis des ébauches de documents contenant de l’information privilégiée au sujet de la transaction à un ami et associé de longue date, Michael Stein. La veille de l’annonce publique de la transaction, ce dernier a acheté 45 000 actions de WeedMD et les a revendues peu après en empochant une belle plus-value. Puisque les services de M. Stein n’ont pas été officiellement retenus ni rémunérés, il n’est pas question ici de services-conseils à proprement parler. La Commission des valeurs mobilières de l’Ontario (CVMO) a allégué que M. Kraft avait enfreint l’interdiction de communiquer de l’information privilégiée.</p> <p>Le nœud juridique réside dans l’affirmation de M. Kraft selon laquelle les données divulguées l’ont été dans le « cours normal des activités ». Pour sa part, ce dernier a affirmé qu’il avait fait appel à M. Stein pour son expertise dans les questions financières et immobilières.</p> <h2>Comprendre l’exception à l’interdiction de communication d’information privilégiée fondée sur la notion de « cours normal des activités »</h2> <p>Le paragraphe 76(2) de la LVMO interdit explicitement aux émetteurs ou aux personnes entretenant des relations privilégiées avec eux de divulguer des faits ou des changements importants les concernant avant que ceux-ci soient annoncés publiquement, sauf « dans le cours normal des activités ».</p> <p>La LVMO ne définit toutefois pas la notion de « cours normal des activités », renvoyant ainsi son interprétation principalement aux lignes directrices en matière de communication de l’information de l’<a rel="noopener noreferrer" href="https://www.osc.ca/fr/droit-valeurs-mobilieres/normes-regles-politiques/5/51-201/national-policy-np-51-201-disclosure-standards" target="_blank">Instruction générale 51-201</a>. Publiée en 2002, l’Instruction générale 51-201 suggère que l’exception est nécessaire pour éviter toute ingérence injustifiée dans le cours normal des activités d’une entreprise. Elle précise aussi les circonstances dans lesquelles l’exception permet de justifier la divulgation d’information privilégiée.</p> <p>La décision <em>Kraft</em> énonce d’autres facteurs que l’identité de l’initié secondaire pour déterminer l’applicabilité de l’exception fondée sur la notion de « cours normal des activités », mais elle n’établit aucune règle de démarcation nette. Quelques facteurs supplémentaires : </p> <ul> <li>les activités de l’émetteur;</li> <li>la relation entre l’initié primaire et l’émetteur;</li> <li>la relation entre l’initié primaire et l’initié secondaire;</li> <li>la nature précise de l’information privilégiée divulguée;</li> <li>la pertinence de l’information privilégiée divulguée dans la relation entre l’initié primaire et l’émetteur (la nature de la relation justifie-t-elle la communication de l’information privilégiée faisant l’objet du litige?);</li> <li>les raisons invoquées par l’initié primaire pour justifier la divulgation sélective;</li> <li>la crédibilité de l’initié primaire qui cherche à faire valoir l’exception. </li> </ul> <p>Le Tribunal a tenu compte de ces facteurs et conclu que Michael Kraft n’avait pas transmis d’information privilégiée « dans le cours normal des activités ». Voici les raisons invoquées : </p> <ul> <li><em>Motif personnel de la divulgation</em> : M. Kraft a communiqué de l’information privilégiée à M. Stein pour connaître son avis.</li> <li><em>Absence de discussion interne</em> : M. Kraft a divulgué l’information privilégiée sans avoir consulté au préalable le conseil d’administration de WeedMD ni son équipe de direction.</li> <li><em>Divulgation précipitée </em>: M. Kraft a divulgué l’information privilégiée précipitamment, sans se demander si c’était pertinent pour le cours normal des activités de WeedMD. </li> <li><em>Manque d’expertise </em>: Rien n’indique que M. Stein possédait une expertise spécialisée à laquelle WeedMD n’avait pas déjà accès.</li> <li><em>Absence d’entente de confidentialité</em> : M. Stein n’a pas reçu de consignes sur la confidentialité des informations divulguées ni sur leur utilisation potentielle.</li> </ul> <p>Le Tribunal a reconnu M. Kraft coupable d’avoir transmis des ébauches de documents contenant de l’information privilégiée à M. Stein, et ce dernier d’avoir commis un délit d’initié. </p> <h2>Pratiques optimales pour l’avenir</h2> <p>S’il reste à en évaluer la portée, la décision <em>Kraft</em> apporte un éclairage nouveau et précieux pour éviter les pièges liés à la communication d’information privilégiée. Pratiques exemplaires : </p> <ul> <li><em>Mesures de confidentialité</em> : Il convient, s’il y a lieu, de signer des ententes de confidentialité avec les initiés secondaires et de discuter avec eux de leurs obligations et de la nature sensible de l’information divulguée.</li> <li><em>Mesures de contrôle</em> : Il est encore plus important d’appliquer des stratégies de gestion des risques en ce qui concerne le traitement et la communication d’information privilégiée, comme la mise en place d’un protocole exigeant l’approbation préalable de l’équipe de direction (et du conseil d’administration, au besoin). Le raisonnement de la direction ou du conseil d’administration sur la nécessité ou la pertinence de divulguer des données privilégiées doit être bien documenté.</li> <li><em>Évaluation régulière </em> : Pour respecter leurs obligations et gérer efficacement les risques, les entreprises doivent régulièrement examiner et mettre à jour leurs stratégies de conformité relatives au traitement et à la divulgation d’information privilégiée. Pour ce faire, elles doivent aussi tenir compte de l’évolution de leur dynamique interne, des normes juridiques et de l’applicabilité de l’exception fondée sur la notion de « cours normal des activités ».</li> <li><em>Conseils juridiques </em> : Il y a lieu de consulter des spécialistes pour définir des stratégies de conformité et ajuster les pratiques de communication de l’information selon l’évolution des normes juridiques. </li> </ul> <p>Compte tenu des graves répercussions potentielles pour les contrevenants, les entreprises doivent adopter une approche proactive pour se conformer aux lois sur la communication d’information privilégiée.</p> <h2>Conclusion</h2> <p>Si le dénouement de l’affaire <em>Kraft</em> ne permet pas d’établir de directives précises ni de règles de démarcation nette pour faire valoir l’exception à l’interdiction de communication d’information privilégiée liée à la notion de « cours normal des activités », il s’agit de la première décision portant expressément sur le sujet. Les éléments qu’elle apporte en complément des lignes directrices énoncées dans l’Instruction générale 51-201 permettent de mieux saisir la portée et l’applicabilité de cette exception et mettent en évidence la nécessité d’une vigilance accrue pour s’assurer que les pratiques des émetteurs et des initiés cadrent avec l’évolution des interprétations juridiques. </p> <p><em>Cet article a été rédigé avec l’aide de <a href="/fr/student-programs/meet-our-students/toronto/dimitrakoudis-kaliopi">Kaliopi Dimitrakoudis</a>, stagiaire chez BLG.</em></p>Tue, 19 Dec 2023 00:00:00 Z{594C489C-51BB-4586-9BF1-D7681EA517F4}https://www.blg.com/fr/insights/2023/12/m-and-a-trends-for-canadian-asset-managersM&A trends for Canadian asset managers: BLG’s observations and insights looking ahead to 2024<h2>Canadian asset management deal trends</h2> <p>The Canadian wealth and asset management industry continues to be attractive for M&A transactions with significant premiums paid for asset managers. During 2023, there was more interest in quality wealth and asset managers than there were asset managers available to acquire. We believe that M&A deals will continue to be especially competitive in the coming year as strategic acquirers look to build and <a rel="noopener noreferrer" href="https://www.bain.com/insights/wealth-and-asset-management-m-and-a-report-2023/" target="_blank">expand in scale and scope</a>. Institutions from across the financial services landscape and strategic private equity investors are looking to add scale to their existing platforms and/or to differentiate by entering new markets in the sector. If valuations continue to rise and, as M&A deals become an even more attractive option in the asset management sector, it also will become more strategically important.</p> <p>In this Insight, we draw on BLG’s deep expertise in this area to focus on the important aspects of M&A transactions for both potential purchasers and sellers. Asset management deals raise unique considerations, including risks, structuring and regulatory considerations. Additionally, the latest guidance from the securities administrators regarding conflicts of interest may inform how you plan and structure your M&A transaction.</p> <p>We see a number of forces driving this demand for asset manager M&A transactions, including: </p> <h3 style="margin-left: 40px;">1. Fee pressure</h3> <p style="margin-left: 40px;">This has been a recurring feature of the post-financial crisis period that continues to intensify and is driven by customers seeking better value for money and heightened transparency. Canadian asset managers have responded to this pressure by seeking increased scale in an effort to address the “race to the bottom” concerning fees.</p> <h3 style="margin-left: 40px;">2. Macroeconomic trends</h3> <p style="margin-left: 40px;">High savings rates, market volatility, increasing interest rates and high inflation have all continued to impact asset flows for the asset management industry. </p> <h3 style="margin-left: 40px;">3. Stable businesses</h3> <p style="margin-left: 40px;">Despite ongoing fee pressure, asset managers remain valuable due to their nature as stable fee-generating businesses.</p> <h3 style="margin-left: 40px;">4. Regulation</h3> <p style="margin-left: 40px;">The industry faces increasing accounting, tech, margin, litigation, and regulatory pressures. Spurred by recent regulatory pushes to increase capital requirements for most core banking activities, banks in particular have been attracted to the asset management industry because of its relatively capital-light infrastructure and high returns on equity.</p> <h3 style="margin-left: 40px;">5. Technology</h3> <p style="margin-left: 40px;">The industry remains inefficient and relatively antiquated from a technology standpoint, so there is significant scope to streamline further. Technology costs have risen to achieve solutions for both regulatory needs (compliance and reporting, investor transparency, anti-money laundering and anti-terrorist financing (AML) risks) and cyber-attack sophistication.</p> <h3 style="margin-left: 40px;">6. The drive for new capabilities</h3> <p style="margin-left: 40px;">With respect to operations, investors expect modern and personalized digital wealth management services. On the investment side, asset managers are seeking capabilities in areas with higher potential returns, such as alternatives and environmental, social and governance (ESG) offerings.</p> <h3 style="margin-left: 40px;">7. Available capital</h3> <p style="margin-left: 40px;">Asset management participants continue to have significant capital available to deploy without dependency on external leverage.</p> <h3 style="margin-left: 40px;">8. Purpose led growth</h3> <p style="margin-left: 40px;">Canadian asset managers are embracing purpose led growth alongside efforts to improve diversity, equity, and inclusion across the industry.</p> <p>We see these factors combining to create an environment that will continue to foster strong M&A deal volume in 2024 and beyond for Canadian asset managers.   </p> <h2>Considerations unique to M&A transactions for Canadian asset managers</h2> <p>Anybody considering an M&A transaction with an asset manager should have a clear understanding of the unique challenges that deals in this industry present, including the highly regulated environment, reputational considerations and the risk of asset flight as a result of the transaction.</p> <h3>Addressing the risks of the asset management industry</h3> <p>Of significant importance for any asset manager is regulatory and reputational risk. The potential for substantial liability, regulatory or otherwise, is ever-present. In addition, in an industry built on reputation and client trust, the risks associated with non-compliance with applicable laws and regulations is clear. As a result, when assessing an M&A transaction, there are a number of considerations for potential purchasers. Engaging experienced counsel to advise on the risks and opportunities early in the process can help create clarity and reduce transaction risks</p> <p><strong>Due diligence</strong>: Prior to entering into a transaction, potential purchasers should ensure that they have undertaken comprehensive due diligence of the target. In addition to typical due diligence conducted in an M&A transaction, purchasers will want to engage experienced asset management counsel to review the target’s compliance with applicable laws and regulations and ask the appropriate questions, particularly if the transaction is structured as a share deal. This is important since remediating regulatory issues after the transaction has closed can be time consuming, costly and lead to reputational issues with both clients and regulators. The fact that regulatory non-compliance occurred prior to the closing of a transaction is not a shield; Canadian securities regulators have brought enforcement actions against the purchaser of a non-compliant business following the completion of a transaction. Where the target’s offerings include ESG related investment products, purchasers should examine the disclosure for such products to ensure that it is in compliance with Canadian Securities Administrators (CSA) rules, guidance and rapidly evolving industry practice to protect itself against greenwashing claims, potential enforcement action and/or litigation risk.</p> <p><strong>Regulatory notices and approvals</strong>: Early in the process, both parties should work with their asset management legal counsel to identify the regulatory notices and approvals that are required in connection with the transaction and to understand the expected timeframe for regulatory approval. To avoid the risk of a long interim period between signing and closing, we recommend starting this process prior to entering into a transaction.</p> <p><strong>Representations and warranties</strong>: Asset management legal counsel are essential to protecting purchasers by obtaining representations and warranties from the target that are tailored to the regulatory environment in which the target operates. Target companies will often be reluctant to provide broad and unqualified representations as to their compliance with all applicable laws, and specialized asset management lawyers can assist in drafting a representation and warranty package that addresses key risks.</p> <p><strong>Indemnification</strong>: In part because of the heavily regulated nature of the industry, there is a trend in asset management M&A transactions for purchasers to obtain more robust indemnities in connection with regulatory breaches than for other “non-fundamental” representations and warranties. This includes increased indemnity caps, longer survival periods for regulatory representations, and stand-alone indemnities focused on particular regulatory issues that have been surfaced as part of the due diligence process.</p> <p><strong>Closing conditions</strong>: Client relationships are essential to the success of any investment management business, nowhere more so than with small and mid-sized firms. An actual or perceived change in management can lead to clients withdrawing their funds between the time the transaction is announced and its closing. To address this risk, purchasers will often require as a condition of closing that the business maintain a certain amount of assets under management (AUM) or obtain the express consent of key clients. If certain advisory or sub-advisory relationships are important, purchasers may also require their approval of the transaction and an undertaking to continue to provide advisory or sub-advisory services following closing.</p> <p><strong>R&W insurance</strong>: The use of representation and warranty insurance in Canada has grown significantly in the past decade, in particular with small and mid-cap companies. However, while representation and warranty insurers are becoming increasingly sophisticated, there remains a hesitancy in Canada when it comes to underwriting policies in an industry as heavily regulated as investment management. Furthermore, representation and warranty insurance is an insufficient substitute for a comprehensive diligence process. This protective strategy is generally used in conjunction with other strategies.</p> <p><em>Structuring the transaction</em></p> <p>In any M&A transaction, sellers will often prefer to structure the deal as an equity transaction, as this allows the seller to shield itself from liability relating to the business following closing. Purchasers will prefer an asset transaction as it correspondingly involves less liability risk by allowing the purchaser to identify the particular assets and liabilities it wishes to acquire and assume as part of the transaction. In investment management, there is a greater trend toward asset deals, given the desire of the purchaser not to inherit any regulatory and reputational risks. Paradoxically, if the purchaser does not have the regulatory approvals required to operate the particular investment management business being acquired, a share deal may be more attractive as it will (subject to regulatory approval) allow the purchaser to also acquire whatever registrations or licenses are required to operate the business.<span style="text-decoration: underline;"></span></p> <p><em>Earn outs</em></p> <p>Earn outs are a form of contingent consideration whereby a portion of the purchase price is calculated with reference to the future performance of the business being acquired. They have become a hallmark in asset management M&A transactions. Purchasers of an investment management business see earn outs as essential to preserving the value of the business they are acquiring. Furthermore, earn outs are often used to incentivize the target’s management to remain committed to the business post closing, and to encourage clients to remain with the acquired entity post closing. Given the uncertainties of today’s domestic and global markets, we anticipate that earn outs will be even more prevalent over the coming years.</p> <p>Some of the important considerations for earn-out structuring include:</p> <p>How will the performance of the business be ascertained? The parties may wish to look at the profitability of the business, changes in AUM, its revenue or EBITA. Due to the volatility of contemporary markets, sellers may wish to avoid metrics tied to changes in asset values, including AUM, and instead focus on other metrics, such as client retention.</p> <p><em>How will the earn out be structured? </em></p> <p><em></em>The parties will also need to consider how the earn out is structured: How much of the purchase price should be subject to an earn out? Should the metric be calculated over standalone periods or cumulative and payable when the business achieves certain milestones? Should purchasers be entitled to claw back a portion of the earn out payment if targets are not met in subsequent periods? How long should the earn out be? Sellers will understandably push for a shorter period, whereas purchasers will argue that a longer period is needed to truly determine the value of the business. The parties will also want to explore how to structure the earn out in a tax efficient way for the sellers to avoid the characterization of earn out payments as ordinary income (compared with the lower capital gains rate). </p> <p><em>Reliance on the purchaser for performance</em></p> <p>Where a portion of the purchase price is subject to an earn out that is contingent on the performance of the business, sellers will often want to have a role in managing the business following the closing. Sellers will negotiate certain governance or veto rights in respect of various business-related decisions to ensure that the business is not managed in a manner that erodes their entitlement to an earn out. Sellers may also ask for post closing covenants from purchasers relating to the management of the business. For example, in the case of a fund manager where the earn out is based on AUM, the seller may require that the fund manager continue to offer the funds to certain retailers, market the funds in a manner consistent with past-practice, or include requirements that the purchaser not launch funds which might be seen as competitive with or cannibalize the AUM of the business’s funds during the post closing period. On their part, purchasers should consider whether any of the restrictions could place them in a potential conflict of interest with their statutory and contractual duties to their clients. The CSA have focused their regulatory attention squarely on conflicts of interest and will be alive to any conflict or potential conflict of interest that has not been identified, disclosed and managed in the best interests of clients.</p> <p><em>Difficulties in record keeping</em></p> <p>The parties should have a clear understanding of how the earn out will be calculated during the post closing period. For example, if the earn out is calculated with a view to the EBITDA of the business, how will the purchaser allocate costs, such as marketing or shared services, across all of its businesses?</p> <h3>Regulatory considerations associated with M&A transactions</h3> <p>Regulatory considerations are a key driver to deal structure and timing. To avoid closing delays, it is highly advisable to engage counsel that is experienced in making the regulatory filings required by securities laws in connection with M&A transactions early in the process, as it is often possible to make the required regulatory submissions as soon as the parties have signed a letter of intent. Strategically managing the timing of filings is of particular importance, as we continue to observe slower-than-usual turnaround times on approvals, etc., from most of the regulators.</p> <p><em>Notice and approval in connection with acquisitions of registered firms</em></p> <p>National Instrument 31-103 - <em>Registration Requirements, Exemptions and Ongoing Registrant Obligations</em> (NI 31-103) requires a registered firm that is acquiring another registrant or a registered firm whose securities are being acquired to provide notice to the applicable provincial securities regulator at least 30 days prior to the closing of the proposed acquisition or sale, respectively.</p> <p>This notice requirement is triggered by: (i) the acquisition by a registrant of 10 per cent or more of the voting securities (or securities convertible into voting securities) of a firm registered in Canada or another jurisdiction or the parent company of such firm; (ii) the acquisition by a registered firm of all or substantially all of the assets of such a firm; or (iii) the acquisition by a non-registrant of 10 per cent or more of the voting securities (or securities convertible into voting securities) of a firm registered in Canada or the parent company of such firm.</p> <p>The notice must include material facts regarding the transaction to support submissions relating to conflicts of interest, compliance with securities legislation, investor protection and that the transaction would not be prejudicial to the public interest.</p> <p>It is common for the CSA to issue a technical objection to the proposed transaction if the comments raised by them have not been addressed to their satisfaction during the 30-day notice window.</p> <p><em>Additional Canadian Investment Regulatory Organization requirements</em></p> <p>In addition, if the firm is a member of Canadian Investment Regulatory Organization (CIRO) then it must receive the approval of CIRO in connection with: (i) the acquisition of a “significant equity interest” (10 per cent of the equity securities) of the registered firm; and (ii) the acquisition of all or a substantial part of the assets of a registered firm. A “substantial part of the assets” includes the registered firm’s book of business or a division of the firm. The timeframe for notice and approval by CIRO is similar to the approval required by the CSA and is commonly handled by way of a joint submission. Similar to the provincial regulators, CIRO will assess the transaction as it relates to conflicts of interest, compliance with securities legislation and investor protection as well as a more specific focus on financial impacts, including risk adjusted capital of the firm.</p> <p><em>Focus on conflicts of interest in regulatory review process for M&A transactions</em></p> <p>The CSA and CIRO have implemented a more enhanced conflict of interest screening process when assessing and approving asset management M&A transactions. NI 31-103 clearly sets out the basic principle that a registered firm must take reasonable steps to identify existing or reasonably foreseeable material conflicts of interest. A registered firm must address all material conflicts of interest between a client and itself, including each individual acting on its behalf, in the best interest of the client.</p> <p>As part of the regulatory approval process for asset management M&A transactions, parties must carefully consider whether certain commercial terms or business strategies create a conflict of interest and how such conflicts are to be managed. For example, firms should consider some of the following issues:</p> <ul> <li>Does the proposed purchase price structure – flat amount, a percentage of the earn-out target, a multiple of the amount exceeding the performance target, or any other pre-defined formula – create a conflict of interest? </li> <li>What other incentives – financial or otherwise – may create a conflict of interest and how will both parties manage and/or mitigate such conflict?</li> <li>What due diligence has the seller completed to confirm that its choice of purchaser is suitable and in the best interests of the firm’s clients?</li> <li>Will there be changes in fees payable by the seller’s clients pre and post acquisition? How do such fees compare to the fee schedules for the purchaser’s existing client base (both in quantum and methodology)?</li> <li>Will there be a change in products and/or services available to the seller’s clients which would impact the seller’s recommendation to move client accounts to a successor firm?</li> </ul> <p>The regulatory review process may require the production of client notices and communications, data points on actual fee changes and copies of the disclosure to be provided to clients identifying and addressing the conflicts of interest.</p> <p><em>Securityholder approval for a change of manager</em></p> <p>In addition to the requirements of NI 31-103, where the acquisition involves a change of the manager of an investment fund, securityholder approval is required. This approval necessitates the drafting and dissemination of an information circular that discloses all material information regarding the business, management and operations of the new manager and a description of all material effects the change will have on the investment fund’s securityholders.</p> <h2>Conclusion</h2> <p>Due to the number of factors driving demand, we expect the pace of M&A in the asset management industry to persist, with consolidation and disruptive technology continuing as key factors. It is vital that Canadian asset managers continue to pay attention to the unique considerations associated with transactions in this sector, which includes the evolving regulatory focus on this industry.</p> <p>Your ambition. Our advice.</p> <p>While the current M&A market presents its fair share of complexities, there is an undeniably optimistic undercurrent as companies remain focused in their pursuit of advancing their strategic goals and realizing their corporate ambitions. BLG is dedicated to being your strategic partner in achieving your business and growth objectives.</p> <p>Rather than just bridging legal gaps, our multidisciplinary team has and continues to forge enduring relationships with both buyers and sellers, working alongside them in the long term to uncover opportunities and proactively manage potential risks. With our finger firmly on the pulse of ever-evolving market trends, we stand ready to provide you with the guidance necessary to unlock opportunities and position your enterprise for a future of success, today.</p>Mon, 18 Dec 2023 00:00:00 Z{80E42505-586C-4B36-94E6-88D82502C93B}https://www.blg.com/fr/insights/2023/ri/ontario-class-actions-2022-year-in-reviewOntario class actions 2022 year in review<div style="position: relative;width: auto;padding: 0 0 236.53%;height: 0;top: 0;left: 0;bottom: 0;right: 0;margin: 0;border: 0 none;" id="experience-6579d53659048" data-aspectratio="0.42278594" data-mobile-aspectratio="0.21118498"><iframe src="https://view.ceros.com/borden-ladner-gervais/qua-bec-class-action-review-2022-1-1?heightOverride=2247&mobileHeightOverride=2557" style="position: absolute;top: 0;left: 0;bottom: 0;right: 0;margin: 0;padding: 0;border: 0 none;height: 1px;width: 1px;min-height: 100%;min-width: 100%;" frameborder="0" class="ceros-experience" title="EN_2023 Ontario Class Actions Update" scrolling="no"></iframe></div> <br /> <h2> Top 3 legal developments of 2022</h2> <h3><strong>1. No more intrusion upon seclusion claims in “hacking cases”</strong></h3> <p>In a trilogy of cases, the Court of Appeal for Ontario has held that companies and other organizations that collect and store personal information of individuals in databases (Database Defendants) cannot be held liable under the tort of “intrusion upon seclusion” when cybercriminals illegally access or steal that information. Previously, plaintiffs commenced many such cases, and Ontario Courts certified some of them. The Court of Appeal recognized the intrusion upon seclusion tort in <em>Jones v. Tsige</em> in 2012, to address intentional or reckless invasions of privacy. While it is still possible to sue Database Defendants for negligence or breach of contract in some cases, class members advancing those claims will have to prove damages, rather than being able to claim the “symbolic damages” available for intrusion upon seclusion. This development makes these cases much more difficult to litigate and may explain the significant drop in new privacy class actions commenced in 2022, as compared to previous years. <a href="/fr/insights/2022/11/ontario-court-of-appeal-rules-against-plaintiffs-in-trilogy-of-privacy-class-actions" target="_self">Read more about the Court of Appeal trilogy</a>.</p> <h3><strong>2. Reaffirmation of the need for a plaintiff with a claim against each defendant</strong></h3> <p>There has been a long-standing debate in the Canadian jurisprudence over the “<em>Ragoonanan</em> principle.” That principle, which applies in some but not all Canadian jurisdictions, requires a representative plaintiff to have a cause of action against each defendant in a class action. The principle is relevant in cases where class counsel sues numerous defendants who engage in the same practice or participate in the same industry. In <em>Vecchio Longo Consulting Services Inc. v. Aphria Inc</em>., the Ontario Superior Court of Justice dismissed a securities class action as against a group of underwriters, on the basis that the representative plaintiff had purchased the relevant shares in the secondary market, and therefore had no claim against the underwriters who had underwritten the prospectus offering. The reaffirmed <em>Ragoonanan</em> principle provides defendants in Ontario class actions with a basis for opposing certification in cases where the representative plaintiff does not have a personal claim against them. <a href="/fr/insights/2022/12/prospectus-misrepresentation-securities-class-action-dismissed-against-underwriters" target="_self">Read more about the decision</a>.</p> <h3><strong>3. Judicial recognition that a recall program can be a preferable procedure</strong></h3> <p>Courts rarely deny certification based on the “preferable procedure” criterion. The Ontario Superior Court of Justice did so in <em>Coles v. FCA Canada</em>. The defendant car manufacturer, in that case, had initiated recalls to replace defective air bag components at no cost to consumers. The Court found this recall to address “the crux, hub and nub, nuts and bolts, and pith and substance” of the proposed class action, and concluded that a class action was not preferable to the defendant’s recall campaign when judged with reference to the purposes of a class action. The case illustrates that prompt, effective remedial action can sometimes foreclose a successful class action. <a href="/fr/insights/2022/10/certification-denied-for-takata-airbag-recall" target="_self">Read more about the case</a>.</p> <h2> Top 3 trends of 2022</h2> <h3><strong>1. A rebound year</strong></h3> <p><strong></strong>After a slow year for new claims in 2021, by comparison 2022 saw a significant rebound. Plaintiffs issued almost twice as many claims as in the previous year, although total claims were still lower than in 2019 and 2020. This suggests a continuation of the overall trend towards plaintiffs issuing fewer new class actions in Ontario. This trend appears to be driven partly by class counsel choosing to initiate class actions in other Canadian jurisdictions, which may be perceived to be more plaintiff-friendly, and where costs awards against plaintiffs who are unsuccessful on certification motions are either more modest or non-existent.</p> <h3><strong>2. Decline in competition law cases</strong></h3> <p>2022 saw a significant drop in the number of new competition law cases commenced in Ontario. This appears to have been largely the result of plaintiffs choosing to commence such actions in the Federal Court, instead. </p> <h3><strong>3. A good year for defendants</strong></h3> <p>In 2022, defendants were successful on two-thirds of contested certification motions. This is a much higher proportion than in recent years. Defendants were also successful in three-quarters of appeals from certification decisions. </p> <h2>Top 3 things to watch for</h2> <h3><strong>1. COVID-19 cases</strong></h3> <p>2022 saw a spike in new cases brought in respect of COVID-19 negligence claims and claims involving insurance coverage. We can expect to see more certification decisions involving COVID claims in 2023. It will be interesting to see how courts respond to these cases and the complicated causation issues they can raise. </p> <h3><strong>2. Effect of Ontario amendments</strong></h3> <p><a href="/fr/insights/2020/09/bill-161-sweeping-changes-to-ontarios-class-proceedings-act-take-effect-october-1" target="_self">Significant amendments</a> to the <em>Ontario Class Proceedings Act</em> apply to cases commenced after Oct. 1, 2020. 2023 is the year in which we are likely to begin to see decisions interpreting the effect of those amendments – generally viewed as defendant-friendly – and whether they will have a significant effect on the outcome of certification motions.</p> <h3><strong>3. Forum for competition claims</strong></h3> <p>As noted above, 2021 saw fewer competition law cases commenced in Ontario Courts, and more in Federal Courts. Watch for class counsel possibly reverting to filing in Ontario in 2023, in the wake of a series of recent Federal Court decisions that denied certification to competition law cases.</p> <h2>Top 3 takeaways</h2> <h3><strong>1. Take a proactive approach</strong></h3> <p>Sometimes, class actions are won or lost before the claim is commenced. If you know you have potential liability, seek advice from lawyers who specialize in defending class actions and ensure that you preserve and gather evidence that may be helpful to resisting certification and the claim on the merits. You should also consider whether appropriate remediation methods (like a recall, voluntary compensation program, apology, etc.) could reduce the likelihood that a class action will be successful. <em>The Coles v. FCA</em> <em>Canada</em> decision, discussed above, illustrates that courts may consider an appropriate remedial program to be a “preferable procedure” to a class action. In the right case, a carefully designed remedial program can save legal costs and preserve good will.</p> <h3><strong>2. Defendants should keep fighting certification</strong></h3> <p>Recent trends have shown that defendants can successfully resist certification if they adopt the right strategy and develop a proper evidentiary record. Successful strategies can include challenging the plaintiffs’ ability to prove that class members have suffered damages. For example, in <em>Palmer v. Teva Canada Ltd</em>., the Ontario Superior Court of Justice denied certification of a product liability claim because, while the plaintiff alleged an increased risk of harm from a drug, that harm had not yet materialized. <a href="/fr/insights/2022/12/product-liability-drug-claim-denied-under-class-proceedings-act" target="_self">Read more about that case</a>.</p> <h3><strong>3. Keep watching the hotspots</strong></h3> <p>As always, companies and other organizations should continue to monitor trends in the types of class actions that plaintiffs are bringing and that are getting certified, and then pay particular attention to those areas of potential liability. This should include monitoring policies, procedures and governance structures that relate to those areas. Recently, securities, products liability, consumer protection and labour and employment claims have been the most common in Ontario. Companies and other organizations should consult legal counsel as soon as they identify issues or receive complaints that could form the basis of class actions, so they can consider remedial measures and start to prepare for litigation well in advance of a claim. To get a sense of where your risk lies, monitor and track complaints whether sent directly to you or expressed through social media.</p> <h2>Where to learn more</h2> <ul> <li><a href="/fr/insights/2022/06/ontario-class-actions-2021-year-in-review" target="_self">BLG’s Ontario Class Actions 2021 Year-End Review</a></li> <li><a href="https://www.blg.com/en/insights#sort=%40blgcontentdate%20descending&numberOfResults=15&f:PracticeAreas=[Disputes%7CClass%20Actions]#sort=%40blgcontentdate%20descending&numberOfResults=15&f:PracticeAreas=[Disputes%7CClass%20Actions]" target="_self">BLG’s Recent client bulletins on class actions</a></li> <li><a href="/fr/insights/2020/06/a-summary-of-canadian-class-action-procedure-and-developments" target="_self">BLG’s Summary of Canadian Class Action Procedure and Developments</a></li> <li><a href="/fr/services/practice-areas/disputes/class-actions">BLG's Class Actions service page</a></li> </ul>Fri, 15 Dec 2023 00:00:00 Z{D9AF236D-9AA1-4DB8-8F89-433E8E64A94C}https://www.blg.com/fr/insights/2023/ri/the-managed-service-at-the-intersection-of-property-management-and-commercial-leasingThe managed service at the intersection of property management and commercial leasing<h3 style="text-align: center;"><em>This is part two of a series on managed services</em></h3> <p>In our last article, <a href="/fr/insights/2023/10/what-does-a-managed-service-look-like-in-the-legal-world" target="_self">What does a managed service look like in the legal world?</a> we described a managed service as the practice of outsourcing to an external legal service provider the responsibility for managing a certain workstream for the purpose of improved operations and reduced budgetary expenditures. Let us now examine how the managed service model can operate in the world of commercial leasing.</p> <p>While every client has different program requirements, a mature managed service model for leasing services typically has the following features:</p> <div style="overflow: hidden; scrolling: no; position: relative;width: auto;padding: 0 0 128.74%;height: 0;top: 0;left: 0;bottom: 0;right: 0;margin: 0;border: 0 none;" id="experience-6571e986eb68b" data-aspectratio="0.77677841" data-mobile-aspectratio="0.26919242"><iframe src="https://view.ceros.com/borden-ladner-gervais/ai-in-leasing-beyond-11532-2-2?heightOverride=1223&mobileHeightOverride=2006" style="position: absolute;top: 0;left: 0;bottom: 0;right: 0;margin: 0;padding: 0;border: 0 none;height: 1px;width: 1px;min-height: 100%;min-width: 100%;" frameborder="0" class="ceros-experience" title="23-BD11767 Managed-Services" scrolling="no"></iframe></div> <p> </p> <p>In addition, a managed service model may make use of various technologies to enhance the quality of output and efficiency such as AI, document automation, intelligent document review tools and data management systems. At Beyond Leasing, we also offer data analytics tools that help the client gain valuable insights from large volumes of data.</p> <p>In our experience, property owners have much more control over the leasing process and can oftentimes dictate the documentation used for the location. As a result, there is less variation in the documents which can lead to greater ease the implementation of the model. Property owners usually have a discrete suite of documents and well-established step downs. This means that the implementation of the managed service can be easier.</p> <p>On the other hand, most tenants are required to be reactive, having to make do with landlord-produced forms which can vary widely from landlord to landlord and even regionally. While this can lead to an increase in the cost of lease negotiations, a managed service can provide for significant cost reduction and greater consistency.</p> <p>Very rarely do our clients come to us with a fully developed leasing program that can be transformed into a managed service. For this reason, our implementation services can assist our clients in making sure all the fundamental building blocks are in place to deliver the best results. To this end, we have developed a program which allows us to take the measure of our clients' state of health in regard to leasing processes. This is often the first step in the development of a managed service program for our new clients.</p> <p>For find out more about Beyond Leasing’s Financial Times Innovation Award for our managed service in 2022, please contact us at the following: <a href="mailto:BeyondLeasing@blg.com">BeyondLeasing@blg.com</a>.</p>Fri, 15 Dec 2023 00:00:00 Z{446DCE41-EA21-4C64-9E3C-8847DC2B4A06}https://www.blg.com/fr/insights/2023/12/first-supervisory-policies-to-describe-registration-criteria-for-retail-payment-activities-actFour-step test for PSPs: First supervisory policies to describe registration criteria for Retail Payment Activities Act<p>On the heels of the recently finalized <em>Retail Payment Activities Regulations</em>, the Bank of Canada (the Bank) has shared a trove of information, including supervisory policies, case scenarios, and frequently asked questions (collectively referred to as “Guidance”), to expound on its interpretation of who will be subject to its new mandate. The Guidance represents a continuation of the wide net that the Government of Canada has cast by way of the <em>Retail Payment Activities Act </em>(the RPAA), and its stated expectation that approximately 2,500 companies will be required to register with the new regime. </p> <p>As we have <a href="/fr/insights/2023/11/canadas-retail-payment-activities-framework-to-take-off-in-november-2024" target="_self">previously mentioned</a>, payment service providers (PSPs) will be required to register with the Bank of Canada in November 2024 and begin complying with supervisory expectations by September 2025.</p> <p>One of the advantages of registration is that, following anticipated amendments to the <em>Canadian Payments Act</em>, registered PSPs may be eligible to become members of Payments Canada and to access other core payment systems such as the real-time rail (once it is operational).</p> <h2>The four-step test to determine registration</h2> <p>The Bank’s Guidance characterizes who will need to register using a four-step test, which can be summarized as follows:</p> <ol> <li>Are you a <strong>payment service provider?</strong></li> <li>Do you perform a <strong>retail payment activity?</strong></li> <li>Where is your <strong>place of business</strong>?</li> <li>Are you or your activities <strong>excluded </strong>from the RPAA?</li> </ol> <h2>Step 1: Payment service provider</h2> <p>PSPs are individuals or entities that perform <strong>payment functions</strong> as a service or business activity that is <strong>not incidental</strong> to another service or business activity. The Bank’s Guidance expands significantly on its view of how the payment functions and incidental should be interpreted.</p> <h3>Payment functions</h3> <p><strong>i. Providing or maintaining a payments account</strong></p> <p>You are providing or maintaining an account on behalf of an end user if you store end-user personal or financial information in relation to future electronic funds transfers (EFTs). Personal or financial information is defined very broadly to include virtually any end user information that could be used to facilitate an EFT. Notably, you may be performing this payment function even if customers do not have direct access to their account.</p> <p><strong>ii. Holding funds</strong></p> <p>You are holding funds on behalf of an end user if you keep funds <strong>at rest</strong> <strong>and available</strong> for future withdrawal or transfer by a payer or payee (i.e., end user). Notably, funds in transit are not deemed to be held; this is important as the end-user funds safeguarding expectations will apply to PSPs that are deemed to hold funds.</p> <p><strong>iii. Initiating EFTs</strong></p> <p>You are initiating an EFT if you are the individual or entity that launches the first payment instruction enabling an EFT requested by a payer or payee. The Bank distinguishes between push payments and pull payments; ultimately, the key point is that for any particular transaction, only one individual or entity performs initiation, and it is the individual or entity that captures the data inputs from the payer and payee at the onset of the transaction.</p> <p><strong>iv. Authorizing EFTs or transmitting, receiving, or facilitating instructions in relation to EFTs</strong></p> <p>This payment function appears to be the broadest, as it includes several components. In terms of authorization, the key question to consider is whether you enable an EFT to happen. For example, if you request that an end user confirm sending or receiving an EFT, confirm whether the end user has sufficient funds, establish a pre-authorized payments arrangement with end users, or debit or credit accounts, then you are authorizing EFTs.</p> <p>In terms of transmission, reception, and facilitations, the key question is whether you send or receive payment instructions. Notably, the Bank also states that providing the infrastructure that enables payment instructions to be sent or received is also covered by this payment function, which could significantly broaden the scope of PSPs to include various technology providers.</p> <p><strong>v. Clearing and settlement services</strong></p> <p>Activities that could meet the threshold of clearing services include several activities that are a precursor to settlement, such as acting as a clearing agent in connection with a clearing and settlement system, calculating final positions and netting positions, and confirming availability of funds for settlement.</p> <p>Settlement refers to the discharge of an obligation. According to the Bank’s Guidance, you are only performing settlement services if you provide settlement services to <em>other</em> entities (which can include other PSPs). Therefore, internal settlement amongst different end users of a single PSP would not be considered settlement for these purposes.</p> <h3>Incidental</h3> <p>Incidental has long been one of the most enigmatic parts of the RPAA. Given the breadth of the payment functions described above, the incidental analysis may be pivotal to excluding entities that would otherwise be required to register with the Bank.</p> <p>The Bank has published a few guiding principles and indicators with respect to what constitutes “incidental”. The Bank states that you are likely not a PSP if you perform payment functions only to directly support a non-payment service or business activity you undertake, in which case your payment functions may be considered incidental to your non-payment business. For example, if the payment functions are performed because they are <strong>necessary</strong> to a non-payment service or activity, then it would be incidental and therefore exempt from the RPAA.</p> <p>On the other hand, the Bank posits that you are likely a PSP if you perform a payment function as a distinct service or business activity that does not exclusively support a non-payment service or business activity.</p> <p>The Bank has described some indicators that it cautions should not be rigidly applied and that the Bank will weigh subjectively to conduct a contextual analysis based on the evidence and information available in each case. The indicators include:</p> <ul> <li><strong>Revenues or commercial advantage</strong>: A payment function is likely not an incidental service or business activity if it directly generates revenues or provides you with a direct commercial advantage.</li> <li><strong>End-user expectations</strong>: If an end user can reasonably expect or understand to be receiving payment services when using or receiving the services you offer, this could indicate that the payment function is a distinct service and is not incidental to your other non-payment service or business activity.</li> <li><strong>Marketing/advertising:</strong> Marketing or advertising the payment functions you perform can indicate that you offer the payment functions as a separate service or business activity and therefore they are not performed incidentally.</li> </ul> <p>While the indicators are helpful, applying them on a case-by-case basis requires substantial analysis of each activity, and any determination remains subject to the Bank’s discretion.</p> <h2>Step 2: Retail payment activity</h2> <p>Retail payment activities are payment functions performed in relation to EFTs that are made in Canadian or foreign currency, or using a “unit that meets prescribed criteria”. There is currently no other prescribed unit. In line with the Bank’s Guidance, it may be helpful to think of a payment function as preceding an EFT (e.g., a payment instruction is initiated and authorized, followed by the actual movement of funds).</p> <p>Currently, registration requirements only apply to fiat currencies (e.g., CAD, USD, etc.) and do not apply to virtual currencies. However, further criteria could be prescribed in the regulations that would include other units (e.g., virtual currency units).</p> <h2>Step 3: Place of business (Domestic vs. Foreign)</h2> <p>For PSPs who have a place of business in Canada, this step is clear. However, the analysis is more nuanced for PSPs that operate from outside of Canada, in which case the RPAA only applies to PSPs that perform retail payment activities for an end user in Canada <em>and</em> direct retail payment activities at individuals or entities in Canada. The language used in the RPAA and the Bank’s Guidance are similar to the approach taken by the <em>Proceeds of Crime (Money Laundering) and Terrorist Financing Act </em>(PCMLTFA) and Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) with respect to foreign money service businesses.</p> <p>The Bank states that factors to consider to ascertain whether an end user is in Canada include the end user’s IP address at the time the payment function was performed, the shipment address of goods or the address where services are provided is in Canada, or if the end user’s payment product or service (e.g., banking services; debit, prepaid, or credit card; or payment processing service) is localized for the Canadian market.</p> <p>In terms of directing services at those in Canada, the Bank takes a very similar approach to FINTRAC by considering, for example, whether a business markets or advertises at those in Canada, its website has a “.ca” domain name, or is listed in a Canadian business directory.</p> <p>At the same time, FINTRAC and the Bank have taken opposite approaches to determining when an individual is considered “in Canada”. FINTRAC’s guidance for foreign MSBs states that an individual may be deemed to be "in Canada" even when they are temporarily living, attending school, working, or vacationing outside of Canada. Conversely, the Bank’s guidance for foreign PSPs states that an individual will not be considered to be in Canada when they are temporarily living outside of Canada, attending school outside of Canada, working outside of Canada or vacationing outside of Canada. The Bank’s approach for the RPAA is reasonable because if Canadians who temporarily traveled abroad were considered “in Canada”, then foreign PSPs around the world could inadvertently be scoped in to the RPAA when they service Canadians who are abroad.</p> <h2>Step 4: Exclusions</h2> <p>The Bank differentiates between entity-based and activity-based exclusions. Entity-based exclusions scope out entire entities from the application of the RPAA; these include banks and authorized foreign banks, insurance companies, and trust companies.</p> <p>Activity-based exclusions scope out certain activities from the RPAA, but do not necessarily mean that the entity as a whole is excluded from the RPAA (the entity can still be required to register as a PSP if it performs other activities that are not excluded from the regime). For example, payment functions performed in relation to merchant instruments (e.g., specific gift cards or vouchers) are activities that are excluded. Further, “eligible financial contracts” and transactions related to securities performed by individuals or entities that are regulated or exempted from regulation under Canadian securities legislation as defined in National Instrument 14-101 Definitions of the Canadian Securities Administrators are excluded.</p> <p>With respect to the exemption for systems designated by the <em>Payment Clearing and Settlement Act </em>(PCSA), it is clear that the Bank takes a very narrow view to the exemption to only include the operators of those designated systems. For example, the Bank states that participating in or using the designated system does not exclude a PSP from having to register. Rather, an individual or entity must register if it performs any payment function outside of the designated system.</p> <p>In terms of agents of PSPs, registered PSPs are responsible for ensuring that its agents comply with the RPAA’s requirements and therefore the agent does not have to independently register with the Bank. However, if an agent also performs retail payment activities outside of the agency relationship it has with a registered PSP, it may be required to register as a PSP independently.</p> <p>Affiliated entities that each individually perform payment functions are not excluded from registering as a PSP. Therefore, subsidiaries may be required to register separately even if their parent organization is already registered.</p> <p>Businesses now have more to think about when assessing whether or not their activities are subject to the new regime.</p> <h2>Next steps</h2> <p>If you would like to know more about the RPAA, its regulations or have any questions regarding the impact it may have on your business activities, please do not hesitate to reach out to the authors of this article or any member of <a href="/fr/services/industries/financial-services/regulatory" target="_self">BLG’s Financial Services Regulatory Group</a>.</p> <p>For more information on the Framework or related financial services regulatory matters, please feel free to contact any of the authors below.</p>Fri, 15 Dec 2023 00:00:00 Z{C162505B-43D8-4D3D-81AF-9814103EE573}https://www.blg.com/fr/insights/2023/12/the-professionalism-series-the-changing-landscape-of-human-rights-in-ontarioSérie sur le professionnalisme : Évolution des droits de la personne en Ontario<p>Cette série en deux parties a réuni un panel de juristes et de spécialistes pour explorer l’avenir de la législation et des politiques touchant les droits de la personne, qui semblent s’orienter vers la pleine égalité des droits et des chances, en contrant la discrimination et en mettant de l’avant l’équité, la diversité, de l’inclusion (« ÉDI »).</p> <p>Dans la première partie, <a rel="noopener noreferrer" href="https://www.linkedin.com/in/patricia-deguire-a326321a/" target="_blank">Patricia DeGuire</a>, commissaire en chef de la Commission ontarienne des droits de la personne (« CODP »), nous a présenté un bref historique des droits de la personne au Canada et en Ontario et de leur protection dans cette province. Elle a aussi décrit le plan stratégique de la CODP pour favoriser une culture des droits de la personne en Ontario et son incidence sur l’avancement de l’ÉDI.</p> <p>Dans la deuxième partie, Mme DeGuire était accompagnée de <a rel="noopener noreferrer" href="https://www.linkedin.com/in/marsha-lindsay-2b284a27/" target="_blank">Marsha Lindsay</a>, vice-présidente des services juridiques, du droit du travail et de l’emploi et des ressources humaines chez Loblaws, et de <a href="/fr/people/b/brown-harrison">Harrison Brown</a>, avocat principal au sein du groupe Droit du travail et de l’emploi de BLG. Il et elles ont parlé des progrès du cadre législatif ontarien en matière de droits de la personne et ont fourni des indications précieuses pour les professionnel·les du secteur, notamment en soulignant l’importance de la transparence pour encourager l’équité au travail.</p> <p>Vous trouverez ci-dessous un aperçu de la série en deux parties. Pour en savoir plus, visionnez le webinaire complet ou lisez la transcription*.</p> <p><em>* en anglais seulement.</em></p> <h2>Partie 1 : Évolution des droits de la personne en Ontario</h2> <p>Les mesures de protection des droits de la personne en Ontario ont souvent été le fruit de pressions populaires, progressant jusqu’à s’étendre à divers motifs de discrimination illicites, notamment la race, la citoyenneté, le sexe, le handicap, l’orientation sexuelle ainsi que l’identité et l’expression de genre.</p> <h3><em>Code des droits de la personne</em></h3> <p>En 2022, le <a rel="noopener noreferrer" href="https://www.ohrc.on.ca/fr/le-code-des-droits-de-la-personne-de-l%E2%80%99ontario" target="_blank"><em>Code des droits de la personne</em></a> ontarien (le « <em>Code </em>»), premier en son genre au Canada, a eu 60 ans.</p> <p>Le <em>Code</em> vise principalement à protéger la dignité et la valeur de chaque personne, à garantir l’égalité des droits et des chances et à favoriser un climat de respect et de compréhension mutuelle. Il a préséance sur les autres lois provinciales, est de nature réparatrice et non pénale et tient compte de l’incidence d’une action sur une personne plutôt que de l’intention qui la sous-tend.</p> <h3>Commission ontarienne des droits de la personne</h3> <p>Depuis sa fondation en 1961, la CODP a largement contribué à faire progresser les droits de la personne en Ontario. En 2008, dans la foulée du projet de loi 107, une réforme des mécanismes de protection des droits de la personne dans la province a conduit à la création de trois piliers : la CODP, le Tribunal des droits de la personne de l’Ontario et le Centre d’assistance juridique en matière de droits de la personne.</p> <p>Aujourd’hui, la CODP se concentre sur la lutte contre la discrimination systémique et sur la promotion de changements systémiques. Parmi d’autres approches, elle a recours au litige stratégique et est amenée à intervenir devant les tribunaux pour établir d’importants précédents et approfondir l’interprétation du <em>Code</em>.</p> <p>Le plan stratégique de la CODP pour 2023-2025 vise à inculquer à la société ontarienne l’importance des droits de la personne; pour ce faire, elle entend collaborer avec diverses institutions pour lutter contre l’intensification des manifestations de haine, en soulignant l’importance d’adopter une approche plurielle.</p> <h3>L’ÉDI sur le lieu de travail</h3> <p>Les politiques d’ÉDI doivent être soigneusement définies, menées de manière transparente et faire partie intégrante des plans d’affaires, des plans stratégiques et des indicateurs de rendement clés. Mme DeGuire a insisté sur le fait que l’ÉDI doit servir de levier stratégique pour combattre le racisme envers les Noir·es et les autres formes de discrimination sur le lieu de travail, et non être un simple artifice pour bien paraître.</p> <p>Ainsi, il faut tout d’abord recruter et fidéliser des personnes issues des minorités, y compris des personnes 2SLGBTQI+, autochtones, noires ou autrement racisées, et bâtir proactivement des politiques qui favorisent la diversité et l’inclusion. Cela nécessite une prise de conscience culturelle, de l’humilité, de la bienveillance et le désir d’adopter de mesures concrètes en faveur du changement.</p> <p>Quatre piliers d’une stratégie d’ÉDI réussie :</p> <ul> <li>Formulation équitable des politiques et processus</li> <li>Décisions éclairées grâce à la collecte de données</li> <li>Mise en œuvre de plans précis pour l’embauche, l’accueil, l’intégration, la formation et l’inclusion de nouvelles recrues</li> <li>Responsabilisation individuelle, transparence, et participation active des leaders</li> </ul> <h3>ÉDI – Progrès et défis</h3> <p>De plus en plus d’investisseurs et de parties prenantes veulent que la diversité soit inscrite dans le cadre de gouvernance de leurs partenaires d’affaires. Mme DeGuire a reconnu que des progrès ont été réalisés en ce qui a trait à la diversité des genres au sein des conseils d’administration et des équipes de direction, et que la représentation des personnes racisées a également augmenté.</p> <p>Cela dit, la représentation des personnes 2SLGBTQI+ reste faible.</p> <h2>Partie 2 – Panel : Résultats équitables</h2> <p>Dans la deuxième partie, le panel a répondu à des questions sur l’importance des initiatives fondées sur les données, de la transparence et de la promotion de l’ÉDI en milieu de travail. Il a également été question de l’importance de se conformer au <em>Code </em>et de tenir compte des besoins du personnel.</p> <p>Voici quelques points clés de la discussion :</p> <ul> <li>Les employeurs peuvent s’appuyer sur le <em>Code </em>pour mettre en place des programmes de promotion de la diversité et de l’inclusion. Pour illustrer son propos, Mme Lindsay nous a mentionné que c’est justement ce que Loblaws a fait en déployant un programme d’accompagnement pour les personnes noires au sein du personnel pour améliorer leurs compétences de leadership et leur représentation dans les postes de gestionnaires.</li> <li>Les plans d’affaires, les budgets et les indicateurs de rendement clés devraient toujours prendre en compte l’ÉDI.</li> <li>La collecte de données est essentielle pour prendre le pouls d’une organisation à cet égard, identifier les lacunes et lancer des initiatives efficaces. Pour dissiper la méfiance souvent associée à la collecte de données, il faut faire preuve de transparence et démontrer que les programmes axés sur les données ont un effet positif.</li> <li>Les entreprises comme Loblaws adoptent des modèles de travail hybrides plus souples, qui permettent de trouver un équilibre entre les besoins d’accommodement et les exigences d’affaires. Il est primordial d’évaluer les besoins individuels avec respect et empathie.</li> <li>Le <em>Code </em>impose aux employeurs une obligation d’accommodement jusqu’au point de « préjudice injustifié ». Les accommodements individuels peuvent non seulement profiter aux personnes qui en bénéficient, mais aussi contribuer à renforcer le caractère inclusif des politiques de l’entreprise.</li> <li>Les organisations doivent se doter d’une procédure de traitement des demandes d’accommodement afin de garantir l’équité et la conformité. Les responsables RH devraient en documenter chaque étape à des fins de transparence et de reddition de compte.</li> <li>Quelques stratégies pour résoudre rapidement, voire prévenir, les problèmes de discrimination : <ul> <li>Mettre en place une ligne téléphonique anonyme pour signaler les incidents;</li> <li>Collecter et analyser des données afin de dégager des tendances et de cerner les aspects à surveiller;</li> <li>Privilégier les approches non antagonistes à la résolution des conflits, telles que la médiation;</li> <li>Donner la priorité à la résolution interne plutôt que de faire intervenir une organisation externe.</li> </ul> </li> </ul>Fri, 15 Dec 2023 00:00:00 Z{232AF9A9-FD55-421A-8BAE-C53D9AD70F9F}https://www.blg.com/fr/insights/2023/12/onca-upholds-liability-finding-against-municipality-in-icy-roadway-caseONCA upholds liability finding against municipality in icy roadway case<p>The Ontario Court of Appeal (ONCA) decision in <a rel="noopener noreferrer" href="https://canlii.ca/t/k1bpg" target="_blank"><em>Wasylyk v. Simcoe (County), </em>2023 ONCA 781</a> has upheld a trial judge’s finding of liability in a winter maintenance roadway case brought against the County of Simcoe (Simcoe). The plaintiff suffered catastrophic injuries amounting to an agreed upon $16 million dollars in damages. </p> <h2>Trial decision</h2> <p>The accident occurred when the plaintiff lost control of her vehicle while driving at night on a winter road, crossed the midline, and collided with oncoming traffic. There were heavy snow squalls and drifting snow in and around the day of the accident.</p> <p>The trial judge found that the roadway was in a state of non-repair, which the Court defined as a state in which drivers, if exercising ordinary care, could not traverse safely. Patrollers identified drifting snow and icy spots during their patrols. Further, none of the statutory defences in <a rel="noopener noreferrer" href="https://www.ontario.ca/laws/statute/01m25#BK57:~:text=Defence,of%20repair%20if" target="_blank">s. 44(3)</a> of the <a rel="noopener noreferrer" href="https://www.ontario.ca/laws/statute/01m25#BK57" target="_blank"><em>Municipal Act, 2001</em></a> were found to benefit Simcoe. With respect to section 44(3)(a) and 44(3)(c), Simcoe was aware of the drifting snow hazards around the area of loss, and did not meet the <a rel="noopener noreferrer" href="https://www.ontario.ca/laws/regulation/020239" target="_blank">MMS standards</a> in place at the time which required icy roads to be treated within three hours of Simcoe becoming aware of their icy condition. With respect to section 44(3)(b), the court held that while Simcoe had “an effective system” for road patrolling, the snowplow operator failed to follow through with the applicable procedure. The Court was critical of a three-hour period during the snowplow operator’s shift when the operator was at the yard and not out maintaining the roads.</p> <p>Lastly, the court found no contributory negligence on the part of the plaintiff.</p> <h2>Court of Appeal decision</h2> <p><strong> </strong></p> <p>On appeal to the ONCA, Simcoe’s appeal was dismissed on all grounds.</p> <p>Simcoe argued that the trial judge failed to apply the proper legal test in determining whether the highway was in a state of disrepair. Simcoe noted that no other drivers around the plaintiff experienced difficulties traversing the roadway. The ONCA held that this was only one factor of the overall analysis, and there was ample evidence from emergency responders, other drivers, and Simcoe employees that the road at the time of the accident was icy and slippery, and the finding of a state of disrepair was upheld.</p> <p>The ONCA was also satisfied that the trial judge’s findings on causation were proper. Her factual findings inferred that it was the hazardous conditions of the road that cause the plaintiff to lose control of her vehicle. Lastly, the ONCA found no error in the trial judge’s finding that the plaintiff was not contributorily negligent.</p> <h2>Takeaway</h2> <p>This case is a reminder that municipalities must ensure not only that internal procedures recognize and are aligned with the MMS, but that such procedures are followed through, in particular in heavy weather conditions requiring around the clock maintenance.</p> <p>BLG has a robust municipal liability practice. For more information, please reach out to any of the key contacts listed below.</p>Thu, 14 Dec 2023 00:00:00 Z{8A7A531B-1CA9-474E-9D0F-A5B820419C46}https://www.blg.com/fr/insights/2023/12/the-future-of-startups-with-zayzoons-darcy-tuerViser un coup de circuit : l’avenir des jeunes entreprises avec Darcy Tuer, de ZayZoon<p> <span style="font-size: 24px;">Le secteur calgarien des technologies est en pleine effervescence : des entreprises qui font parler ouvrent boutique dans une ville habituellement associée aux hydrocarbures.</span> </p> <p style="text-align: center;"><img alt="Les investisseurs misent en fait sur la réussite du chef de la direction, des fondateurs et des équipes qu’ils mettent sur pied." style="height:100%; width:100%;" src="/-/media/insights/2023/zayzoon-quotes-fr-bio.jpg" /></p> <p>Dans ce milieu, un nom est sur toutes les lèvres, celui de ZayZoon. Avec l’aide de BLG, cette entreprise à succès canadienne a récemment mobilisé 34,5 millions de dollars américains dans le cadre d’une entente de financement par actions de série B. La conversation entre Cameron MacCarthy, associé du cabinet, et Darcy Tuer, cofondateur et chef de la direction de ZayZoon, contient des « conseils d’ami » pour les entreprises en démarrage. Nous leur proposons de découvrir ce qui fait le succès de ZayZoon et d’autres jeunes entreprises de technologies à Calgary.</p> <h3><span style="color: #002c5f;">Cameron : Difficile de croire que sept années se sont écoulées depuis que Craig et toi m’avez présenté Tate et que nous avons parlé de votre projet d’entreprise. Vous avez fait beaucoup de chemin depuis sa concrétisation. Je crois que les jeunes entreprises aimeraient connaître quelques-unes des leçons que vous avez tirées de la fondation de ZayZoon.</span></h3> <p><strong><span style="color: #002c5f;">Darcy :</span></strong> Je dirais d’abord que la réussite d’une entreprise de technologies dépend de l’identité de ses fondateurs. Il est important d’établir d’entrée de jeu pourquoi vous fondez l’entreprise, puis d’aller chercher les bonnes personnes qui comprennent cette raison d’être et sont capables de mettre le projet en branle. Je dis toujours qu’on est la moyenne des cinq personnes qu’on fréquente le plus. Les investisseurs misent en fait sur la réussite du chef de la direction, des fondateurs et des équipes qu’ils mettent sur pied.</p> <p>Mon deuxième conseil est de s’efforcer de bâtir des relations qui ne sont pas purement transactionnelles. Dans les cercles calgariens, il y a environ trois degrés de séparation. Les contacts jouent pour beaucoup. L’équipe de ZayZoon a consacré plus d’une quinzaine d’années à tisser des liens personnels et professionnels, et nous devons notre croissance à ces liens.</p> <p>Notre démarche ne se résume pas à nous demander ce que notre interlocuteur peut faire pour nous. Notre attention se porte bien au-delà. Raconter son histoire, présenter son message, apprendre les uns des autres. Qu’il s’agisse d’hydrocarbures, de gestion de patrimoine ou de coiffure, on rêve de faire quelque chose, et on incite des gens à faire partie de l’aventure.</p> <h3><span style="color: #002c5f;">Cameron : Pourquoi avoir établi ZayZoon à Calgary?</span></h3> <p><strong><span style="color: #002c5f;">Darcy :</span></strong> C’est ici que ma carrière d’entrepreneur a débuté, et j’adore cette ville. Avec du recul, je dirais que bâtir ZayZoon, c’est créer de la valeur d’entreprise à Calgary, pour soutenir les entrepreneurs de demain et créer un environnement formidable pour mes enfants et ceux des autres. Voilà mon pourquoi. Je veux que les gens voient qu’ici, il se passe des choses qui ont un sens. Qu’ils voient qu’ici, des entreprises prospères dynamisent l’économie.</p> <p style="text-align: center;"> <img alt="" src="/-/media/insights/2023/zayzoon-stats-fr2.jpg?h=690&w=690&hash=1ED6BF865D88CA917138F2E22E98AEA1" style="width: 75%; height: 75%;" /> </p> <h3><span style="color: #002c5f;">Cameron : Selon ton expérience, quel est le plus grand défi en matière de levée de capitaux pour les jeunes entreprises?</span></h3> <p><strong><span style="color: #002c5f;">Darcy : </span></strong>L’une des plus belles choses avec le démarrage d’une entreprise, c’est qu’on peut s’en servir pour se fixer des objectifs. Il y a cependant le risque de confondre son objectif personnel – comme devenir indépendant de fortune – avec le succès de l’entreprise.</p> <p>Pour que ZayZoon poursuive sa croissance, il nous fallait trouver des investisseurs institutionnels. Nous devions viser un coup de circuit, et non nous contenter d’un coup sûr. Il fallait abattre 20 fois plus de travail, et les chances de frapper la balle étaient plus minces, mais nous avions déjà marqué un ou deux points. Nous voulions plus.</p> <p>L’un de nos investisseurs institutionnels a comparé notre succès au fait de remporter une médaille d’or. La mauvaise nouvelle, c’est qu’il faut renouveler l’exploit. Nous venons de nous embarquer pour cinq ou sept ans de souffrances et de douleurs – sans garantie de succès –, ce qui cadre plus ou moins avec notre objectif personnel de nous enrichir.</p> <p>Heureusement, j’ai rencontré les autres fondateurs avant de signer la feuille des modalités, et on a convenu que notre motivation n’était pas financière. Il serait faux de dire que l’argent ne compte pas pour nous, bien sûr, mais nous voulons changer les choses. Nos investisseurs institutionnels nous disent que les entreprises les plus prospères qu’ils ont soutenues avaient été fondées par des gens qui souhaitaient faire partie de quelque chose de plus grand qu’eux, d’un projet porteur de sens, et non simplement faire de l’argent.</p> <p style="text-align: center;"><img alt="Pour que ZayZoon poursuive sa croissance, il nous fallait trouver des investisseurs institutionnels. Nous devions viser un coup de circuit, et non nous contenter d’un coup sûr. " style="height:100%; width:100%;" src="/-/media/insights/2023/zayzoon-quotes-fr.jpg" /></p> <h3><span style="color: #002c5f;">Cameron : Autrement dit, les fondateurs doivent arriver à leur propre définition du succès et l’utiliser comme étalon?</span></h3> <p><strong><span style="color: #002c5f;">Darcy :</span></strong> Tout à fait. Un grand fondateur détermine un objectif très audacieux pour l’entreprise, puis le compare à son objectif personnel en se demandant si les deux peuvent coexister dans le même univers.</p> <h3><span style="color: #002c5f;">Cameron : Dans l’aventure de ZayZoon, l’une des clés consiste à trouver les bons conseillers pour chacun des jalons. Comment choisissez-vous vos conseillers d’affaires?</span></h3> <p><strong><span style="color: #002c5f;">Darcy :</span></strong> Beaucoup de conseillers brillants savent faciliter telle ou telle tâche, mais il faut choisir la personne en fonction des valeurs.</p> <p>ZayZoon a quatre valeurs fondamentales : l’ardeur (nous exécuter dans les meilleurs délais), la virtuosité (actualiser constamment nos compétences), le souci des gens (nos employés sont notre principal atout) et la confiance (faire la bonne chose). Tous les cofondateurs incarnent ces valeurs, et on a une excellente capacité de changer de cap, même si l’entreprise compte aujourd’hui plus d’une centaine de personnes.</p> <p>BLG – et surtout toi, Cameron – était le bon choix de conseiller juridique pour ZayZoon. Toi et ton cabinet, vous montriez que vous vouliez voir l’entreprise réussir et que vous saviez réunir les bonnes personnes autour de la table. À l’étape de la série B, il nous fallait un avocat qui comprenait nos besoins, qui vulgarisait bien les notions juridiques et qui savait négocier. On aurait dit que BLG était le prolongement de notre équipe de fondateurs et de notre direction générale, comme une sorte de cofondateur juridique.</p> <p>Tout au long de son parcours, votre jeune entreprise saura s’entourer des bons conseillers si elle fait de ses valeurs essentielles le moteur de son travail et de ses relations.</p> <h3><span style="color: #002c5f;">Cameron : Parlons de Long Calgary. Cette initiative pilotée par Tate, un cofondateur de ZayZoon, a pour but de réunir les gens, de tisser des liens et de faire croître l’écosystème calgarien des technologies. J’étais présent au lancement de Long Calgary – un événement couronné de succès –, et il est évident que ce mouvement peut aider notre économie. Peux-tu nous en dire plus sur Long Calgary et ta vision concernant cette initiative?</span></h3> <p><strong><span style="color: #002c5f;">Darcy :</span></strong> La plupart des gens ne se rendent pas compte que la pérennité de Calgary dépend du soutien de la communauté à l’entrepreneuriat. Les entrepreneurs représentent 3 % de la population, mais créent à peu près 84 % des emplois. Malheureusement, les entrepreneurs et leurs entreprises n’ont pas toujours la possibilité de s’entraider.</p> <p>Long Calgary sera pour les fondateurs et les dirigeants de jeunes entreprises l’occasion non seulement de réseauter, mais aussi d’investir dans des entreprises en démarrage de façon prudente et responsable. Ce sera important, compte tenu de l’énorme transfert de richesse des baby-boomers vers les générations montantes, surtout à Calgary, où il y a plus de capitaux dormants par habitant que dans la plupart des villes canadiennes. L’ouverture aux entrepreneurs de différentes occasions d’investissement accessibles a pour bénéfice indirect d’enrichir l’incroyable écosystème local de jeunes entreprises.</p> <p style="text-align: center;"><img alt="J’invite les nouveaux entrepreneurs à se concentrer sur leurs forces." style="height:100%; width:100%;" src="/-/media/insights/2023/zayzoon-quotes-fr2.jpg" /></p> <h3><span style="color: #002c5f;">Avant de partir, as-tu quelque chose à dire aux nouveaux entrepreneurs?</span></h3> <p>Faisant ce métier depuis 23 ans, je dirai simplement que tous les entrepreneurs qui réussissent doivent affronter des embûches du début à la fin. Quand on aime ça, on n’a pas l’impression de travailler. J’invite les nouveaux entrepreneurs à se concentrer sur leurs forces. Si vous arrivez à résoudre des problèmes importants en redoublant d’ardeur, vous êtes sur la bonne voie.</p> <hr /> <p><strong><em>À l’occasion de son 200<sup>e</sup> anniversaire, BLG a lancé la série « <a rel="noopener noreferrer" href="https://www.blg.com/fr/about-us/our-story/blg-200#futureoflaw" target="_blank">L’avenir du droit</a> » qui s’échelonnera sur 2023 et 2024. Elle présente les perspectives de leaders sectoriels sur les sujets brûlants du droit et des affaires pour la prochaine décennie et au-delà, dans le but de susciter le dialogue et d’encourager les organisations partout au Canada à prendre les devants.</em></strong></p>Thu, 14 Dec 2023 00:00:00 Z{970424A9-4B0D-473F-AC28-D597DF5B9A03}https://www.blg.com/fr/insights/2023/12/the-sensor-uk-announces-regulatory-scheme-for-the-use-of-automated-vehiclesDriving into the future: U.K. announces regulatory scheme for the use of automated vehicles<h2>Introduction</h2> <p>On Nov. 8, 2023, <a rel="noopener noreferrer" href="https://bills.parliament.uk/publications/52908/documents/3984" target="_blank">a U.K. Parliamentary bill</a> aimed at facilitating and regulating the safe implementation of self-driving vehicles was introduced. The proposed framework will apply to vehicle systems that are capable of driving with no human input and will identify the legal entities responsible for the safety of these self-driving systems. The Automatic Vehicles Bill (the Bill) is scheduled<strong> </strong>to begin its second reading in the House of Lords on Nov. 28, 2023. The U.K. Bill provides helpful insights for Canadian regulators to ready our legal framework for the deployment of automated vehicles.</p> <h2>Establishing a regulatory scheme for automated vehicles</h2> <p>A “self-driving test” is set out early in the Bill to legally identify vehicle features that are sufficiently adapted to allow a vehicle to travel autonomously for some or all of a journey, without the need for human monitoring. The Bill gives the Secretary of State for Transport broad powers within the regulatory scheme to design an authorization process for determining whether a vehicle meets the self-driving test. Such authorization also involves other regulatory requirements including the reporting of relevant safety data. In general, the authorization process is required to consider whether a vehicle can legally and safely drive itself without human monitoring or intervention. All authorized vehicles must have an “authorized self-driving entity” who will be accountable for the safety of the vehicle and maintaining compliance with any regulatory obligations.</p> <p>Additionally, “no-user-in-charge” (NUiC) vehicles that do not require an individual to be in the vehicle at all, are to be overseen by a licensed NUiC operator. Oversight by the operator will involve knowing where the vehicles are and maintaining the vehicles for safe operation.</p> <p>Crucially, the Bill mandates the establishment of a “Statement of Safety Principles,” serving as a benchmark for evaluating the safety of self-driving vehicles. The Secretary of State must adhere to these safety principles during both the authorization process and ongoing monitoring of self-driving vehicles. The proper functioning of this safety framework relies heavily on extensive access to information and investigation rights given to the Secretary of State.</p> <p>Authorized self-driving entities and NUiC operators may be subject to regulatory sanctions should they fail to meet regulatory requirements or if a vehicle under their control commits a traffic infraction.  Ultimately, this scheme shifts the legal responsibility for self-driving vehicles away from the human user and toward the companies developing and operating such vehicles.</p> <h2>Liability for vehicle use</h2> <p>Where the self-driving feature of a vehicle requires a responsible human to be in the vehicle and in a position to operate the driving controls, the Bill defines that human as a “user-in-charge.” The Bill strictly outlines circumstances where the user-in-charge cannot be held legally liable for offences arising from the way the vehicle is driven. While a vehicle’s self-driving feature is engaged, a user-in-charge is not responsible for controlling the vehicle through steering, accelerating, braking, signalling, or monitoring the driving environment. The Bills grants Users-in-charge immunity from serious road traffic offences and cannot be held liable for criminal offences which arise from self-driving activities. Liability for road traffic offences will fall on the authorized self-driving entities and NUiC operators where a self-driving feature is engaged at the time of the offence. However, users-in-Charge will maintain liability for responsibilities unrelated to the manner of driving, such as ensuring the roadworthiness of the vehicle or that proper insurance is held.</p> <h2>Accountability for offences and policing</h2> <p>The Bill outlines specific sanctions and penalties for non-compliance, most prominently related to the vehicle safety information requirements of authorized self-driving entities and NUiC operators. Additional sanctions or penalties are outlined to manage the dangerous use of vehicles by end users or the tampering with vehicles by third parties. Fines, corrective actions, suspension of operations, and criminal charges in serious cases may apply to offences under this Bill. Further, provisions in the Bill enable existing policing powers to be exercised against automated vehicles and allow for the appointment of inspectors in relation to automated vehicle incidents. Inspectors are appointed for the purpose of carrying out safety investigations to increase the understanding of such incidents and reduce risks of harm from the use of automated vehicles.</p> <h2>Marketing restrictions and consumer protection</h2> <p>To ensure the proper understanding and use by drivers and users-in-charge, the Bill introduces new offences related to the marketing of self-driving vehicles. The Secretary of State is given the power to designate the use of certain words, expressions, symbols, or marks for use only in connection with marketing “authorized” self-driving vehicles. Therefore, only vehicles that meet the safety threshold outlined by the Secretary of State may be marketed as self-driving. These marketing restrictions will also assist consumers in differentiating between vehicles that are “self-driving” and vehicles that simply provide driver assistance.</p> <h2>Conclusion and takeaways</h2> <p>The Automated Vehicles Bill presents a comprehensive and forward-thinking legal framework designed to navigate the integration of self-driving vehicles onto the roads of the United Kingdom. This legislation addresses crucial aspects of automated vehicle regulation, emphasizing safety and accountability while still considering the economic growth potential of this industry.</p> <p>Ultimately, this legislation not only paves the way for the integration of automated vehicles, it also sets a precedent for proactive, adaptable regulatory frameworks that can effectively govern technological advancements in the future. It remains to be seen what regulatory approach Canada will adopt to ready its regulatory framework for the deployment of automated vehicles.</p>Thu, 14 Dec 2023 00:00:00 Z