Starting on December 6, 2013, any company that wishes to obtain
a public contract or subcontract with a value of $10 million or
over must hold an authorization from the Autorité des
marchés financiers (AMF). This requirement applies to
construction, service and public-private partnership contracts and
subcontracts. The announcement was made on November 6, 2013, in the
Gazette officielle du Québec.
This measure is associated with the Integrity in Public
Contracts Act adopted by the Quebec National Assembly in
December 2012. The Act, which is widely referred to as "Bill
1," created a system to ensure the integrity of companies even
before they can tender for or enter into public contracts.
Initially, authorization was required only for construction and
service contracts and subcontracts involving an expense of $40
million or more. That threshold has now been reduced to $10
Certain contracts of the City of Montreal
Since Bill 1 was adopted, the Quebec Government has issued
several orders in council extending the legislation to certain
contracts of the City of Montreal. In particular, an order in
council that came into force on October 23, 2013, covers all
contracts for the construction, reconstruction, demolition, repair
or renovation of the City of Montreal's roads, waterworks and
sewer services that involve expenditures of $100,000 or more and
for which the award process was underway on or began after October
23, as well as subcontracts of the same nature that are directly or
indirectly related to such contracts and that involve an
expenditure of $25,000 or more. Eight other orders in council have
been made that extend the AMF authorization process to the City of
Montreal, regardless of the value of the contracts. The complete
list of orders in council is available on the AMF's
Registration in the RENA
We remind our readers that if the AMF rejects a company's
application for an authorization, the company will automatically be
listed in the Register of enterprises ineligible for public
contracts (RENA). The company will then have to stop working on
public contracts already underway and will not be eligible for any
new public contracts for a fixed period.
It should also be noted that, starting on November 18, 2013,
Quebec companies that wish to apply for an authorization from the
AMF will be required to do so online. Until then, applications may
be sent by mail using the form provided on the AMF's
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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