The Government of Quebec has adopted new Orders in
Council1 lowering the threshold for which enterprises
are required to obtain an authorization from the Autorité
des marchés financiers (the "AMF") pursuant to an
Act Respecting Contracting by Public Bodies (the
"Act") in order to enter into certain contracts and
subcontracts with public bodies and the City of Montreal.
As of December 6, 2013, the threshold will be lowered from C$40
million to C$10 million for the following contracts with public
Construction or services contracts and subcontracts; and
Public-private partnership contracts.
Also, as of October 23, 2013, the thresholds were lowered for
the following contracts and subcontracts with the City of
Contracts for the construction, reconstruction, demolition,
repair or renovation of roads, waterworks and sewer services that
involve an expenditure equal to or greater than C$100,000; and
Subcontracts of the same nature directly or indirectly related
to the aforementioned contracts that involve an expenditure equal
to or greater than C$25,000.
As a result, all enterprises wishing to submit a bid following a
call for tenders by a public body for a contract or a subcontract
mentioned above, and involving an expenditure equal to or over the
new threshold, must first demonstrate to the AMF that they meet the
highest standards of integrity that the public is entitled to
expect from a party to a public contract or subcontract. The
AMF's authorization is granted following an investigation
carried out in cooperation with the Unité permanente
anti-corruption (Permanent Anti-corruption Unit).
The lowering of the threshold by Order in Council is in line
with the Government of Quebec's ultimate goal to be implemented
over the next few years, of enterprises being subject to the
obligation to obtain an integrity certificate from the AMF before
entering into most public contracts. Until now, the requirement
under the Act to obtain an authorization from the AMF applied only
to construction or services contracts or subcontracts involving an
expenditure equal to or more than C$40 million; public-private
partnership contracts involving such an expenditure; as well as 225
contracts on which the City of Montreal had specifically asked the
government to impose such measures.
The public bodies that must require enterprises to obtain the
AMF's prior authorization include Crown corporations, Quebec
government departments, school boards, colleges and universities,
health and social services agencies, and municipalities.
The lowering of the threshold of contracts to C$10 million will
subject approximately 400 additional enterprises to the requirement
to obtain the AMF's prior approval.
City of Montreal
With respect to the City of Montreal, the lowering of the
threshold for some contracts and subcontracts was adopted following
a request to that effect made by the City of Montreal's
executive committee to the Quebec government. The City of
Montreal's interim mayor, Laurent Blanchard, hoped that the
adoption of the Order in Council this Fall would give enterprises
enough time to obtain their authorization during the Winter, so as
not to delay the contract award process in the Spring of 2014.
Since the enactment of the Act nearly a year ago, 73 of the City
of Montreal's files have been submitted to the AMF.
Approximately 43 enterprises doing business with the City of
Montreal have been accredited, 2 have been denied and 28 others are
awaiting a response from the AMF.
Processing of requests for authorization
It should be noted that the AMF's procedure for the
application for authorization has recently been modified. As of
November 18, 2013, enterprises must complete the AMF's forms
and forward their application for authorization through
clicSÉQUR2's online service.
Similarly, the application for authorization from the AMF will
now be in two steps. An application form must first be submitted to
the AMF by the enterprise. After having analyzed the file, an AMF
agent will contact the enterprise in order to obtain disclosures
concerning individuals and entities associated with the
To this end, the AMF will send the necessary forms to the
1.Order in Council 1049-2013, G.O.Q. II, 3117, Order in
Council 1103-2013, G.O.Q. II, 4887 and Order in Council 1105-2013,
G.O.Q. II, 4888.
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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