Recently, the Supreme Court of Canada denied Scott Gerard Beaudette leave to appeal
an Alberta Court of Appeal decision that upheld the constitutional
validity of the Alberta Securities Act provisions that allow
the Alberta Securities Commission (ASC) to compel information
during a regulatory investigation and provide it to foreign
As background, in 2012, the ASC served Beaudette with a summons
requiring him to produce documents and to attend an examination as
part of an ASC investigation. Beaudette refused to attend his
examination, claiming the ASC would not provide written assurances
that his evidence would not be shared with U.S. regulatory or law
enforcement agencies without prior notice to him. In response to an
ASC application in Court for his contempt, Beaudette then filed an
application challenging the constitutionality of the ASC powers to
compel evidence and share it with other agencies.
The Alberta Court of Queen's Bench dismissed Mr. Beaudette's application and
confirmed that effective securities law enforcement demands that
there be inter-jurisdictional cooperation and reciprocal assistance
between the regulatory agencies including between Canada's
regulatory enforcement agencies and the United States regulatory
On appeal, Mr. Beaudette again argued that the requirement to
provide information concerning his securities activities in North
America, coupled with the possibility that the ASC might share that
information with the SEC and the US Department of Justice, would
infringe on his right to liberty as guaranteed under section 7 of
the Canadian Charter of Rights and Freedoms.
The Alberta Court of Appeal upheld the constitutionality of the summons
and information sharing powers under the Charter and held that the
relevant provisions of the Securities Act did not violate Mr.
Beaudette's Charter rights. The Court of Appeal held that
section 7 of the Charter is engaged "where state compulsions
or prohibitions affect important and fundamental life choices"
and such choices did not include the election to participate in a
highly regulated industry. Our full case comment is available
The decision by the Supreme Court of Canada to deny Beaudette
leave further confirms that in a highly regulated industry, such as
the securities market, the individual is aware of, and accepts,
justifiable state intrusions. The purpose of the securities
legislation and enforcement agencies are to regulate the market,
something that often requires inter-jurisdictional sharing of
Andrew Pozzobon's detailed analysis of the Alberta Court of
Appeal's decision can be viewed
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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