Skip to main content
Back to Bills
FederalDid not become law (session ended)40th Parliament, 3rd Session

Bill S-225 explained in plain English

An Act respecting the reorganization and privatization of Atomic Energy of Canada Limited

Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.

At a glance

Jurisdiction
Federal Parliament
Legislature / Parliament
Parliament of Canada
Session
40th Parliament, 3rd Session
Bill number
Bill S-225
Full title
An Act respecting the reorganization and privatization of Atomic Energy of Canada Limited
Current status
Did not become law (session ended)
Latest event
At consideration in committee in the Senate
Last updated
Mar 8, 2011

Official Parliament of Canada snapshot for 40th Parliament, 3rd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.

Chamber
Parliament of Canada
Current Stage
At consideration in committee in the Senate
Latest Activity
Mar 8, 2011
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

Bill S-225 authorizes the reorganization and privatization of Atomic Energy of Canada Limited while requiring the federal government to retain 70% ownership, imposing restrictions on foreign control, and protecting employee pension rights.

What It Means

Bill S-225 amends the Jobs and Economic Growth Act to set out rules for reorganizing and privatizing Atomic Energy of Canada Limited (AECL). The bill changes AECL's legal status from a Crown corporation (an agent of the Crown) to a regular corporation that can be privatized. The bill requires that the Minister of Natural Resources must keep ownership of at least 70% of AECL's voting shares, and non-residents cannot own more than one-third of voting shares. AECL must keep its head office in Canada, apply official languages laws to its operations, and a majority of its board of directors must be Canadian citizens. The bill also protects the pension rights of AECL employees who were contributing to the Public Service Superannuation Act and allows them to elect to continue under that pension plan. Finally, the bill makes changes to several other federal laws to remove references to AECL as a Crown corporation, including the Access to Information Act, the Financial Administration Act, the Federal-Provincial Fiscal Arrangements Act, and the Payments in Lieu of Taxes Act.

What This Bill Does
  • Revokes AECL's status as a Crown corporation (agent of Her Majesty)
  • Authorizes the Minister of Natural Resources to sell or dispose of AECL securities, subject to ownership restrictions
  • Requires the Minister to retain ownership of at least 70% of AECL's voting shares and permits the sale of no more than 30%
  • Restricts non-residents from owning more than one-third of AECL's voting shares (excluding the Minister's shares)
  • Requires AECL to maintain its head office in Canada
  • Requires AECL to apply the Official Languages Act to its staff and operations
  • Requires a majority of AECL's board of directors to be Canadian citizens
  • Allows AECL to issue and sell shares, subject to the ownership restrictions
  • Protects pension rights for AECL employees who were contributing under the Public Service Superannuation Act and allows them to elect to continue under that plan
  • Permits AECL employees who meet criteria to make an irrevocable election to continue receiving pension benefits under the Public Service Superannuation Act and Supplementary Retirement Benefits Act
  • Removes AECL from several federal acts by amending the Access to Information Act, Financial Administration Act, Federal-Provincial Fiscal Arrangements Act, and Payments in Lieu of Taxes Act
  • Repeals section 68.2 of the Access to Information Act (which had exempted AECL from access to information requirements)
  • Removes AECL from the list of Crown corporations subject to certain federal financial and tax rules
Who Is Affected
  • The federal government (specifically the Minister of Natural Resources), which retains majority ownership of AECL
  • AECL (Atomic Energy of Canada Limited) and its shareholders
  • Non-resident foreign investors, who are restricted from owning more than one-third of AECL's voting shares
  • Employees of AECL who were contributors to the Public Service Superannuation Act, who have the option to maintain their pension benefits under that act
  • Members of AECL's board of directors, who must include a majority of Canadian citizens
  • Members of the public seeking access to AECL information, who may have greater access rights after privatization
  • Provinces and municipalities in respect of tax and fiscal arrangements with AECL
Rights, Duties, Or Obligations
  • The Minister of Natural Resources must retain ownership of at least 70% of AECL's voting shares and cannot dispose of more than 30% (section 2140(2))
  • Non-residents cannot own more than one-third of AECL's voting shares, other than those belonging to the Minister (section 2142(1)(e))
  • AECL must not sell substantially all of its assets to any single person or group, or to non-residents, except as security for financing (section 2142(1)(a))
  • AECL must apply the Official Languages Act to its staff and all its activities (section 2142(1)(b))
  • AECL must maintain its head office in Canada (section 2142(1)(d))
  • A majority of AECL's board of directors must be Canadian citizens (section 2142(1)(f))
  • AECL and its shareholders and directors cannot adopt articles or by-laws inconsistent with the privatization requirements, and cannot apply for continuance in another jurisdiction (section 2143)
  • AECL employees who were contributors to the Public Service Superannuation Act can elect, within one year of the bill coming into force, to continue under that pension plan (section 2144(1)(d))
  • Any election by an AECL employee to continue pension benefits is irrevocable once made (section 2144(2))
  • Proceeds from the sale or disposal of AECL assets, securities, or liabilities must be paid to the Receiver General (the federal treasury)
  • The Official Languages Act continues to apply to AECL (section 2139(3))
Important Dates
  • The bill received First Reading in the Senate on November 18, 2010
  • The bill is currently at the committee stage in the Senate
  • The specific date or dates of commencement of the bill's provisions will be fixed by Order in Council (Governor in Council) and are not specified in the bill
  • AECL employees have one year from the coming into force of section 2144 to elect to continue under the Public Service Superannuation Act; after that period, the election window closes
  • Elections by AECL employees to continue pension benefits are irrevocable once made
Financial Or Tax Impacts
  • Once privatized, AECL will no longer be listed in the Payments in Lieu of Taxes Act schedules and will be subject to regular corporate income taxation instead of the special payment-in-lieu-of-taxes rules that apply to Crown corporations
  • Removal from the Federal-Provincial Fiscal Arrangements Act means AECL will no longer be treated as a Crown corporation for federal-provincial fiscal purposes
  • Any proceeds from the sale of AECL shares or assets must be paid to the Receiver General (the federal treasury)
  • The bill does not specify the value of shares to be sold or the expected revenue to the federal government
  • Employees who continue under the Public Service Superannuation Act will have pension benefits funded according to the rules of that plan, though details on how costs will be allocated are to be determined by regulation
Enforcement Or Penalties
  • Articles of amendment to AECL's corporate structure must include enforcement mechanisms for the ownership and control restrictions, which may include: filing of declarations, suspension of voting rights, forfeiture of dividends, refusal to issue or register shares held in violation, and sale of shares held contrary to restrictions with proceeds paid to the entitled person (section 2142(2))
  • Directors of AECL and persons acting in similar capacities must comply with directives from the Governor in Council, and compliance is deemed to be in the best interests of AECL (section 2141(4))
  • Violations of provisions requiring AECL not to sell substantially all assets to non-residents or to transfer control to non-residents could result in shares being sold and proceeds paid to the entitled party
  • The bill text does not specify criminal penalties, fines, or other enforcement mechanisms beyond those that will be included in the articles of amendment
Uncertainties Or Limits
  • The exact date or timeline for implementation of the privatization is not specified in the bill; it will be set by Order in Council (Governor in Council)
  • The specific details of pension transition arrangements are not fully set out in the bill; they will be determined by regulations to be made by the Governor in Council on the recommendation of the President of the Treasury Board
  • The bill does not specify what companies or investors might actually purchase AECL shares, if any
  • The bill does not detail what happens to AECL's specific business operations, research programs, or facilities
  • The bill does not specify the purchase price or valuation methodology for any share sales
  • The regulatory framework for enforcing the restrictions on foreign ownership and asset sales is to be established in AECL's articles of amendment and supporting regulations, but specific enforcement mechanisms are not fully detailed in the bill itself
  • The bill does not address potential implications for AECL's nuclear research, operations, or international agreements
  • It is unclear how the restrictions on non-resident ownership will be verified and enforced in practice
Laws Or Regulations Affected
Jobs and Economic Growth Act
amended

Part 18 of this act is replaced with new sections (2137-2148) that authorize and set out the terms for AECL's reorganization and privatization, including ownership restrictions, operational requirements, and pension protections

Access to Information Act
amended

Section 68.2 is repealed, removing the blanket exemption of AECL from access to information requirements. After AECL is privatized, access to information laws will apply to AECL as they would to any private company

Financial Administration Act
amended

AECL is removed from Part I of Schedule III, meaning AECL will no longer be listed as a Crown corporation subject to the financial administration rules that apply to federal Crown corporations

Federal-Provincial Fiscal Arrangements Act
amended

AECL is removed from Schedule I, ending its status under federal-provincial fiscal arrangements that apply to Crown corporations

Payments in Lieu of Taxes Act
amended

AECL is removed from Schedule III, meaning AECL will no longer be subject to the special payment-in-lieu-of-taxes rules that apply to Crown corporations and will instead be subject to regular corporate taxation

Canada Business Corporations Act
applied

Terms and procedures in this act (unless inconsistent with the privatization bill) will govern AECL as a regular corporation

Nuclear Energy Act
amended

The bill permits the Minister to sell AECL securities despite section 11 of this act, and amends section 11(2) to clarify that only Crown corporations (as defined in the Financial Administration Act) are agents of the Crown

Public Service Superannuation Act
applied_conditionally

Employees of AECL who were contributing under this act before the privatization can elect to continue receiving pension benefits under this act, subject to regulations to be made

Supplementary Retirement Benefits Act
applied_conditionally

Employees of AECL who were contributing under this act before the privatization can elect to continue receiving benefits under this act, subject to regulations to be made

Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.

Official text

Parliamentary Process

Step 1
First reading
Nov 18, 2010
Completed

Bill S-225, concerning the reorganization and privatization of Atomic Energy of Canada Limited, successfully passed its first reading in the Senate on November 18, 2010, and was subsequently referred to committee and read a second time.

Introduction and first reading, Nov 18, 2010
End of stage activity, Nov 18, 2010
Chamber sittings
Introduction and first reading - Nov 18, 2010

The Senate introduced Bill S-225 for first reading and engaged in debates on various other legislative and societal issues.

Step 2
Second reading
Mar 8, 2011
Completed

The Senate completed the second reading of Bill S-225, an act respecting the reorganization and privatization of Atomic Energy of Canada Limited, and referred it to committee.

Second reading, Mar 8, 2011
Referral to committee, Mar 8, 2011
End of stage activity, Mar 8, 2011
Chamber sittings
Debate at second reading - Dec 1, 2010

The Senate held a sitting on December 1, 2010, which included statements, routine proceedings, question period, and continued debates on several bills, with the debate on Bill S-225 regarding the reorganization and privatization of Atomic Energy of Canada Limited being suspended.

During the Senate's second reading debate on Bill S-225, Senator Hervieux-Payette advocated for the reorganization and partial privatization of Atomic Energy of Canada Limited (AECL) to secure its future and benefits to Canada, proposing a 70% government and 30% private sector ownership model, while other senators questioned the specifics of the proposal.

Debate at second reading - Dec 8, 2010

The Senate continued the second reading debate on Bill S-225 concerning the reorganization and privatization of Atomic Energy of Canada Limited, with further debate adjourned.

Debate at second reading - Mar 2, 2011

The Senate sat on March 2, 2011, to conduct routine proceedings, question period, and debate several bills, including Bill S-225 on the reorganization and privatization of Atomic Energy of Canada Limited, with the debate on S-225 being continued and then adjourned.

Debate at second reading - Mar 8, 2011

During a Senate sitting on March 8, 2011, tributes were paid to former Senator Keith D. Davey, and Bill S-225, concerning the reorganization and privatization of Atomic Energy of Canada Limited, was read a second time and referred to committee, with debate focusing on the merits of reversing existing legislation that allows for AECL's restructuring.

On March 8, 2011, the Senate held tributes, debated various issues, and advanced several bills, including Bill S-225 regarding Atomic Energy of Canada Limited.

Step 3
Consideration in committee
Date not listed
No activity

We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.

Step 4
Report stage
Not reached yet
Not reached

We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.

Step 5
Third reading
Not reached yet
Not reached

We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.

Step 1
First reading
Not reached yet
Not reached

We don't have a plain-language summary for First reading yet. The official source linked below is the full record.

Step 2
Second reading
Not reached yet
Not reached

We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.

Step 3
Consideration in committee
Not reached yet
Not reached

We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.

Step 4
Report stage
Not reached yet
Not reached

We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.

Step 5
Third reading
Not reached yet
Not reached

We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.

Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.

Vote Summary

No published recorded division

This bill is still active. We only show vote counts after the legislature publishes a recorded division.

Sponsor
Céline Hervieux-Payette
Senator | Details not listed in current Senate roster
Jurisdiction
Federal Parliament

No published representative vote breakdown

This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.

Official sources

Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.

How this data is sourced