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FederalDid not become law (session ended)42nd Parliament, 1st Session

Bill S-216 explained in plain English

An Act to provide the means to rationalize the governance of Canadian public corporations

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

At a glance

Jurisdiction
Federal Parliament
Legislature / Parliament
Parliament of Canada
Session
42nd Parliament, 1st Session
Bill number
Bill S-216
Full title
An Act to provide the means to rationalize the governance of Canadian public corporations
Current status
Did not become law (session ended)
Latest event
Bill not proceeded with
Last updated
Nov 3, 2016

Official Parliament of Canada snapshot for 42nd Parliament, 1st 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
Bill not proceeded with
Latest Activity
Nov 3, 2016
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-216 would limit how long individuals can serve on boards of Canadian public corporations, restrict how many boards one person can sit on at the same time, and set strict rules on what those corporations can pay their directors and officers.

What It Means

Bill S-216, titled the Canadian Public Corporations Governance Act, proposes rules to change how Canadian public corporations are run. The bill would: **Board Member Limits:** - Prevent any individual from sitting on more than four corporate boards at the same time - Limit how long any individual can serve on the board of a single corporation to a total of 8 years (96 months) - These limits would not apply to founders or large shareholders who own more than 50% of voting shares **Director Pay and Benefits:** - Require that directors be paid only in annual fees and meeting attendance fees (not other types of compensation) - Require each director to invest money in the company's shares equal to three times their annual pay from the company - Prevent giving directors share purchase options or rights - Require companies to list all benefits given to directors in their annual reports to shareholders, including the cash value of each benefit **Officer Pay and Benefits:** - Require the board's compensation committee to set officer salaries so that no officer earns more than 20 times the company's average wage - Limit total officer benefits based on the company's financial performance year-over-year - Prevent officers from cashing in certain benefits for at least three years after receiving them - Cap severance and termination payments at twice an officer's total yearly pay and benefits - Require public disclosure of retirement benefits paid to officers The bill would apply to Canadian companies whose shares are traded on stock exchanges in Canada or elsewhere, including banks, insurance companies, and cooperatives. The bill does not explain which government agency would enforce these rules or how enforcement would work. The bill was not passed and did not proceed further in Parliament.

Uncertainties Or Limits
  • This draft was normalized from a partial local-model response and must be reviewed before publication.
Laws Or Regulations Affected
Canada Business Corporations Act
affected

Corporations incorporated under this Act that are public corporations (listed on stock exchanges) would be subject to new board composition and compensation rules under the new Canadian Public Corporations Governance Act

Source: Section 2, definition of 'corporation'

Bank Act
affected

Banks governed by this Act that are public corporations would be subject to new board composition and compensation rules

Source: Section 2, definition of 'corporation'

Trust and Loan Companies Act
affected

Trust and loan companies governed by this Act that are public corporations would be subject to new board composition and compensation rules

Source: Section 2, definition of 'corporation'

Cooperative Credit Associations Act
affected

Cooperative credit associations governed by this Act that are public corporations would be subject to new board composition and compensation rules

Source: Section 2, definition of 'corporation'

Insurance Companies Act
affected

Insurance companies and fraternal benefit societies incorporated or formed under this Act that are public corporations would be subject to new board composition and compensation rules

Source: Section 2, definition of 'corporation'

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
Jan 26, 2016
Completed

Bill S-216, concerning the governance of Canadian public corporations, completed first reading in the Senate in January 2016 before being dropped from the Order Paper in November 2016.

Introduction and first reading, Jan 26, 2016
End of stage activity, Jan 26, 2016
Chamber sittings
Introduction and first reading - Jan 26, 2016

Bill S-216 was introduced for its first reading in the Senate, while other significant procedural matters, including questions of privilege and debate on the Speech from the Throne, were also addressed.

Step 2
Second reading
Jun 21, 2016
Not completed

Bill S-216, aimed at rationalizing the governance of Canadian public corporations, reached the second reading stage in the Senate but was ultimately dropped from the Order Paper and did not proceed further.

Chamber sittings
Debate at second reading - Mar 8, 2016

During a Senate sitting on March 8, 2016, senators discussed various topics including International Women's Day and economic issues, tabled reports, and debated or adjourned debates on several bills, but no proceedings related to Bill S-216 were recorded as it was marked "Bill not proceeded with."

Debate at second reading - Apr 20, 2016

During a Senate sitting on April 20, 2016, tributes were given, international reports were tabled, debate on Bill S-216 (corporate governance) and Bill S-214 (cruelty-free cosmetics) continued, and a motion to pre-study Bill C-14 (medical assistance in dying) was passed, with the sitting concluding before Bill S-216 could be fully debated.

The sponsor of Bill S-216 presented arguments for rationalizing Canadian public corporations' governance by limiting director terms, board memberships, and executive compensation during the Senate's second reading debate.

Debate at second reading - Jun 21, 2016

During a Senate sitting on June 21, 2016, the debate on Bill S-216 at second reading was continued and subsequently adjourned.

Step 3
Third reading
Not reached yet
Not reached

Bill S-216, concerning the governance of Canadian public corporations, was not proceeded with in the Senate after reaching the Third Reading stage.

Step 1
First reading
Not reached yet
Not reached

Bill S-216, concerning the governance of Canadian public corporations, has not yet undergone its first reading in the House of Commons and was previously dropped from the Senate's agenda.

Step 2
Second reading
Not reached yet
Not reached

Bill S-216, concerning the governance of Canadian public corporations, did not reach the Second Reading stage in the House of Commons after being dropped from the Senate Order Paper, with related past bills also noted.

Step 3
Consideration in committee
Not reached yet
Not reached

Bill S-216, aiming to rationalize the governance of Canadian public corporations, did not reach the House of Commons committee stage and was dropped from the Senate Order Paper.

Step 4
Report stage
Not reached yet
Not reached

Bill S-216, aimed at rationalizing the governance of Canadian public corporations, did not proceed past the report stage in the House of Commons after being dropped from the Senate Order Paper.

Step 5
Third reading
Not reached yet
Not reached

Bill S-216, concerning the governance of Canadian public corporations, did not proceed past the third reading stage in the House of Commons and was dropped from the Senate Order Paper.

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