Bank of Canada Act — B-2 10
Selection of directors 10 (1) The directors shall be selected from various occupations. Ineligible persons (2) No person is eligible to be appointed or to continue as a director if the person is a director, a partner, an officer or an employee of any of the following institutions: (a) a direct clearer as defined in the by-laws of the Canadian Payments Association; (b) a clearing house of a clearing and settlement system designated under subsection 4(1) of the Payment Clearing and Settlement Act ; (c) a participant in the Large Value Transfer System, or its successor, operated by the Canadian Payments Association; (d) an investment dealer that acts as a distributor of new Government of Canada securities; or (e) an institution that controls, or is controlled by, an institution referred to in any of paragraphs (a) to (d). Control (2.1) For the purpose of paragraph (2)(e), (a) an institution controls a body corporate if securities of the body corporate to which are attached more than fifty per cent of the votes that may be cast to elect directors of the body corporate are beneficially owned by the institution and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate; (b) an institution controls a trust, fund or partnership (other than a limited partnership) or an unincorporated association or organization, if more than fifty per cent of the ownership interests, however designated, into which the trust, fund, partnership, association or organization is divided are beneficially owned by the institution and the institution is able to direct the business and affairs of the trust, fund, partnership, association or organization; and (c) the general partner of a limited partnership controls the limited partnership. Restriction on share ownership (3) Any person who beneficially owns a share in an institution referred to in any of paragraphs (2)(a) to (e) at the time of being appointed director of the Bank shall dispose of that beneficial ownership interest within three months after the appointment. A director of the Bank shall not otherwise beneficially own a share of an institution referred to in any of those paragraphs. Restriction — membership shares of federal credit union (3.1) If a federal credit union is an institution referred to in any of paragraph (2)(a) to (e), any person who, at the time of being appointed director of the Bank, directly or indirectly holds any interest or right in more than the minimum number of membership shares of the federal credit union, within the meaning of section 2 of the Bank Act , that is required for membership shall, within three months after the appointment, dispose of all membership shares that exceed that minimum number. Restriction — rights of members (3.2) If a federal credit union is an institution referred to in any of paragraph (2)(a) to (e), no director of the Bank who is a member of a federal credit union, within the meaning of section 2 of the Bank Act , shall exercise any right that the director has as a member of the federal credit union, except any right that the director has as a customer of the federal credit union. Disqualifications (4) No person is eligible to be appointed or to continue as director who (a) is not a Canadian citizen ordinarily resident in Canada; or (b) is employed, on a full-time basis, in any capacity in the federal public administration or the public service of a province or holds any office or position, other than as a part-time member of any board or advisory body of an agency or department of the government of Canada or a province, for which any salary or other remuneration is payable out of public moneys, except that a director may perform temporary services for the government of Canada or a province for which that director may be reimbursed actual travel and living expenses. (c) [Repealed, 2007, c. 6, s. 393] (5) [Repealed, 2001, c. 9, s. 190] R.S., 1985, c. B-2, s. 10; 1992, c. 1, s