Community economic development corporations
112.1(1)The council of a municipality, either alone or together with one or more persons or municipalities, may incorporate one or more corporations for the purpose of registering the corporation as a community economic development corporation under the Community Economic Development Act, 1993. Appointment of person to incorporate (2)The council of a municipality shall appoint one or more persons to apply, on the municipality’s behalf, for incorporation under subsection (1). Assistance to community economic development corporations (3)Despite section 111, the council of a municipality may, except as may be restricted or prohibited by regulation, provide financial or other assistance at less than fair market value or at no cost to a community economic development corporation, and such assistance may include, (a) giving or lending money and charging interest; (b) giving, lending or leasing property; and (c) providing the services of employees of the municipality. Prohibited assistance (4)The power extended to a council of a municipality in this section does not include the power to, either directly or indirectly, obtain, guarantee or purchase an interest in, (a) a security of a community economic development corporation, other than a voting security of a community economic development corporation that is purchased for nominal consideration; or (b) an asset or liability, including a contingent liability, or guarantee of a community economic development corporation. Council may nominate directors (5)The council of a municipality may nominate one or more persons, except as prescribed, to act as directors of a community economic development corporation. Reports and audits (6)If a municipality has assisted a community economic development corporation in a manner permitted by subsection (3) or has nominated a person who has become a director of the corporation, (a) the board of directors of the community economic development corporation shall make an annual financial report, and additional financial reports as requested, to the municipality in the form and manner, at the time and containing the information required by the municipality; and (b) the board of directors of the community economic development corporation shall, upon the request of the municipality, permit the municipal auditor to conduct an audit of the corporation, including an examination of the corporation’s assets. Powers on audit (7)In conducting an audit of a community economic development corporation, the municipal auditor is entitled to inspect all records, books, documents, transactions, vouchers, minutes and accounts of the corporation. Not a local board (8)A community economic development corporation incorporated under subsection (1) is not a local board for the purposes of the Municipal Conflict of Interest Act. Application of Municipal Conflict of Interest Act (9)Despite subsection (8), the Municipal Conflict of Interest Act applies to the persons who are nominated by the municipality and become directors of a community economic development corporation and persons appointed by the municipality as first directors or incorporators of the community economic development corporation as if the community economic development corporation were a local board under that Act. Deemed local board (10)The Lieutenant Governor in Council may by regulation deem community economic development corporations or any class of them to be local boards for the purposes of specified provisions of this Act and the Municipal Affairs Act and may prescribe the extent and manner of application of those provisions to corporations deemed as local boards. Regulations (11)The Minister may make regulations, (a) prescribing classes of community economic development corporations to which a municipality may provide assistance under subsection (3); (b) prohibiting or restricting the kind, manner and extent of assistance under subsection (3) that may be provided by a municipality to a community economic development corporation; (c) prescribing the number of persons a municipality may nominate to act as directors of a class of community economic development corporation under subsection (5). Same (12)A regulation made under subsection (11) may be general or particular in its application. Definition (13)In this section, “municipality” includes a metropolitan, regional and district municipality and the County of Oxford. 1993, c. 26, s. 46.