Business case study
6. (1) A municipality shall undertake a business case study before it, (a) incorporates a corporation; (b) purchases shares in a corporation that the municipality has agreed to allow to carry on business in the municipality; (c) becomes a member of a corporation incorporated under Part III of the Corporations Act; or (d) submits articles of amendment or any other articles under the Business Corporations Act or supplementary letters patent under the Corporations Act. O. Reg. 168/03, s. 6 (1). (2) The business case study shall, at a minimum, address the following matters: 1. The projected financial consequences for the next five years, including the advantages and disadvantages and risks for the municipality, and a comparison with other options considered for providing the same service or facility. 2. The scope of the business to be carried on by the corporation and the permitted purposes or objects of the corporation. 3. The governance structure to be set out in the articles of incorporation, by-laws, letter patents and other documents of the corporation, including the composition, role and term of office of the directors of the corporation. 4. The accountability requirements of the corporation to the municipality and its taxpayers, including, i. a policy on access by the public to the records and meetings of the corporation, ii. a summary of any proposed or existing agreements between the municipality and the corporation or between the corporation and its shareholders, iii. a summary of all financial reporting or audit requirements, iv. a statement of the financial risk to the municipality related to the corporation and its activities, and v. a statement of any tax implications to the municipality, including the expected tax treatment of the corporation. 5. The original value, as estimated by the treasurer of the municipality, of any investment by the municipality in the corporation, including any assets to be transferred to the corporation and services or other benefits to be provided to it, and the fair market value of and explanation for any proposed program for assistance to be provided to the corporation at less than fair market value under section 19. 6. The value of any proposed investment in the corporation by a private person. 7. The original value, as estimated by the treasurer of the municipality, of any funds contributed by the Province of Ontario towards the purchase or improvement of any assets intended to be transferred to the corporation and evidence that section 21 has been complied with. 8. The winding-up provisions of the corporation, including provisions respecting voluntary dissolution, bankruptcy, involuntary wind-up and the disposition of assets. 9. The authority of the municipality to provide any facility or program that is to be provided by the corporation for the municipality. 10. The corporation’s proposed or existing policy on setting fees and charges and an explanation of how the municipality will protect the interest of taxpayers and ensure that value for money is being obtained in delivering services. 11. How the municipality intends to address any labour and employment issues that arise as a result of the proposed action by the municipality. 12. An asset management plan for any corporation that will receive municipal assets. 13. How the municipality will ensure that both itself and the corporation adhere to applicable performance standards for the delivery of services and comply with any other duty or obligation required of the municipality or corporation under any Act, regulation or policy directive issued by the Province. 14. The public competition process used or to be used to select any investor in the corporation who is a private person. 15. Other matters that the municipality considers to be appropriate. O. Reg. 168/03, s. 6 (2); O. Reg. 169/05, s. 2.