A private Senate bill introduced Thursday requires all federally registered corporations to report annually on how they are benefiting society. Bill S-285 An Act To Amend The Canada Business Corporations Act, sponsored by Liberal-appointed Sen. Julie Miville-Dechêne, is an unprecedented measure, per Blacklock’s Reporter. It would mandate that all federally incorporated companies report annually on their “impacts on the wider society and the environment.”Miville-Dechêne, who introduced the bill without offering comment, is not a director of any corporation, ethics filings show. Bill S-285 tacks on a new clause to an existing business laws bill. “The purpose of a corporation is to pursue its best interests while also operating in a manner that benefits the wider society and the environment in a manner proportionate to its size and the nature of its operations, and minimizes any harm the corporation causes to wider society and the environment with the objective of eliminating such harm.”“A review of the purpose of a corporation is required as a result of the social and environmental challenges of the 21st century,” states the proposed bill’s introduction. “Corporations should focus on producing profitable solutions for the problem of the people and the planet and not on profiting from creating problems.”“Parliament considers it essential for corporations to have a purpose that encompasses both the pursuit of their best interests and benefits to the wider society and the environment.”There are 458,790 companies federally registered operating according to laws under Canada’s Business Corporations Act of 1975, which is built upon the 1902 Companies Act. Though most corporations in Canada are provincially registered under 19th century legislation based on English law, the federal Act was introduced to simplify issues like directors’ liability.A 1977 background paper by the Department of Consumer and Corporate Affairs states the Act’s original objective was “to provide a federal law that permits efficient administration that balances equitably the competing interests of management, shareholders and creditors of federal corporations.”The Ethics And Conflict Of Interest Code For Senators permits appointees to serve as directors of federally regulated corporations or publicly-traded companies with permission of the Senate Ethics Officer. Numerous senators have maintained lucrative directorships. Sen. Peter Harder in 2020 accepted a $276,000-a year directorship with Magna International in addition to his current $178,100 annual Senate salary, according to filings. Retired Sen. Sarabjit Marwah served as chair of the Senate committee on internal economy while drawing six-figure fees as a director of Cineplex Incorporated, George Weston Ltd. and Telus Communications. Retired Senator André Pratte maintained a paid position with Power Corporation while drawing senate pay.
