Proposed Regulation for IMCO Membership Voting Rights
Bill or Act:
Investment Management Corporation of Ontario, 2015
Summary of Proposal:
The Investment Management Corporation of Ontario (IMCO) Act provides voting rights for IMCO's members. Currently, it entitles each member to one vote.
The proposed regulation would create a new set of rules for determining the voting rights of IMCO members, which would enable appropriate and fair input from all members in the corporation's governance and encourage other BPS organizations to participate in the corporation. The proposed voting rule is as follows:
After the end of each fiscal year (December 31st), IMCO's Board of Directors would meet to calculate the Assets Under Management of all its members and determine their votes. Subject to additional rules, each dollar of Assets Under Management would equal one vote. In each year, if a new member joins IMCO before the middle of the fiscal year (June 30th), the Board would meet after June 30th of that year to re-calculate the Assets Under Management of all the members and determine their votes for the remainder of the fiscal year.
To ensure that no single member controls IMCO, unless a member has an overwhelming majority of the Assets Under Management, a member's votes would be limited to half of the available votes for all members.
IMCO's initial members are the Ontario Pension Board (OPB) and the Workplace Safety and Insurance Board (WSIB). To ensure that neither initial member controls IMCO, the votes of the initial members would be equalized for 10 years, unless either initial member's Assets Under Management becomes less than 12.5 percent of IMCO's total Assets Under Management.
June 5, 2017
Comments Due Date:
June 12, 2017
Broader Public Service Pensions Branch
Ontario Ministry of Finance
7 Queen's Park Crescent, 1st Floor