Regulation - Other
Proposed regulatory amendments to Regulation 400: By-Laws for Local Boards and Regulation 421: Local Boards under the Farm Products Marketing Act and O. Reg. 209/99: By-Laws for Marketing Boards and Regulation 756: Marketing Boards under the Milk Act.
Regulation Number(s):
Reg. 400
Reg. 421
O. Reg. 209/99
Reg. 756
Reg. 421
O. Reg. 209/99
Reg. 756
Instrument Type:
Regulation - Other
Bill or Act:
Farm Products Marketing Act
Summary of Proposal:
The proposed amendments to the regulations are intended to reduce unnecessary burden on boards, enhance oversight and update the regulations:
Reducing Burden
• Corporate Seal - Removing the requirements in O. Reg. 209/99 and Regulation 400 that a board must have a corporate seal.
• Treasurer Bond - Removing the requirements in O. Reg. 209/99 and Regulation 400 that a board treasurer must furnish a bond for the faithful discharge of their duties.
• Providing Board Minutes to Board Members - Removing the deadline in Regulation 400 for when board members must be provided with meeting minutes.
o Board members would have the flexibility to determine their own timeline for when they receive minutes (e.g., by passing bylaws).
• Signing Board Minutes - Removing the requirement in O. Reg. 209/99 that the chair and secretary must sign board meeting minutes.
o The process for ensuring the integrity of board minutes would be determined by the board.
• Providing Board Agendas to the Commission - Removing the requirements in Regulations 421 and 756 that boards provide board meeting agendas to the Commission within seven days of a board meeting.
• Providing Board Minutes to the Commission - Replacing the requirements in Regulations 421 and 756 that boards provide the Commission with access to the board minutes at the board office during regular business hours.
o This would reduce burden on boards and the Commission and provide more flexibility in providing access to board minutes. Boards would be required to provide the Commission with access to the board minutes upon request.
Enhancing Oversight
• Statutory Duty of Care - In alignment with the Not-for-Profit Corporations Act, 2010, adding a new statutory duty of care to the regulations that would provide that: Every director and officer in exercising their powers and discharging their duties to the board, shall, (a) act honestly and in good faith with a view to the best interests of the corporation; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
• Notice of Producer Meetings - Amending Regulation 400 and O. Reg. 209/99 to require boards to give notice of a meeting of producers (e.g., an annual general meeting) to each producer or delegate entitled to attend.
• Providing Annual Reports to Producers - Requiring boards to provide the board's annual statement of operations and financial report to producers or delegates entitled to attend at every annual meeting. The board would also be required to provide the reports a reasonable time in advance of the annual meeting to producers or delegates that request a copy of the statements. Boards to would no longer be able to publish the reports in a newspaper of magazine rather than providing them to producers.
Board Investments
• Eligible Investments - Amending Regulation 400 and O. Reg. 209/99 to update the list of eligible investments for surplus board funds by removing outdated references.
The Commission is also updating its approach to processor and dealer licences by making licences indefinite for processors and dealers that are in compliance with the legislative scheme.
Reducing Burden
• Corporate Seal - Removing the requirements in O. Reg. 209/99 and Regulation 400 that a board must have a corporate seal.
• Treasurer Bond - Removing the requirements in O. Reg. 209/99 and Regulation 400 that a board treasurer must furnish a bond for the faithful discharge of their duties.
• Providing Board Minutes to Board Members - Removing the deadline in Regulation 400 for when board members must be provided with meeting minutes.
o Board members would have the flexibility to determine their own timeline for when they receive minutes (e.g., by passing bylaws).
• Signing Board Minutes - Removing the requirement in O. Reg. 209/99 that the chair and secretary must sign board meeting minutes.
o The process for ensuring the integrity of board minutes would be determined by the board.
• Providing Board Agendas to the Commission - Removing the requirements in Regulations 421 and 756 that boards provide board meeting agendas to the Commission within seven days of a board meeting.
• Providing Board Minutes to the Commission - Replacing the requirements in Regulations 421 and 756 that boards provide the Commission with access to the board minutes at the board office during regular business hours.
o This would reduce burden on boards and the Commission and provide more flexibility in providing access to board minutes. Boards would be required to provide the Commission with access to the board minutes upon request.
Enhancing Oversight
• Statutory Duty of Care - In alignment with the Not-for-Profit Corporations Act, 2010, adding a new statutory duty of care to the regulations that would provide that: Every director and officer in exercising their powers and discharging their duties to the board, shall, (a) act honestly and in good faith with a view to the best interests of the corporation; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
• Notice of Producer Meetings - Amending Regulation 400 and O. Reg. 209/99 to require boards to give notice of a meeting of producers (e.g., an annual general meeting) to each producer or delegate entitled to attend.
• Providing Annual Reports to Producers - Requiring boards to provide the board's annual statement of operations and financial report to producers or delegates entitled to attend at every annual meeting. The board would also be required to provide the reports a reasonable time in advance of the annual meeting to producers or delegates that request a copy of the statements. Boards to would no longer be able to publish the reports in a newspaper of magazine rather than providing them to producers.
Board Investments
• Eligible Investments - Amending Regulation 400 and O. Reg. 209/99 to update the list of eligible investments for surplus board funds by removing outdated references.
The Commission is also updating its approach to processor and dealer licences by making licences indefinite for processors and dealers that are in compliance with the legislative scheme.
Analysis of Regulatory Impact:
The proposed regulatory amendments are not anticipated to result in any compliance costs or saving. The proposed policy update is anticipated to reduce combined annual compliance costs by approximately $6,051 for processors.
Further Information:
Regulation 400
Proposal Number:
24-OMAFRA019
Posting Date:
November 28, 2024
Comments Due Date:
January 13, 2025
Contact Address:
Branch: Ontario Farm Products Marketing Commission Secretariat
Address: 5th Flr,1 Stone Road West, Guelph, ON N1G 4Y2
Address: 5th Flr,1 Stone Road West, Guelph, ON N1G 4Y2