August 4, 1917


Section agreed to. On section 65-Investments, how taken:


LIB

William Pugsley

Liberal

Mr. PUGSLEY:

I suppose there is some general penalty clause?

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

Instead of having the penalty clauses in this Act, there is a Bill, standing in the name of my hon. friend the Minister of Justice (Mr. Doherty) and which has passed the Banking and Commerce Committee to. which it was referred, dealing with the matter under the criminal jurisdiction of Parliament.

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
LIB

William Pugsley

Liberal

Mr. PUGSLEY:

That would not appear to cover a ease like this. Suppose section 65 is violated, what is the penalty for it?

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

That is enacted by section 187.

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
LIB

William Pugsley

Liberal

Mr. PUGSLEY:

That is all right; there are penalties.

On section 68-Appraisement of real estate by direction of superintendent:

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
LIB

Charles Murphy

Liberal

Mr. MURPHY:

What is the change in this section?

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

Merely a change in phraseology, the substitution of "British or foreign company" for "company incorporated elsewhere than in Canada."

On section 69-Penalties and forfeitures:

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

The sections

which have been omitted, sections 71, 72 and 73, are now covered by

the Bill to which I have referred and which is an amendment to the Criminal Code. I am advised by the Department of Justice that in order to give clear jurisdiction it is desirable that instead of dealing with the penalties in this Act they should be dealt with under the criminal jurisdiction of Canada. Then, there is no doubt as to the jurisdiction.

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink

Section agreed to. On section 74-Assessment Company failing to make attested returns:


LIB

William Pugsley

Liberal

Mr. PUGSLEY:

This section, No. 74, becomes 70?

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

They will be renumbered.

On section 75-Contracts prior to 20th July, 1885:

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

Michael Steele

Conservative (1867-1942)

The CHAIRMAN (Mr. Steele):

Section 75 is struck out.

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

Section 75 is

transferred to page 4 of the Bill which was dealt with the first day we took up the Bill. It was transferred by the Banking and Commerce Committee and it is now included in section 3, (a2). It was thought it should be dealt with among the exemptions, the wording being:

To any contract entered into, or any certificate of membership or policy of insurance issued, before the 20th day of July, 1885, by any assessment life insurance company.

It is only a change of position in the Act. On Section 77,-Disposal of unauthorized investments; liability of directors for unauthorized investments:

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
LIB

Wilfrid Laurier (Leader of the Official Opposition)

Liberal

Sir WILFRID LAURIER:

The director

who, within a certain time, protests against an unauthorized investment, relieves himself of any liability?

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

A director who

is present at a board meeting at which it is determined to make an 'unauthorized investment and who opposes that investment should not be held jointly liable with the directors who favour the investment. This case of the director who is over-ruled, came before the committee, and in order to meet this difficulty this proviso has been inserted. I think that the publication in a newspaper of the protest as here provided would be very rare, but it would be very effectual in (preventing improper investments. Investments have been made, rarely I am glad to say, which were quite unauthorized by the Act 'and whigh have entailed heavy losses. I would move to amend the proviso by substituting for the word "made'" the word authorized." That would make it refer to the meeting at which such investment was " authorized "-an investment would not be " made " at the meeting.

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
LIB

William Pugsley

Liberal

Mr. PUGSLEY:

Suppose all the directors protest against it?

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

Then they would not authorize it.

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
LIB

William Pugsley

Liberal

Mr. PUGSLEY:

Why not? The investment is authorized. One director protests, and the other follows his example. I think that they should cease to be directors. A man ought not to be allowed to continue to be a member of the board and to exonerate himself from liability by making publication in a newspaper, where the investment is made contrary to the provisions of this statute. There ought to be some more stringent provision than that.

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

Does my hon.

friend seriously contend that, if a board authorized an investment and then protested against it, the court would relieve them of joint responsibility under this provision?

Topic:   COAL SUPPLY IN THE MARITIME PROVINCES.
Subtopic:   INSURANCE ACT AMENDMENT.
Sub-subtopic:   CONTINUED CONSIDERATION OF THE BILL IN COMMITTEE.
Permalink

August 4, 1917