Organization Profile - Canada Deposit Insurance Corporation

Canada Deposit Insurance Corporation

Minister of Finance

The Canada Deposit Insurance Corporation’s (CDIC) statutory objects are to provide insurance against the loss of part or all of deposits, and to promote and otherwise contribute to the stability of the financial system in Canada. These objects are to be pursued for the benefit of persons having deposits with member institutions and in such manner as will minimize the exposure of the Corporation to loss.

Ottawa, Ontario

Canada Deposit Insurance Corporation Act
http://laws-lois.justice.gc.ca/eng/acts/C-3/index.html

The President and CEO is appointed by the GiC to hold office during pleasure for such term as the Governor in Council considers appropriate. The President and CEO is eligible for reappointment.

The Board is comprised of:

• the Chairperson, a person of proven financial ability, appointed by the Governor in Council to hold office during good behaviour for such term as the Governor in Council deems appropriate. The Chairperson may be reappointed on the expiration of the term of office (and may be removed at any time by the Governor in Council for cause). The Chairperson must be a Canadian citizen ordinarily resident in Canada;
• the persons who for the time being hold the offices of the Governor of the Bank of Canada, the Deputy Minister of Finance, the Superintendent of Financial Institutions and the Commissioner of the Financial Consumer Agency of Canada;
• a Deputy Superintendent of Financial Institutions, or an officer of the Office of the Superintendent of Financial Institutions, appointed by the Minister; and
• not more than five other members appointed by the Minister with the approval of the Governor in Council.

A person is not eligible to be appointed as a director or having been appointed to continue as a director, if the person is:

• employed in any capacity in the public service of Canada or holds any office or position for which any salary or other remuneration is payable out of public moneys;
• a member of the Senate or House of Commons of Canada or a member of a provincial legislature; or
• a director, officer or employee of a federal institution or provincial institution.

A director may from time to time, with the approval of the Minister, designate in writing an alternate to attend in his/her absence at any meeting of the Board of Directors, and the alternate shall be deemed to be a member of the Board while so attending a meeting of the Board.

Where the office of Chairperson is vacant, the Minister may appoint, for a period not exceeding ninety days, an acting Chairperson who shall, while so acting, be a member of the Board and have all the powers of the Chairperson.

The Chairperson shall preside at all meetings of the Board but where at any meeting the Chairperson is absent, one of the directors present thereat who is chosen so to act by the directors present shall preside and have all the powers of the Chairperson.

No person is eligible to be appointed or to continue as Chairperson who:

• is not a Canadian citizen ordinarily resident in Canada;
• is a member of the Senate or House of Commons or a member of a provincial legislature; or
• is a director, officer or employee of a federal institution, provincial institution or a local cooperative credit society.

As per the Canada Deposit Insurance Corporation Act, Federal Institutions are:

• a bank to which the Bank Act applies;
• a company to which Trust and Loan Companies Act applies.

A Provincial Institution is:
For the purposes of the Canada Deposit Insurance Corporation Act, an incorporated company that carries on, under an Act of the legislature of a province, or a constating instrument under provincial jurisdiction, a business substantially similar to the business of a company to which the Trust and Loan Companies Act applies and that is authorized by or under an Act of the legislature of a province to accept deposits from the public.

If a director is not appointed to take office on the expiration of the term of an incumbent director, other than an officer-director, the incumbent director continues in office until a successor is appointed.

A person is not eligible to be appointed or, having been appointed, to continue as a member of the Board, if the person is: employed in any capacity in the federal public administration or holds any office or position for which any salary or other remuneration is payable out of public moneys; a member of the Senate or House of Commons of Canada or a member of a provincial legislature; or a director, officer or employee of a federal institution or provincial institution. No person is eligible to be appointed or to continue as Chairperson who: is not a Canadian citizen ordinarily resident in Canada; is a member of the Senate or House of Commons or a member of a provincial legislature; or is a director, officer or employee of a federal institution or provincial institution.

The Financial Administration Act requires that before an officer-director of a parent Crown corporation is appointed, the Minister shall consult the Board of Directors of the Corporation with respect to the appointment.

Majority of directors. (ss. 2.06 of the Canada Deposit Insurance Corporation Corporate By-law)

By virtue of section 43 of the Canada Deposit Insurance Corporation Act, the Auditor General is the auditor of the Corporation.