Organization Profile - Canada Pension Plan Investment Board

Minister of Finance

The CPP Investment Board was incorporated as a federal Crown corporation by an Act of Parliament in December 1997 and made its first investment in March 1999. The Board’s purpose is to invest the assets of the Canada Pension Plan in a way that maximizes returns without undue risk of loss.

Toronto, Ontario

Canada Pension Plan Investment Board Act
http://laws-lois.justice.gc.ca/eng/acts/C-8.3/index.html

The Board shall be managed by a board of directors of 12 directors, including the Chairperson. The Minister shall have regard to the desirability of having directors who are representative of the various regions of Canada and having on the Board of Directors a sufficient number of directors with proven financial ability or relevant work experience such that the Board will be able to effectively achieve its objects. The Minister shall endeavour to ensure that no more than three of the 12 directors reside outside of Canada.

Each director shall be appointed by the Governor in Council, on the recommendation of the Minister, to hold office during good behaviour for such term, not exceeding three years, as will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors. The Governor in Council may remove a director for cause. A director is eligible for reappointment for one or more additional terms of office. A director continues in office until a successor is appointed. Where a person ceases to be a director during the term for which the person was appointed, the Minister shall appoint a qualified person to hold office as a director for the remainder of the term.

The Governor in Council shall, on the recommendation of the Minister made after the Minister has consulted with the Board of Directors and the appropriate provincial Ministers of the participating provinces, designate one of the directors as Chairperson to hold office during good behaviour for such term as the Governor in Council deems appropriate. The Governor in Council may remove the Chairperson for cause.

Where the Chairperson is absent at any meeting of the Board, one of the directors present who is chosen to so act by the directors present shall preside and have all the power, duties and functions of the Chairperson.

The Minister may establish a committee to advise the Minister on the appointment of directors. The committee shall consist of a representative designated by the Minister and a representative of each participating province designated by the appropriate provincial Minister for that province.

The following persons are disqualified from being directors: a person who is less than 18 years of age; a person who is of unsound mind and has been so found by a court in Canada or elsewhere; a person who has the status of a bankrupt; a person who is not a natural person; a person who is an agent or employee of Her Majesty in right of Canada or in right of a province; a person who is a member of the Senate or House of Commons of Canada or a member of a provincial legislature and a person who is an agent or employee of the government of a foreign country or any political subdivision of a foreign country.

The Minister may establish a committee to advise the Minister on the appointment of directors. The committee shall consist of a representative designated by the Minister and a representative of each participating province designated by the appropriate provincial Minister for that province.

The Canada Pension Plan Investment Board Act specifies that the Minister shall consult with the appropriate provincial Ministers of the participating provinces before making any recommendation to the Governor in Council with respect to the appointment of directors and before making an appointment.

The Governor in Council shall, on the recommendation of the Minister made after the Minister has consulted with the board of directors and the appropriate provincial Ministers of the participating provinces, designate one of the directors as Chairperson.