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O. Reg. 168/03: MUNICIPAL BUSINESS CORPORATIONS
under Municipal Act, 2001, S.O. 2001, c. 25
Skip to content| revoked or spent January 1, 2007 | |
| December 27, 2006 – December 31, 2006 | |
| April 8, 2005 – December 26, 2006 | |
| May 2, 2003 – April 7, 2005 |
Municipal Act, 2001
Loi de 2001 sur les municipalités
ONTARIO REGULATION 168/03
Amended to O. Reg. 599/06
MUNICIPAL BUSINESS CORPORATIONS
Note: This Regulation was revoked on January 1, 2007. See: O. Reg. 599/06, ss. 23, 24.
This Regulation is made in English only.
Interpretation
“corporation” means a corporation incorporated by a municipality under this Regulation;
“municipal capital facilities” includes only,
(a) facilities that are,
(i) used by the council,
(ii) for the general administration of the municipality,
(iii) related to the provision of transit and transportation systems, or
(iv) for the collection and management of residential waste and garbage,
(b) facilities that combine the facilities described in clause (a),
(c) municipal community centres and facilities used for cultural, recreational or tourist purposes,
(d) parking facilities ancillary to any of the facilities described in clauses (a), (b) and (c),
(e) municipal general parking facilities;
“private person” means a person who is not a municipality, the Province of Ontario, Canada or an agent of any of them;
“wholly-owned” in reference to a corporation owned by a municipality or municipalities, includes a corporation incorporated under Part III of the Corporations Act if a municipality, by itself or together with other municipalities, has an entitlement to all of the voting rights allocated to the members of the corporation. O. Reg. 168/03, s. 1 (1).
(2) A corporation incorporated under this Regulation is a prescribed corporation under subsection 203 (1) of the Act. O. Reg. 168/03, s. 1 (2).
Creation of corporations
2. (1) A municipality may incorporate one or more corporations under the Business Corporations Act or under Part III of the Corporations Act for one or more of the following purposes:
1. To operate and maintain a public transportation system.
2. To operate and maintain a waste management service for the collection, transfer, storage, disposal or recycling of residential waste.
3. To promote the municipality for any purpose through the collection and dissemination of information and the preparation of economic development strategic plans to advance the municipality’s economic goals and objectives.
4. To provide municipal administrative services to municipalities, local boards, public hospitals, universities, colleges and school boards, excluding enforcement of any Act, regulation or by-law.
5. To be a party to an agreement made under section 110 of the Act and under the agreement operate and maintain one or more municipal capital facilities of a municipality that is also party to the agreement.
6. To construct, operate, maintain and own, including ownership of the land related thereto, one or more of the following facilities:
i. A nursing home under the Nursing Homes Act or an approved charitable home for the aged under the Charitable Institutions Act.
ii. Recreation, tourism and cultural facilities, except public libraries.
iii. General parking facilities.
iv. Public transportation systems.
v. Waste management facilities for the collection, transfer, storage, disposal and recycling of residential waste. O. Reg. 168/03, s. 2 (1).
(2) Paragraphs 1 to 5 of subsection (1) do not permit the corporation incorporated for or carrying on a purpose described in those paragraphs to own the land related to the facility, system or service described in those paragraphs. O. Reg. 168/03, s. 2 (2).
(3) The purposes described in paragraph 6 of subsection (1) are limited to the construction, operation, maintenance and ownership of facilities that are new when the corporation first carries on its business with respect to them. O. Reg. 168/03, s. 2 (3).
(4) A municipality may incorporate a corporation alone or together with one or more other municipalities. O. Reg. 168/03, s. 2 (4).
(5) A corporation may only operate,
(a) within the boundaries of the incorporating municipality or municipalities if it or they are single-tier municipalities;
(b) within the boundaries of a lower-tier municipality if the lower-tier municipality is an incorporating municipality or it agrees to allow the corporation to operate in the lower-tier municipality;
(c) within the boundaries of an upper-tier municipality if the upper-tier municipality is an incorporating municipality or it agrees to allow the corporation to operate in the upper-tier municipality; or
(d) within any municipality with its agreement. O. Reg. 168/03, s. 2 (5).
(6) The operations of a corporation under clause (5) (b) do not require the agreement of the upper-tier municipality and the operations of a corporation under clause (5) (c) do not require the agreement of any lower-tier municipality. O. Reg. 168/03, s. 2 (6).
(7) The articles of incorporation or letters patent, including any subsequent articles or supplementary letters patent, shall restrict the powers or limit the objects of a corporation to carrying on one or more of the purposes set out in subsection (1) and subsection 3 (1). O. Reg. 168/03, s. 2 (7).
(8) A municipality shall ensure that the articles of incorporation of a corporation, including any subsequent articles, or the letters patent of a corporation, including any supplementary letters patent, meet the requirements of this section and section 3. O. Reg. 168/03, s. 2 (8).
(9) Letters patent issued under Part III of the Corporations Act in respect of a corporation incorporated under paragraph 3 of subsection (1) shall restrict membership in the corporation to the incorporating municipality or to another municipality that has agreed to allow the corporation to carry on business in that municipality. O. Reg. 168/03, s. 2 (9).
(10) Despite subsection (1), a corporation incorporated under paragraph 3 of subsection (1) or carrying on business that includes the purpose identified by that paragraph shall only be incorporated under Part III of the Corporations Act. O. Reg. 168/03, s. 2 (10).
Regional Municipality of York
3. (1) A corporation incorporated by The Regional Municipality of York for any purpose described in paragraph 1 or 5 of subsection 2 (1) or subparagraph 6 iii or iv of subsection 2 (1) may be incorporated for one or more of the following additional purposes:
1. To develop one or more sites for an industrial, commercial or institutional use if the sites are part of, abut or are necessary for a system or facility of the corporation for public transportation.
2. To develop one or more sites for and construct, operate and maintain one or more housing projects used in whole or in part for residential accommodation on those sites, including facilities used for ancillary purposes, and located in one or more buildings used in whole or in part for residential accommodation if the sites are part of, abut or are necessary for a system or facility of the corporation for public transportation.
3. To sell, lease or otherwise dispose of or encumber all or any part of a site or project referred to in paragraph 1 or 2 to support or benefit a system or facility of the corporation for public transportation. O. Reg. 168/03, s. 3 (1).
(2) The purposes described in subsection (1) are limited to the construction, operation, maintenance and ownership of facilities or projects that are new when the corporation first carries on its business with respect to them. O. Reg. 168/03, s. 3 (2).
City of Brampton
3.1 (1) In this section,
“downtown core” means the area designated by by-law of the City of Brampton under section 204 or 209 of the Act as an improvement area for the board of management known as the Downtown Brampton Business Association. O. Reg. 169/05, s. 1.
(2) The City of Brampton may incorporate a single corporation under Part III of the Corporations Act for one or more of the following economic development purposes:
1. To improve, beautify and maintain municipally-owned land, buildings and structures in the downtown core beyond the standard provided at the expense of the municipality generally, and to promote the downtown core as a business or shopping area.
2. To provide for the establishment of a counselling service to small businesses operating or proposing to operate in the downtown core.
3. To undertake community improvement consistent with a community improvement plan approved by the municipality for the downtown core under subsection 28 (4) of the Planning Act through,
i. the development or redevelopment of sites in the downtown core owned or held by the corporation for a residential, industrial, commercial or institutional use,
ii. the construction, operation and maintenance of one or more housing projects used in whole or in part for residential accommodation in the downtown core, including facilities used for ancillary purposes, and located in one or more buildings used in whole or in part for residential accommodation,
iii. the sale, lease or other disposition or encumbrance of all or part of those sites.
4. To establish a program for providing grants that is consistent with any of the purposes set out in paragraph 1, 2 or 3 or with the purpose set out in paragraph 6.
5. To construct, operate, maintain and own, including ownership of the land related thereto, one or more of the following facilities or institutions:
i. Performing arts facilities.
ii. Heritage institutions.
iii. Amusement facilities.
iv. Convention and visitors’ bureau facilities.
6. To achieve the purpose described in paragraph 3 of subsection 2 (1).
7. To achieve the purpose described in subparagraph 6 iii of subsection 2 (1). O. Reg. 169/05, s. 1.
(3) The following rules apply to the corporation:
1. The corporation may operate only within, and with respect to businesses or activities located within, the boundaries of the downtown core.
2. Only persons who are members of the improvement area known as the Downtown Brampton Business Association and members of the City of Brampton council are eligible to be members of the corporation.
3. A minimum of one-third of the members of the board of directors of the corporation shall be members of the City of Brampton council.
4. The corporation shall prepare a proposed budget for each fiscal year by the date and in the form required by the City of Brampton and shall hold one or more meetings of the members of the corporation for discussion of the proposed budget.
5. The corporation shall submit the budget to council by the date and in the form required by the City of Brampton and the City may approve it in whole or in part but may not add expenditures to it.
6. The corporation shall not,
i. spend any money unless it is included in the budget approved by the municipality, or
ii. incur indebtedness extending beyond the current year without the prior approval of the City. O. Reg. 169/05, s. 1.
(4) Within 10 years of the date the corporation is incorporated, the City shall undertake an evaluation and review of the corporation’s operations and, in so doing, shall have regard to,
(a) the usefulness and continued provision by the City of financial or other assistance to the corporation; and
(b) the possible winding-up of the corporation. O. Reg. 169/05, s. 1.
(5) The corporation shall, with necessary modifications, be deemed to be a board of management for the purposes of section 207 of the Act. O. Reg. 169/05, s. 1.
(6) Despite subsection 20 (1) of this Regulation, a corporation incorporated under this section is a local board of the City of Brampton for the purposes of section 326 of the Act. O. Reg. 169/05, s. 1.
(7) The following are prescribed as special services for the purposes of clause 326 (1) (a) of the Act:
1. Economic development services provided by and for the purposes of a corporation incorporated under this section. O. Reg. 169/05, s. 1.
(8) The following limits apply to the use of the powers established under subsection (7):
1. A special local municipal levy made under that subsection shall only be on rateable property in the downtown core that belongs to a class of property prescribed under the Assessment Act as a business property class for the purposes of sections 204 to 214 of the Act.
2. The City of Brampton shall only raise money under that subsection in a year if the City does not in the same year raise money under section 208 of the Act for the purposes of the board of management known as the Downtown Brampton Business Association. O. Reg. 169/05, s. 1.
Holding corporations
4. (1) A municipality may incorporate a corporation under the Business Corporations Act with articles of incorporation that restrict the powers of the corporation to those necessary to acquire, hold, dispose of and otherwise deal with,
(a) shares of one or more corporations incorporated by the municipality;
(b) shares of one or more corporations incorporated by another municipality that the first municipality has agreed to allow to carry on business in the municipality;
(c) shares of a corporation incorporated by the municipality under section 142 of the Electricity Act, 1998; or
(d) any combination of shares described in clauses (a), (b) and (c). O. Reg. 168/03, s. 4 (1).
(2) The articles of incorporation of a corporation to which subsection (1) applies shall restrict the ownership of any and all voting and non-voting shares in the corporation to the incorporator. O. Reg. 168/03, s. 4 (2).
Result of non-compliance
5. Any of the following matters may be considered sufficient cause under section 240 of the Business Corporations Act or under section 317 of the Corporations Act, as applicable, to cancel the certificate of incorporation of a corporation or the letters patent or supplementary letters patent of a corporation:
1. The corporation does not meet the requirements of this Regulation.
2. A certificate is issued under the Business Corporations Act that is inconsistent with this Regulation.
3. Letters patent or supplementary letters patent are granted under the Corporations Act that are inconsistent with this Regulation.
4. The corporation acts outside the purposes to which it is restricted by its articles or letters patent. O. Reg. 168/03, s. 5.
Business case study
6. (1) A municipality shall undertake a business case study before it,
(a) incorporates a corporation;
(b) purchases shares in a corporation that the municipality has agreed to allow to carry on business in the municipality;
(c) becomes a member of a corporation incorporated under Part III of the Corporations Act; or
(d) submits articles of amendment or any other articles under the Business Corporations Act or supplementary letters patent under the Corporations Act. O. Reg. 168/03, s. 6 (1).
(2) The business case study shall, at a minimum, address the following matters:
1. The projected financial consequences for the next five years, including the advantages and disadvantages and risks for the municipality, and a comparison with other options considered for providing the same service or facility.
2. The scope of the business to be carried on by the corporation and the permitted purposes or objects of the corporation.
3. The governance structure to be set out in the articles of incorporation, by-laws, letter patents and other documents of the corporation, including the composition, role and term of office of the directors of the corporation.
4. The accountability requirements of the corporation to the municipality and its taxpayers, including,
i. a policy on access by the public to the records and meetings of the corporation,
ii. a summary of any proposed or existing agreements between the municipality and the corporation or between the corporation and its shareholders,
iii. a summary of all financial reporting or audit requirements,
iv. a statement of the financial risk to the municipality related to the corporation and its activities, and
v. a statement of any tax implications to the municipality, including the expected tax treatment of the corporation.
5. The original value, as estimated by the treasurer of the municipality, of any investment by the municipality in the corporation, including any assets to be transferred to the corporation and services or other benefits to be provided to it, and the fair market value of and explanation for any proposed program for assistance to be provided to the corporation at less than fair market value under section 19.
6. The value of any proposed investment in the corporation by a private person.
7. The original value, as estimated by the treasurer of the municipality, of any funds contributed by the Province of Ontario towards the purchase or improvement of any assets intended to be transferred to the corporation and evidence that section 21 has been complied with.
8. The winding-up provisions of the corporation, including provisions respecting voluntary dissolution, bankruptcy, involuntary wind-up and the disposition of assets.
9. The authority of the municipality to provide any facility or program that is to be provided by the corporation for the municipality.
10. The corporation’s proposed or existing policy on setting fees and charges and an explanation of how the municipality will protect the interest of taxpayers and ensure that value for money is being obtained in delivering services.
11. How the municipality intends to address any labour and employment issues that arise as a result of the proposed action by the municipality.
12. An asset management plan for any corporation that will receive municipal assets.
13. How the municipality will ensure that both itself and the corporation adhere to applicable performance standards for the delivery of services and comply with any other duty or obligation required of the municipality or corporation under any Act, regulation or policy directive issued by the Province.
14. The public competition process used or to be used to select any investor in the corporation who is a private person.
15. Other matters that the municipality considers to be appropriate. O. Reg. 168/03, s. 6 (2); O. Reg. 169/05, s. 2.
Public participation
7. (1) Before incorporating a corporation, a municipality shall,
(a) hold at least one public meeting;
(b) give at least 30 days notice of the public meeting or meetings; and
(c) ensure that copies of the proposed by-law authorizing the incorporation, with the business case study attached, are made available to the public at least 30 days before the meeting or, if there is more than one meeting, before the first meeting. O. Reg. 168/03, s. 7 (1).
(2) Any person who attends a meeting under this section may make representations relating to the proposed by-law and the business case study. O. Reg. 168/03, s. 7 (2).
(3) After the public meeting or meetings have been held, the municipality may adopt the business case study and pass the proposed by-law. O. Reg. 168/03, s. 7 (3).
(4) If a proposed by-law or the business case study is changed following a meeting under this section, the municipality may elect to hold further meetings or may elect to not hold further meetings and the decision of the municipality is final. O. Reg. 168/03, s. 7 (4).
(5) Nothing in this section restricts the ability of a municipality to hold other public meetings before the completion of the business case study. O. Reg. 168/03, s. 7 (5).
(6) The proposed by-law may only be passed within the one-year period following the completion of the business case study. O. Reg. 168/03, s. 7 (6).
Limitations on actions of corporation
8. (1) A corporation shall not act as an incorporator of another corporate body that is incorporated under any Act. O. Reg. 168/03, s. 8 (1).
(2) A corporation may not enter into a trust agreement, except a trust agreement or indenture for the purpose of obtaining financing for the corporation. O. Reg. 168/03, s. 8 (2).
(3) A corporation may only invest in securities prescribed under section 418 of the Act and, for the purpose of this subsection, any regulation made under subsection 418 (6) of the Act applies to the corporation as if it were a municipality. O. Reg. 168/03, s. 8 (3).
(4) To expand or otherwise carry on its purposes, a corporation, other than a corporation incorporated under section 4, may acquire all of the voting and non-voting shares of,
(a) another corporation incorporated under this Regulation;
(b) a body corporate incorporated under any Act of Ontario if the articles of incorporation of the body corporate restrict the powers or limit the objects of the body corporate to carrying on one or more of the purposes set out in subsection 2 (1). O. Reg. 168/03, s. 8 (4).
(5) A body corporate, the shares of which have been acquired under subsection (4), must be dissolved and its remaining assets and liabilities transferred to the acquiring corporation within one year of the date of the acquisition of the shares. O. Reg. 168/03, s. 8 (5).
(6) A corporation may become a member of another corporation incorporated under Part III of the Corporations Act only if they both have the same objects and if the corporation is allocated a minimum of 51 per cent of the voting rights allocated to members of the other corporation, but nothing in this section prevents a corporation from joining an industry or professional association. O. Reg. 168/03, s. 8 (6).
Deemed members
9. The directors and officers of a corporation that is wholly-owned by a municipality or municipalities are deemed to be members for the purposes of the Municipal Conflict of Interest Act. O. Reg. 168/03, s. 9.
Deemed institutions
10. A corporation that is wholly-owned by a municipality or municipalities and a corporation incorporated under paragraph 4 of subsection 2 (1) are deemed to be institutions for the purposes of the Municipal Freedom of Information and Protection of Privacy Act. O. Reg. 168/03, s. 10.
Limitation
11. A municipality may incorporate a corporation only if,
(a) the corporation’s purpose is to provide a service, system or facility that could be provided directly by the municipality; or
(b) the corporation is incorporated under section 4. O. Reg. 168/03, s. 11.
Appointments by municipality
12. A municipality may appoint one or more persons to sign articles of incorporation or subsequent articles or an application for letters patent or supplementary letters patent for the incorporation of a corporation on its behalf and the municipality may appoint or authorize the appointment of the directors, officers or members of the corporation or of a corporation incorporated by another municipality that is carrying on business in the municipality. O. Reg. 168/03, s. 12.
Goods and services
13. (1) A municipality may enter into a contract for goods or services with a corporation only as the result of a public competition process. O. Reg. 168/03, s. 13 (1).
(2) Despite subsection (1), a municipality may enter into a contract for goods or services with a corporation incorporated by the municipality or a corporation the shares of which the municipality has purchased, without a public competition process, if the corporation is wholly-owned by the municipality or by the municipality together with other municipalities and the corporation is limited by its articles of incorporation or letters patent to providing services to that municipality or those municipalities. O. Reg. 168/03, s. 13 (2).
(3) Despite subsection (1), a municipality may enter into a contract for goods or services with a corporation incorporated by the municipality or a corporation the shares of which the municipality has purchased, that is not wholly-owned by the municipality or municipalities, without a public competition process, if any private person who invests in shares of the corporation has been selected through a public competition process described in paragraph 14 of subsection 6 (2) as part of the business case study for the corporation undertaken by the municipality. O. Reg. 168/03, s. 13 (3).
(4) Despite subsections (2) and (3), a municipality shall not enter into a contract for goods or services with a corporation authorized to carry on business with respect to a waste management service or facility without a public competition process. O. Reg. 168/03, s. 13 (4).
No assignment
14. A municipality shall not assign or transfer any right granted to it in any agreement between the municipality and the Province of Ontario to a corporation without first obtaining the consent of the Minister responsible for the agreement. O. Reg. 168/03, s. 14.
Inspection
15. A municipality may inspect the accounting or other financial records of a corporation of which it is a shareholder or member at any time upon reasonable notice to the corporation. O. Reg. 168/03, s. 15.
Financial statements
16. A municipality may require a corporation of which it is a shareholder or member to submit audited financial statements to the municipality at any time upon reasonable notice to the corporation. O. Reg. 168/03, s. 16.
Holding of shares and voting rights
17. (1) Subject to subsection (2), a municipality may acquire, hold, dispose of and otherwise deal with shares of a corporation incorporated by it or with shares of a corporation incorporated by another municipality that is carrying on business in the municipality. O. Reg. 168/03, s. 17 (1).
(2) A municipality, by itself or together with other municipalities that hold shares in a corporation, must at all times retain at least 51 per cent of the total voting rights attached to all voting shares issued by the corporation. O. Reg. 168/03, s. 17 (2).
(3) A municipality, by itself or together with other municipalities, must at all times maintain an entitlement to at least 51 per cent of the total voting rights allocated to the members of a corporation incorporated under Part III of the Corporations Act. O. Reg. 168/03, s. 17 (3).
Debt instruments
18. (1) A municipality may acquire, hold, dispose of and otherwise deal with bonds, debentures, promissory notes, mortgages and other evidences of indebtedness of a corporation only if the debt would be incurred as the result of,
(a) the transfer of a municipal property asset to a corporation incorporated by the municipality or to a corporation incorporated by another municipality that the municipality has agreed to allow to carry on business in the municipality; or
(b) an action taken by the municipality under section 19. O. Reg. 168/03, s. 18 (1).
(2) In this section,
“municipal property asset” means an asset of a municipality that is land, equipment or other goods. O. Reg. 168/03, s. 18 (2).
Deemed commercial enterprise
19. (1) A corporation is deemed to be a commercial enterprise under section 106 of the Act. O. Reg. 168/03, s. 19 (1).
(2) Despite subsection (1), a municipality may provide assistance to a corporation,
(a) if the corporation is wholly-owned by the municipality or by the municipality and other municipalities and the corporation is limited by its articles or letters patent to providing services to that municipality or those municipalities;
(b) if the purpose of the assistance is to subsidize the cost of public transportation facilities or services or public access to recreational and cultural facilities; or
(c) if the municipality is party to an agreement with the corporation to operate and maintain municipal capital facilities under section 110 of the Act. O. Reg. 168/03, s. 19 (2).
(2.1) Despite subsection (1), the City of Brampton may provide assistance to a corporation if the corporation is incorporated under subsection 3.1 (2) and the assistance is provided under the authority of subsection 28 (6) or (7) of the Planning Act. O. Reg. 169/05, s. 3 (1).
(3) The types of assistance that may be provided under subsection (2) are,
(a) exemption from taxation or development charges or other assistance under an agreement or a by-law made under section 110 of the Act if the municipality is party to an agreement with the corporation to operate and maintain municipal capital facilities under that section;
(b) assistance provided by the council exercising its authority under subsection 28 (6) or (7) of the Planning Act;
(c) giving, lending or selling any property of the municipality, including money;
(d) guaranteeing borrowing;
(e) providing the services of employees of the municipality. O. Reg. 168/03, s. 19 (3).
(4) The assistance provided under clause (3) (c), (d) or (e) need not be at fair market value. O. Reg. 168/03, s. 19 (4).
(5) Nothing in subsection (2), (2.1), (3) or (4) authorizes a municipality to provide assistance,
(a) inconsistent with a purpose of a corporation;
(b) as a transfer that would not be permitted under section 22;
(c) for or in respect of an investment or other transaction made by a corporation under section 8; or
(d) for or in respect of a share transaction under section 17. O. Reg. 168/03, s. 19 (5); O. Reg. 169/05, s. 3 (2).
(6) The treasurer shall prepare a statement of the value of any grant or an estimate of the fair market value of any other assistance provided at less than fair market value under subsection (2) or (2.1). O. Reg. 168/03, s. 19 (6); O. Reg. 169/05, s. 3 (3).
(7) The municipality shall attach the estimate or statement to the agreement or other documentation evidencing the grant or assistance. O. Reg. 168/03, s. 19 (7).
Status of corporation
20. (1) A corporation is not a local board for the purposes of any Act. O. Reg. 168/03, s. 20 (1).
(2) Despite subsection (1), a corporation is deemed to be a local board for purposes of the Environmental Assessment Act, the Municipal Conflict of Interest Act, and sections 270 and 271 of the Municipal Act, 2001. O. Reg. 168/03, s. 20 (2).
(3) Despite subsection (1), if a corporation is wholly-owned by the municipality alone or together with other municipalities, it is deemed to be a local board for the purposes of the Development Charges Act, 1997. O. Reg. 168/03, s. 20 (3).
Condition for incorporation
21. (1) Before incorporating a corporation, a municipality shall notify the Minister of Municipal Affairs and Housing and any other Minister whose Ministry has made a financial contribution to an asset that is intended to be transferred to the corporation of the value, as estimated by the treasurer of the municipality, of any funds contributed at any time by the Province of Ontario to the purchase or improvement of any assets intended to be transferred to the corporation. O. Reg. 168/03, s. 21 (1).
(2) A Minister who receives a notice under subsection (1) may accept the valuation of the treasurer of the municipality or may otherwise determine the value of the contribution and shall notify the municipality in writing within six months of the receipt of the notice as to the requirement for repayment or to indicate the release of the Province’s interest in the asset being transferred or the proceeds of the transfer. O. Reg. 168/03, s. 21 (2).
(3) A municipality may not incorporate a corporation until one of the following conditions are met:
1. Six months have passed since notice was given under subsection (1) and no response has been received by the Province within that period.
2. The Province has notified the municipality of its acceptance of the valuation by the treasurer and of any requirement for repayment.
3. The Province has notified the municipality of its rejection of the valuation by the treasurer, of its own valuation and of any requirement for repayment.
4. The Province has notified the municipality that it releases its interest in the asset being transferred or in the proceeds of the transfer. O. Reg. 168/03, s. 21 (3).
(4) The fact that the incorporating municipality has not complied with this section may be considered sufficient cause under section 240 of the Business Corporations Act or under section 317 of the Corporations Act, as applicable, to cancel the certificate of incorporation of a corporation or the letters patent or supplementary letters patent of a corporation. O. Reg. 168/03, s. 21 (4).
Transfer of land
22. (1) A municipality may only sell land to a corporation if the sale is consistent with the purpose of the corporation and the land is vacant land. O. Reg. 168/03, s. 22 (1).
(2) A municipality may lease or otherwise dispose of any land to a corporation only if the lease or other disposition is consistent with the purpose of the corporation and is for a period, including any possible renewal of the lease or other option to extend the period of disposition, of not more than 40 years. O. Reg. 168/03, s. 22 (2).
(3) Despite subsections (1), (2) and (4), a municipality shall not sell, lease or otherwise dispose of land to a corporation if the land is used for parks or housing projects, as described in paragraph 2 of subsection 3 (1). O. Reg. 168/03, s. 22 (3).
(4) Despite subsection (1), a municipality may sell land that has existing buildings or structures on it to a corporation incorporated under subsection 3 (1) if the buildings or structures are being used exclusively for or are necessary for the maintenance and operation of a transportation system. O. Reg. 168/03, s. 22 (4).
(4.1) Despite subsection (1), the City of Brampton may sell land that has existing buildings or structures on it to a corporation incorporated under subsection 3.1 (2) if the sale is consistent with the City exercising its authority under subsection 28 (6) or (7) of the Planning Act. O. Reg. 169/05, s. 4.
(5) The following, if not being used, is vacant land for the purposes of this section:
1. Land that has no buildings or structures on it.
2. Land upon which a building or structure is being built.
3. Land upon which a building or structure has been built if no part of the building or structure has yet been used.
4. Land upon which a building or structure has been built if the building or structure is substantially unusable. O. Reg. 168/03, s. 22 (5).
(6) Any occupation of a building or structure is a use, for the purpose of paragraph 3 of subsection (5), and once a building or structure has been occupied, the land upon which the building or structure is located cannot be vacant land unless the building or structure becomes substantially unusable. O. Reg. 168/03, s. 22 (6).