CSCS wrote:
A Small Crown Corporation asks:
Is there a requirement for a director of a crown corporation to abstain from attending board meetings if he is running in a provincial government election? Is there a requirement for a director of a crown corporation to resign from the board if he is elected to government?
Response from Crown Investments Corporation of Saskatchewan
CIC’s policy for directors who run for office is as follows:
“Any director who announces her/his intention to run for office may continue as a director until the Provincial election is called or until the director starts actively campaigning. Once the election is called or the director starts actively campaigning, the director must take a leave of absence from the Board, without pay, for the duration of the campaign. After the election, the director must resign from the board if elected, or she/he may return to the board as a director if not elected.”
A similar policy is in place for employees of the Provincial government. The issue is to avoid actual or perceived conflicts and specifically to avoid allegations that government funds (salary, retainers, for example) are being used to fund political activities. The policy is also consistent with CIC’s Directors' Code of Conduct, which states:
“Every director is free to participate in political activities. However, any political activities must be clearly separated from activities related to the director’s official position. In relation to the exercise of their duties and responsibilities, directors must remain impartial and retain the perception of impartiality”
When this issue has come up on one of CIC’s subsidiary Crown boards, we suggest that the director in question advise the board chair and that the board pass a motion in substantially the following form:
It was duly moved, seconded and unanimously resolved that:
· the Board is not aware of any legal or ethical impediment to the director continuing in her/his position as a director if she/he is nominated as a candidate for the next Provincial election;
· the Board requests the director to file a letter with the Crown corporation’s General Counsel indicating her/his intention to continue to serve as a director if nominated as a candidate for the next Provincial election; and
· once the election is called or the director starts actively campaigning, the director will take a leave of absence from the Board, without pay, for the duration of the campaign and either resign her/his position if elected, or return to the Board as a director if not elected.
