Thank you Mr. O'Brien. Mr. Chairman. A concern from last years report related to the governments information systems, ... (inaudible) ... concerned that many of systems, Members were concerned that many of our systems were out of date and did not adequately help with bureaucracy. Three Members agree that the governments information systems should allow the Members to measure results not just processes.

Mr. ... (inaudible) ... agreed that many of our systems were geared to process reporting rather than results reporting, and that the governments informatics strategy was designed in part to change that. Members also discussed a group meeting to identify government assets and liabilities prior to division. This in turn is related to a concern from last year's report on evaluation of fixed assets. Traditionally assets such as buildings and land are represented on the governments books as having a nominal value. Typically $1000, or $1.

The Auditor General recommended last year that this practice be brought up to date in accordance with recommendations made in 1986 by the public sector accounting and auditing board of the Canadian Institute of Chartered Accountants. By valuing assets at their true worth, Members agreed that the government should move quickly on this issue, and that the assistance of the office of the Auditor General be sought by identifying assets and liabilities prior to division. Mr. Chairman, I move that the standing committee recommends that the government immediately begin valuing fixed assets in accordance with the recommendations of the public sector accounting and auditing board of the Canadian Institute of Chartered Accountants, and is recommended by the Auditor General in his report for the year ended March 31, 1994.

Thank you, Mr. Chairman. Finally, the Auditor General staff suggested to the Committee that language in the NWT Act relating to auditing requirements was outdated, and that the language in the Nunavut Act was more comprehensive and up to date. Committee members agree that this situation should be remedied when feasible. Mr. Chairman, I move that the Standing committee recommends that suggested amendments to sections 27 to 31 of the Northwest Territories Act designed to more closely match the language in sections 42 to 48 in the Nunavut Act, to be forwarded to the federal government for their consideration in conjunction with any suggested amendments made to enable constitutional development of the new western territory. Or in any case, before April 1, 1999.

Yes, thank you, Mr. Chairman. I would like to withdraw my motion at this time and if that is agreed then I am prepared to make another motion on this matter.

(inaudible) ... determine an inventory of potential environmental restoration sites on Commissioner's land in the Northwest Territories and report back to the Legislative Assembly prior to March 31, 1997.

Yes, Mr. Chairman. Mr. Chairman, a consultation draft of the Business Corporations Act was released to the public and specifically circulated to the business community and the legal and accounting professions for their comments.

After considering responses which were received and amendments which have been made or are being considered as similar legislation elsewhere, an updated version of the bill was introduced this past spring.

This Act would replace the present Companies Act and the Companies Winding-Up Act. Current legislation has not be adapted to current commercial practices and in a number of areas overlaps with personal property security legislation and securities legislation.

In the past twenty years most of the provinces and the Yukon have adopted similar legislation. The Business Corporations Act would strike a more appropriate balance in respect of the rights of majority and minority shareholders, creditors and the public dealing with the companies, than is presently the case.

At the same time, we would simplify procedures, eliminate unnecessary applications to the court and eliminate areas of duplication with other legislation.

For the benefit of those Members who are not on the Standing Committee which reviewed this bill, the new act would:

1) simplify the procedure for incorporation, including elimination of the requirement to specify the objectives of the company and the requirement that each company have at least two shareholders.

2) improve the process for the approval of company names.

3) provide greater flexibility in the share structure and in the relations between shareholders.

4) simplify the procedure for amendments to the corporation's share capital, and for amalgamations, including reducing the requirements for court approval of these fundamental changes. This is achieved in part by providing for specific rights for minority shareholders who are not in agreement with the fundamental changes.

5) simplify the procedures for dissolving and reviving companies, including dispensing with the requirement for court approval in most instances.

6) eliminate unnecessary court applications while allowing recourse to the courts in the case of legitimate problems, in particular, where the minority shareholders are oppressed by the majority shareholders.

The Companies Act now provides that almost all fundamental changes to a corporation require the approval of the court, even where there are no shareholders who disagree with the changes. In other cases, the concerns of minority shareholders are not adequately addressed. It should also be mentioned that the Act has been drafted with division of the Territories in mind. All transitional requirements under the new Act must be completed by March 31, 1999 at which point the Companies Act and Companies Winding-up Act are repealed.

The proposed bill is lengthy and complex, but no more so than the present law in this area. By establishing a greatly improved legal framework within which existing and future Northwest Territories companies may operate, the bill should have the affect of facilitating economic development in the north.

In closing, I would thank the Members of the Standing Committee for their review and support of this bill. Thank you Mr. Chairman.

(Translation) Thank you Mr. Chairman. I am pleased to report on the review of Bill 17, The Business Corporations Act, by the Standing Committee on Social Programs. Our committee held a public hearing, on this bill on October 3rd. The Minister appeared before us and provided answers to our questions. Overall, the committee is pleased with this bill.

The changes bring our legislation in line with our business corporations legislation across the country. The bill simplifies many areas relating to commercial practice. These changes are very appropriate at a time when, as a government, we are encouraging economic development, and promoting small businesses. There should also be less confusion, because the Bill will get rid of some overlap with other legislation, relating to businesses.

The most notable improvement in this bill is the expansion on identification of rights of minority shareholders. The rights are now more clear, and there should be less need for minority shareholders to go to the courts, where there are concerns.

The bill has provisions to ensure it is fully enforced prior to division. The committee did not have any major concerns with this bill. We believe the changes will be well received by the business community and will give us progressive business legislation consistent with our partners across the country. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. Mr. Chairman, to my left is Gary MacDougall, director of legal registries and to my right is Mark Aitken, director of legislation division.

Thank you, Mr. Chairman. The bill is compatible with bankruptcy legislation but bankruptcy and insolvency is an area of exclusive federal jurisdiction so there are not changes which we can make in the existing rules governing bankruptcy. All that we can do, and which we must do, is ensure that this bill is compatible, which it is. Thank you, Mr. Chairman.