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News and discussion on implementing risk management

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Business and Legal Issues

The Ontario Court of Appeal determines when it is appropriate to vest out a royalty interest as part of an insolvency proceeding

Ontario’s highest court has created a framework for determining when it is appropriate for courts to approve sales and vest out interests in assets in the context of insolvency proceedings. This has given resource extraction industries and insolvency practitioners some much needed clarity on how to navigate situations when assets subject to encumbrances and other interests are being sold, especially when land subject to a royalty interest is involved.

 

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5 practical principles for policy & procedure management

Many failures in business today could be addressed or even prevented with better policy management. Data breaches, workplace accidents, employee misconduct, third-party incidents, customer complaints, and more are often traced to policies that were absent, ineffective, or out of sight, out of mind.

 

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Federal prompt payment legislation passed

The Federal Prompt Payment Act was first introduced into the House of Commons on April 8, 2019, as part of the larger budget Bill C-97 (Budget Implementation Act, 2019, No. 1).

 

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A proactive approach to cyber risk management

It is not sufficient to say that cyber risk is high, medium, or low. The leaders of the organization need to be able to figure out what is the right level of resources to allocate to cyber defense and response; what is the right level of attention at board and executive committee level; and what should be communicated to shareholders and others.

 

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Final amending regulations issued under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act

anti-money laundering

On July 10, 2019, final amending regulations were issued amending each of the existing regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

 

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CCAA and BIA amendments to come into force November 1, 2019

Bill C-97 including certain proposed amendments to the Bankruptcy and Insolvency Act (BIA) and the Companies’ Creditors Arrangement Act (CCAA) received Royal Assent on June 21, 2019.

 

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CRA announces upcoming changes to the T3010 and T2050, removing political activities

On March 15, 2019, CRA announced that there will be changes to the T3010 Annual Return and the T2050 Application to Register a Charity to account for the recent changes to the political activities rules for Canadian registered charities.

 

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Account changes for registered charities under CHAMP

Canadian charities now have more options for doing certain transactions online using the CHAMP system. Charities should look into accessing their CHAMP account.

 

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How to assess the effectiveness of risk management

Internal auditors are expected, according to the IIA Standards and some governance codes, to assess the effectiveness of risk management.

 

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Deceptive marketing in the spotlight: Ticketmaster to pay Competition Bureau penalty of $4.5 million

In a recent article, the Competition Bureau’s focus on high-impact, consumer-focused digital economy investigations, including specifically investigations into drip pricing practices was highlighted. On June 27, 2019, the Bureau announced that its investigation into such practices by Ticketmaster had concluded with a consent agreement.

 

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Ontario Court of Appeal confirms nude selfies are not offensive

In Zigomanis v. 2156775 Ontario Inc. (D’Angelo Brands), 2018 ONCA 116, the Ontario Court of Appeal upheld a lower court decision that a professional hockey player’s nude selfies did not offend public morals and decency and there was thus no basis to terminate a promotional contract.

 

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Ensure secure disposal of hardware

Organizations often make the mistake of considering the disposal of hardware only when they are ready to discard equipment, if at all. Instead, they should plan for hardware disposal throughout the entire systems development lifecycle, from acquisition and testing through to operations.

 

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The next generation of internal auditing

I want to congratulate Workiva and Jose Tabuena for Internal Audit’s Guide to Planning, Managing and Addressing Risks. I want to focus on the first piece in that publication, Planning to Do the Right Audits: An Effective Internal Audit Risk Assessment. Here are some excerpts, with comments by me:

 

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M&A disputes: When will a corporation be liable for an officer’s or director’s fraud? Supreme Court provides new guidance

Should a corporation be liable for fraud committed by its director or officer where it may also have benefitted? The Supreme Court of Canada grappled with this question recently in the context of a dispute arising from a fraudulent investment scheme to acquire commercial real estate.

 

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Court has no appetite to pierce corporate veil in restaurant lease decision

Corporate directors and officers may generally only be held personally liable for misconduct on the part of the corporation in limited circumstances where there has been improper or fraudulent conduct.

 

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