C-26, r. 56 - Regulation respecting the indemnity fund of the Ordre professionnel des comptables généraux accrédités du Québec

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chapter C-26, r. 56
Regulation respecting the indemnity fund of the Ordre professionnel des comptables généraux accrédités du Québec
CERTIFIED GENERAL ACCOUNTANTS — PROFESSIONAL CODE — INDEMNITY FUND
Professional Code
(chapter C-26, s. 89.1).
C-26
September 1 2012
Implicitly revoked, 2012, chapter 11, s. 25, par. 1.
DIVISION I
DEFINITION AND INTERPRETATION
1.01. In this Regulation, unless the context indicates otherwise,
“Order” means the Ordre professionnel des comptables généraux accrédités du Québec;
“member” means anyone who is entered on the roll of the Order.
R.R.Q., 1981, c. C-26, r. 33, s. 1.01; Decision 83-03-18, s. 1.
1.02. The Interpretation Act (chapter I-16) applies to this Regulation.
R.R.Q., 1981, c. C-26, r. 33, s. 1.02.
DIVISION II
ESTABLISHMENT OF A FUND
2.01. The board of directors shall establish an indemnity fund to be used to repay the amounts of money or other securities used by a member for purposes other than those for which they had been delivered to him in the practice of his profession.
R.R.Q., 1981, c. C-26, r. 33, s. 2.01.
2.02. The fund shall be maintained at a minimum amount of $60,000 in cash or in securities and may be made up of any of the following:
(a)  sums of money that the board of directors assigns thereto as necessary;
(b)  contributions fixed for that purpose;
(c)  sums of money recovered from an offending member under a subrogation or pursuant to section 159 of the Professional Code (chapter C-26);
(d)  interest accrued on the sums of money making up the fund;
(e)  any sums of money paid by an insurance company under an insurance contract subscribed to by the Order.
R.R.Q., 1981, c. C-26, r. 33, s. 2.02; Decision 83-03-18, s. 2; O.C. 672-96, s. 1.
2.03. The board of directors is authorized to conclude an insurance contract for the purposes of the fund and to pay the premiums out of the fund.
R.R.Q., 1981, c. C-26, r. 33, s. 2.03; Decision 83-03-18, s. 3; O.C. 672-96, s. 2.
2.04. The Order shall keep separate accounting for the fund.
R.R.Q., 1981, c. C-26, r. 33, s. 2.04; O.C. 672-96, s. 3.
2.05. The executive committee shall manage the fund.
The sums of money constituting the fund shall be invested by the executive committee in the following manner:
(a)  the part of the sums which the board of directors anticipates using in the short term shall be deposited with a financial institution;
(b)  the other part shall be invested in accordance with article 1339 of the Civil Code.
R.R.Q., 1981, c. C-26, r. 33, s. 2.05; Decision 83-03-18, s. 4; O.C. 672-96, s. 4.
2.06. The board of directors may, by resolution, withdraw any amount from the fund and use it for other purposes in as much as:
(a)  such withdrawal does not reduce the fund to an amount lower than the minimum of $60,000 provided for in section 2.02; and
(b)  it is sufficient to cover the amounts claimed at the time of the withdrawal.
Decision 83-03-18, s. 5; O.C. 672-96, s. 5.
DIVISION III
CLAIMS ON THE FUND
3.01. A claim on the fund shall be addressed to the secretary of the Order at the head office of the latter.
R.R.Q., 1981, c. C-26, r. 33, s. 3.01.
3.02. The secretary shall include the claim on the agenda for the first meeting of the executive committee and the first meeting of the board of directors following receipt of the claim.
R.R.Q., 1981, c. C-26, r. 33, s. 3.02; O.C. 672-96, s. 6.
3.03. A claim must:
(a)  be submitted in writing;
(b)  indicate the supporting facts;
(c)  indicate the amount claimed; and
(d)  be sworn to.
R.R.Q., 1981, c. C-26, r. 33, s. 3.03.
3.04. A claim respecting a member may be submitted whether or not a decision has been taken by the disciplinary council, the Professions Tribunal or any other competent tribunal.
R.R.Q., 1981, c. C-26, r. 33, s. 3.04.
3.05. To be receivable, a claim must be submitted within 12 months following the date on which the claimant learned that sums of money were used for purposes other than those for which they had been remitted to the member in the practice of his profession.
R.R.Q., 1981, c. C-26, r. 33, s. 3.05; O.C. 672-96, s. 7.
3.06. The board of directors may extend the time period provided for in section 3.05 if the claimant proves that, for a reason beyond his control, he was unable to submit his claim within the required time period.
R.R.Q., 1981, c. C-26, r. 33, s. 3.06; O.C. 672-96, s. 8.
DIVISION IV
INDEMNIFICATION
4.01. The board of directors or the executive committee may designate a person or a committee to hold an inquiry and to submit a report concerning a claim.
R.R.Q., 1981, c. C-26, r. 33, s. 4.01; O.C. 672-96, s. 9.
4.02. At the request of the person or committee designated to hold an inquiry, the claimant or the member contemplated must:
(a)  provide all details and documents relating to the claim;
(b)  produce all pertinent proof.
R.R.Q., 1981, c. C-26, r. 33, s. 4.02.
4.03. The board of directors, on the recommendation of the executive committee, shall decide whether to allow a claim in whole or in part and, where expedient, shall fix the indemnity therefor. Its decision is final.
R.R.Q., 1981, c. C-26, r. 33, s. 4.03; O.C. 672-96, s. 10.
4.04. The maximum indemnity payable out of that fund for the period covering the Order’s fiscal year is $60,000 for the total claims concerning a member and $40,000 per claimant.
Where the executive committee has reason to believe that claims exceeding $60,000 may be submitted to it with respect to a particular member, the board of directors must draw up an inventory of the sums of money held in trust by that member and must notify the persons liable to submit claims.
Where the total claims allowed by the board of directors exceed the $60,000 indemnity, that indemnity shall be distributed in proportion to the amounts of the claims.
R.R.Q., 1981, c. C-26, r. 33, s. 4.04; Decision 83-03-18, s. 6; O.C. 672-96, s. 11.
4.05. Before receiving the indemnity fixed by the board of directors, the claimant must sign a quittance in favour of the Order with subrogation of all his rights against the offending professional up to the total amount of the indemnity.
R.R.Q., 1981, c. C-26, r. 33, s. 4.05.
REFERENCES
R.R.Q., 1981, c. C-26, r. 33
Decision 83-03-18, 1983 G.O. 2, 1851
O.C. 672-96, 1996 G.O. 2, 2727
S.Q. 2008, c. 11, s. 212
S.Q. 2009, c. 35, s. 76