Second

Session, 46th General Assembly

Elizabeth II, 2009

BILL 49

AN ACT RESPECTING

PUBLIC ACCOUNTANTS

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

KEVIN O'BRIEN

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would revise the Public Accountancy Act . The principal changes relate to governance

and accountability. With respect to the

former, the Bill would provide for public interest representation on the

licensing board and the disciplinary bodies with respect to the accountability

changes, the Bill provides for an impartial hearing process, extensive and

varied sanctions in the event of a finding of fault and a process for informing

the public of the outcome of a disciplinary proceeding.

A BILL

AN ACT RESPECTING PUBLIC ACCOUNTANTS

Analysis

Short title

Definitions

Board incorporated

Appointment by minister

Meetings

Fees

By-laws

Annual report

Licensure

Register

Titles which public accountants may use

Date of licence

Definitions

Professional corporation

Corporate register

Annual certificate

Revocation of certificate

Effect of incorporation

Liability of member

Misconduct of a professional corporation

Limited liability partnerships

Definitions

Complaints and disciplinary panel

Allegation

Effect of filing allegation

Complaints authorization committee

Adjudication tribunal

Hearing

Copies of books, etc. as evidence

Guilty plea by respondent

Powers of adjudication tribunal

Filing and publication of decisions

De-registration and suspension

Failure to comply

Re-hearing

Costs of board

Collection of fine

Appeal to Trial Division

Action prohibited

Regulations

Practice prohibited

RSNL1990 cP-35 Rep.

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Public Accountants

Act.

Definitions

2. In

this Act

(a) "board" means the Public Accountants

Licensing Board continued under

section

3 ;

(b) "minister" means the minister

appointed under the Executive Council Act

to administer this Act;

(c) "public accountant" means a person

who, either alone or in partnership or through a corporation to which sections 13 to 20 apply, engages in

public practice involving

(

i) the performance of services which include the

auditing of accounts and the preparing, signing, delivering or issuing, of a

financial, accounting or related statement, and

(ii) issuing a written opinion, certificate, report

or statement of the public accountant as to the correctness, fairness,

completeness or reasonableness, or otherwise of a financial, accounting or

related statement where, because of the circumstances, or of the signature,

stationery or wording employed it is indicated that the person or partnership or

corporation acts or purports to act in relation to the opinion, certificate,

report or statement as an independent accountant or auditor, or as a person or

partnership or corporation having or purporting to have expert knowledge in

accounting or auditing matters, to the intent that the opinion, certificate,

report or statement of the public accountant shall add to or detract from the

credibility or acceptability of the financial, accounting or related statement

in respect of which it is made,

but does not include a person who engages

only in bookkeeping or cost accounting or in the installation of bookkeeping,

business or cost systems or who performs accounting or auditing functions

exclusively in respect of a public authority or a commission, committee or

emanation of one, including a Crown corporation;

(c) "register" means the Register of

Public Accountants of Newfoundland and Labrador referred to in

section

10 ; and

(d) "registrar" means the registrar

appointed under subsection 3 (4).

Board

incorporated

(1) The

Public Accountancy Licensing Board is continued as a corporation without share

capital for the purposes of

Part XXI of the Corporations

Act .

(2) The board shall consist of

(a) 6 members elected in accordance with subsection

(3); and

(b) 3 members appointed under

section 4 who are not members

of a body referred to in subsection (3).

(3) The members of the board referred to in

paragraph (2)(

a) shall be elected as follows:

(a) 2 persons, who are members of the Institute of

Chartered Accountants of Newfoundland and Labrador , elected by the institute;

(b) 2 persons, who are members of the Certified

General Accountants Association of Newfoundland and Labrador , elected by the

association; and

(c) 2 persons, who are members of the Society of

Management Accountants of Newfoundland and Labrador , elected by the society.

(4) The board shall elect from among the appointed

members a chairperson and a registrar.

(5) The chairperson, or an appointed member

designated by him or her, shall chair the meetings of the board.

(6) Where a person elected under subsection

(3) holds office for a period of 9 consecutive years the person is not eligible for

election as a member of the board until the expiration of 12 months from the

end of the year in which he or she was last a member.

(7) An elected member may resign his or her office

by written notice to the board.

(8) Where an elected member resigns, dies or

becomes incapable of performing his or her duties, the institute, association

or society of which he or she was a member shall appoint a replacement member to

serve until the expiry of the term of that elected member.

(9) Where the term of office of a member of the board

expires and a successor has not been elected or appointed, the member may

continue to hold office until a successor is elected or appointed but time

served by that member under this subsection shall not be counted for the purpose

of subsection (6).

(10) Elected members shall serve without payment

for their services, but their travel and other expenses associated with their

duties as members may be paid by the board, in accordance with the by-laws.

(11) The board may pay the registrar for performing

his or her duties under this Act, in accordance with the by-laws.

(12) Notwithstanding subsection (6), one of the

members first appointed under paragraphs (3)(a), (

b) and (

c) shall be appointed

for a term of 2 years.

Appointment by

minister

(1) The

minister shall appoint as members of the board 3 persons who are not members of

an organization referred to in subsection

3 (3) who are suitable to represent the public

interest.

(2) A person appointed under subsection (1) holds

office for a term of 3 years and is eligible to be re-appointed.

(3) Where a person appointed under subsection

(1) holds office for a period of 9 consecutive years the person is not eligible for

appointment as a member of the board until the expiration of 12 months from the

end of the year in which he or she was last a member.

(4) Where the term of an appointed member expires,

he or she continues to be a member until re-appointed or replaced.

(5) The board shall pay the expenses of a person appointed

under this

section in accordance with guidelines established by the Lieutenant-Governor

in Council.

(6) A person appointed under subsection (1) may

resign his or her appointment by written notice to the minister and shall

provide a copy to the chairperson of the board.

(7) A person appointed under subsection (1) may be

removed from office by the minister before the expiration of his or her term of

office and no compensation shall be paid to him or her other than an amount

owing under subsection (5).

(8) Notwithstanding subsection (2), one of the

members first appointed under subsection (1) shall be appointed for a term of

one year.

Meetings

(1) A

quorum of the board is 5 members, consisting of

(

a) at least one member elected under paragraph 3 (3)(a);

(

b) at least one member elected under paragraph 3 (3)(b);

(

c) at least one member elected under paragraph 3 (3)(c); and

(

d) an appointed member.

(2) Except where prohibited in the by-laws, a

member may, where all the members consent, participate in a meeting of the board

by means of the telephone or other telecommunication device that permits all

persons participating in the meeting to communicate with each other.

(3) Where a quorum under subsection (1) exists, a

majority of that number is sufficient to make a decision, and in the event of a

tie the chairperson of the meeting shall cast the deciding vote.

(4) In the absence of the chairperson, the members

of the board in attendance at a meeting may appoint another member to chair

that meeting.

(5) The board shall appoint annually an auditor to

audit the accounts of the board and report on the financial statement prepared

by the board.

(6) The board may in its by-laws provide for

voting at a meeting of the board by mail or electronic means.

Fees

(1) In

prescribing the fees payable under this Act, the board shall, so far as it is

practicable, ensure that the amount of fees is sufficient to enable it to

discharge its duties under this Act.

(2) All money received by the board shall be

applied by it to its duties under this Act.

By-laws

(1) The

board may make by-laws not inconsistent with this Act respecting

(

a) the holding and procedure of its meetings;

(

b) the appointment of committees and the duties

and responsibilities of those committees;

(

c) the election of members of the board under

subsection 3 (3)

and setting the terms of office;

(

d) the payment of travel and other expenses of

elected members of the board;

(

e) the employment and remuneration of staff and

consultants;

(

f) a code of ethics which shall include

(

i) a definition of "professional

misconduct" and "conduct unbecoming" for the purposes of

sections 22 to 39 ,

(ii) provisions respecting conflict of interest,

and

(iii) rules respecting methods of advertising;

(

g) the remuneration and payment of travel

expenses of members of adjudication tribunals;

(

h) the participation of members at a meeting of

the board by telephone or other telecommunications device under

section 5 ; and

(

i) voting by members by mail or electronic means.

(2) A by-law may be made, amended or repealed at a

meeting of the board provided that 30 days notice, in writing, of the making,

amendment or repeal of the by-law and of the meeting are given to members of

the board.

(3) The board shall have its by-laws available for

inspection by the public on reasonable notice and at reasonable hours.

Annual report

(1) The

board shall prepare and submit to the minister not later than 6 months after

the end of its financial year

(

a) a report on the activities of the board in the

previous year; and

(

b) the board's audited financial statements for

the previous financial year.

(2) The minister shall table a copy of the annual

report and the audited financial statement in the House of Assembly within 15

days of receiving it if the house is sitting and if the house is not sitting

within 15 days after it next begins to sit.

(3) Where the board fails to comply with

subsection (1), the board is guilty of an offence and on

summary conviction may

be fined $1,000.

Licensure

(1) A

person who

(

a) has met the requirement for licensure that may

be prescribed by the board; and

(

b) pays the licensing fee set by the board,

is entitled to be licensed as a public accountant.

(2) As a condition of being issued a licence, a

person shall provide proof that he or she has obtained professional liability insurance

coverage in a form and amount satisfactory to the board.

Register

(1) The registrar shall keep a register in

which shall be entered the names of all persons licensed under this Act.

(2) The register shall be open to inspection by a

member of the public during normal business hours at the office of the board.

Titles which

public accountants may use

(1) The

board, upon issuing a licence to practise as a public accountant, shall assign

to the licensee the titles or identifying words or abbreviations which the

licensee may attach to his or her name when practising or in private employment.

(2) A person practising as a public accountant

shall not use or advertise distinguishing titles of identifying words or

abbreviations other than those assigned to him or her by the board.

Date of licence

(1) A

licence issued or renewed under this Act shall state the date on which it is

granted or renewed.

(2) A licence granted or renewed under this Act

expires on December 31 following the date of its issue.

(3) Notwithstanding subsection (2), a licence-holder

has 31 days to the end of January following, to renew his or her licence and

pay the fee, and during that period he or she shall be considered still to be licensed.

(4) A person holding a licence under this Act who

wishes to have the licence renewed shall apply to the board and shall pay the

prescribed fee.

(5) A person holding a licence under this Act who

has applied to the board under this

section shall be entitled to have the

licence renewed, but nothing in this subsection prejudices or affects the right

of the board to revoke a licence under this Act.

Definitions

13. In

sections 14 to 20

(a) "non-voting share" means an issued

share of a professional corporation that is not a voting share; and

(b) "voting share" means an issued share

of a professional corporation with the right to vote at a meeting of

shareholders attached to it.

Professional corporation

(1) One

or more public accountants may incorporate a corporation to provide the services

of a public accountant.

(2) The corporation shall be incorporated under

the Corporations Act .

(3) The name of the corporation shall meet the

requirements of subsection 17(1) of the Corporations

Act .

(4) A corporation shall not provide the services

of a public accountant unless it is registered and certified under this Act.

Corporate

register

(1) The

registrar shall maintain a register of professional corporations in which shall

be entered the names of those corporations permitted under this Act to provide

the services of a public accountant.

(2) The board shall direct the registrar to

register a professional corporation that establishes that

(

a) all the voting shares of the corporation are

beneficially owned by and registered in the name of one or more public

accountants and there is no restriction on the right of each public accountant to

exercise his or her vote as he or she wishes to;

(

b) the non-voting shares are owned by a natural

person;

(

c) all the directors of the corporation are public

accountants, and there is no agreement restricting the powers of the directors

to manage the business and affairs of the corporation in relation to the

provision of services of public accountants;

(

d) all of the persons who will be providing the

services of public accountants as employees of or on behalf of the corporation

are public accountants;

(

e) the articles of the corporation restrict it to

providing the services of a public accountant and related matters;

(

f) the corporation is in good standing under the Corporations Act ; and

(

g) the corporation has complied with other

requirements for registration in the regulations made under

section 40 .

(3) The corporate register shall be published in

accordance with

section 10

and a copy of the register shall be available for inspection under that section.

(4) The board may enter into a reciprocal

agreement with a board, association or other body having responsibility for the

certification of public accountants in another jurisdiction for the registration

of corporations from that jurisdiction in the register.

(5) Notwithstanding subsection (2), the voting

shares of a professional corporation may be held by

(

a) an executor or administrator of the estate of

a deceased public accountant to discharge the duties of that position; or

(

b) a trustee in bankruptcy to discharge his or

her duties as trustee in respect of the corporation or a public accountant,

for no longer than 180 days, or a longer

period where the registrar permits.

Annual certificate

(1) A

professional corporation may apply for a certificate to provide the services of

a public accountant in the province and the board shall certify the corporation

where

(

a) the professional corporation is registered

under this Act;

(

b) the application is accompanied by a fee which

may be established by the board; and

(

c) the professional corporation continues to meet

the requirements for registration set out in

section

15 and other requirements for being certified which

may be set out in this Act and the regulations made under

section 40 .

(2) The holder of a certificate issued under this

section is entitled to recover from a person, in a court of the province having

jurisdiction to order payment from the person, reasonable charges for the provision

of professional services by the certificate holder.

(3) A certificate issued under this

section

expires on January 15 following the day upon which it comes into force.

Revocation of certificate

17. A

certificate issued under

section 16 may be revoked by the board where

(

a) the professional corporation ceases to meet a

requirement for registration and certification under this Act;

(

b) the professional corporation contravenes this

Act or the regulations; or

(

c) a public accountant is disciplined under sections

22 to 39 in respect of

professional services performed by him or her as an employee of or on behalf of

the professional corporation.

Effect of

incorporation

(1) A

public accountant who provides professional services to or through a

professional corporation is, notwithstanding his or her relationship to the

professional corporation or the relationship between the recipient of those

services and the professional corporation, subject to

(

a) the application of this Act as if he or she

were providing services as an individual public accountant; and

(

b) the same duties and responsibilities in

connection with his or her dealings with recipients of the services of the

professional corporation as if he or she were providing services directly to

those recipients.

(2) The relationship between a professional

corporation and a person receiving services from or through the corporation is

subject to the laws relating to the confidential and ethical relationship between

a public accountant and his or her client.

(3) All rights and obligations pertaining to

communications made to, or information received by, public accountants apply to

the shareholders, directors, officers and employees of a professional corporation.

Liability of member

(1) Notwithstanding

a provision to the contrary in the Corporations

Act , a public accountant who provides services as a public accountant through

or on behalf of a professional corporation is liable to a person in relation to

those services to the same extent and in the same manner as if the public

accountant provided those services as an individual and that liability is not

affected because of the public accountant's relationship to the professional

corporation as a shareholder, director, officer, employee or in another capacity.

(2) A public accountant is jointly and

individually liable with a professional corporation for all claims made against

the corporation in connection with the provision of services by the public

accountant.

(3) In this

section "public accountant"

includes a person formerly licensed under this Act or a predecessor Act as a public

accountant.

Misconduct of a

professional corporation

(1) A

public accountant is liable to be disciplined under sections 22 to 39 for the actions or

conduct of a professional corporation while the public accountant was a

shareholder, director, officer or employee of the professional corporation.

(2) A public accountant shall not be liable to

discipline under subsection (1) where the public accountant proves that he or

she did not know and could not reasonably have known about the relevant actions

or conduct of the professional corporation.

(3) A power of inspection, investigation or

inquiry that may be exercised in respect of a public accountant under

section 26 may be exercised in

respect of a professional corporation or its records in connection with an

inquiry under subsection (1).

(4) A professional corporation is jointly and

individually liable with the public accountant for all fines and costs the public

accountant is ordered to pay in connection with an inquiry under subsection

(1).

(5) In this section, "public accountant"

includes a person formerly licensed under this Act or a predecessor Act as a public

accountant.

Limited liability

partnerships

21. Two

or more persons licensed under this Act to practice as public accountants are

eligible, as required by

section 56 of the Partnership

Act , to apply to be registered under that Act as a limited liability partnership.

Definitions

22. In

this

section and sections 23

to 39 ,

(a) "allegation" means a written

document alleging that a person has engaged in conduct deserving of sanction;

(b) "complainant" means a person making

an allegation described in

section

24 ;

(c) "conduct deserving of sanction"

includes

(

i) professional misconduct,

(ii) professional incompetence,

(iii) conduct unbecoming a public accountant,

(iv) incapacity or unfitness to practise as a

public accountant, and

(

v) acting in breach of this Act, the regulations

or the code of ethics made under

section

7 ;

(d) "costs incurred by the board"

includes

(

i) out of pocket expenses incurred by or on

behalf of the board,

(ii) amounts paid by the board to adjudication tribunal

members as remuneration and for expenses, and

(iii) the actual cost of legal counsel for the board

and the adjudication tribunal;

(e) "disciplinary panel" means the panel

of persons appointed under

section

23 from which the members of an adjudication

tribunal are chosen; and

(f) "respondent" means a public accountant

or former public accountant, a corporation to which sections 13 to 20 apply or a former

corporation against whom an allegation is made.

Complaints and

disciplinary panel

(1) The board shall appoint at least 3

members, at least one of whom is a member appointed under

section 4 , to constitute a complaints

authorization committee.

(2) The registrar is not eligible to be a member

of the complaints authorization committee.

(3) The board shall appoint the chairperson and

vice-chairperson of the complaints authorization committee from the persons

appointed under subsection (1).

(4) The board shall appoint at least 7 public accountants

who are not members of the board, one of whom shall be appointed to serve as

chairperson, and the minister shall appoint at least 2 persons who are not public

accountants to represent the public interest, who shall together constitute a

disciplinary panel.

(5) Of the members first appointed to the

disciplinary panel, one half shall be appointed for a term of 2 years and the

remainder for a term of 3 years and all subsequent appointments of members to

the disciplinary panel shall be for a term of 3 years.

(6) Notwithstanding the expiry of his or her term,

a member of the disciplinary panel continues to be a member until he or she is

re-appointed or his or her replacement is appointed.

(7) Persons appointed to the disciplinary panel

may be reappointed.

(8) Members of the disciplinary panel shall serve

on the panel without payment for their services, but may be remunerated for

service as a member of an adjudication tribunal and paid their travel and other

expenses associated with the work of that tribunal by the board, in accordance

with and at the rates set by the by-laws.

(9) The complaints authorization committee and an

adjudication tribunal appointed under

section

27 and a person appointed by either of them may

summon witnesses and require those witnesses to give evidence, orally or in

writing, upon oath or affirmation, and produce the documents and things that

either of them considers necessary to the full investigation and hearing of an

allegation or complaint and have the powers, privileges and immunities that are

conferred on a commissioner appointed under the Public Inquiries Act, 2006.

Allegation

(1) An

allegation shall be in writing and signed by the complainant or his or her

solicitor, and filed with the registrar.

(2) The registrar may on his or her own motion

make an allegation and file it, and the allegation has the same effect as an

allegation referred to in subsection (1).

(3) Where the registrar has been informed that a respondent

has been convicted of an offence under the provisions of the Criminal Code or a similar penal statute

of another country or has been suspended by a licensing body for public accountants

in another province or territory of Canada or another territory or country for

reason of professional misconduct, conduct unbecoming a public accountant, or

professional incompetence, the information shall be dealt with by the chairperson

as an allegation.

(4) For the purpose of subsection (3), a certified

copy of the record of a conviction or findings made or the action taken by an

external regulatory body constitutes proof, in the absence of evidence to the

contrary, of the conviction or findings made or the action taken by that body,

without proof of the signature of the convicting justice or person purporting

to have signed on behalf of that body.

Effect of filing

allegation

(1) Where

it appears to the registrar after notifying the respondent of the allegation that

the allegation may be resolved satisfactorily and where the complainant and the

respondent consent, the registrar may attempt to resolve the matter.

(2) Where the allegation is not satisfactorily

resolved by the registrar under subsection (1), he or she shall refer the

allegation to the complaints authorization committee.

(3) The registrar shall inform a complainant and a

respondent of the referral of the allegation to the complaints authorization

committee.

Complaints authorization

committee

(1) Where

an allegation has been submitted to the complaints authorization committee, the

committee may exercise one or more of the following powers:

(

a) refer the allegation back to the registrar for

an investigation or alternative dispute resolution in accordance with the regulations;

(

b) conduct an investigation itself or appoint a

person to conduct an investigation on its behalf;

(

c) conduct a practice review into the

respondent's practice or the conduct of a corporation to which sections 13 to 20 apply of which the

respondent is a voting shareholder; and

(

d) require

the respondent to appear before it.

(2) Where the complaints authorization committee

is of the opinion there are no reasonable grounds to believe the respondent has

engaged in conduct deserving of sanction, the committee shall dismiss the

allegation and give notice in writing of the dismissal to the complainant.

(3) Where the complaints authorization committee

is of the opinion that there are reasonable grounds to believe that a

respondent has engaged in conduct deserving of sanction, the allegation is

considered to constitute a complaint, and the committee may

(

a) counsel or caution the respondent; or

(

b) instruct the registrar to file the complaint

against the respondent and refer it to the adjudication tribunal; and

(

c) suspend or restrict the respondent's licence

to practice.

(4) Where the complaints authorization committee

suspends a licence under subsection (3), the committee shall give notice of the

suspension to the public as required by the regulations.

(5) A person conducting an investigation under subsection

(1) may

(

a) require a respondent to

(

i) undergo an examination he or she considers

necessary and as arranged by the registrar, and

(ii) permit the registrar or a member of the complaints

authorization committee or a person appointed by the complaints authorization

committee to inspect and copy the records of the respondent and other documents

relating to the subject matter of the investigation; and

(

b) require another person to permit the registrar

or a member of the complaints authorization committee or another person

appointed by the complaints authorization committee to inspect and copy records

and other documents relating to the subject matter of the investigation held by

that person,

and the respondent or other person shall

comply.

(6) Where the registrar, a member of the complaints

authorization committee or a person appointed by the authorization committee requests

that a respondent or another person provide information under subsection (5),

that information shall be provided within 7 days of receipt of the request or a

different period as specified in the request.

(7) An action for damages does not lie against a public

accountant or another person to whom a request is made solely because he or she

provides information requested of him or her under subsection (5).

(8) A complainant whose allegation is dismissed by

the complaints authorization committee under subsection (2) may, within 30 days

after receiving notice of the dismissal, appeal the dismissal to the Trial

Division by filing a notice of appeal with the Registrar of the Supreme Court.

(9) Subsections (5), (6) and (7) apply to the

Crown.

Adjudication

tribunal

(1) For

the purpose of dealing with complaints referred to the disciplinary panel, the

chairperson of the disciplinary panel shall appoint from it an adjudication

tribunal consisting of 3 persons, of whom 2 shall be public accountants and one

shall be a representative of the public interest.

(2) The chairperson of the disciplinary panel

shall appoint one of the public accountants on an adjudication tribunal to be

the chairperson.

Hearing

(1) Where

a complaint has been referred under paragraph

26 (3)(b), an adjudication tribunal shall hear

the complaint.

(2) The parties to a hearing are the board and the

respondent and a party may be represented by his or her counsel at a hearing.

(3) A hearing shall be conducted in public but an

adjudication tribunal may exclude the public from a hearing, or from part of

it, where it considers the desirability of protecting a party to the complaint

or a witness against the consequences of possible disclosure of personal

matters outweigh the desirability of holding the hearing in public.

Copies of books,

etc. as evidence

29. A

copy or extract of a book, record, document or thing certified by

(

a) a member of the complaints authorization

committee; or

(

b) a person authorized under subsection 26 (5) to conduct an

inspection,

who made the copy or extract under

subsection 26 (5)

is admissible in evidence in an action, proceeding or prosecution, in the

absence of evidence to the contrary, as evidence of the original book, record,

document or thing and its contents.

Guilty plea by

respondent

(1) Where

a respondent pleads guilty to one or more of the charges set out in a

complaint, the adjudication tribunal shall, without calling evidence or hearing

witnesses, unless the tribunal believes it is appropriate to do so, hear

submissions from the parties.

(2) Where a respondent pleads guilty, and

following submissions under subsection (1), the adjudication tribunal may

(

a) reprimand the respondent;

(

b) order that the respondent be suspended for a

fixed period that it considers appropriate, until conditions which it may

impose are fulfilled, or until further order of the adjudication tribunal;

(

c) allow or direct the respondent to surrender

his or her licence to the board upon those conditions that may be considered

appropriate and strike the respondent's name from the register;

(

d) impose a fine not to exceed $10,000 to be paid

to the board;

(

e) order that the respondent pay the costs or a

part of the costs incurred by the board in the investigation and hearing of the

complaint;

(

f) order that the registrar publish a

summary of

the decision including the information set out in subsection 32 (4) and other

information that the tribunal may specify; and

(

g) order that the respondent comply with one or

more of the following:

(

i) make restitution to the complainant or other

person affected by the conduct of the respondent,

(ii) obtain medical treatment,

(iii) obtain counselling,

(iv) obtain substance abuse counselling or

treatment, until the respondent can demonstrate to the board or other body or

person designated by the adjudication tribunal that a condition related to

substance abuse rendering the respondent incapable or unfit to practise has

been overcome,

(

v) engage in continuing education programs,

(vi) complete a course of studies satisfactory to the

board or another body or person designated by the adjudication tribunal,

(vii) report on his or her compliance with an order

made under this

section and authorize others involved with his or her treatment

or supervision to report on it,

(viii) restrict his or her professional practice or

continue his or her practice under specified conditions,

(ix) permit periodic inspection of records relating

to his or her practice, or

(

x) impose other requirements that are just and

reasonable in the circumstances.

(3) The costs incurred by the board to ensure the

compliance of a respondent with an order or direction of an adjudication

tribunal under this

section shall be borne by the respondent.

Powers of adjudication

tribunal

(1) Upon

hearing a complaint, an adjudication tribunal shall decide whether or not a

respondent is guilty of conduct deserving of sanction.

(2) Where an adjudication tribunal decides that a

respondent is not guilty, it shall dismiss the complaint and may, where it

believes that the submission of the complaint to the tribunal for a hearing was

unreasonable,

(

a) order that those costs that the tribunal

considers appropriate be paid by the board to the respondent; and

(

b) make another order that it considers

appropriate.

(3) Where an adjudication tribunal decides that a

respondent is guilty, it may

(

a) reprimand the respondent;

(

b) order that the respondent be suspended for a

fixed period that it considers appropriate, until conditions which it may

impose are fulfilled, or until further order of the adjudication tribunal;

(

c) allow or direct the respondent to surrender

his or her licence to the board upon those conditions that may be considered

appropriate and strike the respondent's name from the register;

(

d) impose a fine not to exceed $10,000 to be paid

to the board;

(

e) order that the respondent pay the costs or a

part of the costs incurred by the board in the investigation and hearing of the

complaint;

(

f) order that the registrar publish a

summary of

the decision including the information set out in subsection 32 (4) and other

information that the tribunal may specify; and

(

g) order that the respondent comply with one or

more of the following:

(

i) make restitution to the complainant or other

person affected by the conduct of the respondent,

(ii) obtain medical treatment,

(iii) obtain counselling,

(iv) obtain substance abuse counselling or

treatment, until the respondent can demonstrate to the board or other body or

person designated by the adjudication tribunal that a condition related to

substance abuse rendering the respondent incapable or unfit to practise has

been overcome,

(

v) engage in continuing education programs,

(vi) complete a course of studies to the

satisfaction of the board or other body or person designated by the adjudication

tribunal,

(vii) report on his or her compliance with an order

made under this

section and authorize others involved with his or her treatment

or supervision to report on it,

(viii) restrict his or her professional practice or

continue his or her practice under specified conditions,

(ix) permit periodic inspection of records relating

to his or her practice, or

(

x) impose other requirements that are just and

reasonable in the circumstances.

(4) The costs incurred by the board to ensure the

compliance of a respondent with an order or direction of an adjudication

tribunal under this

section shall be borne by the respondent.

Filing and publication

of decisions

(1) An

adjudication tribunal shall file a decision or order made under subsection 30 (2) or 31 (2) or (3) with the registrar

and provide a copy to the complainant and the respondent and the respondent's employer.

(2) The registrar shall maintain a copy of a

decision or order filed under subsection (1) for a minimum of 5 years after the

day the decision is filed and shall upon receiving a request to view the

disciplinary records in relation to a public accountant permit a person to view

those records.

(3) The registrar shall publish a

summary of a decision

or order of an adjudication tribunal in a newspaper of general circulation in

or nearest to the community in which the respondent practises within 14 days of

the expiry of the appeal period under

section

38 , unless a court otherwise orders, where the

decision or order

(

a) suspends the respondent;

(

b) allows or directs the respondent to surrender

his or her licence;

(

c) restricts the respondent's practice;

(

d) specifies conditions for the continuing

practice of the respondent; or

(

e) requires that a

summary of the decision or

order be published.

(4) The

summary of the decision published under

subsection (3) shall include

(

a) the name of the respondent and the address

where he or she practises;

(

b) the date, location and a brief description of

the conduct of the respondent that was found to be deserving of sanction;

(

c) the name of the complainant, unless the

complainant has requested that his or her name be withheld;

(

d) the contents of the order in relation to the

actions referenced in paragraphs (3)(

a) to (d); and

(

e) other information specified for publication in

the decision or order.

(5) Where a decision published under this

section

is confirmed, varied or set aside, the registrar shall within 14 days of the

filing of the subsequent decision or order publish a

summary of the decision or

order and subsections (2) and (3) apply, with the necessary changes.

(6) The registrar may give notice of the decision

and information respecting the decision to the other persons the board may

direct and shall include a

summary of the decision in a certificate of good

standing issued in relation to the respondent.

De-registration

and suspension

(1) Where

a public accountant is allowed or directed to surrender his or her licence, his

or her rights and privileges as a public accountant cease.

(2) Where a public accountant is suspended, his or

her rights and privileges as a public accountant cease for the period of suspension.

(3) Where conditions or restrictions have been

imposed upon a respondent's ability to carry on his or her practice, his or her

rights and privileges as a public accountant shall be limited to the extent

specified by the conditions or restrictions.

Failure to comply

(1) On

application by the board to the disciplinary panel, an adjudication tribunal

may make an order suspending the rights and privileges of a respondent where it

determines that the respondent has failed to comply with a decision or an order

under subsection 30 (2)

or 31 (2) or (3).

(2) The parties to the application are the board

and the respondent.

(3) An order of an adjudication tribunal under

this

section may suspend the rights and privileges of the respondent for a

fixed period that the adjudication tribunal may consider appropriate, or until

conditions which it may impose are fulfilled, or until further order of the

adjudication tribunal.

Re-hearing

(1) Where

a decision or order of the adjudication tribunal

(

a) suspends the respondent;

(

b) allows or directs the respondent to surrender

his or her licence;

(

c) restricts the respondent's practice; or

(

d) specifies conditions for the continuing

practice of the respondent,

and where the respondent alleges that new

evidence has become available or a material change in circumstances has

occurred since the decision or order was made, the respondent may apply to the

complaints authorization committee for a supplementary hearing to discharge or

vary the decision or order based on the new evidence or material change in circumstances.

(2) An application under subsection (1) shall be

made not more than 90 days after the new evidence becomes available or the

material change in circumstances has occurred.

(3) Where an application is made to the complaints

authorization committee under subsection (1), and the committee is of the opinion

that new evidence has become available or that a material change in

circumstances has occurred, as alleged by a respondent, the matter shall be

referred to an adjudication tribunal as if it were a matter referred under

paragraph 26 (3)(

b) and sections 28

to 33 apply,

with the necessary changes, to the referred matter.

(4) The parties to a supplementary hearing under

this

section are the respondent and the board.

(5) For the purpose of this section, in addition

to an order that an adjudication tribunal may make under

section 31 , a tribunal may

(

a) vary the original decision or order made under

section 31 ; or

(

b) discharge the original decision or order, with

or without conditions.

Costs of board

(1) Where

a person who was ordered to pay the costs of the board under paragraph 30 (2)(

e) or 31 (3)(

e) fails to pay

in the time required, the board may suspend the licence of that person until

the costs are paid.

(2) Costs ordered by the board under paragraph 30 (2)(

e) or 31 (3)(

e) are a debt

due the board and may be recovered by a civil action.

Collection of

fine

(1) Where

an order is made under

section 30 or

imposing a fine on a respondent, the board may issue a certificate stating the

amount of the fine due and remaining unpaid and the name of the person by whom

it is payable, and file the certificate with the Registrar of the Supreme

Court.

(2) Where a certificate is filed with the

Registrar of the Supreme Court under subsection (1), it has the same effect and

all proceedings may be taken on the certificate as if it were a judgment of the

Trial Division for the recovery of the amount stated in the certificate against

the person named in the certificate.

(3) A person named in a certificate filed under

this

section may, within 30 days after the certificate is filed, apply to a

judge of the Trial Division for a review, on a question of law or jurisdiction,

of the certificate.

(4) On application under subsection (3), the judge

may make any amendment to the certificate that is necessary to make the certificate

accord with the judge's decision.

(5) There is no appeal from a decision of a judge

made under this section.

(6) A certificate filed under this

section may

also be filed in the judgment enforcement registry on the expiration of the 30

day period referred to in subsection (3) in accordance with

Part III of the Judgment Enforcement Act and be enforced

in accordance with that Act.

Appeal to Trial

Division

(1) The

board or the respondent may, within 30 days after receiving notice of the

decision or order of an adjudication tribunal under this Act, appeal the

decision or order to the Trial Division by filing a notice of appeal with the

Registrar of the Supreme Court.

(2) An appeal under this

section does not stay the

decision or order being appealed unless the Trial Division orders otherwise.

Action prohibited

39. An

action for damages shall not lie against the board, disciplinary panel, an adjudication

tribunal or the individual members of those bodies, a person appointed to

conduct an investigation under subsection

26 (5), the registrar, or an officer or employee

of the board for

(

a) an act or failure to act, or a proceeding

initiated or carried out in good faith under this Act, or carrying out their

duties or obligations as an officer, employee or member under this Act; or

(

b) for a decision or order made or enforced in

good faith under this Act.

Regulations

(1) The

board, with the approval of the minister, may make regulations

(

a) prescribing conditions for the licensing of a

person to practise as a public accountant and for the renewal of licences;

(

b) providing for the issuance of provisional

licences;

(

c) approving schools and programs of public accountancy;

(

d) respecting the incorporation of companies

under sections 13

to 20 ;

(

e) respecting eligibility of public accountants

to form limited liability partnerships;

(

f) respecting the suspension or restriction of a

licence under paragraph 26 (3)(c);

(

g) respecting alternative dispute resolution for

the purposes of sections 22

to 39 and the procedure

for that resolution; and

(

h) prescribing time limits for events in the

disciplinary process in sections 22 to

39 , including time limits for:

(

i) the filing of an allegation,

(ii) the resolution of an allegation by the

registrar,

(iii) the conduct of an investigation under

section 26 ,

(iv) consideration of an allegation by the

complaints authorization committee following completion of an investigation,

(

v) responding to a complainant and respondent at

each stage of the process,

(vi) the conduct of a practice investigation under

paragraph 26 (1)(c),

(vii) the appointment of an adjudication panel under

section 27 , and

(viii) the conduct of a hearing and the filing of a

decision or order by an adjudication panel following completion of the hearing.

(2) Notwithstanding subsection (1), the minister

may make regulations prescribing time limits for events in the disciplinary process

under sections 22

to 39 where the

board does not do so in a time period the minister considers reasonable.

Practice prohibited

(1) A

person who is not licensed under this Act shall not

(

a) take or use the name or title of "public

accountant";

(

b) practise as a public accountant; or

(

c) wilfully pretend to be licensed as a public

accountant.

(2) A person who contravenes this

section is

guilty of an offence and is liable on

summary conviction to a fine not

exceeding $5,000.

RSNL1990 cP-35

Rep.

42. The Public

Accountancy Act is repealed.

Commencement

43. This Act comes into force on a day to be

proclaimed by the Lieutenant-Governor in Council.

Earl G. Tucker, Queen's Printer