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1In this Act

“Commissioner” means the Commissioner of Municipal Affairs, appointed under this Act;(Commissaire)

“council” means a council as defined in subsection 1(1) of the Local Governance Act; (conseil)

“financial institution” means(institution financière)

(a) a bank to which the Bank Act (Canada) applies,

(b) a loan or trust company licensed under the Loan and Trust Companies Act, or

(c) a credit union incorporated under the Credit Unions Act or any former Credit Unions Act of the Province;

“local board” includes any local board of health, board of police commissioners, and other board, commission, committee, body or local authority established or exercising any powers or authority under any general or special Act with respect to any of the affairs or purposes, excluding school purposes, of a municipality;(commission locale)

“Minister” means the Minister of Local Government and includes any person designated by the Minister to act on the Minister’s behalf;(Ministre)

“municipality” means a local government as defined in subsection 1(1) of the Local Governance Act. (municipalité)

R.S., c.37, s.1; 1961-62, c.51, s.1; 1964, c.19, s.1; 1966, c.153, s.1; 1994, c.14, s.1; 1998, c.41, s.35; 2000, c.26, s.76; 2005, c.7, s.16; 2006, c.16, s.44; 2012, c.39, s.54; 2017, c.20, s.42; 2020, c.25, s.31; 2023, c.40, s.16

I

APPOINTMENT OF COMMISSIONER

Commissioner of municipal affairs

2The Lieutenant-Governor in Council may appoint a person to be known as the “Commissioner of Municipal Affairs,” who shall hold office for such length of time as the Lieutenant-Governor in Council may determine.

R.S., c.37, s.2

Oath of Commissioner

3Before entering upon the exercise of his duties, the Commissioner shall make oath or affirmation, before some person authorized to administer an oath or affirmation in this Province, that he will faithfully and impartially perform the duties of his office.

R.S., c.37, s.3

Staff of Commissioner

4The Lieutenant-Governor in Council may provide the Commissioner with such clerical assistance as to the Lieutenant-Governor in Council appears necessary for the efficient carrying out of the provisions of this Act.

R.S., c.37, s.4

Powers of Commissioner, generally

5The Commissioner has all the powers conferred on a commissioner appointed under the Inquiries Act, and is entitled to all the privileges given thereunder, and all the provisions of that Act, when applicable to and not inconsistent with the provisions of this Act, shall apply to this Act.

R.S., c.37, s.5

Remuneration of Commissioner

6The Commissioner shall receive such remuneration as the Lieutenant-Governor in Council may determine.

R.S., c.37, s.6

Power of Cabinet respecting report of Commissioner

7The Lieutenant-Governor in Council may, at any time, refer to the Commissioner for a report or other action any question, matter or thing arising or required to be done in respect of a municipality under any general or special Act, and the Commissioner shall, without unnecessary delay, comply with the Order in Council, and has full power to require any municipality to furnish such information as the Commissioner considers necessary for the purpose of complying with the terms of the Order in Council.

R.S., c.37, s.7

II

MUNICIPAL ACCOUNTS, STATISTICS
AND AUDITS

Municipal accounts, statistics and audits

8The Commissioner has power, which may be exercised in respect to any municipality if it is deemed advisable so to do,

(a) to prescribe and regulate the system of estimates, bookkeeping and accounting to be adopted by the municipalities, and the form of and the manner in which all estimates, books of account, registers, records, vouchers, receipts and other books and documents relating to the assets, liabilities, revenues and expenditures of municipalities shall be kept, and the manner in which all funds and money thereof shall be accounted for;

(b) to prescribe the forms, returns, statements and information to be made and furnished by municipalities to the Commissioner, or the Lieutenant-Governor in Council, annually, periodically or otherwise, and the times when and by whom they shall be made;

(c) to prescribe and regulate the system of auditing of the accounts, registers, records, vouchers, receipts and other books and documents relating to the assets, liabilities, revenues, expenditures, funds and money of municipalities, and the reports, returns, statements and information to be made and furnished by municipal auditors, and otherwise with respect to the performance of their duties;

(d) to collect, compile, analyse and record such statistical and other information relating to the financial and other affairs of the municipalities as may be useful;

(e) to prepare and publish statistics, reports, records, bulletins, pamphlets, circulars and other means of disseminating information and advice in relation to municipal affairs as may be useful;

(f) to study, report, and advise upon the system of municipal institutions and the government and administration of municipal affairs;

(g) to prepare and make to the Lieutenant-Governor in Council such annual or other reports and returns as may be required;

(h) to perform such other duties as the Lieutenant-Governor in Council may require or assign;

(i) to perform and do all things necessary or incidental to any of the aforesaid purposes.

R.S., c.37, s.8; 2000, c.26, s.76; 2001, c.15, s.1

Systems, methods and forms

9The Commissioner may, with respect to any of the matters mentioned in paragraphs 8(a), (b) and (c), prescribe different systems, methods and forms for the several classes of municipalities, or for any municipality.

R.S., c.37, s.9; 2000, c.26, s.76; 2001, c.15, s.1

Compliance with system, methods, forms or returns

10Every municipality, and every member of the council or a local board thereof, and every officer thereof, shall comply with any system, methods, forms or returns prescribed under this Part to be adopted, kept or made by such municipality or local board, or by the class of municipalities or local boards of which such municipality or local board is one.

R.S., c.37, s.10

Compliance with system of estimates, bookkeeping, accounting or auditing

11A municipality that has adopted a system of estimates, bookkeeping, accounting or auditing of which the Commissioner approves, may continue such system until otherwise directed by the Commissioner, and until such time it is not necessary for the municipality to comply with any other system prescribed under this Part.

R.S., c.37, s.11; 2000, c.26, s.76; 2001, c.15, s.1

Power of Commissioner respecting municipal audit

12(1)The Commissioner may at any time, with the approval of the Lieutenant-Governor in Council, direct an auditor to make an audit of the financial affairs of any municipality.

12(2)The direction given by the Commissioner may extend to an audit of all the financial affairs of a municipality, or may be limited to the financial affairs of any local board thereof, or to any specified phase of such financial affairs, or to any specified books, accounts, registers, records, vouchers, receipts, funds, money or financial transactions kept by or under the charge of any officer of the municipality designated by the Commissioner.

12(3)Upon completion of an audit the auditor shall report thereon to the Commissioner, who shall forthwith transmit a copy of the report to the municipality and to the Lieutenant-Governor in Council.

R.S., c.37, s.13; 2000, c.26, s.76; 2001, c.15, s.1

Powers of auditor

13For the purposes of an audit, the auditor may require the production of all or any books, records and documents that may in any way relate to the affairs of the municipality the subject of the audit, and inspect, examine and copy the same, and may require any officer of the municipality and any other person to appear before him and give evidence, on oath, touching any of such affairs, and for such purposes shall have the same power as a commissioner under the Inquiries Act.

R.S., c.37, s.14

Power of Cabinet respecting auditor’s report

14The Lieutenant-Governor in Council, as a result of any audit of the affairs of a municipality made under this Part, may make such orders as he may see fit requiring the municipality to carry out, put into effect, observe, perform or enforce such matters or things as the audit may have disclosed as being necessary or desirable in the interests of the municipality or with respect to the due accounting for collection or payment of any of its assets, liabilities, revenues, expenditures, funds or money or otherwise in any respect as the order of the Lieutenant-Governor in Council may provide.

R.S., c.37, s.15

Costs of audit

15The Lieutenant-Governor in Council may fix the fees and allowances for expenses payable with respect to any audit of the affairs of a municipality under section 12 and the amount so fixed shall forthwith be paid by the municipality.

R.S., c.37, s.16

Furnishing of information to Commissioner

16The Commissioner may at any time call upon a municipality or any official of a municipality to furnish any information relating to the affairs of the municipality.

R.S., c.37, s.17; 2000, c.26, s.76; 2001, c.15, s.1

Failure to provide information to Commissioner

17Where a municipality fails, neglects or refuses to make or provide to the Commissioner any form or return, statement or information prescribed under this Part, the Commissioner may authorize some person to make and furnish the same at the expense of the municipality.

R.S., c.37, s.18; 2000, c.26, s.76; 2001, c.15, s.1

Inspection of municipal records by Commissioner

18The Commissioner or any person authorized by him may, at all reasonable times, examine all books, accounts, records, vouchers and all other documents dealing with the affairs of a municipality and every officer of a municipality or other person having custody or control of any such books, accounts, records, vouchers or other documents shall upon demand by the Commissioner or other person so authorized by him produce the same to him for his inspection.

R.S., c.37, s.19; 2000, c.26, s.76; 2001, c.15, s.1

Liability of municipality and municipal officials

19Nothing in this Part affects or impairs any security given by any officer of a municipality for the due and faithful performance of the duties of his office, or relieves his sureties from liability in case of his default therein, and nothing in this Part relieves any municipality from its duty to appoint competent auditors.

R.S., c.37, s.20

Deeming provision

19.1For the purposes of this Part, the following are deemed to be a municipality:

(a) a water or wastewater commission established under section 15.2 of the Clean Environment Act, and

(b) a regional service commission established under the Regional Service Delivery Act.

2012, c.32, s.6; 2012, c.44, s.8

III

GENERAL MUNICIPAL JURISDICTION

Jurisdiction of Commissioner

20The Commissioner, with the approval of the Lieutenant-Governor in Council, shall have jurisdiction and power in relation to municipal affairs, to

(a) effect improvement generally in the conduct and administration, and, among other things, to consult with and advise municipalities, develop proper methods of municipal financing, and to collaborate with municipal associations and other bodies, and collect, compile and disseminate municipal statistics and information;

(b) approve the exercise of any power by a municipality under any general or special Act that may or will involve or require the borrowing of money by the issue of debentures, or the incurring of any debt, or the issuing of any debentures;

(c) authorize the issue by any municipality of debentures to pay any floating indebtedness which it may have incurred, upon such terms, in such manner and at such times as may be approved; or direct that such floating indebtedness be paid in such manner and within such time as may be approved;

(d) supervise, where deemed necessary, the expenditure of any money borrowed by a municipality;

(e) require and obtain from any municipality, at any time and for any definite period, statements in detail of any of its affairs, financial and otherwise.

R.S., c.37, s.21

Approval by Commissioner of borrowing

21Although not required by law so to do, any municipality may voluntarily apply to the Commissioner, or to the Lieutenant-Governor in Council, for his approval of

(a) the exercise by the municipality of any of its powers that may or will involve or require the borrowing of money by the issue of its debentures;

(b) the incurring of any debt;

(c) the issuing of its debentures.

R.S., c.37, s.22

IV

MUNICIPAL INSPECTORS

Appointment of municipal inspector by municipality

22Any municipality may, subject to the approval of the Lieutenant-Governor in Council both as to the necessity of such appointment and as to the person to be appointed, appoint a Municipal Inspector.

R.S., c.37, s.23

Appointment of municipal inspector by Cabinet

23The Lieutenant-Governor in Council may appoint a Municipal Inspector for any municipality that does not have an inspector, or the Lieutenant-Governor in Council may remove a Municipal Inspector appointed by a municipality under this Part, and appoint another in his place.

R.S., c.37, s.24

Tenure and remuneration of municipal inspector

24A Municipal Inspector appointed under this Part holds office during the pleasure of the Lieutenant-Governor in Council, and shall be paid by the municipality such salary as may be approved by the Lieutenant-Governor in Council.

R.S., c.37, s.25

Powers of municipal inspector

25A Municipal Inspector, subject to the direction of the Commissioner, has and may exercise, in respect to the municipality for which he is appointed Inspector, the following powers:

(a) to inquire into all municipal activities;

(b) to inquire into the exercise by any municipal officer of the functions of his office;

(c) to inspect all books and documents in the keeping of any municipal officer;

(d) to obtain such information as he may require from any municipal officer;

(e) to suspend any municipal officer from exercising his functions as such, for such length of time as the Inspector sees fit, and to appoint someone to take the place of the municipal officer so suspended, during such suspension, and in the case of a vacancy in any municipal office, by resignation or otherwise, the Inspector may appoint someone to fill the vacancy;

(f) to put into effect such improvement in the mode and times for collecting taxes as he considers necessary, and to authorize the allowance of such discounts or the imposition of such penalties and interest in regard to the collection of taxes as he considers necessary.

R.S., c.37, s.26; 1963, c.4, s.4

Report of municipal inspector to Commissioner

26A Municipal Inspector appointed under this Part shall

(a) report to the Commissioner from time to time, as required, upon all matters under his charge and control, and

(b) carry out all instructions given to him from time to time by the Commissioner in respect to his duties under this Part.

R.S., c.37, s.27

Report of Commissioner to Cabinet

27The Commissioner shall report to the Lieutenant-Governor in Council from time to time, as required, upon all matters affecting municipal inspectors and the exercise of their powers.

R.S., c.37, s.28

Municipal inspector acting for more than one municipality

28Nothing in this Part shall prevent the Lieutenant-Governor in Council from appointing a Municipal Inspector with jurisdiction in more than one municipality, if the Lieutenant-Governor in Council deems it advisable to do so.

R.S., c.37, s.29

Remuneration of municipal inspector acting for more than one municipality

29If a Municipal Inspector is appointed for more than one municipality, the Lieutenant-Governor in Council shall determine the proportion of his salary that shall be paid by each municipality.

R.S., c.37, s.30

V

SPECIAL JURISDICTION OVER
MUNICIPALITIES

1979, c.12, s.1

Supervisors defined

30In this Part “supervisors” means a committee of supervisors appointed for a municipality under this Act.

R.S., c.37, s.31

Powers of Cabinet respecting defaulting municipality

31(1)The Lieutenant-Governor in Council has and may exercise the special jurisdiction and powers conferred by this Part, or may exercise such special jurisdiction and powers, either through the Commissioner or otherwise, whenever, upon the request of a municipality expressed by resolution of its council, or upon request of the creditors of a municipality having claims representing not less than twenty per cent of its indebtedness including debenture debt, or for any other reason he is satisfied upon inquiry that the municipality has

(a) failed to meet and pay any of its debentures or interest thereon as the same became due and after payment thereof had been duly demanded,

(b) failed to meet and pay any of its other debts or liabilities when due, and such default in payment is occasioned from financial difficulties affecting the municipality,

(c) become so financially involved or embarrassed that default in meeting any of its obligations will probably ensue,

(d) a council that is not able to form a quorum with which to carry on the business of a council due to council vacancies, or

(e) a council that, in the opinion of the Minister, is not able to carry on the business of a Council.

31(2)In the course of an inquiry the Lieutenant-Governor in Council may order the Commissioner to investigate any or all the affairs of the municipality, or may appoint a commissioner under the Inquiries Act to hold such investigation and report to the Lieutenant-Governor in Council.

R.S., c.37, s.32; 1979, c.12, s.2

Repealed

31.1Repealed: 2017, c.20, s.42

1995, c.46, s.9; 2017, c.20, s.42

Committee of supervisors

32(1)If, upon inquiry, the Lieutenant-Governor in Council is of opinion that the circumstances so warrant or render it desirable, he may make such order as he may deem proper or necessary to vest in supervisors control and charge over the administration of all or any of the affairs of the municipality as set forth in the order, and also declare that thereafter and until the Lieutenant-Governor in Council shall otherwise determine and order, such municipality shall be subject to the provisions of this Part.

32(2)The Lieutenant-Governor in Council may thereupon or at any time thereafter, while such municipality is subject to the provisions of this Part, appoint a committee of supervisors for the municipality, to be known as “The Supervisors of the . . . . . . . . . . of . . . . . . . . . .,” (naming the municipality), to be composed of either three or five persons, in the discretion of the Lieutenant-Governor in Council, either one or two of whom shall be nominated by the council of the municipality, and, if approved, shall be appointed by the Lieutenant-Governor in Council, and either one or two of whom shall be appointed by the Lieutenant-Governor in Council to represent the creditors of the municipality, the number to depend on the total number of supervisors to be appointed, and the remaining one of whom shall be an independent person, to be appointed by the Lieutenant-Governor in Council, and he shall be chairman of the committee.

32(3)The Lieutenant-Governor in Council may require the council to submit the names of more than two nominees from whom to appoint the representative or representatives of the municipality.

32(4)Where a vacancy occurs in the committee, the Lieutenant-Governor in Council shall fill the vacancy, but in so doing shall observe the provisions of subsection (2).

32(5)Where a municipality fails to nominate supervisors within thirty days after being requested to do so, the Lieutenant-Governor in Council may appoint the same without nomination.

32(6)Where a municipality nominates supervisors and the Lieutenant-Governor in Council does not approve of one or more of the nominees so that the number required to be appointed is greater than the number of nominees approved, the Lieutenant-Governor in Council shall appoint these approved and such other persons as he thinks fit, without regard to the other nominations.

32(7)Notwithstanding the provisions of subsections (1) and (3), each of the committee shall be deemed to be appointed by the Lieutenant-Governor in Council, and each shall hold office during the pleasure of the Lieutenant-Governor in Council.

32(8)The committee of supervisors shall be a continuing body, notwithstanding any vacancy therein.

R.S., c.37, s.33

Appointment of supervisor for municipality

33(1)For the purposes of this Part, instead of a committee of supervisors as provided for in section 32, the Lieutenant-Governor in Council may appoint one supervisor for a municipality, to be known as The Supervisor of the . . . . . . . . . . . . . . of . . . . . . . . . . . . . . . (naming the municipality).

33(2)When the Lieutenant-Governor in Council appoints one supervisor under the authority of subsection (1), all other provisions of this Part apply, mutatis mutandis.

1955, c.33, s.1

Powers of supervisors

34(1)Subject to the jurisdiction of the Lieutenant-Governor in Council, the supervisors have and may exercise the powers conferred on them by this Part and such additional powers as by an Order in Council, or by the terms of any agreement entered into under the authority of this Part, may be conferred on them, and may do all things necessary or incidental to the exercise of any such powers.

34(2)The powers of the supervisors shall be exercised by resolution of the committee, and the committee may, with the approval of the Lieutenant-Governor in Council, adopt such rules of practice and procedure governing the meetings, transactions and exercise of the powers of the supervisors as may from time to time be deemed expedient.

R.S., c.37, s.34

Appeal from decision of supervisors

35The council of the municipality or any local board or any creditor of either of them dissatisfied with any order, direction or decision of the supervisors may, within fifteen days, or such further time as the Lieutenant-Governor in Council may allow, appeal therefrom to the Lieutenant-Governor in Council.

R.S., c.37, s.35

Notice of control of municipality

36Where a municipality has become subject to the provisions of this Part, notice thereof shall be given in The Royal Gazette and in one or more newspapers published in or near the municipality, and to such persons and in such form as the Lieutenant-Governor in Council may direct.

R.S., c.37, s.36; 2005, c.Q-3.5, s.12

Actions or proceedings against the municipality

37(1)When notice has been published in The Royal Gazette that a municipality is subject to this Part, such publication shall operate as a stay of all actions or proceedings pending against the municipality and thereafter no action or other proceeding against the municipality shall be commenced or continued, nor shall a levy be made under a writ of execution against the municipality, without leave of the Lieutenant-Governor in Council.

37(2)Where the commencement or continuance of any action or proceeding or the making of any levy under a writ of execution is prevented or stayed under this section, the time during which such prevention or stay continues shall not be included for the purpose of any statute or law of limitations until leave of the Lieutenant-Governor in Council to commence or continue such action or proceeding or make such levy is obtained, but the person having the right of action or of taking any proceeding or making a levy under a writ of execution shall, upon the removal of the prevention or stay, have the same length of time within which to take action or proceed or make a levy under a writ of execution, as the case may be, as he had when such prevention or stay came into operation; but provided that this subsection does not apply unless application is made to the Lieutenant-Governor in Council for approval of the continuance or commencement of any such suit, action or proceeding within the time so limited as aforesaid by statute or law of limitations.

R.S., c.37, s.37

Powers of supervisors

38The supervisors may, with the approval and subject to the directions of the Lieutenant-Governor in Council, with respect to the municipality and every local board thereof, have control and charge over the exercise by the municipality or any local board thereof of their powers and the supervisors may themselves exercise such powers with respect to

(a) the appointment and dismissal of its officers, employees and servants, and their powers, duties, salaries and remunerations,

(b) the collection, receipt, application and payment of its revenues and expenditures,

(c) the system of accounting and audit, and the dealing with its assets, liabilities, revenues and expenditures,

(d) the making of and the manner and times for making the assessment and assessment rolls and of appeals therefrom,

(e) the yearly or other estimates and the form, preparation and completion thereof, and the times when the same shall be made,

(f) the amounts to be provided for and included in the yearly or other estimates, whether the same are to be provided by taxation or otherwise,

(g) the imposition, rating, levying and collection of all rates, assessments and taxation, the mode and times for collecting the same, and the allowance of discounts or imposition of penalties thereon, and for the making and return of the collector’s roll,

(h) borrowing of money for the current expenditures of the corporation until the taxes are collected,

(i) imposition, charging and collection of all licence, permit or other fees, charges and expenses,

(j) the sale or other disposition of any of its assets, and

(k) without being limited by the foregoing, generally with respect to any other matter in any way affecting or pertaining to its affairs and their administration.

R.S., c.37, s.39

Application of Assessment Act

39Upon the supervisors taking control over any of the matters referred to in section 38, the provisions of that section in regard to any matter over which control is taken, notwithstanding that they may be inconsistent with the provisions of the Assessment Act, shall apply during such time as any municipality is under the provisions of this Part.

R.S., c.37, s.40; 1961-62, c.51, s.3

Power respecting indebtedness of municipality

40Where a municipality has become subject to this Part the Lieutenant-Governor in Council, with respect to the debenture debt and debentures of the municipality and interest thereon and with respect to any other indebtedness thereof, has power to authorize and order

(a) consolidation of the whole or any portion thereof,

(b) issue of debentures in payment and satisfaction of the whole or any portions of such other indebtedness or any portion or portions thereof, and compulsory acceptance of such debentures in payment and satisfaction thereof,

(c) issue of new debentures to cover any such consolidation,

(d) issue of new debentures in substitution and exchange for any outstanding debentures and compulsory acceptance thereof by the holders of such outstanding debentures,

(e) retirement and cancellation of the whole or any portion of the existing debenture debt and outstanding debentures, upon the issue of new debentures to cover the same or in exchange therefor,

(f) terms, conditions, places and times for exchange of new debentures for outstanding debentures,

(g) postponement of or variation in the terms, times and places for payment of the whole or any portion of the debenture debt and outstanding debentures and other indebtedness and interest thereon,

(h) cancellation, increase, decrease or other variation in the levy and collection of any assessment, rate or taxation, rent or charge imposed to meet, pay and discharge any debenture debt, debentures or other indebtedness, and interest thereon, and to vary the basis, terms and times of payment thereof,

(i) creation and setting aside of sinking funds and special reserves out of any portion of the revenues of the municipality for meeting, paying and discharging its debenture debt, debentures or other indebtedness, or any portion thereof or interest thereon,

(j) custody, management, investment and application of sinking funds, reserves and surpluses,

(k) ratification and confirmation of any agreement, arrangement or compromise entered into with its creditors, or any of them respecting its debenture debt, debentures or other indebtedness, or any portion thereof and interest thereon, and

(l) any variation, amendment or cancellation of any order made by it under this section or of the terms of any agreement, arrangement or compromise ratified and confirmed by it under this section.

R.S., c.37, s.41

Notice respecting indebtedness of municipality

41(1)Where the Lieutenant-Governor in Council, upon its own initiative or upon application to it by the supervisors, the council, local board, or any of the creditors of the corporation or of any local board, intends to exercise any of the powers conferred on the Lieutenant-Governor in Council under section 40, it shall, before so doing, give or direct that there be given notice of such intention in The Royal Gazette and by such other publication and to such persons and in such manner as to the Lieutenant-Governor in Council may seem proper, and such notice shall state the time and place when the matter is to be dealt with by the Lieutenant-Governor in Council.

41(2)The provisions of subsection (1) shall not apply with respect to any matter that is merely incidental to the exercise of any of those powers.

41(3)The Lieutenant-Governor in Council shall not make any order under section 40 if objection in writing to the making of such order is filed with the Lieutenant-Governor in Council by creditors representing not less than one-third in amount of the aggregate of the indebtedness of the municipality, including therein debenture indebtedness, but excluding therefrom indebtedness in respect of which the municipality is not directly but only contingently or collaterally liable.

41(4)If creditors representing not less than fifty-one per cent in amount of the aggregate of the indebtedness of the municipality, including therein debenture indebtedness, but excluding therefrom indebtedness in respect of which the municipality is not directly but only contingently or collaterally liable, have in writing filed with the Lieutenant-Governor in Council their approval of the making of any order under section 40, it shall not be necessary that any notice be given under subsection (1) of the intention of the Lieutenant-Governor in Council to exercise its power to make such order, and in such cases the provisions of subsection (3) shall not apply.

R.S., c.37, s.42

Take over of municipal agreements by supervisor

42The supervisors may, with the approval of the Lieutenant-Governor in Council, enter into agreements with any person with whom the municipality has previously entered into any agreement, contract or obligation which, or some term, provision or obligation of which, remains in whole or in part or in any manner to be observed, performed or carried out by the municipality, for the variation, amendment or cancellation of any such subsisting agreement, contract or obligation.

R.S., c.37, s.43

Limitation respecting municipal borrowing

43(1)The municipality shall not, under the provisions of any special or general Act, exercise or be required to exercise any of its powers if such exercise will or may require money to be provided by the issue of debentures of the municipality without the approval of the Lieutenant-Governor in Council first being obtained.

43(2)The municipality may, through the supervisors and with the approval of the Lieutenant-Governor in Council, if the necessity for so doing arises, issue debentures and authorize the hypothecation or sale thereof.

43(3)The provisions of the Municipal Debentures Act shall apply to this Part, and supervisors have power to comply with that Act on behalf of any municipality coming under this Part.

R.S., c.37, s.44

Control of municipal finances by supervisors

44The supervisors may, with the approval of the Lieutenant-Governor in Council, take full charge and control over all money belonging to the municipality and received by any person for or on its behalf, and such money shall be deposited in a financial institution to be designated by the supervisors, and when so deposited shall only be applied, used, transferred and withdrawn for such purpose, in such manner and at such time as the supervisors may approve and direct, and all cheques drawn and issued by the municipality shall be signed and countersigned by such persons and in such manner as the supervisors, with the approval of the Lieutenant-Governor in Council, may authorize.

R.S., c.37, s.45; 1994, c.14, s.2

Prohibition with respect to rateable property

45Notwithstanding the provisions of any general or special Act, no rate, assessment or amount shall be imposed, rated, levied or directed so to be, upon the rateable property within the municipality, or upon any part thereof, unless the approval thereto of the supervisors has first been obtained.

R.S., c.37, s.46; 1966, c.153, s.4

Compromise of tax arrears by supervisors

46The supervisors may, with the approval of the Lieutenant-Governor in Council, authorize a compromise of tax arrears to be entered into between the municipality and any ratepayer, and in such compromise may provide for an extension of time of payment of such arrears and a reduction of the amount thereof and acceptance of any debentures or debenture coupons of the municipality in satisfaction of the whole or part thereof.

R.S., c.37, s.47

Effect of agreements entered into by supervisors

47Any agreement entered into in accordance with the provisions of this Part is binding upon and enures to the benefit of the parties thereto and all persons over whom the Legislature has legislative jurisdiction.

R.S., c.37, s.48

Restriction of powers of municipality

48The jurisdiction and powers of a municipality subject to this Part, exercisable under the provisions of any general or special Act, shall only be exercised subject to any order the Lieutenant-Governor in Council may make or direction the supervisors may give under the provisions of this Part, or any agreement entered into thereunder.

R.S., c.37, s.49

Jurisdiction of Cabinet

49(1)The Lieutenant-Governor in Council has exclusive jurisdiction as to all matters arising under this Part or out of the exercise by the corporation or any other person of any of the powers conferred by this Part and such jurisdiction shall not be open to question or review in any action or proceeding or by any court.

49(2)The Lieutenant-Governor in Council may, at any time, of his own initiative, or upon application made to him, review any order, direction or decision of the supervisors, and confirm, amend, vary or revoke the same.

49(3)Any order made or approval given by the Lieutenant-Governor in Council under this Part shall, subject to the right of the Lieutenant-Governor in Council to review and amend or revoke the same, be final and conclusive and not open to question in any court, except by leave of the Lieutenant-Governor in Council.

R.S., c.37, s.50

Regulations

50(1)The Lieutenant-Governor in Council may make such orders and prescribe such forms as he may deem necessary to carry out the provisions of this Part or any agreement made in pursuance thereof, and make rules and regulations in respect of applications, matters and things under this Part, and may by regulation provide the necessary procedure for carrying out the provisions of this Part.

50(2)All regulations made by the Lieutenant-Governor in Council shall have the force of law.

R.S., c.37, s.51

Effect of errors of form

51Every certificate, notice or other form which is in substantial conformity with the form thereof required by the provisions of this Part or prescribed by the Lieutenant-Governor in Council shall not be open to objection on the ground that it is not in the form required by the provisions of this Part or as prescribed by the Lieutenant-Governor in Council.

R.S., c.37, s.52

Acts of supervisors deemed those of municipalities

52Where a municipality has become subject to this Part, all acts, deeds, matters and things done, made or performed by or for the Lieutenant-Governor in Council, or by or for the supervisors, under this Part, in relation to the affairs of such municipality, shall for all purposes be deemed to have been made, done and performed by and for the municipality and in its name.

R.S., c.37, s.53

Access to documents by supervisor and Cabinet

53The Lieutenant-Governor in Council and the supervisors shall have access at all times to all books, records, papers and documents of the municipality and of every local board including, but without limiting the generality of the foregoing, all assessment rolls, by-laws, minute books, books of account, vouchers, and other records, papers and documents relating to its and their financial transactions, and may inspect, examine, audit and copy the same or any part thereof.

R.S., c.37, s.54

Offences respecting failure to furnish information

54(1)Where a municipality has become subject to this Part, and its council or any local board fails, neglects or refuses to comply with any order, direction or decision of the Lieutenant-Governor in Council or the supervisors, the Lieutenant-Governor in Council may do or order done all acts, deeds, matters and things necessary for compliance with such order or direction, and may exercise all the powers of the municipality or local board for such purpose and under its name and seal.

54(2)The council of the municipality and every local board thereof, and every one of its or their members, officers, employees and servants, shall comply with the orders, directions and decisions of the Lieutenant-Governor in Council or the supervisors in any matter relating to the administration of the affairs of such municipality or local board, and any such person who knowingly or wilfully fails, neglects or refuses to observe and comply with any such order, direction or decision, or who, as a member of the council or local board, votes contrary thereto, commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category F offence.

54(3)If a municipality subject to this Part applies any of its funds otherwise than as ordered or authorized by the Lieutenant-Governor in Council or the supervisors, the members of the council or local board who vote for such application shall be jointly and severally liable for the amount so applied, and the same may be recovered in any court of competent jurisdiction and such members shall also be disqualified from holding any municipal office for five years.

R.S., c.37, s.55; 1990, c.61, s.26; 1996, c.79, s.4

Dismissal of municipal officers by Cabinet

55The Lieutenant-Governor in Council may dismiss from office any officer, employee or servant who fails, neglects or refuses to carry out any order, direction or decision of the Lieutenant-Governor in Council or the supervisors.

R.S., c.37, s.56

Power of Cabinet respecting injunction

56The Lieutenant-Governor in Council may, by injunction proceedings, prevent or stop the exercise by or for a municipality of any of its powers that have not been approved by the Lieutenant-Governor in Council or the supervisors, when such approval is required under this Part.

R.S., c.37, s.57

Combining municipal duties by supervisors

57The supervisors, with the approval of the Lieutenant-Governor in Council, may direct that any two or more of the offices of the municipality shall be combined and held by the same officer, and may subsequently separate any of the offices so combined.

R.S., c.37, s.58

Remuneration of supervisors

58(1)The Lieutenant-Governor in Council may direct payment to the supervisors, or any of them, of such salary, fees or remuneration and travelling and other expenses reasonably incurred by them, as the Lieutenant-Governor in Council may determine.

58(2)The supervisors, with the approval of the Lieutenant-Governor in Council, may appoint some person, who may be one of the supervisors or an officer of the municipality, to exercise such powers and duties as the order of the Lieutenant-Governor in Council may provide and the person so appointed shall be paid such salary and allowed such travelling and other expenses as the Lieutenant-Governor in Council may determine.

58(3)The Lieutenant-Governor in Council, in determining the salaries to be paid to the supervisors or to any person appointed by them under subsection (2), shall give consideration to such representations with respect thereto as the council of the municipality may at any time make.

58(4)All salaries, fees, remuneration, travelling and other expenses payable to the supervisors under this section, and all other expenses incurred by the Lieutenant-Governor in Council or the supervisors in the carrying out of the provisions of this Part or in the exercise of their powers thereunder, shall be paid by the municipality or local board, as the case may be, and be chargeable to such of its accounts as the supervisors may direct.

R.S., c.37, s.59

Limitation of Actions respecting supervisors

59(1)No supervisor is liable for any act or omission of his own, or of any person appointed or employed by the supervisors, except an act or omission involving his own fraud.

59(2)No suit, action or other proceedings shall be brought against the supervisors or any of them for anything done or purported to be done by them in the carrying out of the provisions of this Part, except for an act or omission involving their or his fraud.

R.S., c.37, s.60

Application of Act

60The powers contained in this Part shall be deemed to be in addition to and not in derogation of any power of the Lieutenant-Governor in Council and the municipality under this or any other Act, but where the provisions of any general or special Act or any other Part of this Act conflict with the provisions of this Part, the latter shall prevail.

R.S., c.37, s.61

Restoration of municipal powers

61Where the Lieutenant-Governor in Council is of opinion that the affairs of a municipality no longer require to be administered under this Part, he may make an order directing that on, from and after a date fixed thereby the provisions of this Part shall no longer apply to the municipality, and on, from and after such date the Lieutenant-Governor in Council and the supervisors shall cease to exercise jurisdiction and control over the municipality under this Part, and the committee of supervisors shall thereupon be dissolved.

R.S., c.37, s.62

N.B. This Act is consolidated to December 13, 2023.

C-20 - Control of Municipalities Act

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