The Quebec Commission des valeurs mobilières recommended the suspension of the board of directors of Prêt Hypothécaire due to deteriorating financial conditions.
The Minister suspended the board and appointed a provisional administrator pursuant to s. 112 of the Securities Act.
The respondents brought an action in nullity, arguing the provision violated s. 96 of the Constitution Act, 1867.
The Supreme Court of Canada held that the Minister's power was administrative, not judicial, as it was based on expediency rather than legality and did not involve a true lis between parties.
The appeal was allowed and the provision was upheld as intra vires.
