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Administrative monetary penalties up to $1 million per infraction under the Securities Act do not violate s. 11(d) of the Charter.
The appellants appealed a Divisional Court decision upholding an Ontario Securities Commission order that imposed significant administrative monetary penalties (AMPs) for failing to report insider trades and failing to adequately supervise trading.
The appellants argued that the AMP provision of the Securities Act, which allows fines up to $1 million per infraction, violates s. 11(d) of the Charter because its magnitude constitutes a true penal consequence.
The Court of Appeal dismissed the appeal, holding that the constitutionality of an administrative penalty is assessed based on the actual penalty imposed, not the theoretical maximum.
The court found the fines were proportionate to the regulatory goal of deterring non-compliance in capital markets and did not amount to a penal sanction.
The court also upheld the Commission's findings regarding the appellants' failure to supervise and its consideration of the public interest in determining the sanctions.
Action stayed where corporate plaintiff failed to comply with statutory filing requirements.
The moving defendant sought a stay of the action against one corporate plaintiff on the basis that the corporation had failed to comply with statutory filing obligations.
Evidence established that the corporation had not filed its initial return, annual returns, or several income tax returns as required under the Corporations Information Act.
Under s. 18(1) of that Act, a corporation in default of required filings lacks the capacity to maintain a proceeding in an Ontario court without leave.
The court found the corporation had provided no explanation for its defaults and had not sought leave to continue the action.
The action was therefore stayed as against that plaintiff under s. 106 of the Courts of Justice Act until further order.
