Licence Appeal Tribunal
Appeal d'appel en matière de permis
FILE: 7266/TIA
CASE NAME: 7266 v. Registrar, Travel Industry Act, 2002
Appeal from the Notice of Proposal of the Registrar, Travel Industry Act, 2002
Globe Express Travel Inc. Applicant
-and-
Registrar, Travel Industry Act
PRE-HEARING ORDER
ADJUDICATOR: Shu-Tai Cheng
APPEARANCES:
For the Applicant: Self-Represented
For the Respondent: Soussanna Karas
Heard by teleconference: June 20, 2012
ORDER
A pre-hearing was held in this matter on June 20, 2012 before this Tribunal in the presence of Arifur Rahaman, director of the Applicant, and Sousanna Karas, representing the Registrar.
Ms. Karas confirmed that the Registrar is maintaining his position with respect to the Proposal. The parties discussed the issues in detail and arrived at a settlement in respect of all issues. The parties further consented to the disposal of this matter by way of Minutes of Settlement.
Therefore, the Tribunal orders as follows:
This matter is settled on consent of all parties in accordance with the Minutes of Settlement, as attached hereto as Schedule A;
The matter having been settled on the consent of the parties without a hearing in accordance with S. 4.1 of the Statutory Powers Procedure Act, the Tribunal will close its file.
LICENCE APPEAL TRIBUNAL
Shu-Tai Cheng, Vice-Chair
Released: July 4, 2012
SCHEDULE “A”
Licence Appeal Tribunal
GLOBE EXPRESS TRAVELS INC. Applicant
AND
REGISTRAR, TRAVEL INDUSTRY ACT, 2002 Respondent
MINUTES OF SETTLEMENT
WHEREAS Globe Express Travels Inc. located at 2734 Danforth Avenue, Toronto, ON M4C 1L7, is a travel agent registered on March 5, 2003, Registration No. 50011533, under the Travel Industry Act, 2002 ("the Act");
AND WHEREAS the Registrar issued the Notice of Proposal to Revoke Registration of Globe Express Travels Inc. on February 23, 2012 (“NOP”), for the reason Globe Express Travels Inc. is and has been carrying on activities that are in contravention of the Act and the Ontario Regulation 26/05 made under the Act (the “Regulation”);
AND WHEREAS Globe Express Travels Inc. appealed the NOP to the Licence Appeal Tribunal;
AND WHEREAS the NOP was issued for a failure of the Globe Express Travels Inc. to maintain a trust account and follow proper trust accounting procedures as well as for a failure to maintain a minimum working capital.
AND WHEREAS the parties agreed to settle all of the issues outstanding in the appeal on the following terms and conditions:
The parties consent to an Order of the Licence Appeal Tribunal incorporating the terms of these Minutes of Settlement and disposing of these proceedings without a hearing.
The Registrant shall submit to TICO its monthly trust reconciliation (a reconciliation showing total receipts from customers for travel services sold less payments for the related travel services compared to trust funds held in the Trust Account) for the months of June, 2012 through to and including August 2012, or until such other time as the Registrar indicates. The Trust Reconciliations shall comply with the following requirements:
a. Each Trust Reconciliation is to be submitted within 30 days from the end of the each month. For example, the Trust Reconciliation for June 2012 is due July 31, 2012;
b. Each Trust Reconciliation shall include a list of consumer deposits on hand and a list of any pre-paid suppliers related to the moneys received form consumers;
c. The Trust Reconciliation shall include a copy of the Travel Industry Act Trust bank account statement for the particular month.
The Registrant shall address the invoice compliance issues as advised by the TICO compliance officer as soon as possible.
The Registrant shall ensure that the designated Manager is available during the business hours of the agency to receive and address TICO concerns.
The Registrant shall file any and all annual financial statements for each fiscal year prepared by a public accountant licensed under the Public Accountancy Act, 2004 and accompanied by a Review Engagement Report or an Audit Opinion as required by the Regulation within 3 months after the end of the fiscal year.
Each and every annual financial statement filed with TICO shall disclose the trust position at the end of the year. The statement with respect to the trust position shall include the balance in the Travel Industry Act Trust Account at the year end, customer deposits, plus any other balances that are included in the trust position. If the customer deposits are nill at the year end, then it must be stated as such.
The Registrant shall respond to TICO inquiries and requests in a timely manner.
The Registrant shall advise TICO of changes outlined in sections 16 and 17 of the Regulation within the time prescribed in those sections.
The Registrant shall, at all times, maintain the minimum working capital as required by section 24 of the Regulation. If based on the financial statements submitted by the Registrant, the Registrar concludes that the working capital of the Registrant is not in compliance with s. 24 of the Regulation, the Registrant shall take the necessary steps to correct its working capital position and submit proof thereof within 30 days from the request by the Registrar.
The shareholders of the Registrant shall ensure that loans and/or advances to Globe Express Travels Inc. will not be withdrawn until such time as it can be done without reducing working capital below the minimum amount required by the Act and the Regulation. In the event Globe Express Travels Inc. decides to discontinue operations, any claims against the Ontario Travel Industry Compensation Fund are to be fully satisfied before shareholder loans can be repaid.
Globe Express Travels Inc. and the undersigned, acknowledge that we have read, understand and will comply with the terms of these Minutes of Settlement.
Globe Express Travels Inc. further acknowledges that it has obtained or has had full opportunity to obtain independent legal advice with respect to the terms of these Minutes of Settlement and their legal effect and impact and further undertakes to comply with them.
SIGNED THIS DAY OF , 2011
Arifur Rahaman, President
Mr. Michael Pepper
Globe Express Travels Inc.
Registrar, Travel Industry Act, 2002
I have the authority to bind the corporation