S-13.1 - Act respecting the Société des loteries du Québec

Updated to 1 April 1999

This document has official status.

chapter S-13.1

Act respecting the Société des loteries du Québec

1990, c. 46, s. 42.

DIVISION I DEFINITIONS

1. In this Act, unless the context indicates otherwise,

(a)  (subparagraph repealed);

(b)  “company” means the Société des loteries du Québec incorporated by section 2.

In this Act, the expression “lottery scheme” includes a game of chance and a game of mixed chance and skill.

1978, c. 38, s. 1; 1990, c. 46, s. 43.

DIVISION II INCORPORATION AND ORGANIZATION

2. A joint-stock company is incorporated under the name of “Société des loteries du Québec”.

The company may also be designated under the name of “Loto-Québec”.

1978, c. 38, s. 2; 1990, c. 46, s. 44.

3. The company has its head office at the place determined by the Government; a notice of the location or of any change of location of the head office is published in the Gazette officielle du Québec.

The company may hold its sittings at any place in Québec.

1978, c. 38, s. 3.

4. The company has the rights and obligations of a mandatary of the Government.

The property of the company forms part of the public domain, but the performance of the obligations of the company may be levied against its property.

The company binds none but itself when it acts in its own name.

1978, c. 38, s. 4.

5. The authorized capital of the company is $170,000. It is divided into 1,700 shares of a par value of $100 each.

1978, c. 38, s. 5.

6. The shares of the company form part of the public domain and are allotted to the Minister of Finance; they are issued to him in consideration of the remittance of the assets received by the company under section 32.

1978, c. 38, s. 6.

7. The affairs of the company are administered by a board of directors composed of seven members, including a chairman, appointed by the Government for a period not to exceed five years in the case of the chairman or three years in the case of the other members.

The members of the board of directors are the directors of the company within the meaning of the Companies Act (chapter C-38).

No person may be a member of the board of directors unless he is domiciled in Québec, but he is not required to be a shareholder.

1978, c. 38, s. 7.

8. At the expiry of their term, the members of the board of directors remain in office until they are re-appointed or replaced.

If a member of the board of directors is unable to act, the Government may appoint a person to replace him temporarily, on the conditions and for the remuneration the Government determines.

1978, c. 38, s. 8.

9. The chairman of the board of directors is also the president and managing director of the company.

He must see to the execution of the decisions of the board of directors and he is responsible for the direction of the company within the scope of its internal management by-laws. He exercises his functions on a full time basis.

1978, c. 38, s. 9.

10. The chairman of the board of directors of the company, under pain of forfeiture of his office, shall not have any direct or indirect interest in an undertaking that puts his personal interest in conflict with that of the company. Such forfeiture is not incurred, however, if such interest devolves to him by succession or gift and he renounces or disposes of it with all possible dispatch.

Any other member of the board of directors having a direct or indirect interest in an undertaking must, under pain of forfeiture of his office, disclose it in writing to the chairman and abstain from participating in any decision dealing with the undertaking in which he has an interest.

1978, c. 38, s. 10.

11. The Government fixes the salary or, where that is the case, the additional salary, allowances or fees of the members of the board of directors.

1978, c. 38, s. 11.

12. The board of directors of the company may make internal management by-laws for the conduct of its affairs, which by-laws come into force upon approval of the Government.

1978, c. 38, s. 12.

13. The board of directors of the company determines by by-law the general standards and conditions relating to the nature and holding of the lottery schemes it conducts and administers.

The by-law shall be submitted to the Government for approval; if it relates to State casino lottery schemes or video lotteries, the Régie des alcools, des courses et des jeux must give notice of it. Such notice must be published in the Gazette officielle du Québec at the time of the publication provided for in section 8 of the Regulations Act (chapter R-18.1) or, in the absence of such publication, at the time of the publication provided for in section 15 of the said Act.

1978, c. 38, s. 13; 1993, c. 39, s. 88.

13.1. The board of directors of the company shall establish, on the basis of the objects previously determined by the Government, policies concerning the management of businesses operated by the company or by one of its subsidiaries and which are incidental to the operation of a State casino. Such policies shall be submitted to the Government for approval.

1993, c. 39, s. 89.

14. The minutes of the sittings of the board of directors approval by it and certified true by the chairman, or by any other person authorized to do so by the internal management by-laws of the company, are authentic. The same rule applies to documents or copies emanating from the company or forming part of its records when they are so certified.

1978, c. 38, s. 14.

15. The secretary and the other employees of the company are appointed according to the standards and scales established by by-law of the company.

If they are assigned to State casino activities, they must also meet the conditions applicable to them under subparagraph a of the first paragraph of section 20.2 of the Act respecting lotteries, publicity contests and amusement machines (chapter L-6).

A by-law of the company made under the first paragraph comes into force upon approval by the Government.

1978, c. 38, s. 15; 1993, c. 39, s. 90.

DIVISION III FUNCTIONS AND POWERS

16. The functions of the company are to conduct and administer lottery schemes and to operate businesses which are incidental to the operation of a State casino.

The company may also offer, for consideration, consulting and implementation services in matters within its competence.

1978, c. 38, s. 16; 1985, c. 30, s. 91; 1987, c. 103, s. 131; 1990, c. 46, s. 45; 1993, c. 39, s. 91.

17. The company may do anything necessary for the attainment of its objects but shall not, without the prior authorization of the Government,

(a)  make with a government or an agency responsible to a government, any agreement deemed necessary for the attainment of its objects;

(b)  acquire, hold or alienate interests in any undertaking;

(c)  contract loans except to fill its temporary needs for liquidity;

(d)  make a contract binding it for more than five years;

(e)  acquire or dispose of equipment or immovables for an amount exceeding that determined by the Government.

No subsidiary in which the company holds more than 50% of the shares or stocks may, without the prior authorization of the Government, perform any of the acts described in subparagraphs a to e of the first paragraph.

This section does not apply to transactions effected between the company and its subsidiaries or between subsidiaries or to transactions whose main object is the leasing or administration of immovables owned by the company or by one of its subsidiaries.

1978, c. 38, s. 17; 1993, c. 39, s. 92.

18. The company must deposit its available funds in a bank or in an institution registered with the Régie de l’assurance-dépôts du Québec. It may, nevertheless, invest funds for a term of less than one year by buying securities issued or guaranteed by the Gouvernement du Québec, or the Government of Canada or of a Canadian province.

1978, c. 38, s. 18.

DIVISION IV ADMINISTRATION

19. The financial year of the company ends on 31 March each year.

1978, c. 38, s. 19.

20. Before the beginning of each fiscal year, the company must prepare and submit to the approval of the Minister of Finance, on the date and in the form determined by him, a budget of its capital expenditures and an operating budget.

1978, c. 38, s. 20.

21. The company must furnish to the Minister of Finance a quarterly statement of its revenues and expenditures and a statement of their correlation with the budgetary forecasts of the company.

1978, c. 38, s. 21.

22. The company must in addition furnish to the Minister of Finance, upon request and within the delay fixed by him, a repect on any matter relating to its activities.

1978, c. 38, s. 22.

22.1. The company shall pay into the assistance fund for independent community action established under Division III.1 of the Act respecting the Ministère du Conseil exécutif (chapter M-30), out of the amount by which its consolidated revenue exceeds its consolidated expenditure, an amount equal to 5% of the net profit for the preceding fiscal year from the operation of the State casinos and the management of contributing businesses. The payments shall be made on the dates and to the extent determined by the Government.

The Government may, for the purposes of independent community action and international humanitarian action, fix, by order, a percentage in addition to the percentage fixed in the first paragraph.

1995, c. 66, s. 2.

23. The dividends paid by the company are fixed by the Minister of Finance and not by the directors.

1978, c. 38, s. 23.

24. The books and accounts of the company and the books and accounts of those of its subsidiaries whose objects are related to the State casinos or video lotteries operated by the company are audited by the Auditor General.

1978, c. 38, s. 24; 1993, c. 39, s. 93.

25. Not later than 30 June each year, the company must file with the Minister of Finance its financial statements and a report of its activities for the preceding fiscal year; this report must also contain all the information that the Minister may require.

The Minister shall table the report of the company before the National Assembly if he receives it during a session; if not, or if he receives it after an adjournment, he shall table it within thirty days after the opening of the next session or resumption.

1978, c. 38, s. 25.

DIVISION V PENAL PROVISIONS

26. Any person who contravenes any provision of a by-law contemplated in the first paragraph of section 13 or refuses to comply with an order given under such a by-law is guilty of an offence and liable for each day the offence continues, to a fine of not less than $25 nor more than $5,000.

1978, c. 38, s. 26; 1990, c. 4, s. 830.

27. (Repealed).

1978, c. 38, s. 27; 1992, c. 61, s. 580.

DIVISION VI TRANSITIONAL AND FINAL PROVISIONS

28. (Amendment integrated into c. R-12, s. 55).

1978, c. 38, s. 28.

29. (Amendment integrated into c. R-12, s. 99).

1978, c. 38, s. 29.

30. (Omitted).

1978, c. 38, s. 30.

31. (Amendment integrated into c. R-10, s. 2).

1978, c. 38, s. 31.

32. The company succeeds to the corporation contemplated in section 54 of the Lotteries and Races Act (1969, chapter 28) and, for that purpose, it acquires the rights and assumes the obligations thereof.

1978, c. 38, s. 32.

33. In any act or proclamation and in any order in council, contract or document, the expression “Société d’exploitation des loteries et courses du Québec” designates the company, and a reference to Division IV of the Lotteries and Races Act or to a provision of that act is deemed a reference to this act or to the corresponding provision of this act.

1978, c. 38, s. 33.

34. The by-laws, agreements, accords or understandings made or entered into under Division IV of the Lotteries and Races Act (1969, chapter 28) continue to be in force until they are repealed, replaced or amended by by-laws, agreements, accords or understandings made or entered into under this Act.

1978, c. 38, s. 34.

35. (Omitted).

1978, c. 38, s. 35.

36. (Omitted).

1978, c. 38, s. 36.

37. The Act respecting lotteries, publicity contests and amusement machines (chapter L-6) does not apply to the activities of the company relating to any lottery scheme it conducts and administers, except with respect to State casinos and video lotteries.

1978, c. 38, s. 37; 1993, c. 39, s. 94.

38. The Minister of Finance is entrusted with the application of this Act.

1978, c. 38, s. 38.

39. (Omitted).

1978, c. 38, s. 39.

40. (This section ceased to have effect on 17 April 1987).

1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), chapter 38 of the statutes of 1978, in force on 1 June 1979, is repealed, except sections 35 and 36, effective from the coming into force of chapter S-13.1 of the Revised Statutes.