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Q&A

Question: What is the main benefit of the new proposed governance?
Answer: The new governance will give greater assurance to the new President of the Board of Directors, since he or she will act independently in upholding the principles that form the bedrock of the Fonds’ mission.  

Question: How do these reforms protect shareholders’ assets? 
Answer: The aim of these reforms to transfer, in a permanent fashion, the Fonds’ management oversight function to directors that are independent of the Fonds’ senior management, the FTQ and its affiliated unions.In return, the strength of its broad-based unions will protect the Fonds’ mission to create, maintain and protect jobs in Québec, train workers, develop Québec’s economy and help workers prepare for their retirement. The Fonds is satisfied that the changes being made to its governance will provide better safeguards for shareholders’ assets on an ongoing basis, which makes the Fonds a strong partner for many SMEs in Québec.

Question: Will implementing this new governance model be expensive for shareholders? 
Answer: Changes affecting governance are natural; they are integral to the continuous improvement processes ensured by North America’s largest financial institutions. The Fonds’ assets have reached almost 10 billion dollars since 2009, and after posting positive returns for 10 consecutive half-year reporting periods, the time had come for the Fonds to review its regulations again to better adapt to society’s new realities. This is a transparent and healthy process for an organization like the Fonds, and the costs incurred are in line with the standards in place in other financial institutions.

Question: Who were the independent experts tasked by the special governance committee?
Answer: The members of the Special Governance Committee sought the support of specialists recognized for their expertise in their respective sectors, such as Mr. Robert Paré, a senior partner at Fasken Martineau DuMoulin; Dr. Yvan Allaire, Chairman of the Board of the Institut pour la gouvernance d’organisations privées et publiques (IGOPP), member of the Royal Society of Canada and President of the Global Agenda Council on the Role of Business – World Economic Forum; as well as Mr. Robert Parizeau, who co-chairs the board of the Institute of Corporate Directors for Québec and developed expertise in managing several public companies to draft the report on the new governance. 

Question: Is the Fonds de solidarité FTQ monitored by an independent body?
Answer: Yes. The Autorité des marchés financiers (AMF) is in charge of inspecting the Fonds’ internal affairs and activities. In addition, the Fonds’ financial statements are audited twice a year by two external auditing firms. 

Question: Once the report is submitted, what are the next steps? 
Answer: To entrench the changes made to our governance, the Québec National Assembly will have to amend the legislation pertaining to the Fonds de solidarité.