Montréal, May 7, 2009 – Gathered for its annual strategic planning meeting on April 30, the Board of Directors of the Fonds de solidarité FTQ (“Fonds”) adopted new measures to improve its governance and strengthen enforcement of its ethics rules.
As a result of the Board’s decisions, going forward the investment committees of the Fonds and its real estate subsidiaries (SOLIM) will consist of a majority of independent members, that is, not affiliated with either the FTQ or the Fonds. As well, the executive committee, which is responsible for signing off on investments in the traditional sectors of the economy, will be replaced by a special board.
Michel Arsenault, President of the FTQ and Chairman of the Fonds, placed these announcements in perspective: “I am proud of this brave, bold move taken by the FTQ, which in 1983 created a new financial institution, a profitable fund that channels the savings of workers, both unionized and non-unionized, into the economy, and that is driven by the imperative to create jobs and collective wealth. I firmly believe in and am committed to continually improving our practices and structures.”
Setting new milestones in sound governance
The Fonds is adopting, for the composition of its investment committees, a definition of independence inspired by securities requirements for publicly traded companies (see appointments at the end).
In keeping with the new requirements announced by the Autorité des marchés financiers, the Fonds is forming an independent evaluation committee, which will be tasked with ensuring compliance with the Fonds’ evaluation process for private investments.
The following three individuals have been appointed to the evaluation committee:
- Louise St-Cyr, president (also president of the Fonds’ audit committee and holder of the Chaire de développement et de relève de la PME – HEC Montréal);
- Michel Nadeau, general manager of the Institute for Governance of Private and Public Organizations (previously a senior executive at Caisse de dépôt et placement du Québec); and
- Pierre Laflamme, consultant and corporate director (previously president and CEO of SGF-TECH).
An even stronger business ethic
Mindful of business ethics and the Fonds de solidarité’s unique role in Québec society, the Board of Directors intends to hold on to the confidence of its 575,000 shareholders and of the Québec general public. To this end, the Board has adopted the following measures regarding the ethics and values that underpin its actions:
1. Going forward, the audit committee, composed entirely of non-Board members, will be responsible for overseeing the code of ethics and professional conduct applicable to members of all boards, including the board of directors, and senior management.
2. The committee tasked with applying the employee code of ethics will ensure employee confidentiality and respect in whistleblowing situations. This committee will report to the audit committee.
3. The Fonds’ ethics rules will also apply to all its subsidiaries and limited partnerships, including the real estate subsidiaries.
4. The Fonds will adhere to the United Nations Global Compact, which espouses 10 principles in the areas of, among others, human rights and business ethics.
“The last few weeks show how perfectly legal and often highly lucrative transactions can be negatively perceived. We shouldn’t let a few isolated cases overshadow all the good things the Fonds has done for the Québec economy. Our drive for continuous improvement will underpin everything we do to further our economy,” said Fonds president and chief executive Yvon Bolduc.
About the Fonds de solidarité FTQ
With net assets of $6.2 billion on November 30, 2008, the Fonds de solidarité FTQ is a development capital fund that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs at home and further Québec's development. The Fonds is a partner, either directly or through its network members, in 1,881 companies. Thanks to its almost 575,000 shareholders, the organization has helped, on its own or with other financial partners, to create, maintain or protect over 126,000 jobs. For more information, visit www.fondsftq.com.
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Information: The telephone numbers below are for journalists and other media representatives only.
Source: Isabelle Perras
Telephone: 514 594-0246