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ARTICLE · 16 APRIL 2013

Integrity In Public Contracts Act: The AMF Awards Its First Authorizations

Davies Ward Phillips & Vineberg LLP
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The Autorité des marchés financiers awarded this past March its first "authorizations to enter into public contracts and subcontracts" in accordance with the new provisions of "An Act Respecting Contracting by Public Bodies".

CanadaCorporate/Commercial Law
Stéphane Eljarrat
Stéphane Eljarrat
Gabriel Querry
Gabriel Querry
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The Autorité des marchés financiers (the "AMF") awarded this past March its first "authorizations to enter into public contracts and subcontracts" in accordance with the new provisions of An Act Respecting Contracting by Public Bodies. Added on December 7, 2012, by the Integrity in Public Contracts Act (commonly referred to as "Bill 1"), these new provisions create a prior authorization system that seeks to bolster integrity in public contracts and promote the public's confidence in public markets.

A prior authorization system

Barring exceptional circumstances, any enterprise1 that wishes to enter into a public contract or a public subcontract2 that is subject to the new provisions must first be authorized by the AMF. Only enterprises that do not have an establishment in Québec and who have been retained by the chief executive officer of a public body to execute a contract outside of Québec are exempt from this obligation.

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