A wholly-owned subsidiary is a company whose common stock is 100% owned by another company, called the parent company. Enmax, Calgary Municipal Land Corporation, Attainable Homes Calgary and the Calgary Parking Authority are just some of the wholly-owned subsidiaries of which The City of Calgary is the parent company.
Recently, questions have been raised regarding the oversight of The City's wholly-owned subsidiaries. This has given rise to concerns about Council's role and responsibilities with these companies and its ability to be fully effective in that regard. Members of Council are appointed to the Directing Boards of these Wholly-Owned Subsidiaries, but according to Canadian Corporate Law and Governance rules, there is a conflict of interest whenever a Member of Council holds such a position.
There may be a need for the policies and decisions of wholly-owned subsidiaries to be better communicated to Council and a need to ensure that there is a good flow of information both ways. Alderman Peter Demong brought forward a Motion to Council proposing an investigation into these needs and possibly the resulting need to create a position whose duties would include facilitating this transparency and information-flow.
View the notice of motion
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