Proposed Amendments to Fonds de solidarité FTQ Enabling Act Will Allow the Organization to Complete Implementation of Its New Governance

MONTREAL, Nov. 26, 2014 /CNW Telbec/ - If ratified, the amendments proposed to the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.), tabled today before the National Assembly, will allow the Fonds de solidarité FTQ to continue implementing its new governance. Under the bill, the majority of the Board's directors will be elected by shareholders at general meetings.

"The proposed changes to the Fonds' enabling act were inspired by the recommendations of the Special Governance Committee set up by the Fond and included in Minister Leitão's June budget Having more independent members will bring complementary skills to the Board, allowing it to better play its role," said Fonds chairman Robert Parizeau.

As recommended by the Special Governance Committee, the bill proposes reconfiguring the Board, reducing the number of FTQ-nominated directors from ten to seven. In so doing, the FTQ will no longer nominate the majority of directors.

The proposed amendments would enshrine the reforms already implemented by the Fonds in 2009 requiring that all investments first be approved by an investment committee formed of a majority of members independent of the Fonds, the FTQ and its affiliated unions.

The bill also confirms that a governance and ethics committee, as well as a human resources committee, must be created, as is already the case. These committees can only meet and make decisions when a majority of members independant of the Fonds, the FTQ and its affiliated unions are present.

Transitional measures

If ratified, the proposed amendments will allow the Fonds to temporarily appoint two independent directors to fill the newly created seats. These directors may, if they wish to renew their mandate, seek election at the next annual general meeting.

For more information about the new governance of the Fonds de solidarité FTQ, visit www.FondsFTQ.com/Governance.

About the Fonds de solidarité FTQ

The Fonds de solidarité FTQ helps drive our economy. With net assets of $10.1 billion as of May 31, 2014, the Fonds is a development capital fund that channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and further Québec's development. The Fonds is a partner, either directly or through its network members, in more than 2,450 companies. With 613,958 shareholder-savers, the Fonds helps create, maintain and protect more than 172,000 jobs. For more information, visit www.FondsFTQ.com.

INFORMATION SHEET

The elements of the Fonds' new governance which require legislative amendments are:

1. Presidency of the Board of Directors AND and all the Board's committees (including those authorizing Fonds régionaux and Fonds immobilier investments) reserved for a member independent of both the Fonds, the FTQ and its affiliated unions.

2. Reconfiguration of the Board of Directors:

Composition of the Board of Directors of the Fonds de solidarité FTQ
	Before the reform	After the reform
Directors nominated by the FTQ	10	7
Directors elected by shareholders following a call for nominations	2	4
Independent directors	4^1	7^2
President and CEO	1	1
TOTAL	17	19
^1 Nominated by the Board. ^2 From now on, elected following a recommendation of the governance and ethics committee formed by a majority of independent individuals.

3. Enshrinement in the Fonds Act of the regulation adopted in 2009 requiring any investment to be approved by an investment committee made up of a majority of members independent from the Fonds, the FTQ and its affiliated unions; since 2009, this regulation has granted the independent members that authorize investments, including the Fonds immobilier, a veto. Furthermore, in order to increase the power of these Boards, the amount at which an investment must be submitted to the Board of Directors will be increased.

4. Creation of three new committees composed of a majority of members independent from the Fonds, the FTQ and its affiliated unions, these being (i) governance and ethics, (ii) human resources and (iii) risk management.

5. The duration of Board member mandates will be limited to 12 years, with the exception of the President and the Secretary-General of the FTQ.

SOURCE: Fonds de solidarité FTQ

For media representatives only: Patrick McQuilken, Senior Advisor, Media Relations and Communications, Fonds de solidarité FTQ, Phone: [phone], Mobile : [phone], Email: [email protected]; For Fonds de solidarité FTQ shareholders: Shareholder Services, Fonds de solidarité FTQ, Montréal: 514 383-3663, Québec: 418 628-3663, Toll Free: 1 800 567-3663