Battle Card 7
The Battle Card (and the source text) says that the licensing provision are ultra vires. But it is ultra vires to which government? I would have assumed that it is the federal given the context, but I can't make sense of it.
This is all about the Act that requires that a company operating in more than one province should be licensed federally.
If the Privy Council deemed it was ultra vires for the federal, I assume the law would haven't have enacted, right? However, we know that in the end tha Act is in effect (and it is explained why in the text, right vs capacity).
Of course, if everything I'm saying is right, it doesn't make sense. So where I'm wrong?
Thank you!
Comments
Further more, on page. A2-4, something seems contradictory. It says:
"[...] an insurance company incorporated in one province could carry on business in another province without being regulated by the federal Government".
However, just after, it says:
"A procincial company had the capacity but not the right to carry on business outside the province in which it was incorporated"
Does the second sentence mean that a provincial company does not "automaticallly" have the right, but can ask to be licensing individually in another province?
Initially, the insurer was arguing that the act is ultra vires with respect to Ontario. The company is arguing vs an Ontario act that is trying to legislate to deprive a federally incorporated company of its status and capacity. I think you got it mixed up - The legislation is in effect because the privy council found that the act was intra vires for Ontario
That's how I would interpret it - They can first get licensed in a province outside the one it was incorporated in and then carry on their business without being regulated by the federal government