Kincardine seeks board members for new Bruce Telecom corporation

The Municipality of Kincardine is seeking applications from qualified individuals to sit on the board of directors of the new Bruce Telecom municipal services corporation.

This is part of the conversion of the Kincardine-owned telecommunications company, from the current municipal services board to a corporation, as outlined at a special meeting, Monday evening, July 24.

Following a closed session, the meeting returned to open council, and consultant J. Mark Rodger of Borden Ladner Gervais, discussed the process.

He said public meetings were held about the conversion and council has developed a draft Kincardine asset transfer policy, a draft agreement for the transfer of assets, and a draft Bruce Telecom business case.

Bruce Telecom is to remain 100-per-cent owned by the Municipality of Kincardine, with a parent holding company and two subsidiaries - one taxable and one non-taxable.

Prior to the conversion, council must adopt a business case study, an asset transfer policy and an asset transfer agreement, incorporate the new companies, provide notice of the change of ownership and obtain approval for the transfer of licences and contracts.

Council has developed a shareholder declaration which deals with various corporate governance matters including: Kincardine's expectations as sole shareholder; informing the public about fundamental principles regarding Bruce Telecom's approach to the business; setting out the relationship and accountability between council and the Bruce Telecom board of directors; and establishing a dividend policy.

Legal documents will be completed over the summer, said Rodger, and Bruce Telecom senior management will complete its implementation plan for the new corporate structure for the continued operation of the business. Upon incorporation, various further administrative steps are required, such as corporate resolutions and bylaws, establishing the new boards of directors for the new companies, and then the critical process of implementing the new business model begins.

Chief administrative officer Sharon Chambers said the applications for the board of directors must be submitted by Noon, Friday, Sept. 1. A recommendation will then come to council Sept. 20, she said.

Meanwhile, Bruce Telecom senior management must come back to council Sept. 13 with its implementation plan, said Chambers, and then council can complete the conversion to a municipal services corporation.

"We will have the documents out to the public in September," she said.