Generally speaking, elected municipal officials aren’t allowed to hold office if they have a direct or indirect interest in a contract with their municipality or municipal body during their term. Similarly, if someone has a contract with a municipality, they can’t become an officer or employee of that municipality.
There are some exceptions, like when the official’s interest was acquired through succession or a gift but they renounce it or divest themselves of it as soon as possible. Officials can also hold some shares in corporations as long as the shares are limited and don’t confer any type of control.
Bill 39, the Act to amend the Act respecting municipal taxation and other legislative provisions, also added two new exceptions as of December 8, 2023:
- First, the municipality can enter into certain leasing or acquisition contracts in which an officer or council member has an interest.
- Second, the municipality can enter into certain service contracts with council members for work that is done manually and requires a physical presence in the municipality’s territory.
That said, these new exceptions come with several conditions. We’ll be clarifying their limitations in this video.
Recorded capsule on 2026-09-3
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