EMPLOYMENT INSURANCE |
Canada (Attorney General) v. Acier Inoxydable Fafard Inc.
A-33-01
2002 FCA 214, Létourneau J.A.
23/5/02
7 pp.
Application for judicial review of Tax Court of Canada (T.C.C.) decision determining that employment of Ms. France Letendre Fafard with Acier Inoxydable Fafard Inc. from January 1 to December 31, 1997, not insurable employment within meaning of Employment Insurance Act, s. 5(1)(a)-- Ms. Letendre Fafard performed work (reception work, correspondence, bookkeeping, payroll, production of reports) for respondent for which company paid her salary--T.C.C. Judge confusing dual role Ms. Letendre Fafard played within company: employee to perform certain duties and director-- shareholder to perform others--Although shareholder and director of respondent, she exercised under supervision of payor duties such that in reality was relationship of subordination--Respondent confusing administrative control of company with control of voting shares--Must be careful not to make error of that kind in interpreting and applying Act, s. 5(2)(b)--Mr. and Mrs. Fafard in fact adopted and implemented principle of joint management of company--Mr. Fafard held 99% of company's voting shares while wife controlled only 1%--Mr. Fafard did not give up voting right in shares for benefit of wife and consequently requirements for applying s. 5(2)(b) never satisfied--Ms. Letendre Fafard therefore holding insurable employment within respondent's business during period in dispute--Application allowed-- Employment Insurance Act, S.C. 1996, c. 23, s. 5.