Legal Entities

Introduction

This policy ensures proper approval for the creation, restructure and dissolution of entities which are owned or controlled by the University of Regina but have a legal existence separate from the University.

For the policy on establishing and monitoring centres or institutes for research, refer to RCH-010-005 Research Centres/Institutes.

This policy does not apply to individual trust accounts within the University's Trust and Endowment Fund, which are managed by Financial Services.

Policy

The University creates a separate legal entity only if there are compelling legal or business reasons to justify creation of the entity.

The Board of Governors has the sole authority to approve the creation of a new non-profit or for-profit legal entity which the University in whole or in part owns or controls.

The Board of Governors has the sole authority to approve partnerships, joint ventures or similar entities in which the University is a party to, or interested therein. 

Any change to a legal entity affecting its governance or relationship to the University, including a decision to dissolve the entity, and any decision that would bring an entity not previously controlled by the University under the University’s control, must be approved by the Board of Governors.

Consequences for Noncompliance

Employees who create, restructure, or dissolve a legal entity, without the approval of the Board of Governors, are subject to disciplinary action up to and including termination.

Processes

Creating a Non-Academic Legal Entity

In the event that University management determines that it is desirable to unilaterally or in partnership with others create a separate legal entity to carry out the University's strategic goals:

1. Management presents the business case to the Board of Governors identifying the alternative courses of action possible and recommending the preferred solution.
2. Once the Board of Governors has approved the creation of the separate legal entity, management proceeds to create the entity.

Creating an Academic Legal Entity

If a legal entity is to be created on academic grounds, the following steps are required:

1. Council provides a report to Senate embodying its recommendations.
2. Senate recommends on the matter to the Board of Governors.
3. Once the Board of Governors has approved the creation of the separate legal entity, management proceeds to create the entity.

Related Information

• The University of Regina Act (156 KB)
• Financial Administration Act, 1993