Dissolve a Public Sector Organization

When a public sector organization is no longer needed, the organization is dissolved. This may happen because of a mandate review, completion of a legislated program or a termination date. Cabinet approves the decision to dissolve a public sector organization.

Dissolving a public sector organization is a complex process. The Crown Agencies and Board Resourcing Office (CABRO) guides the ministry responsible for the organization through the process to ensure all steps are followed and to prevent unintended consequences.

Generally, a dissolution follows these main steps:

Establish a Dissolution Project Team

The responsible minister establishes a cross-government project team. A typical dissolution team will have members from each of the following groups:

  • Responsible Ministry
  • Public Sector Organization Executive
  • Crown Agencies and Board Resourcing Office
  • Ministry of Justice
  • Office of the Comptroller General
  • Treasury Board Staff
  • Tax Policy Branch
  • Public Sector Employer’s Council or Public Service Agency

Prepare a Dissolution Plan

The project team prepares a written plan with terms of reference for the dissolution of the organization. The plan is completed before the dissolution process begins and must include:

  • Timelines
  • Team member accountabilities
  • Key decision points

The plan must be consistent with Cabinet’s time frame for the dissolution and is approved by the minister responsible for the organization.

Dissolve the Organization

The activities required to dissolve an organization depend on its size and complexity, the type of legislation used to create it and whether its programs are being transferred or discontinued.

These activities generally include:

  • Financial management
  • Legal and contractual obligations
  • Labour relations and human resource management
  • Communications
  • Corporate and board structure
  • Records management
  • Administration