Two shareholders of the Royal Bank of Canada have been pressing the Bank to cease funding Toronto abortionist Robert Scott. The Toronto area shareholders, Cy Fleming, a travel agent, and Patrick Redmond, a computer expert, submitted a resolution for consideration by the annual shareholders meetings, held January 7 in Montreal. The resolution called for the Bank to immediately cease its banking relationship with Robert Scott. It referred to a $220,000 mortgage loan given by the Bank to the abortionist in March last year.
The existence of the mortgage, argued the shareholders, constituted financial support for an operation which is clearly illegal under Section 251 of the Criminal Code. In support of their position the shareholders were able to refer to sworn testimony given at the 1985 trial involving fourteen pro-life protestors who had trespassed on the Morgentaler abortuary property. In that trial, Regina v. Hannon et al, Scott confirmed that an abortion clinic cannot be an accredited or approved hospital and that abortion clinics do not fall under those exceptions contained in Section 251 which determine when abortions can be legally performed.
Sworn testimony
The existence of the mortgage, argued the shareholders, constituted financial support for an operation which is clearly illegal under Section 251 of the Criminal Code. In support of their position the shareholders were able to refer to sworn testimony given at the 1985 trial involving fourteen pro-life protestors who had trespassed on the Morgentaler abortuary property. In that trial, Regina v. Hannon et al, Scott confirmed that an abortion clinic cannot be an accredited or approved hospital and that abortion clinics do not fall under those expectations contained in Section 251 which determine when abortions can legally performed.
A concern of the shareholders was that the courts have traditionally held contacts for an illegal purpose to be unenforceable. The shareholders concluded that the Bank may be putting their investment at risk by entering into a lending relationship with an illegal business such as an abortuary.
The Royal Bank became very agitated at the prospect of such a resolution, and the ensuing debate, being brought before the annual shareholders meeting. Various executives of the Bank, including Bank Chairman Allan Taylor, entered into discussions with the shareholders. After a series of negotiations and only 35 minutes prior to the start of the annual meeting, the two shareholders agreed to withdraw the resolution on condition that the Chairman of the Royal Bank make a statement which he did. The gist of the statement was a follows:
“In addition, the shareholders I have referred to have requested an assurance that the bank will not extend banking services to people engaged in illegal activities, in support of these activities. I have no difficulty whatsoever in giving that kind of assurance to the shareholders. It is quite clearly and unequivocally the policy of the Royal Bank of Canada that it not knowingly provide banking assistance to illegal activities, including activities which contravene provisions of the Criminal Code.”
Obvious meaning
Paul Dodds, spokesman for the two shareholders, told the press afterwards that “the plain and obvious meaning of this statement is that the bank will give no new loans and will renew no old loans to Robert Scott or other abortion clinic operators. The shareholders agreed not to present the resolution because they have confidence in the good faith of the Royal Bank to live up to the plain meaning of the Chairman’s words.”
The Chairman of the Royal Bank had a different interpretation. In a press conference held immediately after the shareholders meeting, the chairman was peppered with questions concerning the bank’s continued involvement with the Scott abortuary, Mr. Taylor stated that the bank had not decided whether it would or would not renew the mortgage with Robert Scott when it comes up for renewal in 1991.
The remarks of the Chairman, so infuriated pro-life supporters that a demonstration attracting over 40 picketers was held outside the Royal Bank’s Toronto headquarters the following week.
