On 1 July 1867, the British Parliament passed the British North America Act. This act accorded independence to Canada. However, Canada wished to retain, and, even today, does retain some formal ties to the British Crown.

The Queen of England, Elizabeth II is the head of state in Canada, and her representative in Canada is known as the Governor General. The Governor General (at present, Her Excellency the Honourable Adrienne Clarkson) is appointed for a five-year term by the queen on the recommendation of the prime minister of Canada. The Governor General signs into law all acts proposed by the Canadian government and passed by Parliament.

Thus, the three levels of Parliament are

• the House of Commons (whose members are elected by Canadians),
• the Senate (whose members are appointed by the Governor General on the advice of the Prime Minister), and
• the Governor General (appointed on the advice of the Prime Minister of Canada by the Queen or King of England as his/her representative in Canada).