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The national party leader is selected by delegates at the national party convention or national executive committee before the election takes part. The party with capturing most seats or MPs in federal election, forms or retains a government and their leader becomes Prime Minister. Another party with finishing in second place in the election become the official Opposition.
The number of seats, not votes matter the most.
Thanks for the explaination. I don't think I'll presume to comment on Canadian politics till I get all this stuff sorted out.