Bank Act (S.C. 1991, c. 46)

Marginal note:References to “authorized foreign bank”

2.1 References in this Act to the carrying on of business in Canada by an authorized foreign bank and to the business in Canada of an authorized foreign bank are deemed, respectively, to be references to the carrying on of business in Canada, or to business in Canada, under Part XII.1.

Marginal note:Major shareholder

2.2 For the purposes of this Act, a person is a major shareholder of a body corporate if

• (a) the aggregate of the shares of any class of voting shares of the body corporate that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 20 per cent of the outstanding shares of that class of voting shares of the body corporate; or

• (b) the aggregate of the shares of any class of non-voting shares of the body corporate that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 30 per cent of the outstanding shares of that class of non-voting shares of the body corporate.

Marginal note:Widely held

2.3 For the purposes of this Act, an entity is widely held if it is

• (a) a body corporate that has no major shareholder;

• (a.1) a federal credit union;

• (b) an insurance company incorporated or formed under a mutual plan;

• (c) an association to which the Cooperative Credit Associations Act applies; or

• (d) a cooperative credit society incorporated or formed, and regulated, by or under an Act of the legislature of a province.

Marginal note:Regulations — distributing bank or bank holding company

• 2.4 (1) The Governor in Council may make regulations respecting the determination of what constitutes a distributing bank or distributing bank holding company for the purposes of this Act.

• Marginal note:Exemption — bank or bank holding company

  (2) On the application of a bank or bank holding company, the Superintendent may determine that it is not or was not a distributing bank or distributing bank holding company, as the case may be, if the Superintendent is satisfied that the determination would not prejudice any security holder of that bank or bank holding company or any holder of a membership share of that bank.

• Marginal note:Exemption — class of banks or bank holding companies

  (3) The Superintendent may determine that members of a class of banks or bank holding companies are not or were not distributing banks or distributing bank holding companies, as the case may be, if the Superintendent is satisfied that the determination would not prejudice any security holder of a member of the class or any holder of a membership share of a bank that is a member of the class.