Canadian Ownership and Control Determination Act (R.S.C., 1985, c. C-20)

Act current to 2014-12-08 and last amended on 2003-07-02. Previous Versions

Canadian Ownership and Control Determination Act

R.S.C., 1985, c. C-20

An Act respecting Canadian ownership and control determination

SHORT TITLE

Marginal note:Short title

 This Act may be cited as the Canadian Ownership and Control Determination Act.

  • 1980-81-82-83, c. 107, s. 34.

INTERPRETATION

Marginal note:Definitions
  •  (1) In this Act,

    “certificate”

    « certificat »

    “certificate” means a certificate issued by the Minister under this Act;

    “control status”

    « état de contrôle »

    “control status” means, with respect to a person, whether or not the person is Canadian controlled as determined under this Act and the regulations;

    “direct equity percentage”

    « pourcentage de participation directe »

    “direct equity percentage” means, with respect to formal equity owned by a person in any particular person,

    • (a) where the particular person does not have more than one class of formal equity within the meaning of the regulations, the percentage of the formal equity of the particular person that is owned by the person, and

    • (b) where the particular person has more than one class of formal equity within the meaning of the regulations, subject to the regulations, the aggregate fair market value of the formal equity of the particular person that is owned by the person, expressed as a percentage of the aggregate fair market value of all the formal equity of the particular person;

    “formal equity”

    « participation ordinaire »

    “formal equity” means,

    • (a) with respect to a corporation, any share of the corporation, other than a share excluded by the regulations, that is, or is deemed under the regulations to be, issued and outstanding,

    • (b) with respect to a partnership, any interest or right in the capital or income, or both, of the partnership,

    • (c) with respect to a trust, any beneficial interest in the property of the trust, and

    • (d) with respect to any other person, such interest or right in respect of that person as is prescribed;

    “informal equity”

    « participation non ordinaire »

    “informal equity” means, subject to the regulations, any interest or right to participate in or benefit from, either currently or in the future, other than by way of formal equity, the assets, revenues or business activities of another person;

    “investor”

    « investisseur »

    “investor” means, with respect to an applicant for a certificate, a person who has a total equity percentage in the applicant that is greater than zero;

    “Minister”

    « ministre »

    “Minister” means the Minister of Natural Resources;

    “owned”

    « posséder »

    “owned” means, subject to the regulations, beneficially owned, and the words "owner" and "ownership" have corresponding meanings;

    “person”

    « personne »

    “person” means an individual, a corporation, a partnership, a trust, a government, an agency of government, a segregated fund within the meaning of the regulations and an organization that is prescribed as being a person or that falls into a class of organizations prescribed as being persons;

    “prescribed”

    Version anglaise seulement

    “prescribed” means prescribed by the regulations, or with respect to the form and manner in which any application under this Act shall be filed or the information and documentation to be contained in or to accompany that application, means prescribed by order of the Minister.

  • Marginal note:Definition of "non-eligible person"

    (2) For the purposes of this Act, the expression “non-eligible person” has the same meaning as it has under subsection 3(1) of the Foreign Investment Review Act, chapter 46 of the Statutes of Canada, 1973-74, and the regulations made pursuant to that Act, with such modifications as the circumstances require, except that, until September 1, 1987,

    • (a) the definition "non-eligible person" in subsection 3(1) of that Act shall be read as if subparagraph (a)(ii) of that definition were deleted therefrom; and

    • (b) subsection 3(5) of that Act shall be read as if the words "and permanent residents who have been ordinarily resident in Canada for more than one year after the time at which they first became eligible to apply for Canadian citizenship", wherever those words appear therein, were deleted therefrom.

  • Marginal note:Trust property

    (3) For greater certainty, for the purposes of this Act, a separate trust exists with respect to all assets, investments or property held by a trustee under a trust instrument for the benefit of a person, group or class of persons, notwithstanding that under the same trust instrument different assets, investments or property are held for the benefit of a different person, group or class of persons.

  • Marginal note:Total equity percentage

    (4) For the purposes of this Act, the total equity percentage of a person in any particular person shall be obtained by calculating the aggregate of

    • (a) the person’s direct equity percentage in respect of the particular person, and

    • (b) the aggregate of the percentages each of which is the product obtained when the person’s total equity percentage in respect of any other person is multiplied by that other person’s direct equity percentage in respect of the particular person.

  • Marginal note:Indirect equity percentage

    (5) For the purposes of this Act, a person (in this subsection referred to as "the first person") shall calculate the indirect equity percentage, in respect of an applicant, of any other person having a direct equity percentage in the first person by multiplying the direct equity percentage of the other person in the first person by the aggregate of the percentages, each of which is the first person’s direct equity percentage or indirect equity percentage in respect of the applicant.

  • Marginal note:Power of Minister

    (6) For the purposes of this Act, where the Minister is empowered to make a determination or redetermination in respect of the Canadian ownership rate of a person, that power shall include the power to adjust the Canadian ownership rate of the person on the basis of informal equity to the extent that, in the opinion of the Minister, is appropriate in the circumstances.

  • Marginal note:References

    (7) For the purposes of this Act, a reference in this Part to the Foreign Investment Review Act, chapter 46 of the Statutes of Canada, 1973-74, or to any regulation made pursuant to that Act or to any provision of that Act or any such regulation shall be construed as a reference to that Act, regulation or provision as it read immediately before the coming into force of section 46 of the Investment Canada Act, chapter 20 of the Statutes of Canada, 1985.

  • R.S., 1985, c. C-20, s. 2;
  • R.S., 1985, c. 28 (1st Supp.), s. 48;
  • 1994, c. 41, s. 37.