Canadian Ownership and Control Determination Regulations, 1984 (SOR/84-431)

7 (1) For the purposes of these Regulations, equity-related persons or persons equity-related to each other means

• (a) individuals connected by blood relationship, marriage or adoption;

• (b) an entity and

  • (i) a person who has a direct equity percentage in the entity of more than 50%,

  • (ii) a person who is a member of an equity-related group the members of which have an aggregate direct equity percentage in the entity of more than 50%, or

  • (iii) any person equity-related to a person described in subparagraph (i) or (ii); or

• (c) any two entities

  • (i) if one person has a direct equity percentage in each entity of more than 50% or the members of one equity-related group of persons have an aggregate direct equity percentage in the entity of more than 50%,

  • (ii) if one person has a direct equity percentage in one of the entities of more than 50% and that person is equity-related to a person who has a direct equity percentage in the other entity of more than 50%,

  • (iii) if one person has a direct equity percentage in one of the entities of more than 50% and that person is equity-related to any member of an equity-related group the members of which have an aggregate direct equity percentage in the other entity of more than 50%,

  • (iv) if one person has a direct equity percentage in one entity of more than 50% and that person is equity-related to each member of an unrelated group the members of which have an aggregate direct equity percentage in the other entity of more than 50%,

  • (v) if any member of an equity-related group the members of which have an aggregate direct equity percentage in one of the entities of more than 50% is equity-related to each member of an unrelated group the members of which have an aggregate direct equity percentage in the other entity of more than 50%,

  • (vi) if each member of an unrelated group the members of which have an aggregate direct equity percentage in one of the entities of more than 50% is equity-related to at least one member of an unrelated group the members of which have an aggregate direct equity percentage in the other entity of more than 50%, or

  • (vii) if any member of an equity-related group the members of which have an aggregate direct equity percentage in one of the entities of more than 50% is equity-related to each member of an equity-related group the members of which have an aggregate direct equity percentage in the other entity of more than 50%.

(2) Where two entities are equity-related to the same entity, the entities are, for the purposes of these Regulations, equity-related to each other.

(3) For the purposes of these Regulations,

• (a) equity-related group means a group of persons each member of which is equity-related to every other member of the group;

• (b) unrelated group means a group of persons that is not an equity-related group; and

• (c) where a person has a direct equity percentage in two or more entities, that person is, as a person having a direct equity percentage in one of the entities, equity-related to himself as a person having a direct equity percentage in each of the other entities.

(4) For the purposes of these Regulations,

• (a) persons are connected by blood relationship if one is the child or other descendant of the other or if one is the brother or sister of the other;

• (b) persons are connected by marriage if one is married to the other or to a person who is connected by blood relationship to the other; and

• (c) persons are connected by adoption if one has been adopted, either legally or in fact, as the child of the other or as the child of a person who is connected by blood relationship, otherwise than as a brother or sister, to the other.