Alternative Title

Marginal note:Alternative title

1 This Act may be cited as the National Security Review of Investments Modernization Act.

R.S., c. 28 (1st Supp.)Investment Canada Act

• 2 (1) Section 11 of the Investment Canada Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) an investment to acquire, in whole or in part, an entity carrying on all or any part of its operations in Canada and that has a place of operations in Canada, an individual or individuals in Canada who are employed or self-employed in connection with the entity’s operations or assets in Canada used in carrying on the entity’s operations, if

    • (i) the entity carries on a prescribed business activity,

    • (ii) the non-Canadian could, as a result of the investment, have access to, or direct the use of, material non-public technical information or material assets, and

    • (iii) the non-Canadian would have, as a result of the investment,

      • (A) the power to appoint or nominate any person who has the capacity to direct the business and affairs of the entity, such as a member of the board of directors or of senior management, a trustee of the entity or, in the case of a limited partnership, a general partner, or

      • (B) prescribed special rights with respect to the entity.

• (2) Section 11 of the Act is renumbered as subsection 11(1) and is amended by adding the following:

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations defining “material assets” and “material non-public technical information” for the purposes of subparagraph (1)(c)(ii).

Marginal note:1995, c. 1, par. 50(1)(a)

3 Section 12 of the Act is replaced by the following:

Marginal note:1995, c. 1, par. 50(1)(a)

• 4 (1) Subparagraphs 13(1)(b)(i) and (ii) of the Act are replaced by the following:

  • (i) the investment is not reviewable under Part IV, or

  • (ii) unless the Director sends the non-Canadian a notice for review under section 15 within 45 days after the certified date referred to in paragraph (a) or within the prescribed period, the investment is not reviewable under Part IV.

• Marginal note:1995, c. 1, par. 50(1)(a)

  (2) Subsection 13(2) of the Act is replaced by the following:

  • Marginal note:Incomplete notice

    (2) If a notice given under section 12 is incomplete, the Director shall, within the prescribed period, send a notice to the non-Canadian, specifying the information required to complete the notice under section 12 and requesting that the information be provided to the Director in order to complete that notice.

• (3) The portion of subsection 13(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Where investment not reviewable

    (3) An investment in respect of which a receipt is sent under subsection (1) is not reviewable under Part IV if

• (4) Paragraph 13(3)(b) of the Act is replaced by the following:

  • (b) in a case where the receipt contains the advice referred to in subparagraph (1)(b)(ii), no notice for review is sent to the non-Canadian pursuant to section 15 within 45 days after the certified date referred to in paragraph (1)(a) or within the prescribed period.

Marginal note:1994, c. 47, s. 133

• 5 (1) Subparagraph (d)(v) of the definition WTO investor in subsection 14.1(6) of the Act is replaced by the following:

  • (v) of which at least two-thirds of the members of its board of directors, or of which at least two-thirds of its general partners, as the case may be, are any combination of Canadians and WTO investors,

• Marginal note:1994, c. 47, s. 133

  (2) Subparagraph (e)(iv) of the definition WTO investor in subsection 14.1(6) of the Act is replaced by the following:

  • (iv) of which at least two-thirds of its trustees are any combination of Canadians and WTO investors, or

Marginal note:2017, c. 6, s. 80

• 6 (1) Subparagraph (d)(v) of the definition trade agreement investor in subsection 14.11(6) of the Act is replaced by the following:

  • (v) at least two-thirds of the members of its board of directors, or at least two-thirds of its general partners, as the case may be, are any combination of Canadians and trade agreement investors;

• Marginal note:2017, c. 6, s. 80

  (2) Subparagraph (e)(iv) of the definition trade agreement investor in subsection 14.11(6) of the Act is replaced by the following:

  • (iv) at least two-thirds of its trustees are any combination of Canadians and trade agreement investors; or

• 7 (1) The portion of section 15 of the Act before paragraph (a) is replaced by the following:

  Marginal note:Other reviewable investments

  15 An investment referred to in paragraph 11(1)(a) or (b) that is subject to notification under Part III and that would not otherwise be reviewable under this Part is reviewable under this Part if

• (1.1) The portion of paragraph 15(b) of the Act before subparagraph (i) is replaced by the following:

  • (b) within 45 days after the certified date referred to in paragraph 13(1)(a)

• (2) Section 15 of the Act is renumbered as subsection 15(1) and is amended by adding the following:

  • Marginal note:State-owned enterprise

    (2) Despite the limits set out in subsections 14(3), 14.1(1) and (1.1) and 14.11(1) and (2), an investment is reviewable under this Part if

    • (a) the non-Canadian making the investment is a state-owned enterprise or is controlled by a state-owned enterprise unless the non-Canadian is a trade agreement investor;

    • (b) the Governor in Council, on the recommendation of the Minister, is of the opinion that a review of the investment is in the public interest;

    • (c) the Governor in Council issues an order for the review within 45 days after the certified date referred to in paragraph 13(1)(a); and

    • (d) the Director sends the non-Canadian making the investment a notice for review.

8 Paragraphs 17(2)(b) and (c) of the Act are replaced by the following:

• 8.1 (1) Paragraph 20(c) of the Act is replaced by the following:

  • (c) the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada, including, for greater certainty, the effect of the investment on any rights relating to intellectual property whose development has been funded, in whole or in part, by the Government of Canada;

• (2) Paragraph 20(e) of the Act is replaced by the following:

  • (e) the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment, and including, for greater certainty, the effect of the investment on the use and protection of personal information about Canadians; and

Marginal note:2013, c. 33, s. 138

• 9 (1) Subsection 21(3) of the French version of the Act is replaced by the following:

  • Marginal note:Prolongation

    (3) Sous réserve des paragraphes (4) et (5), si, avant l’expiration du délai de quarante-cinq jours visé au paragraphe (1), l’avis prévu au paragraphe 25.2(1) est envoyé relativement à l’investissement et si l’arrêté visé au paragraphe 25.3(1) est pris relativement à celui-ci, le délai pendant lequel le ministre peut envoyer l’avis prévu au paragraphe (1) expire trente jours après l’expiration du délai réglementaire ou du délai supplémentaire visés aux paragraphes 25.3(6) ou (7), selon le cas, ou à l’expiration de tout délai supplémentaire sur lequel celui-ci et le demandeur s’entendent.

• Marginal note:2013, c. 33, s. 138

  (2) Subsection 21(4) of the Act is replaced by the following:

  • Marginal note:Extension

    (4) If, before the end of the 45-day period referred to in subsection (1), a notice is sent under subsection 25.2(1) in respect of the investment and if, in respect of the investment, an order is made under subsection 25.3(1) and a notice under paragraph 25.3(6)(b) or (c) is sent, the period during which the Minister may send the notice referred to in subsection (1) expires 30 days after the day on which the notice under that paragraph was sent or at the end of any further period that the Minister and the applicant agree on.

• Marginal note:2013, c. 33, s. 138

  (3) The portion of subsection 21(5) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Prolongation

    (5) Si, avant l’expiration du délai de quarante-cinq jours visé au paragraphe (1), l’avis prévu au paragraphe 25.2(1) est envoyé relativement à l’investissement et si l’arrêté visé au paragraphe 25.3(1) est pris relativement à celui-ci et que le ministre renvoie la question au gouverneur en conseil en application de l’alinéa 25.3(6)a) ou du paragraphe 25.3(7), le délai pendant lequel le ministre peut envoyer l’avis prévu au paragraphe (1) expire trente jours après celle des dates ci-après qui est antérieure à l’autre ou à l’expiration de tout délai supplémentaire sur lequel celui-ci et le demandeur s’entendent :

• Marginal note:2013, c. 33, s. 138

  (4) Subsection 21(6) of the French version of the Act is replaced by the following:

  • Marginal note:Prolongation

    (6) Sous réserve des paragraphes (7) et (8), si, avant l’expiration du délai de quarante-cinq jours visé au paragraphe (1), l’arrêté visé au paragraphe 25.3(1) est pris relativement à l’investissement, le délai pendant lequel le ministre peut envoyer l’avis prévu au paragraphe (1) expire trente jours après l’expiration du délai réglementaire ou du délai supplémentaire visés aux paragraphes 25.3(6) ou (7), selon le cas, ou à l’expiration de tout délai supplémentaire sur lequel celui-ci et le demandeur s’entendent.

• Marginal note:2013, c. 33, s. 138

  (5) Subsection 21(7) of the Act is replaced by the following:

  • Marginal note:Extension

    (7) If, before the end of the 45-day period referred to in subsection (1), an order is made under subsection 25.3(1) in respect of the investment and if, in respect of the investment, a notice is sent under paragraph 25.3(6)(b) or (c), the period during which the Minister may send the notice referred to in subsection (1) expires 30 days after the day on which the notice under that paragraph was sent or at the end of any further period that the Minister and the applicant agree on.

• Marginal note:2013, c. 33, s. 138

  (6) The portion of subsection 21(8) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Prolongation

    (8) Si, avant l’expiration du délai de quarante-cinq jours visé au paragraphe (1), l’arrêté visé au paragraphe 25.3(1) est pris relativement à l’investissement et si le ministre renvoie la question au gouverneur en conseil en application de l’alinéa 25.3(6)a) ou du paragraphe 25.3(7), le délai pendant lequel le ministre peut envoyer l’avis prévu au paragraphe (1) expire trente jours après celle des dates ci-après qui est antérieure à l’autre ou à l’expiration de tout délai supplémentaire sur lequel celui-ci et le demandeur s’entendent :

Marginal note:2020, c. 1, s. 111

• 10 (1) Subparagraph (d)(v) of the definition CUSMA investor in subsection 24(4) of the Act is replaced by the following:

  • (v) of which at least two-thirds of the members of its board of directors, or of which at least two-thirds of its general partners, as the case may be, are any combination of Canadians and CUSMA investors;

• Marginal note:2020, c. 1, s. 111

  (2) Subparagraph (e)(iv) of the definition CUSMA investor in subsection 24(4) of the Act is replaced by the following:

  • (iv) of which at least two-thirds of its trustees are any combination of Canadians and CUSMA investors; or

Marginal note:2009, c. 2, s. 453

11 The heading of Part IV.1 of the Act is replaced by the following:

Marginal note:2009, c. 2, s. 453

• 12 (1) Paragraph 25.1(b) of the Act is replaced by the following:

  • (b) to acquire control of a Canadian business in any manner described in section 28;

  • (b.1) if the non-Canadian is a state-owned enterprise, to acquire any of the assets of a Canadian business; or

• (2) Section 25.1 of the Act is renumbered as subsection 25.1(1) and is amended by adding the following:

  • Marginal note:For greater certainty

    (2) For greater certainty, paragraph (1)(c) includes an investment to acquire, in whole or in part, the assets of an entity referred to in that paragraph.