Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-08-15 and last amended on 2019-06-21. Previous Versions

PART IInterpretation and Application (continued)

Interpretation

Marginal note:References to “authorized foreign bank”

 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.

  • 1999, c. 28, s. 2

Marginal note:Major shareholder

 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.

  • 2001, c. 9, s. 36

Marginal note:Widely held

 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.

  • 2001, c. 9, s. 36
  • 2010, c. 12, s. 1895

Marginal note:Regulations — distributing bank or bank holding company

  •  (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.

  • 2005, c. 54, s. 2
  • 2010, c. 12, s. 1896

Marginal note:Control

  •  (1) For the purposes of this Act,

    • (a) a person controls a body corporate if securities of the body corporate to which are attached more than 50 per cent of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate;

    • (a.1) a person controls a federal credit union if the person and all of the entities controlled by the person have the right to exercise more than 50 per cent of the votes that may be cast at an annual meeting or to elect the majority of the directors of the federal credit union;

    • (b) a person controls an unincorporated entity, other than a limited partnership, if more than 50 per cent of the ownership interests, however designated, into which the entity is divided are beneficially owned by that person and the person is able to direct the business and affairs of the entity;

    • (c) the general partner of a limited partnership controls the limited partnership; and

    • (d) a person controls an entity if the person has any direct or indirect influence that, if exercised, would result in control in fact of the entity.

  • Marginal note:Deemed control

    (2) A person who controls an entity is deemed to control any entity that is controlled, or deemed to be controlled, by the entity.

  • Marginal note:Deemed control

    (3) A person is deemed to control, within the meaning of paragraph (1)(a) or (b), an entity if the aggregate of

    • (a) any securities of the entity that are beneficially owned by that person, and

    • (b) any securities of the entity that are beneficially owned by any entity controlled by that person

    is such that, if that person and all of the entities referred to in paragraph (b) that beneficially own securities of the entity were one person, that person would control the entity.

  • Marginal note:Guidelines

    (4) The Minister may, for any purpose of any provision of this Act that refers to control within the meaning of paragraph (1)(d), make guidelines respecting what constitutes such control, including guidelines describing the policy objectives that the guidelines and the relevant provisions of the Act are intended to achieve and, if any such guidelines are made, the reference to paragraph (1)(d) in that provision shall be interpreted in accordance with the guidelines.

  • Marginal note:Guidelines — federal credit union

    (5) The Minister may, for any purpose of any provision of this Act that refers to control within the meaning of paragraph (1)(d), make guidelines respecting what constitutes such control of a federal credit union, including guidelines describing the policy objectives that the guidelines and the relevant provisions of the Act are intended to achieve and, if any such guidelines are made, the reference to paragraph (1)(d) in that provision is to be interpreted in accordance with the guidelines.

  • 1991, c. 46, s. 3
  • 2001, c. 9, s. 37
  • 2010, c. 12, s. 1897

Marginal note:Holding body corporate

 A body corporate is the holding body corporate of any entity that is its subsidiary.

  • 1991, c. 46, s. 4
  • 2001, c. 9, s. 38

Marginal note:Subsidiary

 An entity is a subsidiary of another entity if it is controlled by the other entity.

  • 1991, c. 46, s. 5
  • 2001, c. 9, s. 38

Marginal note:Affiliated entities

  •  (1) One entity is affiliated with another entity if one of them is controlled by the other or both are controlled by the same person.

  • Marginal note:Affiliated entities

    (2) Despite subsection (1), for the purposes of subsections 265(1) and 283(1), one entity is affiliated with another entity if one of them is controlled, determined without regard to paragraph 3(1)(d), by the other or both are controlled, determined without regard to paragraph 3(1)(d), by the same person.

  • 1991, c. 46, s. 6
  • 2001, c. 9, s. 39

Marginal note:Shareholder

  •  (1) For the purposes of this Act, a person is a shareholder of a body corporate when, according to the securities register of the body corporate, the person is the owner of one or more shares of the body corporate or is entitled to be entered in the securities register or like record of the body corporate as the owner of the share or shares.

  • Marginal note:Holder of a share

    (2) A reference in this Act to the holding of a share by or in the name of any person is a reference to the fact that the person is registered or is entitled to be registered in the securities register or like record of the body corporate as the holder of that share.

Marginal note:Holder of membership share

  •  (1) For the purposes of this Act, a person is a holder of a membership share of a federal credit union if the person is the owner of one or more membership shares according to the federal credit union’s members register or is entitled to be entered in that register, or like record of the federal credit union, as the owner of one or more membership shares.

  • Marginal note:References to holding membership share

    (2) A reference in this Act to the holding of a membership share by or in the name of any person is a reference to the fact that the person is registered or is entitled to be registered in a federal credit union’s members register, or like record of the federal credit union, as the holder of that membership share.

  • 2010, c. 12, s. 1898
 
Date modified: