Assented to 1986-05-01
An Act to authorize the divestiture of Canadian Arsenals Limited and to amend other Acts in consequence thereof
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Marginal note:Short title
1 This Act may be cited as the Canadian Arsenals Limited Divestiture Authorization Act.
- amalgamated corporation
amalgamated corporation means a corporation that is formed by the amalgamation of the Corporation with another corporation; (société issue d’une fusion)
Corporation means Canadian Arsenals Limited, a corporation continued under the Canada Business Corporations Act; (Société)
Minister means the Minister of Public Works and Government Services. (ministre)
Marginal note:Same meaning
- 1986, c. 20, s. 2
- 1996, c. 16, s. 60
Authorization of Divestiture
Marginal note:Sale of shares
3 (1) The Minister is hereby authorized to sell, on such terms and conditions as are approved by the Governor in Council, any or all of the shares of the Corporation held by the Minister in trust for Her Majesty.
(2) For the purposes of effecting a sale authorized by subsection (1), all property, whether real or personal, rights and interests of Her Majesty used in the business of the Corporation immediately prior to the coming into force of this subsection are transferred from Her Majesty to the Corporation.
(3) The Governor in Council may, by order, exempt any property, rights or interests of Her Majesty from the application of subsection (2) and transfer the control, management and administration thereof from the Corporation to any Minister or department of the Government of Canada or to any other person or body.
Marginal note:Sale or other disposal of assets
4 (1) The Minister may, at any time prior to a sale of shares authorized by section 3, direct the Corporation to sell or otherwise dispose of any or all of the assets of the Corporation, including shares of any other corporation held by the Corporation, on such terms and conditions as are approved by the Governor in Council.
Marginal note:Compliance with direction
(2) On receiving a direction under subsection (1), the Corporation is hereby authorized to sell or dispose of the assets of the Corporation in accordance with the direction and shall comply with the direction.
Marginal note:Provisions not applicable
(3) Subsections 183(2) to (8) of the Canada Business Corporations Act and subsections 108(2) to (5) of the Financial Administration Act do not apply in respect of any sale or other disposal of assets of the Corporation authorized by subsection (2).
Articles of Amendment
Marginal note:Articles of amendment
5 (1) The directors of the Corporation or any amalgamated corporation shall prepare in accordance with section 6 and submit to the Minister for approval proposed articles of amendment of the Corporation or amalgamated corporation within four months after this section comes into force.
Marginal note:Submission to Director
(2) Notwithstanding any other Act of Parliament, within two weeks after the Minister approves any articles of amendment submitted to him pursuant to subsection (1), the directors of the Corporation or the amalgamated corporation, as the case may be, shall send the approved articles of amendment to the Director.
(3) Articles of amendment sent to the Director in compliance with this section are, subject to this Act, deemed for all purposes to have been sent under section 171 of the Canada Business Corporations Act.
Marginal note:Provisions included in articles of amendment
(a) provisions imposing constraints on the issue, transfer and ownership of securities of the Corporation or amalgamated corporation to prevent non-residents from holding or beneficially owning, otherwise than by way of security only, in the aggregate securities to which are attached more than twenty-five per cent of the votes that may ordinarily be cast to elect directors of the Corporation or amalgamated corporation; and
(b) provisions respecting the enforcement of the constraints imposed pursuant to paragraph (a).
Marginal note:Enforcement provisions
(2) Without limiting the generality of paragraph (1)(b), the provisions therein referred to may provide for the filing of declarations, the suspension of voting rights, the forfeiture of dividends or the refusal of registration of securities.
Marginal note:Securities held or beneficially owned jointly
(3) For the purposes of this section, where a security of the Corporation or an amalgamated corporation is held or beneficially owned jointly and one or more of the joint holders or beneficial owners is a non-resident, the security is deemed to be held by a non-resident.
(4) In this section,
corporation includes a body corporate, association, partnership or other organization; (société)
(a) an individual, other than a Canadian citizen, who is not ordinarily resident in Canada,
(b) a corporation incorporated, formed or otherwise organized outside Canada,
(c) the government of a foreign state or any political subdivision thereof, or a person empowered to perform a function or duty on behalf of such a government,
(d) a corporation that is controlled directly or indirectly by non-residents as defined in any of paragraphs (a) to (c),
(e) a trust
(i) established by a non-resident as defined in any of paragraphs (b) to (d), other than a trust for the administration of a pension fund for the benefit of individuals a majority of whom are residents, or
(ii) in which non-residents as defined in any of paragraphs (a) to (d) have more than fifty per cent of the beneficial interest, or
(f) a corporation that is controlled directly or indirectly by a trust described in paragraph (e); (non-résident)
resident means an individual, corporation, government or trust that is not a non-resident. (résident)
Marginal note:Amendment not precluded
7 (1) Subject to subsection (2), nothing in section 6 shall be construed to prevent or in any way restrict the Corporation or amalgamated corporation or its shareholders or directors from amending its articles under and in accordance with the Canada Business Corporations Act after the amendment of the articles in accordance with this Act.
(a) amend any provisions included in articles of amendment in compliance with section 6;
(b) make any articles or by-laws inconsistent with the provisions referred to in paragraph (a);
(c) apply for continuance of the Corporation or amalgamated corporation in another jurisdiction;
(d) amalgamate the Corporation or amalgamated corporation with another corporation;
(e) sell, lease or exchange all or substantially all of the property of the Corporation or amalgamated corporation; or
(f) voluntarily dissolve, or voluntarily liquidate and dissolve, the Corporation or amalgamated corporation.
Adjustment of Accounts
Marginal note:Adjustment to accounts of Canada
8 The Minister, after consultation with the President of the Treasury Board, shall cause such adjustments to be made in the accounts of Canada as are required as a result of a sale of shares, or a sale or other disposal of assets, of the Corporation authorized by this Act.
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