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

Act current to 2020-01-08 and last amended on 2003-07-02. Previous Versions

Applications and Certificates (continued)

Marginal note:Redetermination by Minister

  •  (1) The Minister may, at any time, for any relevant period, redetermine the Canadian ownership rate or control status or both of a person to whom a certificate that is no longer in effect was issued where the Canadian ownership rate or control status or both of that person differed from that stated in the certificate by reason of any of the circumstances set out in paragraph 11(1)(a) or (b), subparagraph 11(1)(e)(ii) or (iii), subsection 13(4) or subsection 16(3), (4) or (6).

  • Marginal note:Notice

    (2) On making a redetermination under subsection (1), the Minister shall give notice thereof by personal delivery or registered mail to the person to whom the certificate referred to in that subsection was issued.

  • 1980-81-82-83, c. 107, s. 44

Marginal note:Avoiding or mitigating unjust result

  •  (1) Where, in respect of any person whose Canadian ownership rate is relevant to an application for a certificate or to whom a certificate currently in effect has been issued, the Minister is of the opinion that due to exceptional circumstances the determination of the Canadian ownership rate of that person in accordance with this Act and the regulations would produce or has produced a result that is manifestly unjust to that person in any case, he may, at any time, on his own initiative and without any notice or hearing, make or remake the determination in such manner as, in his opinion, will, as equitably as possible, avoid or mitigate that result, and that determination or redetermination shall be binding on all persons for the purposes of this Act.

  • Marginal note:New certificate to be issued

    (2) Where the Minister makes a determination or redetermination pursuant to subsection (1), he shall issue a certificate or new certificate accordingly, stating the Canadian ownership rate or the Canadian ownership rate and control status of the applicant, and the effective period of the certificate.

  • Marginal note:Effective period

    (3) A certificate issued pursuant to subsection (2) shall be effective for the period provided by section 10.

  • Marginal note:Redetermination where this Act and the regulations not complied with

    (4) Notwithstanding anything in this Act, where the Minister is of the opinion that the Canadian ownership rate or control status stated in a certificate was not determined in accordance with this Act and the regulations to the prejudice of the person to whom the certificate was issued, the Minister shall redetermine the Canadian ownership rate or control status in accordance with this Act and the regulations and issue a new certificate accordingly.

  • Marginal note:Idem

    (5) A new certificate issued pursuant to subsection (2) or (4) shall replace any certificate in effect on its issue, shall be effective as of the day the certificate so replaced became effective and shall continue to be effective until the day the certificate so replaced would, but for this section, have ceased to be effective.

  • Marginal note:Special status person

    (6) The Governor in Council may, by order, declare any person to have a special status and, where that declaration is made, that person shall be deemed to have a Canadian ownership rate of one hundred per cent.

  • 1980-81-82-83, c. 107, s. 45

Administration

Marginal note:Keeping records

  •  (1) Every person to whom a certificate has been issued shall keep documents, records and books of account at his place of business or other prescribed place in Canada in such form and containing such information as will enable the Minister to verify that the person is qualified to apply for a certificate, to verify the Canadian ownership rate or control status of the person and to verify the accuracy and completeness of the information and documentation submitted to the Minister in respect of the person.

  • Marginal note:Disposal of records

    (2) Every person required by subsection (1) to keep documents, records and books of account shall retain every such document, record or book of account until the expiration of six years from the day the relevant application for a certificate was filed, unless otherwise authorized by the Minister.

  • 1980-81-82-83, c. 107, s. 46

Marginal note:Audit or examination

  •  (1) At any time after an application for a certificate has been filed, the Minister may, on giving notice in writing to the applicant, conduct audits or examinations of the relevant documents, records and books of account of the applicant to verify that the applicant is qualified to apply for a certificate, to verify the Canadian ownership rate or control status of the applicant and to verify the accuracy and completeness of the information and documentation submitted to the Minister in respect of the applicant.

  • Marginal note:Records to be made available

    (2) Documents, records and books of account required to be kept by or under this Act shall, for the purpose of audit or examination, be made available at all reasonable times to any person authorized by the Minister for the purpose.

  • Marginal note:Assisting authorized persons

    (3) Every applicant for a certificate shall, for the purpose of an audit or examination under this Act, give all reasonable assistance to any person authorized by the Minister to carry out the audit or examination, provide access to all relevant sites, answer, orally or in writing, as required, all questions relating to the audit or examination and provide all information and documentation in his possession and all copies required for the purpose of the audit or examination.

  • Marginal note:Non-compliance

    (4) Where an applicant for a certificate refuses without reasonable cause to submit to an audit or examination under this section or refuses or knowingly fails to comply with any other requirement of this section, the Minister may

    • (a) refuse to issue a certificate to the applicant;

    • (b) by notice in writing delivered personally or sent by registered mail, revoke the applicant’s certificate effective as of the day specified in the notice; and

    • (c) deem the Canadian ownership rate of the applicant to be nil or deem the applicant not to be Canadian controlled for any period prior to the date of the refusal or failure to comply during which any certificate issued to the applicant was effective.

  • Marginal note:Presumption

    (5) Where the Minister revokes a certificate pursuant to subsection (4), the Canadian ownership rate of the applicant shall be deemed to be nil for any period prior to the date of the revocation during which that or any other certificate issued to the applicant was effective.

  • Marginal note:Definition of applicant

    (6) In this section, applicant includes a person to whom a certificate has been issued pursuant to an application.

  • 1980-81-82-83, c. 107, s. 47

Marginal note:Consent of investor or nominee to audit or examination

  •  (1) Every applicant for a certificate shall, in the prescribed form and manner, provide the Minister with a consent of

    • (a) any investor having a direct equity percentage in respect of the applicant of one per cent or more, or any nominee of the investor, or

    • (b) any investor having a total equity percentage in respect of the applicant of five per cent or more, or any nominee of the investor,

    whereby the investor, or nominee on behalf of the investor, consents and undertakes to submit to audit or examination of such of the documents, records and books of account of the investor or nominee or both as relate to the Canadian ownership rate of the applicant, and to give all reasonable assistance for that purpose to any person authorized by the Minister for the purpose.

  • Marginal note:Idem

    (2) Every applicant for a certificate shall, in the prescribed form and manner, provide the Minister with a consent of any prescribed person or nominee of the prescribed person whereby the prescribed person, or nominee on behalf of the prescribed person, consents and undertakes to submit to audit or examination of such of the documents, records and books of account of the prescribed person or nominee or both as relate to the control status of the applicant, and to give all reasonable assistance for that purpose to any person authorized by the Minister for the purpose.

  • Marginal note:Where consent not provided or complied with

    (3) Where an applicant for a certificate fails to provide a consent required under subsection (1) or an investor, or nominee on behalf of an investor, fails to comply with such a consent, the Canadian ownership rate of the investor shall, for the purposes of the application or any certificate issued pursuant to the application, be deemed to be nil.

  • Marginal note:Idem

    (4) Where an applicant for a certificate fails to provide a consent required under subsection (2) or a prescribed person, or nominee on behalf of a prescribed person, fails to comply with a consent so provided, the prescribed person shall, for the purposes of the application or any certificate issued pursuant to the application, be deemed to be a non-eligible person.

  • Marginal note:Where Canadian ownership rate or control status not properly determined and certified

    (5) Where the Canadian ownership rate of an investor is not determined and certified in the prescribed form and manner, it shall, for the purposes of any application for a certificate, be deemed to be nil, and where the control status of a prescribed person is not determined and certified in the prescribed form and manner, that prescribed person shall, for the purposes of any application for a certificate, be deemed to be a non-eligible person.

  • Marginal note:Where prescribed information, etc., not submitted on demand

    (6) Where an applicant for a certificate or a person to whom a certificate has been issued fails to provide the Minister, on demand, with any prescribed form, information, documentation or certification relevant to the determination of the Canadian ownership rate of an investor, that Canadian ownership rate shall, for the purposes of the application or any certificate issued pursuant thereto, be deemed to be nil.

  • Marginal note:Exemption where Her Majesty is an investor

    (7) Notwithstanding anything in this section, the Minister may exempt an applicant for a certificate from the application of this section or any provision thereof in respect of any investor that is Her Majesty in right of Canada or a province or an entity all or substantially all of the formal equity or assets of which are owned, directly or indirectly, by Her Majesty in right of Canada or a province.

  • 1980-81-82-83, c. 107, s. 48
 
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