Companies’ Creditors Arrangement Act

Marginal note:Application

• 3 (1) This Act applies in respect of a debtor company or affiliated debtor companies where the total of claims, within the meaning of section 12, against the debtor company or affiliated debtor companies exceeds five million dollars.

• Marginal note:Affiliated companies

  (2) For the purposes of this Act,

  • (a) companies are affiliated companies if one of them is the subsidiary of the other or both are subsidiaries of the same company or each of them is controlled by the same person; and

  • (b) two companies affiliated with the same company at the same time are deemed to be affiliated with each other.

• Marginal note:Company controlled

  (3) For the purposes of this Act, a company is controlled by a person or by two or more companies if

  • (a) securities of the company to which are attached more than fifty per cent of the votes that may be cast to elect directors of the company are held, other than by way of security only, by or for the benefit of that person or by or for the benefit of those companies; and

  • (b) the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the company.

• Marginal note:Subsidiary

  (4) For the purposes of this Act, a company is a subsidiary of another company if

  • (a) it is controlled by

    • (i) that other company,

    • (ii) that other company and one or more companies each of which is controlled by that other company, or

    • (iii) two or more companies each of which is controlled by that other company; or

  • (b) it is a subsidiary of a company that is a subsidiary of that other company.