Insurance Companies Act

Marginal note:Exception

• 942 (1) If an insurance holding company fails to comply with section 938 as the result of any of the following, section 939 does not apply in respect of that insurance holding company until the expiration of six months after the day the insurance holding company failed to comply with section 938:

  • (a) a distribution to the public of voting shares of the insurance holding company;

  • (b) a redemption or purchase of voting shares of the insurance holding company;

  • (c) the exercise of any option to acquire voting shares of the insurance holding company; or

  • (d) the conversion of any convertible securities into voting shares of the insurance holding company.

• Marginal note:Shares acquiring voting rights

  (2) If as the result of an event that has occurred and is continuing, shares of an insurance holding company acquire voting rights in such number as to cause the insurance holding company to no longer be in compliance with section 938, section 939 does not apply in respect of that insurance holding company until the expiration of six months after the day the insurance holding company ceased to be in compliance with section 938 or such later day as the Minister may, by order, specify.

• Marginal note:Exemption

  (3) If a holding body corporate referred to in subsection 941(3) fails to comply with section 938 as the result of any of the following, paragraph 941(5)(c) does not apply in respect of that holding body corporate until the expiration of six months after the day the holding body corporate failed to comply with section 938:

  • (a) a distribution to the public of voting shares of the holding body corporate;

  • (b) a redemption or purchase of voting shares of the holding body corporate;

  • (c) the exercise of any option to acquire voting shares of the holding body corporate; or

  • (d) the conversion of any convertible securities into voting shares of the holding body corporate.

• Marginal note:Shares acquiring voting rights

  (4) If, as the result of an event that has occurred and is continuing, shares of a holding body corporate referred to in subsection 941(3) acquire voting rights in such number as to cause the holding body corporate to no longer be in compliance with section 938, paragraph 941(5)(c) does not apply in respect of that holding body corporate until the expiration of six months after the day the holding body corporate ceased to be in compliance with section 938 or such later day as the Minister may, by order, specify.