Special Economic Measures Act (S.C. 1992, c. 17)

Marginal note:Deemed ownership

• 2.1 (1) If a person controls an entity other than a foreign state, any property that is owned — or that is held or controlled, directly or indirectly — by the entity is deemed to be owned by that person.

• Marginal note:Criteria

  (2) For the purposes of subsection (1), a person controls an entity, directly or indirectly, if any of the following criteria are met:

  • (a) the person holds, directly or indirectly, 50% or more of the shares or ownership interests in the entity or 50% or more of the voting rights in the entity;

  • (b) the person is able, directly or indirectly, to change the composition or powers of the entity’s board of directors; or

  • (c) it is reasonable to conclude, having regard to all the circumstances, that the person is able, directly or indirectly and through any means, to direct the entity’s activities.