Canadian Ownership and Control Determination Regulations, 1984 (SOR/84-431)

32 (1) For the purposes of paragraph 43(1)(b) of the Act, the following events and transactions are prescribed circumstances:

• (a) the death of an investor who is equity-related to the holder;

• (b) any transaction, including the issue redemption, purchase or sale of a unit of a class of formal equity or of a class of forward equity, other than the issue of a share deemed to be issued and outstanding under section 22 or subsection 23(1) for the purposes of the determination of the Canadian ownership rate stated in a certificate, in which any of the following persons have participated directly or indirectly:

  • (i) the holder,

  • (ii) any officer, director, partner other than a limited partner, trustee or administrator of the holder,

  • (iii) any person that is equity-related to the holder, or

  • (iv) any person that becomes equity-related to the holder as a result of the transaction;

• (c) units ceasing to be deemed to be issued and outstanding pursuant to subsections 22(17) and (18) or the expiry of the period referred to in subsection 23(1);

• (d) the discharge of an agreement referred to in subsection 20(1) where any vendor or purchaser that is a party to the agreement of purchase and sale is equity-related to the holder;

• (e) the acquisition of control in fact of the holder if the holder is a small applicant by a person or a change in the membership of a group of persons that controls the holder that is a small applicant; or

• (f) if the holder is an individual and becomes a non-eligible person.

(2) For the purposes of paragraph 43(1)(b) of the Act, the prescribed number of percentage points is, the lesser of

• (a) 10 percentage points; and

• (b) the number of percentage points that would result in a Canadian ownership rate of less than 50% or in a Canadian ownership rate that would, in any year prior to the day on which the holder’s current certificate would expire but for section 43 of the Act, fall within a range of Canadian ownership rates for that year described in

  • (i) paragraph 10(a) or (b) of the Petroleum Incentives Program Act, if the Canadian ownership rate set out in the certificate fell within a range for that year described in paragraph 10(c) of that Act, or

  • (ii) paragraph 10(a) of the Petroleum Incentives Program Act, if the Canadian ownership rate set out in the certificate fell within a range described in paragraph 10(b) of that Act.

(3) For the purposes of determining whether a Canadian ownership rate of the holder has decreased as stated in paragraph 43(1)(b) of the Act, the Canadian ownership rate of the holder of a certificate upon the occurrence of a prescribed circumstance is the Canadian ownership rate that would be determined for the purposes of an application by the holder based on information and documentation that are current as of the day or days determined as follows:

• (a) subject to paragraph (b), all information and documentation that would be relevant if such information and documentation were required to be current for the purposes of that application immediately after the occurrence of the prescribed circumstance and which result from any prescribed event, shall be current as of the day immediately following the day on which the prescribed event occurs;

• (b) information and documentation referred to in paragraph (a) that consist of all information and documentation required to determine, pursuant to section 16, the Canadian ownership rate of an investor that is an entity may be current as of the day or days permitted to be chosen by section 30 reads as though the words “and that is not more than 180 days after the occurrence of the circumstance referred to in section 32” were inserted at the end of paragraph 30(1)(c), for the purposes of an application filed in substantial compliance with the Act and these Regulations and on the day next following the day on which the prescribed circumstance occurs;

• (c) subject to paragraph (d), all information and documentation other than information and documentation referred to in paragraph (a) shall be current as of the day or days referred to in section 30 for the purposes of the application or amended application pursuant to which the certificate was issued; and

• (d) the applicant may elect that all information and documentation relevant for the purposes of the calculation of the beneficial Canadian ownership of a class of formal equity shall be current as of the day or days referred to in paragraph (b).

(4) The beneficial Canadian ownership of a class of formal equity to which paragraph (3)(a) does not apply may, at the election of the applicant, be calculated in accordance with the Act and Regulations that applied to the application pursuant to which the certificate was issued.