S-29.1, r. 1 - Québec Business Investment Companies Regulation

Section 25 Disposition versions

2012-09-01

25. In the 24 months preceding the date of a qualified investment and in the 60 months following such a date, a qualified legal person may not make any material cash outlay to its shareholders or the shareholders of the company that made the investment or to persons not dealing at arm’s length with such shareholders, the company or the qualified legal person, except with the consent of Investissement Québec.

For the purposes of this section, Investissement Québec may determine that a material cash outlay was made to the shareholders of a company or to persons related to such shareholders, where a shareholder of the company, or a person related to the shareholder,

(1)  is or was also a shareholder of a legal person that has sold or is selling all or substantially all of the assets of a business; or

(2)  is selling or has sold all or substantially all of the assets of a business

to the qualified legal person that are or were the subject of a qualified investment by the company. For that purpose, Investissement Québec may determine that the payment of any part of a debt incurred by the qualified legal person, including a debt relating to the acquisition of assets, was made primarily to indirectly make a material cash outlay to a shareholder of a company or a person related to the shareholder.

O.C. 1627-85, s. 25; O.C. 453-87, s. 6; O.C. 1256-90, ss. 11 and 14; O.C. 1136-2004, s. 12.