I-3 - Taxation Act

Section 965.10.3.1 Disposition versions

2017-12-07

965.10.3.1. (Repealed).

1997, c. 14, s. 163; 1999, c. 83, s. 139; 2000, c. 39, s. 114; 2001, c. 7, s. 169; 2004, c. 21, s. 230; 2017, c. 29, s. 166.

2006-03-01

965.10.3.1. For the purposes of section 965.10, where a corporation making a public share issue, a convertible security issue or a non-guaranteed convertible security issue does not meet the requirement of paragraph e of that section and a winding-up as described in section 556 of a subsidiary within the meaning of that section in respect of which the corporation is, immediately before the commencement of the winding-up, the parent, within the meaning of that section, commences or terminates within the 12-month period immediately preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, or commences before and terminates after that period, the requirement is replaced by the following requirements:

(a)  the corporation shall, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus, have not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons related to such insiders;

(b)  the subsidiary shall have not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders

i.  throughout a 12-month period that includes the commencement of its winding-up and that is established as if the period from the commencement of its winding-up to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the subsidiary and not to the parent corporation, or

ii.  throughout a 6-month period that includes the commencement of its winding-up and that is established as if the period from the commencement of its winding-up to the date of the receipt for the final prospectus or of the exemption from filing a prospectus were applicable to the subsidiary and not to the parent corporation, where

(1)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan,

(2)  a class of shares of its capital stock is listed on a Canadian stock exchange immediately before the commencement of its winding-up, and

(3)  a class of shares of the capital stock of the corporation is listed on a Canadian stock exchange on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

For the purposes of subparagraph i of subparagraph b of the first paragraph, a subsidiary is deemed to have had not fewer than five full-time employees who are not insiders within the meaning of section 89 of the Securities Act or persons related to such insiders, where

(a)  a class of shares of its capital stock is, throughout the 12-month period immediately preceding the commencement of its winding-up, listed on a Canadian stock exchange; and

(b)  a person, other than such an insider or a person related thereto, or a partnership provides the subsidiary, in the period referred to in subparagraph a, with services under a service contract and the subsidiary would normally require the services of more than five full-time employees if those services were not provided.

1997, c. 14, s. 163; 1999, c. 83, s. 139; 2000, c. 39, s. 114; 2001, c. 7, s. 169; 2004, c. 21, s. 230.