I-3 - Taxation Act

Section 965.9.4 Disposition versions

2017-12-07

965.9.4. (Repealed).

1987, c. 21, s. 50; 1989, c. 5, s. 171; 1990, c. 7, s. 102; 1997, c. 3, s. 46; 2003, c. 9, s. 139; 2017, c. 29, s. 166.

2006-03-01

965.9.4. Notwithstanding sections 965.9.1.0.0.1 to 965.9.1.1, where the use, as stated in the final prospectus or the application for exemption from filing a prospectus or as may be inferred therefrom, of the major portion of the proceeds of a public share issue or of a convertible security issue is the direct or indirect payment for the acquisition of shares of another corporation or of any other negotiable instruments, a share acquired as part of the public share issue or following the exercise of a conversion right conferred on the holder of a convertible security acquired as part of the convertible security issue, as the case may be, is not a qualifying share except

(a)  where such shares or negotiable instruments are securities issued by a corporation whose name is disclosed in the final prospectus or in the application for an exemption from filing a prospectus if, immediately after the acquisition, the latter corporation is directly or indirectly a subsidiary controlled corporation of the issuing corporation whose activities or those of a subsidiary corporation it controls directly or indirectly have commercial possibilities directly linked with those of the issuing corporation or of another corporation associated therewith on the date of the receipt for the final prospectus or of the exemption from filing a prospectus and where one of the corporations other than such a subsidiary carries on a qualified business; or

(b)  where such shares or negotiable instruments will be securities issued by a corporation whose name is not disclosed in the final prospectus or in the application for an exemption from filing a prospectus, if the issuing corporation or a corporation associated therewith carries on a qualified business and where the issuing corporation states expressly in the final prospectus or in the application for an exemption from filing a prospectus that such shares or negotiable instruments will be securities issued by a corporation which, immediately after the acquisition, will be directly or indirectly a subsidiary controlled corporation of the issuing corporation whose activities or those of a subsidiary corporation it controls directly or indirectly have commercial possibilities directly linked with the activities of the issuing corporation or those of another corporation associated therewith on the date of the receipt for the final prospectus or of the exemption from filing a prospectus.

1987, c. 21, s. 50; 1989, c. 5, s. 171; 1990, c. 7, s. 102; 1997, c. 3, s. 46; 2003, c. 9, s. 139.