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S-29.1 - Act respecting Québec business investment companies

Section 13.1
Disposition versions

Full text
13.1. The body designated under section 1 may refuse to validate any investment which, though consistent with the literal meaning of this Act and the regulations, does not, in the opinion of the body, meet the objectives pursued by this Act and the regulations.
Without restricting the scope of the first paragraph, the body may, in particular, refuse to validate an investment:
(1)  if in the opinion of the body,
(a)  the price paid by a company for the shares of the capital stock of a qualified legal person is considerably higher than the value of a common share issued before or after the investment by the qualified legal person, taking into account for this purpose the net assets of the shareholders of the qualified legal person,
(b)  the sharing of risk, between the company and the main shareholders of a qualified legal person of which the company intends to acquire shares, is not equitable, in particular when the rate of dilution of the shares of the qualified legal person acquired by the company is not reasonable in the circumstances, or
(c)  the viability prospects of the qualified legal person are too limited; or
(2)  where an option to sell or any other form of guarantee of return is granted by anyone, on the date of the investment, to a shareholder of the company.
1988, c. 80, s. 10; 1989, c. 72, s. 12; 1997, c. 85, s. 417; 1998, c. 17, s. 64; 1999, c. 40, s. 305; 2002, c. 40, s. 338; 2010, c. 37, s. 131.
13.1. Investissement Québec may refuse to validate any investment which, though consistent with the literal meaning of this Act and the regulations, does not, in the opinion of Investissement Québec, meet the objectives pursued by this Act and the regulations.
Without restricting the scope of the first paragraph, Investissement Québec may, in particular, refuse to validate an investment:
(1)  if in the opinion of Investissement Québec,
(a)  the price paid by a company for the shares of the capital stock of a qualified legal person is considerably higher than the value of a common share issued before or after the investment by the qualified legal person, taking into account for this purpose the net assets of the shareholders of the qualified legal person,
(b)  the sharing of risk, between the company and the main shareholders of a qualified legal person of which the company intends to acquire shares, is not equitable, in particular when the rate of dilution of the shares of the qualified legal person acquired by the company is not reasonable in the circumstances, or
(c)  the viability prospects of the qualified legal person are too limited; or
(2)  where an option to sell or any other form of guarantee of return is granted by anyone, on the date of the investment, to a shareholder of the company.
1988, c. 80, s. 10; 1989, c. 72, s. 12; 1997, c. 85, s. 417; 1998, c. 17, s. 64; 1999, c. 40, s. 305; 2002, c. 40, s. 338.
13.1. Investissement Québec may refuse to validate any investment which, though consistent with the literal meaning of this Act and the regulations, does not, in the opinion of Investissement Québec, meet the objectives pursued by this Act and the regulations.
Investissement Québec may, in particular, refuse to validate an investment if, in the opinion of Investissement Québec, the price paid by a company for the shares of the capital of a qualified legal person is considerably higher than the value of a common share issued before or after the investment by the qualified legal person, taking into account for this purpose the net assets of the shareholders of the qualified legal person.
Investissement Québec may, in particular, refuse to validate an investment made by a company where an option to sell or any other form of guarantee of return is granted by anyone, on the date of the investment, to a shareholder of the company.
1988, c. 80, s. 10; 1989, c. 72, s. 12; 1997, c. 85, s. 417; 1998, c. 17, s. 64; 1999, c. 40, s. 305.
13.1. Investissement-Québec may refuse to validate any investment which, though consistent with the literal meaning of this Act and the regulations, does not, in the opinion of Investissement-Québec, meet the objectives pursued by this Act and the regulations.
Investissement-Québec may, in particular, refuse to validate an investment if, in the opinion of Investissement-Québec, the price paid by a company for the shares of the capital of a qualified corporation is considerably higher than the value of a common share issued before or after the investment by the qualified corporation, taking into account for this purpose the net assets of the shareholders of the qualified corporation.
Investissement-Québec may, in particular, refuse to validate an investment made by a company where an option to sell or any other form of guarantee of return is granted by anyone, on the date of the investment, to a shareholder of the company.
1988, c. 80, s. 10; 1989, c. 72, s. 12; 1997, c. 85, s. 417; 1998, c. 17, s. 64.
13.1. The Société de développement industriel du Québec may refuse to validate any investment which, though consistent with the literal meaning of this Act and the regulations, does not, in the opinion of the Société, meet the objectives pursued by this Act and the regulations.
The Société de développement industriel du Québec may, in particular, refuse to validate an investment if, in the opinion of the Société, the price paid by a company for the shares of the capital of a qualified corporation is considerably higher than the value of a common share issued before or after the investment by the qualified corporation, taking into account for this purpose the net assets of the shareholders of the qualified corporation.
The Société de développement industriel du Québec may, in particular, refuse to validate an investment made by a company where an option to sell or any other form of guarantee of return is granted by anyone, on the date of the investment, to a shareholder of the company.
1988, c. 80, s. 10; 1989, c. 72, s. 12; 1997, c. 85, s. 417.
13.1. The Société de développement industriel du Québec may refuse to validate any investment which, though consistent with the literal meaning of this Act and the regulations, does not, in the opinion of the Société, meet the objectives pursued by this Act and the regulations.
The Société de développement industriel du Québec may, in particular, refuse to validate an investment if, in the opinion of the Société, the price paid by a company for the shares of the capital of a qualified corporation is considerably higher than the value of a common share issued before or after the investment by the qualified corporation, taking into account for this purpose the net assets of the shareholders of the qualified corporation.
1988, c. 80, s. 10; 1989, c. 72, s. 12.
13.1. The Société de développement industriel du Québec may refuse to validate any investment which, though consistent with the literal meaning of this Act and the regulations, does not, in the opinion of the Société, meet the objectives pursued by this Act and the regulations.
1988, c. 80, s. 10.
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