a-3.1 - Act respecting the acquisition of shares of certain hypothecary loan companies

Repealed on 9 June 1988

This document has official status.

chapter A-3.1

Act respecting the acquisition of shares of certain hypothecary loan companies

Repealed, 1987, c. 95, s. 409.

1987, c. 95, s. 409.

1. In this Act,

(a)  “share” means an outstanding voting share, whether the right to vote is absolute or contingent;

(b)  “major shareholder” means a person

i.  holding 20% or more of the shares of a company;

ii.  holding shares of a company which, added to the shares held by a person related to that person within the meaning of section 49 of the Act respecting insurance (chapter A-32), amount to 20% or more of the shares of that company; or

iii.  designated by the Minister as a major shareholder of a company in accordance with section 2;

(c)  (paragraph repealed);

(d)  “company” means a corporation incorporated under an act of Québec to make loans secured by hypothec or hypothecary claim, with or without complementary objects, whose assets, according to its latest yearly balance-sheet, are in excess of $100 000 000.

1978, c. 86, s. 1; 1981, c. 9, s. 24; 1982, c. 52, s. 48.

2. The Minister may designate a person as a major shareholder of a company if he is of the opinion that that person, although the holder of less than twenty per cent, but not less than ten per cent, of the shares of the company, exercises, alone or with others, a considerable degree of control over the activities of the company.

The Minister may revoke such a designation at any time.

Upon so designating a shareholder or revoking such a designation, the Minister shall notify the company and the designated shareholder.

1978, c. 86, s. 2.

3. Before acquiring a share in a company by way of allotment or transfer, a major shareholder in the company must obtain the authorization of the Minister.

The same requirement obtains for any person who would become a major shareholder of a company as a result of that acquisition.

1978, c. 86, s. 3.

4. The major shareholder described in section 3 or the person described there must, to obtain that authorization, notify the Minister of how many shares he intends to acquire and how many shares he will hold in all after acquiring them.

1978, c. 86, s. 4.

5. The acquisition of a share in contravention of section 3 is null and void.

1978, c. 86, s. 5.

6. No company may amalgamate with any corporation or assign, on pain of nullity, outside the normal course of its operations, its claims secured by real estate without the prior authorization of the Minister.

1978, c. 86, s. 6.

7. This act prevails over every inconsistent provision of a general law or special act.

1978, c. 86, s. 7.

8. The Minister of Finance is responsible for the administration of this Act.

1978, c. 86, s. 8; 1981, c. 9, s. 24; 1982, c. 52, s. 49.

The Minister for Finance and Privatization exercises, under the authority of the Minister of Finance, the functions with respect to the administration of this Act. O.C. 87-87 of 87.01.28, (1987) 119 G.O. 2 (French), 1363.

9. This act has effect from 6 December 1978.

1978, c. 86, s. 9.

10. This Act comes into force on the day of its sanction.

1978, c. 86, s. 10.

11. (This section ceased to have effect on 17 April 1987).

1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), chapter 86 of the statutes of 1978, in force on 1 June 1979, is repealed effective from the coming into force of chapter A-3.1 of the Revised Statutes.