R-2.2.0.0.1 - Tobacco-related Damages and Health Care Costs Recovery Act

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7. A group is considered to be an affiliate of another group if
(1)  it is a joint-stock company and if the other group, or a group of groups not dealing with each other at arm’s length of which the other group is a member, holds an interest in shares of the company
(a)  carrying at least 50% of the votes required to elect the directors of the company and a sufficient number of votes to elect a director of the company;
(b)  having a fair market value, including a premium for control, if applicable, of at least 50% of the fair market value of all the issued and outstanding shares of the company;
(2)  it is a partnership, trust or joint venture and the other group, or a group of groups not dealing with each other at arm’s length of which the other group is a member, has an interest in the assets of the partnership, trust or joint venture that entitles it to receive at least 50% of the profits or at least 50% of the assets on the dissolution, winding up or termination of the partnership, trust or joint venture; or
(3)  the other group, or a group of groups not dealing with each other at arm’s length of which the other group is a member, has direct or indirect influence that, if exercised, would result in de facto control of the group, except if the other group deals at arm’s length with that group and derives influence solely as a lender.
For the purposes of this section, “not dealing at arm’s length” has the meaning assigned to it in the Taxation Act (chapter I-3).
2009, c. 34, s. 7.