C-67.3, r. 1 - Regulation respecting the acquisition of shares by certain financial services cooperatives

Updated to 1 July 2024

This document has official status.

chapter C-67.3, r. 1

Regulation respecting the acquisition of shares by certain financial services cooperatives

Act respecting financial services cooperatives

(chapter C-67.3, s. 599).

1. A financial services cooperative may acquire, directly or through a legal person or partnership it controls, all or part of the shares of a trust company and an insurance company.

A legal person or partnership controlled by the cooperative that holds the shares of a legal person carrying on activities similar to those of the cooperative may also acquire all or part of the shares of a trust company and an insurance company.

For the purposes of this section and sections 3, 5 and 6, “financial services cooperative” means a federation or the Caisse centrale Desjardins du Québec.

O.C. 691-2001, s. 1.

2. A financial services cooperative that is a federation may acquire all or part of the shares of a holding company established under the laws of Québec for the sole purpose of acquiring all or part of:

(1)  the securities of a legal person or partnership whose activities are the acquisition, rental or administration of immovables or other exclusively commercial or industrial activities;

(2)  the shares of other holding companies established under the laws of Québec for the sole purpose of acquiring all or part of the securities referred to in paragraph 1.

O.C. 691-2001, s. 2.

3. A financial services cooperative may acquire shares in holding companies established under laws other than those of Québec for the purpose of acquiring all or part of:

(1)  the shares of legal persons or partnerships that carry on activities similar to those of the cooperative, specifically a bank, investment bank, savings company and a legal person or partnership established for the purpose of carrying on activities related to mutual funds;

(2)  the shares of other holding companies established for the purpose of acquiring shares in the legal persons or partnerships referred to in section 1 and in paragraph 1 of this section.

O.C. 691-2001, s. 3.

4. A financial services cooperative that is a federation may acquire 30% to 50% of the assets or the voting rights attached to the shares of holding companies established under the laws of Québec, where all of the following conditions apply:

(1)  the holding company is established for the sole purpose of acquiring all or part of the securities of a legal person or partnership whose activities are exclusively commercial or industrial;

(2)  the holding company is controlled by a legal person from the same group.

The voting rights attached to the shares of the holding company may enable the financial services cooperative to elect more than one-third of the directors of that holding company.

O.C. 691-2001, s. 4.

5. A financial services cooperative may acquire, directly or through a legal person or a partnership it controls, 30% to 50% of the assets or the voting rights attached to the shares of a legal person carrying out a joint venture, where all of the following conditions apply:

(1)  the financial services cooperative has entered into a business partnership with respect to the joint venture;

(2)  the partners in the joint venture control it;

(3)  the principal activities of the joint venture are one or more of the following:

(a)  the provision of financial products and services, including their production and distribution;

(b)  the transport of valuables;

(c)  payment systems and services;

(d)  payroll services;

(e)  the development and marketing of computer applications or systems or telecommunications that relate to the activities of financial institutions;

(f)  management, consulting and supply services that relate to the activities of financial institutions.

The voting rights attached to the shares of a legal person carrying out a joint venture may enable the financial services cooperative to elect more than one-third of the directors of that legal person.

O.C. 691-2001, s. 5.

6. . A financial services cooperative may also acquire shares, directly or through a legal person or a partnership it controls, where:

(1)  for a period not exceeding 1 year, it acquires 30% to 50% of the shares of a legal person;

(2)  for a period not exceeding 1 year, it acquires all or part of the shares of a legal person whose activities are exclusively commercial or industrial.

The voting rights attached to the shares of the legal person referred to in subparagraphs 1 and 2 of the first paragraph may enable the financial services cooperative to elect more than one-third of the directors of that legal person.

O.C. 691-2001, s. 6.

7. The provisions of the first paragraph of section 475 of the Act respecting financial services cooperatives (chapter C-67.3) do not apply:

(1)  to the acquisition by a holding company of the shares of another holding company referred to in paragraph 2 of section 2;

(2)  to the acquisition of shares of a legal person whose activities are exclusively commercial or industrial;

(3)  to the acquisition of shares of a legal person carrying out a joint venture, made in accordance with section 5;

(4)  to the acquisition of shares of a legal person, made in accordance with section 6.

O.C. 691-2001, s. 7.

8. (Omitted).

O.C. 691-2001, s. 8.

REFERENCES

O.C. 691-2001, 2001 G.O. 2, 2654