20. The Société may not make an investment in an entity that would cause the total amount of its investment in the entity and any other entity associated with it at that time to exceed 5 % of the assets of the Société, as established on the basis of the latest valuation by the chartered accountants referred to in the first paragraph of section 15.
The percentage may be increased up to 10 % to enable the Société to acquire securities in an entity carrying on business in Québec but that is not an eligible entity within the meaning of section 18. In such a case, the Société may not, directly or indirectly, acquire or hold shares carrying more than 30 % of the voting rights attached to the shares of the entity that may be exercised under any circumstances.
Where the Société avails itself of the second paragraph as regards an entity in which it already holds, directly or indirectly, shares carrying more than 30 % of the voting rights attached to the shares of the entity that may be exercised under any circumstances, the Société has five years from the date of the investment to bring its shareholding in the entity into conformity with that paragraph.
These restrictions do not apply, however, where the Société makes an investment in
(1) securities guaranteed by the Government of Québec or of Canada or a Canadian province or territory;
(2) securities guaranteed by an undertaking made to a trustee by Québec to pay sufficient subsidies to pay the interest and principal on their respective maturity dates;
(3) bills of exchange accepted or certified by a bank listed in Schedule I or II to the Bank Act (Statutes of Canada, 1991, chapter 46) and registered with the Canada Deposit Insurance Corporation or a financial institution registered with the Agence nationale d’encadrement du secteur financier pursuant to the Deposit Insurance Act (chapter A-26).
2001, c. 36, s. 20; 2002, c. 45, s. 704; 2002, c. 70, s. 186.