150. A firm may not be registered with the Authority as a damage insurance firm if a financial institution, a financial group or a legal person related thereto holds an interest allowing it to exercise more than 20% of the voting rights attached to the shares issued by the firm or an interest representing more than 50% of the value of the firm’s equity capital.
For the purposes of the first paragraph, a firm’s equity capital does not include shares that do not carry the right to vote or the right to receive a share of the firm’s remaining property on liquidation.
This section shall not operate to prohibit a financial institution and a firm from entering into a financing agreement or a contract for services, restrict the provisions of such an agreement or contract, or prevent a firm from allotting its shares or registering a transfer of its shares to give effect to a contract entered into before 21 December 1988.
1998, c. 37, s. 150; 2018, c. 23, s. 5521.