S-29.02, r. 1 - Regulation under the Trust Companies and Savings Companies Act

Section 13 Disposition versions

2012-09-01

13. A Quebec company may have a subsidiary only if, 15 days before applying for its incorporation or acquiring the subsidiary, it files with the Authority:

(1)  a commitment to the effect that:

(a)  the subsidiary will make only investments and loans in accordance with the standards applicable to investments and loans of the company;

(b)  within 2 years of its acquisition by the company the subsidiary will make its investments and loans comply with the standards applicable to the investments and loans of the company;

(c)  the subsidiary will not carry on activities other than those planned at the time of its incorporation or those carried on at the time of its acquisition by the company except with prior authorization in writing from the Authority;

(d)  it will inform the Authority of its intention of parting with any shares of the subsidiary;

(e)  the subsidiary will not amalgamate with another legal person except with prior authorization in writing from the Authority;

(f)  the subsidiary will remit to the Authority any document he may require respecting its activities and annually a copy of its audited financial statement;

(2)  a summary of the activities planned for the subsidiary that the company wishes to incorporate and, when available, a copy of the deed of incorporation and the by-laws of the subsidiary;

(3)  a copy of the deed of incorporation, the by-laws and the most recent audited financial statements of the subsidiary that the company wishes to acquire, and a summary of its activities.

Subparagraphs a, b and c of paragraph 1 of the first paragraph do not apply to subsidiaries that are themselves companies within the meaning of the Act or whose principal activity is that of securities broker or insurer.

O.C. 719-88, s. 13.