C-4.1 - Savings and Credit Unions Act

Section 403 Disposition versions

1997-02-15

403. A federation shall not acquire or hold, directly or indirectly, more than 30 % of the assets of a legal person or shares in any number that permits it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of the legal person or to elect more than one-third of the directors of the legal person.

A federation is deemed to hold the voting rights attached to the shares issued by a legal person and any portion of the assets of a legal person where such shares or such assets are held by a legal person belonging to the same group as the federation and by the credit unions affiliated with it. However, the federation is not deemed to hold any interest held by the confederation with which it is affiliated in a legal person referred to in the first paragraph of section 469.1 or in a holding company controlled by that confederation or any interest held by the holding company.

If, following an acquisition of shares by a legal person belonging to the same group as a federation and by the credit unions affiliated with it, the federation is deemed to hold more than 30 % of the assets of a legal person or shares in any number that permit it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of a legal person or to elect more than one-third of the directors of the legal person, the federation, the legal persons belonging to the same group as the federation or the credit unions affiliated with the federation must, within a period of two years from the acquisition, dispose of any or all assets in excess of 30 % or of any or all shares permitting the federation to exercise voting rights in excess of 30 % or to elect more than one-third of the directors of the legal person unless, within that period, the federation ceases to be deemed to hold such excess number of shares.

A federation not affiliated with a confederation may, however, with the authorization of the Minister and on such conditions as he may determine, hold more than 30 % of the assets of a legal person or shares that permit it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of the legal person or to elect more than one-third of the directors of such legal person.

1988, c. 64, s. 403; 1994, c. 38, s. 12; 1996, c. 69, s. 132.

1994-06-17

403. A federation shall not acquire or hold, directly or indirectly, more than 30 % of the shares of a legal person or shares in any number that permits it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of the legal person or to elect more than one-third of the directors of the legal person.

Shares held by a legal person belonging to the same group as a federation and shares held by the credit unions affiliated with a federation are deemed to be held by the federation, except shares held by a confederation in a legal person referred to in the first paragraph of section 469.1 or a holding company controlled by the confederation or shares held by such a holding company.

If, following an acquisition of shares by a legal person belonging to the same group as a federation and by the credit unions affiliated with it, the federation is deemed to hold more than 30 % of the shares of a legal person or shares in any number that permits it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of a legal person or to elect more than one-third of the directors of the legal person, the federation, the legal persons belonging to the same group as the federation or the credit unions affiliated with the federation must, within a period of two years from the acquisition, dispose of any or all shares in excess of 30 % or of any or all shares permitting the federation to exercise voting rights in excess of 30 % or to elect more than one-third of the directors of the legal person unless, within that period, the federation ceases to be deemed to hold such excess number of shares.

A federation not affiliated with a confederation may, however, with the authorization of the Minister and on such conditions as he may determine, hold more than 30 % of the shares of a legal person or shares that permits it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of the legal person or to elect more than one-third of the directors of such legal person.

1988, c. 64, s. 403; 1994, c. 38, s. 12.

1989-03-15

403. A federation shall not acquire or hold, directly or indirectly, more than 30 % of the shares of a legal person or shares in any number that permits it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of the legal person or to elect more than one-third of the directors of the legal person.

Shares held by a legal person belonging to the same group as a federation and shares held by the credit unions affiliated with a federation are deemed to be held by the federation, except shares held by a confederation in a holding company controlled by the confederation or shares held by such a holding company.

If, following an acquisition of shares by a legal person belonging to the same group as a federation and by the credit unions affiliated with it, the federation is deemed to hold more than 30 % of the shares of a legal person or shares in any number that permits it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of a legal person or to elect more than one-third of the directors of the legal person, the federation, the legal persons belonging to the same group as the federation or the credit unions affiliated with the federation must, within a period of two years from the acquisition, dispose of any or all shares in excess of 30 % or of any or all shares permitting the federation to exercise voting rights in excess of 30 % or to elect more than one-third of the directors of the legal person unless, within that period, the federation ceases to be deemed to hold such excess number of shares.

A federation not affiliated with a confederation may, however, with the authorization of the Minister and on such conditions as he may determine, hold more than 30 % of the shares of a legal person or shares that permits it to exercise voting rights in excess of 30 % of all voting rights attached to the total issued shares of the legal person or to elect more than one-third of the directors of such legal person.

1988, c. 64, s. 403.