F-3.1.2 - Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi

Section 19 Disposition versions

2024-06-01

19. The Fund may make investments with or without a guarantee or security.

However, for a fiscal year, the Fund’s eligible investments must represent, on the average, at least 65% of its average net assets for the preceding fiscal year.

For the purposes of this section and section 20, the following rules apply:

(1)  the Fund’s average net assets for a fiscal year must be determined by adding its net assets at the beginning of that year, its net assets at the end of that year and its net assets at the beginning of the preceding fiscal year, then dividing the sum so obtained by 3;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D + E + F)/3.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year, excluding those described in subparagraph b of subparagraphs 1 to 3 of the first paragraph of section 19.3 that were disinvested before that time;

(2)  B is the Fund’s eligible investments at the end of the fiscal year, excluding those described in subparagraph b of subparagraphs 1 to 3 of the first paragraph of section 19.3 that were disinvested before that time;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year;

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year;

(5)  E is the Fund’s eligible investments at the beginning of the preceding fiscal year, excluding those described in subparagraph b of subparagraphs 1 to 3 of the first paragraph of section 19.3 that were disinvested before that time; and

(6)  F is the amount determined under subparagraph 3 for the second preceding fiscal year.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89; 2012, c. 8, s. 28; 2015, c. 21, s. 35; 2017, c. 1, s. 46; 2017, c. 29, s. 11; 2019, c. 14, s. 41; 2021, c. 36, s. 34; 2023, c. 19, s. 6; 2024, c. 11, s. 24.

2023-09-26

19. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000 or of an additional capital outlay, provided that the strategic value of the initial capital outlay and, if applicable, of the additional capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2026 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c. or, taking into account the change of name of the fund on 12 June 2018, in Fonds de transfert d’entreprise du Québec, s.e.c.;

(11)  investments made by the Fund in Fonds Biomasse Énergie I, S.E.C.;

(12)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.; and

(13)  investments made by the Fund in Teralys Capital Fonds d’Innovation 2018 S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. or, taking into account the change of name of the fund on 12 June 2018, Fonds de transfert d’entreprise du Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the fifth and sixth paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 11 of the fifth paragraph or in the sixth paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 to 10, 12 and 13 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraph 2 of the fifth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 18 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2.1)  the aggregate of the investments described in subparagraph 6 of that paragraph, determined without taking the investments made in a social economy enterprise within the meaning of the Social Economy Act (chapter E-1.1.1) into account, may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2027, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the participation of the Fund in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the investments described in subparagraph 10 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 18.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89; 2012, c. 8, s. 28; 2015, c. 21, s. 35; 2017, c. 1, s. 46; 2017, c. 29, s. 11; 2019, c. 14, s. 41; 2021, c. 36, s. 34; 2023, c. 19, s. 6.

2021-12-10

19. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000 or of an additional capital outlay, provided that the strategic value of the initial capital outlay and, if applicable, of the additional capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2026 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(11)  investments made by the Fund in Fonds Biomasse Énergie I, S.E.C.;

(12)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.; and

(13)  investments made by the Fund in Teralys Capital Fonds d’Innovation 2018 S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the fifth and sixth paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 11 of the fifth paragraph or in the sixth paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 to 10, 12 and 13 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraph 2 of the fifth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 18 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2.1)  the aggregate of the investments described in subparagraph 6 of that paragraph, determined without taking the investments made in a social economy enterprise within the meaning of the Social Economy Act (chapter E-1.1.1) into account, may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2027, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the participation of the Fund in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the investments described in subparagraph 10 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 18.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89; 2012, c. 8, s. 28; 2015, c. 21, s. 35; 2017, c. 1, s. 46; 2017, c. 29, s. 11; 2019, c. 14, s. 41; 2021, c. 36, s. 34.

2019-06-19

19. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000 or of an additional capital outlay, provided that the strategic value of the initial capital outlay and, if applicable, of the additional capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2021 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(11)  investments made by the Fund in Fonds Biomasse Énergie I, S.E.C.;

(12)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C; and

(13)  investments made by the Fund in Teralys Capital Fonds d’Innovation 2018 S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the fifth and sixth paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 11 of the fifth paragraph or in the sixth paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 to 10, 12 and 13 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraph 2 of the fifth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 18 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2.1)  the aggregate of the investments described in subparagraph 6 of that paragraph, determined without taking the investments made in a social economy enterprise within the meaning of the Social Economy Act (chapter E-1.1.1) into account, may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2022, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the participation of the Fund in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the investments described in subparagraph 10 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 18.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89; 2012, c. 8, s. 28; 2015, c. 21, s. 35; 2017, c. 1, s. 46; 2017, c. 29, s. 11; 2019, c. 14, s. 41.

2017-12-07

19. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000 or of an additional capital outlay, provided that the strategic value of the initial capital outlay and, if applicable, of the additional capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2021 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(11)  investments made by the Fund in Fonds Biomasse Énergie I, S.E.C.; and

(12)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the fifth and sixth paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 11 of the fifth paragraph or in the sixth paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 to 10 and 12 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraph 2 of the fifth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 18 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2.1)  the aggregate of the investments described in subparagraph 6 of that paragraph, determined without taking the investments made in a social economy enterprise within the meaning of the Social Economy Act (chapter E-1.1.1) into account, may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2022, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the participation of the Fund in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the investments described in subparagraph 10 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 18.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89; 2012, c. 8, s. 28; 2015, c. 21, s. 35; 2017, c. 1, s. 46; 2017, c. 29, s. 11.

2017-02-08

19. The Fund may make investments with or without a guarantee or security.

However, for a particular fiscal year, the Fund’s eligible investments must represent, on the average, at least the following percentage of the Fund’s average net assets for the preceding year:

(1)  60%, if the particular fiscal year ends on 31 May 2015;

(2)  61%, if the particular fiscal year ends on 31 May 2016;

(3)  62%, if the particular fiscal year ends on 31 May 2017;

(4)  63%, if the particular fiscal year ends on 31 May 2018;

(5)  64%, if the particular fiscal year ends on 31 May 2019; or

(6)  65%, if the particular fiscal year begins after 31 May 2019.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000 or of an additional capital outlay, provided that the strategic value of the initial capital outlay and, if applicable, of the additional capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2021 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(11)  investments made by the Fund in Fonds Biomasse Énergie I, S.E.C.; and

(12)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the fifth and sixth paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 11 of the fifth paragraph or in the sixth paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 to 10 and 12 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the purposes of subparagraph 2 of the fifth paragraph, an investment made by an entity that is neither an enterprise within the meaning of the first paragraph of section 18 nor an investment fund, otherwise than as first purchaser for the acquisition of securities issued by a partnership or a legal person, is deemed to have been made by the Fund in proportion to its share in the entity, if one of the main reasons for which the Fund holds an interest in the entity is to enable the financing of such an acquisition.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2.1)  the aggregate of the investments described in subparagraph 6 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2022, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the participation of the Fund in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the investments described in subparagraph 10 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 18.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89; 2012, c. 8, s. 28; 2015, c. 21, s. 35; 2017, c. 1, s. 46.

2015-10-21

19. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000 or of an additional capital outlay, provided that the strategic value of the initial capital outlay and, if applicable, of the additional capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2016 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.;

(10)  investments made by the Fund after 10 November 2011 in Fonds Relève Québec, s.e.c.;

(11)  investments made by the Fund in Fonds Biomasse Énergie I, S.E.C.; and

(12)  investments made by the Fund in Teralys Capital Fonds d’Innovation, S.E.C.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the fifth and sixth paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 and 11 of the fifth paragraph or in the sixth paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 to 10 and 12 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2.1)  the aggregate of the investments described in subparagraph 6 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2017, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the participation of the Fund in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the investments described in subparagraph 10 of that paragraph are deemed to be increased by 50%.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 18.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89; 2012, c. 8, s. 28; 2015, c. 21, s. 35.

2012-05-09

19. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000, provided that the strategic value of the initial capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 31 May 2016 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph;

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.; and

(10)  investments made by the Fund after 17 November 2011 in Fonds Relève Québec, s.e.c.

For the purposes of this section, investments entailing a security that are made by the Fund in an enterprise whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 are also eligible investments, provided those investments are part of a financing package, in which Fonds Relève Québec, s.e.c. participates, for the succession of the enterprise.

For the purposes of the fifth and sixth paragraphs, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 of the fifth paragraph or in the sixth paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 to 10 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)  the aggregate of the investments described in subparagraph 5 of that paragraph may not exceed 7.5% of the Fund’s net assets at the end of the preceding fiscal year;

(2.1)  the aggregate of the investments described in subparagraph 6 of that paragraph may not exceed 5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2017, the investments described in subparagraph 8 of that paragraph, up to 5% of the Fund’s net assets at the end of the preceding fiscal year, are deemed to be increased by 50%;

(5)  (subparagraph repealed);

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the participation of the Fund in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%;

(7)  the investments described in subparagraph 10 of that paragraph are deemed to be increased by 50%.

If, at a particular time in a fiscal year, the Fund holds several investments described in subparagraph 6 of the fifth paragraph, only one of those investments may be considered to be an eligible investment, at that particular time, for the purposes of the requirement set out in the second paragraph.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The second paragraph of section 18.1 applies, with the necessary modifications, in relation to the determination of the assets or net equity of a Québec enterprise referred to in subparagraph 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89; 2012, c. 8, s. 28.

2011-06-06

19. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000, provided that the strategic value of the initial capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 23 March 2011 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000 and the investments are not already taken into account as eligible investments for the purposes of the second paragraph; and

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 or 9 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)   the aggregate of the investments described in subparagraph 5 and in subparagraph 6 of that paragraph, respectively, may not exceed 5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2012, the investments described in subparagraph 8 of that paragraph are deemed to be increased by 50%;

(5)  the aggregate of the investments described in subparagraph 8 of that paragraph may not exceed, if the particular fiscal year ends before 1 January 2012, 7.5% of the Fund’s net assets at the end of the preceding fiscal year and, in any other case, 5% of those assets; and

(6)  if the particular fiscal year ends before 1 January 2012, the portion of the investments described in subparagraph 9 of that paragraph that, taking into account the participation of the Fund in FIER Partenaires, s.e.c., is dedicated to the creation of seed investment funds after 21 September 2006 is deemed to be increased by 50%.

If, at a particular time in a fiscal year, the Fund holds several investments described in subparagraph 6 of the fifth paragraph, only one of those investments may be considered to be an eligible investment, at that particular time, for the purposes of the requirement set out in the second paragraph.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12; 2011, c. 6, s. 89.

2006-12-06

19. The Fund may make investments with or without a guarantee or security.

However, for each fiscal year, the Fund’s eligible investments must represent, on the average, at least 60% of the Fund’s average net assets for the preceding year.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets for a fiscal year must be determined by adding the net assets at the beginning of that year to the net assets at the end of that year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average eligible investments for a fiscal year must be determined by the formula

(A + B + C + D) / 2.

In the formula in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s eligible investments at the beginning of the fiscal year;

(2)  B is the Fund’s eligible investments at the end of the fiscal year;

(3)  C is the amount by which an amount that is the total of the eligible investments already made by the Fund that were disinvested in the fiscal year, exceeds an amount equal to 2% of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the preceding fiscal year.

For the purposes of this section, investments that entail no security or hypothec and consist in any of the following investments are eligible investments:

(1)  investments made by the Fund in eligible enterprises;

(2)  investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(3)  investments in new or substantially renovated income-producing immovables situated in Québec, up to 5% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  investments that are made by the Fund in addition to an investment entailing no security or hypothec already made in an enterprise that was, at the time of the investment, an eligible enterprise, and that are made in an enterprise that would be an eligible enterprise under the first paragraph of section 18.1 if the amounts of “$100,000,000” and “$50,000,000” mentioned in that paragraph were replaced by the amounts of “$350,000,000” and “$150,000,000”, respectively;

(5)  strategic investments made by the Fund after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(6)  investments made by the Fund in a partnership or legal person that consist of an initial capital outlay of at least $25,000,000, provided that the strategic value of the initial capital outlay has been recognized, after 22 December 2004, by the Minister of Finance, and that those investments are not otherwise eligible investments;

(7)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(8)  investments made by the Fund in the period beginning on 22 April 2005 and ending on 23 March 2011 in a local venture capital fund established and managed in Québec or in a local fund recognized by the Minister of Finance, provided that the investments are made with the expectation that the local fund invest an amount at least equal to 150% of the aggregate of the sums received from the Fund, the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and Capital régional et coopératif Desjardins, in Québec enterprises whose assets are less than $100,000,000 or whose net equity is less than $50,000,000, and are not otherwise eligible investments; and

(9)  investments made by the Fund after 21 March 2005 in FIER Partenaires, s.e.c.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in any of subparagraphs 1 to 7 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund. However, for a particular fiscal year, the aggregate of those deemed investments may not exceed 12% of the Fund’s net assets at the end of the preceding fiscal year.

For the purposes of the fifth paragraph, the investments that the Fund has agreed to make, for which it has committed but not yet disbursed sums at the end of a fiscal year, and that would have been described in subparagraph 8 or 9 of that paragraph had they been made by the Fund, are deemed to have been made by the Fund.

For the purposes of subparagraph 2 of the fifth paragraph, a dealer acting as an intermediary or firm underwriter is not considered to be a first purchaser of securities.

For the application of the fifth paragraph to a particular fiscal year, the following rules apply:

(1)  the aggregate of the investments described in subparagraphs 2 and 4 of that paragraph may not exceed 20% of the Fund’s net assets at the end of the preceding fiscal year;

(2)   the aggregate of the investments described in subparagraph 5 and in subparagraph 6 of that paragraph, respectively, may not exceed 5% of the Fund’s net assets at the end of the preceding fiscal year;

(3)  the aggregate of the investments described in subparagraph 7 of that paragraph may not exceed 10% of the Fund’s net assets at the end of the preceding fiscal year;

(4)  if the particular fiscal year ends before 1 January 2012, the investments described in subparagraph 8 of that paragraph are deemed to be increased by 50%; and

(5)  the aggregate of the investments described in subparagraph 8 of that paragraph may not exceed, if the particular fiscal year ends before 1 January 2012, 7.5% of the Fund’s net assets at the end of the preceding fiscal year and, in any other case, 5% of those assets.

If, at a particular time in a fiscal year, the Fund holds several investments described in subparagraph 6 of the fifth paragraph, only one of those investments may be considered to be an eligible investment, at that particular time, for the purposes of the requirement set out in the second paragraph.

Investments in immovables situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 3 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

The requirement set out in the second paragraph applies from the fiscal year that began on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30; 2006, c. 36, s. 12.

2005-12-13

19. The Fund may make investments in any enterprise, with or without a guarantee or security.

However, in the course of each fiscal year, the proportion of the Fund’s investments in eligible enterprises, entailing no security or hypothec, must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets of the Fund for the preceding fiscal year shall be determined by adding the net assets at the beginning of that preceding year to the net assets at the end of that preceding year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average investments of the Fund for the current fiscal year shall be determined by the formula

(A + B + C + D) / 2.

In the formula provided for in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s investments permitted under this section and entailing no security or hypothec, at the beginning of the current fiscal year;

(2)  B is the Fund’s investments permitted under this section and entailing no security or hypothec, at the end of the current fiscal year;

(3)  C is the amount by which an amount that is the total of the disinvestments for the current fiscal year that relate to investments entailing no security or hypothec, already made by the Fund and permitted under this section, exceeds an amount equal to 2 % of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the fiscal year preceding the current fiscal year.

The following investments also meet such requirements:

(1)  investments otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(2)  investments in new or substantially renovated income-producing immovable property situated in Québec, up to a maximum of 5 % of the net assets of the Fund at the end of the preceding fiscal year;

(3)  investments made in addition to an investment already made in an enterprise and permitted under the second paragraph and where the enterprise would be an eligible enterprise under the first paragraph of section 18.1 if the amounts “$100,000,000” and “$50,000,000” mentioned in that subparagraph were replaced by “$350,000,000” and “$150,000,000”, respectively; and

(4)  strategic investments made after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000;

(5)  investments that are not otherwise eligible for the purposes of the requirement set out in the second paragraph and that consist of an initial capital outlay of at least $25,000,000 whose strategic value was recognized by the Minister of Finance after 22 December 2004;

(6)  investments described in section 19.1, provided that they are made in accordance with a policy for investment outside Québec adopted by the board of directors of the Fund and approved by the Minister of Finance;

(7)  investments made after 21 April 2005, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in local venture capital funds whose primary mission is to make investments in eligible enterprises; and

(8)  investments made after 21 March 2005 in FIER-Partenaires, s.e.c..

The total investments permitted under subparagraphs 1 and 3 of the fifth paragraph may not exceed 20 % of the net assets of the Fund at the end of the preceding fiscal year. For the purposes of subparagraph 1 of the fifth paragraph, a broker acting as an intermediary or underwriter is not considered to be a first purchaser.

The total investments permitted under subparagraph 4 of the fifth paragraph and subparagraph 5 of that paragraph, respectively, may not exceed 5 % of the net assets of the Fund at the end of the preceding fiscal year.

The total investments permitted under subparagraph 6 of the fifth paragraph may not exceed 10 % of the net assets of the Fund at the end of the preceding fiscal year.

If, at a particular time in a fiscal year, the Fund holds several investments described in subparagraph 5 of the fifth paragraph, only one of those investments is eligible, at that particular time, for the purposes of the requirement set out in the second paragraph.

The total investments permitted under subparagraph 7 of the fifth paragraph, determined without reference to the presumption provided for in the eleventh paragraph, may not exceed 5 % of the net assets of the Fund at the end of the preceding fiscal year.

For the purposes of the requirement set out in the second paragraph, the total investments permitted under subparagraph 7 of the fifth paragraph is deemed to be equal to the amount obtained by multiplying that total by 1.5.

Investments in immovable property situated in Québec and intended mainly for the operation of shopping centres are not permitted under subparagraph 2 of the fifth paragraph otherwise than as part of a project in the recreation and tourism sector.

Investments agreed to by the Fund for which sums have been committed but not yet disbursed at the end of a fiscal year shall be taken into account in computing investments eligible under the requirements set out in this section, other than the investments permitted under subparagraphs 7 and 8 of the fifth paragraph, up to an overall sum not exceeding 12 % of the net assets of the Fund at the end of the preceding fiscal year.

Investments agreed to by the Fund for which sums have been committed but not yet disbursed at the end of a fiscal year shall be taken into account in computing investments permitted under subparagraphs 7 and 8 of the fifth paragraph.

The requirement set out in the second paragraph applies from the fiscal year beginning on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27; 2005, c. 38, s. 30.

2005-06-17

19. The Fund may make investments in any enterprise, with or without a guarantee or security.

However, in the course of each fiscal year, the proportion of the Fund’s investments in eligible enterprises, entailing no security or hypothec, must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year, of which a part representing at least two-thirds of that minimum percentage must be invested in enterprises whose assets are less than $50 000 000 or whose net equity is less than $20 000 000.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets of the Fund for the preceding fiscal year shall be determined by adding the net assets at the beginning of that preceding year to the net assets at the end of that preceding year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average investments of the Fund for the current fiscal year shall be determined by the formula

(A + B + C + D) / 2.

In the formula provided for in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s investments permitted under this section and entailing no security or hypothec, at the beginning of the current fiscal year;

(2)  B is the Fund’s investments permitted under this section and entailing no security or hypothec, at the end of the current fiscal year;

(3)  C is the amount by which an amount that is the total of the disinvestments for the current fiscal year that relate to investments entailing no security or hypothec, already made by the Fund and permitted under this section, exceeds an amount equal to 2 % of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the fiscal year preceding the current fiscal year.

The following investments also meet such requirements:

(1)  investments otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises;

(2)  investments in new or substantially renovated income-producing immovable property, up to a maximum of 5% of the net assets of the Fund at the end of the preceding fiscal year;

(3)  investments made in addition to an investment already made in an enterprise and permitted under the second paragraph and where the enterprise would be an eligible enterprise under subparagraph 1 of the first paragraph of section 18.1 if the amounts “$100,000,000” and “$40,000,000” mentioned in that subparagraph were replaced by “$350,000,000” and “$150,000,000”, respectively; and

(4)  strategic investments made after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000.

The total investments permitted under subparagraphs 1 and 3 of the fifth paragraph may not exceed 20 % of the net assets of the Fund at the end of the preceding fiscal year. For the purposes of subparagraph 1 of the fifth paragraph, a broker acting as an intermediary or underwriter is not considered to be a first purchaser.

The total investments permitted under subparagraph 4 of the fifth paragraph may not exceed 5 % of the net assets of the Fund at the end of the preceding fiscal year.

For the purposes of the second paragraph, the investments permitted under subparagraph 4 of the fifth paragraph are considered to have been made in enterprises whose assets are less than $50,000,000 or whose net equity is not over $20,000,000.

Investments in immovable property situated outside Québec are not permitted under subparagraph 2 of the fifth paragraph unless they contribute or can reasonably be expected to contribute to the increase or maintenance of employment levels or economic activity in Québec, in the cases and to the extent determined by a policy adopted by the board of directors and approved by the Minister of Finance. Investments in immovable property situated in Québec and intended mainly for the operation of shopping centres are not permitted under that subparagraph otherwise than as part of a project in the recreation and tourism sector.

Investments agreed to by the Fund for which sums have been committed but not yet disbursed at the end of a fiscal year shall be taken into account in computing investments eligible under the requirements set out in this section, up to an overall sum not exceeding 12% of the net assets of the Fund at the end of the preceding fiscal year.

The requirement set out in the second paragraph applies from the fiscal year beginning on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33; 2005, c. 23, s. 27.

2004-11-03

19. The Fund may make investments in any enterprise, with or without a guarantee or security.

However, in the course of each fiscal year, the proportion of the Fund’s investments in eligible enterprises, entailing no security or hypothec, must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year, of which a part representing at least two-thirds of that minimum percentage must be invested in enterprises whose assets are less than $50 000 000 or whose net equity is less than $20 000 000.

For the purposes of this section and section 20, the following rules apply:

(1)  the average net assets of the Fund for the preceding fiscal year shall be determined by adding the net assets at the beginning of that preceding year to the net assets at the end of that preceding year and by dividing the sum so obtained by 2;

(2)  the net assets do not include the movable or immovable property used by the Fund to carry on its operations; and

(3)  the average investments of the Fund for the current fiscal year shall be determined by the formula

(A + B + C + D) / 2.

In the formula provided for in subparagraph 3 of the third paragraph,

(1)  A is the Fund’s investments permitted under this section and entailing no security or hypothec, at the beginning of the current fiscal year;

(2)  B is the Fund’s investments permitted under this section and entailing no security or hypothec, at the end of the current fiscal year;

(3)  C is the amount by which an amount that is the total of the disinvestments for the current fiscal year that relate to investments entailing no security or hypothec, already made by the Fund and permitted under this section, exceeds an amount equal to 2 % of the Fund’s average net assets for the preceding fiscal year; and

(4)  D is the amount determined under subparagraph 3 for the fiscal year preceding the current fiscal year.

The following investments also meet such requirements :

(1)  investments otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises ;

(2)  investments in new or substantially renovated income-producing immovable property, up to a maximum of 5% of the net assets of the Fund at the end of the preceding fiscal year;

(3)  investments made in addition to an investment already made in an enterprise and permitted under the second paragraph and where the enterprise would be an eligible enterprise under subparagraph 1 of the first paragraph of section 18.1 if the amounts “$100,000,000” and “$40,000,000” mentioned in that subparagraph were replaced by “$350,000,000” and “$150,000,000”, respectively; and

(4)  strategic investments made after 11 March 2003, in accordance with an investment policy adopted by the board of directors of the Fund and approved by the Minister of Finance, in an enterprise whose assets are less than $500,000,000 or whose net equity is not over $200,000,000.

The total investments permitted under subparagraphs 1 and 3 of the fifth paragraph may not exceed 20 % of the net assets of the Fund at the end of the preceding fiscal year. For the purposes of subparagraph 1 of the fifth paragraph, a broker acting as an intermediary or underwriter is not considered to be a first purchaser.

The total investments permitted under subparagraph 4 of the fifth paragraph may not exceed 5 % of the net assets of the Fund at the end of the preceding fiscal year.

For the purposes of the second paragraph, the investments permitted under subparagraph 4 of the fifth paragraph are considered to have been made in enterprises whose assets are less than $50,000,000 or whose net equity is not over $20,000,000.

Investments in immovable property situated outside Québec are not permitted under subparagraph 2 of the fifth paragraph unless they contribute or can reasonably be expected to contribute to the increase or maintenance of employment levels or economic activity in Québec, in the cases and to the extent determined by a policy adopted by the board of directors and approved by the Minister of Finance. Investments in immovable property situated in Québec and intended mainly for residential use or for use as a shopping centre are not permitted under that subparagraph otherwise than as part of a project in the recreation and tourism sector.

Investments agreed to by the Fund for which sums have been committed but not yet disbursed at the end of a fiscal year shall be taken into account in computing investments eligible under the requirements set out in this section, up to an overall sum not exceeding 12% of the net assets of the Fund at the end of the preceding fiscal year.

The requirement set out in the second paragraph applies from the fiscal year beginning on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5; 2004, c. 21, s. 33.

2003-12-10

19. The Fund may make investments in any enterprise, with or without a guarantee or security.

However, in the course of each fiscal year, the proportion of the Fund’s investments in eligible enterprises, entailing no security or hypothec, must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year, of which a part representing at least two-thirds of that minimum percentage must be invested in enterprises whose assets are less than $50 000 000 or whose net equity is less than $20 000 000.

For the purposes of this section and of section 20,

(1)  the average net assets of the Fund for the preceding fiscal year shall be determined by adding the net assets at the beginning of the year concerned to the net assets at the end of the year concerned and by dividing the sum obtained by 2. Net assets do not include the movable or immovable property used by the Fund to carry on its operations;

(2)  the average investments for the current fiscal year shall be determined by adding the investments at the beginning of the year concerned to the investments at the end of the year concerned and by dividing the sum obtained by 2.

The following investments also meet such requirements :

(1)  investments otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises ; and

(2)  investments in new or substantially renovated income-producing immovable property, up to a maximum of 5% of the net assets of the Fund at the end of the preceding fiscal year.

The total investments permitted under subparagraph 1 of the fourth paragraph may not exceed 20% of the net assets of the Fund at the end of the preceding fiscal year. For that purpose, a broker acting as an intermediary or underwriter is not considered to be a first purchaser.

Investments in immovable property situated outside Québec are not permitted under subparagraph 2 of the fourth paragraph unless they contribute or can reasonably be expected to contribute to the increase or maintenance of employment levels or economic activity in Québec, in the cases and to the extent determined by a policy adopted by the board of directors and approved by the Minister of Finance. Investments in immovable property situated in Québec and intended mainly for residential use or for use as a shopping centre are not permitted under that subparagraph otherwise than as part of a project in the recreation and tourism sector.

Investments agreed to by the Fund for which sums have been committed but not yet disbursed at the end of a fiscal year shall be taken into account in computing investments eligible under the requirements set out in this section, up to an overall sum not exceeding 12% of the net assets of the Fund at the end of the preceding fiscal year.

The requirement set out in the second paragraph applies from the fiscal year beginning on 1 June 2001.

1995, c. 48, s. 19; 1999, c. 55, s. 6; 2003, c. 9, s. 5.

1999-11-05

19. The Fund may make investments in any enterprise, with or without a guarantee or security.

However, in the course of each fiscal year, the proportion of the Fund’s investments in eligible enterprises , entailing no security or hypothec, must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year, of which a part representing at least two-thirds of that minimum percentage must be invested in enterprises whose assets are less than $50 000 000 or whose net equity is less than $20 000 000.

For the purposes of this section and of section 20,

(1)  the average net assets of the Fund for the preceding fiscal year shall be determined by adding the net assets at the beginning of the year concerned to the net assets at the end of the year concerned and by dividing the sum obtained by 2. Net assets do not include the movable or immovable property used by the Fund to carry on its operations;

(2)  the average investments for the current fiscal year shall be determined by adding the investments at the beginning of the year concerned to the investments at the end of the year concerned and by dividing the sum obtained by 2.

The following investments also meet such requirements :

(1)  investments otherwise than as first purchaser for the acquisition of securities issued by eligible enterprises ; and

(2)  investments in new or substantially renovated income-producing immovable property, up to a maximum of 5% of the net assets of the Fund at the end of the preceding fiscal year.

The total investments permitted under subparagraph 1 of the fourth paragraph may not exceed 20% of the net assets of the Fund at the end of the preceding fiscal year. For that purpose, a broker acting as an intermediary or underwriter is not considered to be a first purchaser.

Investments in immovable property situated outside Québec are not permitted under subparagraph 2 of the fourth paragraph unless they contribute or can reasonably be expected to contribute to the increase or maintenance of employment levels or economic activity in Québec, in the cases and to the extent determined by a policy adopted by the board of directors and approved by the Minister of Finance. Investments in immovable property situated in Québec and intended mainly for residential use or for use as a shopping centre are not permitted under that subparagraph otherwise than as part of a project in the recreation and tourism sector.

Investments agreed to by the Fund for which sums have been committed but not yet disbursed at the end of a fiscal year shall be taken into account in computing investments eligible under the requirements set out in this section, up to an overall sum not exceeding 12% of the net assets of the Fund at the end of the preceding fiscal year.

The requirement set out in the second paragraph applies from the fiscal year beginning on 1 June 1999.

1995, c. 48, s. 19; 1999, c. 55, s. 6.

1995-06-22

19. The Fund may make investments in any enterprise, with or without a guarantee or security.

However, in the course of each fiscal year, the proportion of the Fund’s investments in Québec enterprises, entailing no security or hypothec, must represent, on the average, at least 60 % of the average net assets of the Fund for the preceding year, of which a part representing at least two-thirds of that minimum percentage must be invested in enterprises whose assets are less than $50 000 000 or whose net equity is less than $20 000 000.

For the purposes of this section and of section 20,

(1)  the average net assets of the Fund for the preceding fiscal year shall be determined by adding the net assets at the beginning of the year concerned to the net assets at the end of the year concerned and by dividing the sum obtained by 2. Net assets do not include the movable or immovable property used by the Fund to carry on its operations;

(2)  the average investments for the current fiscal year shall be determined by adding the investments at the beginning of the year concerned to the investments at the end of the year concerned and by dividing the sum obtained by 2.

For the purposes of the rule set out in this section, investments referred to in the second paragraph which are the subject of an agreement during the year or the preceding year and for which financial commitments have been contracted by the Fund but not yet fulfilled at the end of the fiscal year are eligible investments.

Investments made by the Fund otherwise than as first purchaser for the acquisition of securities issued by Québec enterprises, up to a sum not exceeding 20 % of the net assets of the Fund at the end of the preceding fiscal year are also eligible investments. For that purpose, a broker acting as an intermediary or underwriter is considered not to be a first purchaser.

The requirement set out in the second paragraph applies from the fourth fiscal year of the Fund.

1995, c. 48, s. 19.