I-3 - Taxation Act

Section 965.9.1.0.6 Disposition versions

2017-12-07

965.9.1.0.6. (Repealed).

1997, c. 85, s. 211; 1999, c. 83, s. 133; 2001, c. 7, s. 169; 2006, c. 13, s. 79; 2017, c. 29, s. 166.

2006-06-13

965.9.1.0.6. A common share with voting rights issued by a corporation described in section 965.11.7.1 also qualifies for a stock savings plan if

(a)  it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise, on or before 31 December 2005, of a conversion right conferred on the holder of a particular preferred share meeting the requirements of paragraph b of section 965.9.1.0.5 and issued, as a result of a transaction referred to in section 536, 541 or 544, in replacement for such a preferred share which was outstanding at the time of such transaction or in replacement for such a preferred share which had been issued in substitution for a preferred share which, were it not for such substitution, could have been converted into a qualifying share described in this section;

(b)  it meets the requirements of paragraphs c and c.0.1 of section 965.7 where the acquirer of the share is an investment fund, and the requirements of paragraphs c, c.0.1 and g of section 965.7 where the acquirer of the share is an individual or an investment group;

(c)  under the conditions pertaining to the issue of the particular preferred share, the share cannot

i.  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

ii.  be the subject of a transaction that would result in rendering such a share, a share substituted for such a share, a share received through a transaction referred to in section 301, 536, 541 or 544 in respect of any such shares or a substituted share redeemable by the issuing corporation or purchasable by anyone, in any manner whatever, directly or indirectly, either in whole or in part, or in transferring property of the issuing corporation, other than a dividend, to the shareholder, or

iii.  entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation;

(d)  the issuing corporation states, in the final prospectus or the application for an exemption from filing a prospectus in respect of the replacement of the particular preferred share, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title;

(e)  it is

i.  a share of a class of the capital stock of the corporation having shares of the same class which, immediately after the transaction mentioned in paragraph a, are listed on a Canadian stock exchange, or

ii.  a share of a class of the capital stock of the corporation none of the shares of which, immediately after the transaction mentioned in paragraph a, is listed on a Canadian stock exchange but in respect of which the corporation has undertaken, in the final prospectus or the application for an exemption from filing a prospectus relating to the replacement of the particular preferred share, to have shares of that class listed on a Canadian stock exchange not later than 60 days after the date on which the corporation demonstrates to the proper authorities of that stock exchange that it has distributed a sufficient quantity of shares of that class to holders; and

(f)  before the transaction referred to in paragraph a, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title.

1997, c. 85, s. 211; 1999, c. 83, s. 133; 2001, c. 7, s. 169; 2006, c. 13, s. 79.

2006-03-01

965.9.1.0.6. A common share with voting rights issued by a corporation described in section 965.11.7.1 also qualifies for a stock savings plan if

(a)  it is acquired by an individual, an investment group or an investment fund as first purchaser, other than a dealer acting as an intermediary, as a result of the exercise of a conversion right conferred on the holder of a particular preferred share meeting the requirements of paragraph b of section 965.9.1.0.5 and issued, as a result of a transaction referred to in section 536, 541 or 544, in replacement for such a preferred share which was outstanding at the time of such transaction or in replacement for such a preferred share which had been issued in substitution for a preferred share which, were it not for such substitution, could have been converted into a qualifying share described in this section;

(b)  it meets the requirements of paragraphs c and c.0.1 of section 965.7 where the acquirer of the share is an investment fund, and the requirements of paragraphs c, c.0.1 and g of section 965.7 where the acquirer of the share is an individual or an investment group;

(c)  under the conditions pertaining to the issue of the particular preferred share, the share cannot

i.  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

ii.  be the subject of a transaction that would result in rendering such a share, a share substituted for such a share, a share received through a transaction referred to in section 301, 536, 541 or 544 in respect of any such shares or a substituted share redeemable by the issuing corporation or purchasable by anyone, in any manner whatever, directly or indirectly, either in whole or in part, or in transferring property of the issuing corporation, other than a dividend, to the shareholder, or

iii.  entitle the holder to a dividend that is or will be the subject of an undertaking whereby its payment is guaranteed by a person other than the issuing corporation;

(d)  the issuing corporation states, in the final prospectus or the application for an exemption from filing a prospectus in respect of the replacement of the particular preferred share, that the share may be included in a stock savings plan and entitles any person to the benefit provided for in respect of the share by this Title;

(e)  it is

i.  a share of a class of the capital stock of the corporation having shares of the same class which, immediately after the transaction mentioned in paragraph a, are listed on a Canadian stock exchange, or

ii.  a share of a class of the capital stock of the corporation none of the shares of which, immediately after the transaction mentioned in paragraph a, is listed on a Canadian stock exchange but in respect of which the corporation has undertaken, in the final prospectus or the application for an exemption from filing a prospectus relating to the replacement of the particular preferred share, to have shares of that class listed on a Canadian stock exchange not later than 60 days after the date on which the corporation demonstrates to the proper authorities of that stock exchange that it has distributed a sufficient quantity of shares of that class to holders; and

(f)  before the transaction referred to in paragraph a, it was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title.

1997, c. 85, s. 211; 1999, c. 83, s. 133; 2001, c. 7, s. 169.