I-3 - Taxation Act

Section 965.17.2 Disposition versions

2017-12-07

965.17.2. (Repealed).

1992, c. 1, s. 123; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1999, c. 83, s. 143; 2000, c. 39, s. 117; 2001, c. 7, s. 169; 2002, c. 9, s. 30; 2003, c. 9, s. 149; 2004, c. 21, s. 236; 2017, c. 29, s. 166.

2006-03-01

965.17.2. A qualified corporation making a public share issue, a convertible security issue or a non-guaranteed convertible security issue is a growth corporation if, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus,

(a)  its head office or principal place of business is in Québec;

(b)  it carries on, as its main activity, a qualified business;

(c)  it is a corporation that had not fewer than five full-time employees who were not insiders within the meaning of section 89 of the Securities Act (chapter V-1.1) or persons who were related to such insiders

i.  throughout the 12 months preceding that date, or

ii.  throughout the six months preceding that date where

(1)  it has already made a public issue of shares with the stipulation that they could be included in a stock savings plan, and

(2)  a class of shares of its capital stock is listed on a Canadian stock exchange on that date;

(d)  its assets are under $350,000,000; and

(e)  unless it is a corporation carrying on a business of a community nature recognized by the Government, its assets, as determined under section 965.3, are more than $2,000,000.

For the purposes of subparagraph b of the first paragraph, for the purpose of determining whether a qualified corporation is carrying on, as its main activity, a qualified business, the carrying on of such a business by a subsidiary of the qualified corporation shall be taken into account.

For the purposes of subparagraph i of subparagraph c of the first paragraph, a corporation is deemed to have had not fewer than five full-time employees who were not insiders within the meaning of section 89 of the Securities Act or persons who were related to such insiders, where

(a)  a class of shares of its capital stock is, throughout the 12-month period preceding the date of the receipt for the final prospectus or of the exemption from filing a prospectus, listed on a Canadian stock exchange; and

(b)  a person, other than such an insider or a person related thereto, or a partnership provides the corporation, in the period referred to in subparagraph a, with services under a service contract and the corporation would normally require the services of more than five full-time employees if those services were not provided.

For the purposes of subparagraph a of the third paragraph, for the purpose of determining whether, throughout the 12 months that precede the date of the receipt for the final prospectus or of the exemption from filing a prospectus, a class of shares of a corporation’s capital stock was listed on a Canadian stock exchange, no account shall be taken of any period during which such a class of shares of a corporation was listed on a Canadian stock exchange as a class of shares of a capital pool company.

1992, c. 1, s. 123; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1999, c. 83, s. 143; 2000, c. 39, s. 117; 2001, c. 7, s. 169; 2002, c. 9, s. 30; 2003, c. 9, s. 149; 2004, c. 21, s. 236.