I-3 - Taxation Act

Section 965.6.23 Disposition versions

2017-12-07

965.6.23. (Repealed).

1988, c. 4, s. 91; 1989, c. 5, s. 168; 1990, c. 7, s. 96; 1992, c. 1, s. 104; 1993, c. 19, s. 80; 1997, c. 85, s. 209; 1999, c. 83, s. 273; 2005, c. 23, s. 128; 2017, c. 29, s. 166.

2006-03-01

965.6.23. When making, in any year, a public security issue consisting of securities that may be included in a stock savings plan, the investment fund shall stipulate in the final prospectus or in the application for an exemption from filing a prospectus relating to their issue that it agrees to meet the following requirements:

(a)  (subparagraph repealed);

(b)  to acquire, on or before 31 December in the year, qualifying shares or qualifying non-guaranteed convertible securities with the proceeds or expected proceeds, for the year, of the public security issue or, in the case of qualifying shares, as a result of the exercise of a conversion right conferred on the holder of a convertible security, qualifying non-guaranteed convertible security or preferred share that meets the requirements of paragraph b of section 965.9.1.0.4.2 or 965.9.1.0.5 purchased in the year by the investment fund with the proceeds or expected proceeds of the issue, whose adjusted cost is not less than the adjusted cost of the aggregate of all qualifying securities issued by the fund in the year and constituting valid qualifying securities; and

(c)  to be the owner, on 31 December in the year and in each of the ensuing two years, of qualifying shares, valid shares or qualifying non-guaranteed convertible securities, other than qualifying shares, valid shares or qualifying non-guaranteed convertible securities that have already been used in respect of the same year for the purposes of this paragraph, and whose adjusted cost is not less than the adjusted cost of the aggregate of all qualifying securities issued by the fund in the year and not redeemed by the investment fund respectively on 31 December in the year, 31 December in the first year following the year or 31 December in the second year following the year, as the case may be.

For the purposes of subparagraph b of the first paragraph and section 965.6.23.0.1, the expected proceeds of a public security issue made by an investment fund for a year are the proceeds of such a public security issue or a portion of such proceeds, as the case may be, to the extent that the following conditions are satisfied:

(a)  the public security issue ends on or before 31 December of that year; and

(b)  the proceeds or the portion of the proceeds is used to compensate or repay the acquisition cost of qualifying shares or qualifying non-guaranteed convertible securities acquired by the investment fund at a particular time during the 90-day period that precedes the date on which the public security issue ends.

1988, c. 4, s. 91; 1989, c. 5, s. 168; 1990, c. 7, s. 96; 1992, c. 1, s. 104; 1993, c. 19, s. 80; 1997, c. 85, s. 209; 1999, c. 83, s. 273; 2005, c. 23, s. 128.