I-3 - Taxation Act

Section 965.6.23.1 Disposition versions

2017-12-07

965.6.23.1. (Repealed).

1991, c. 8, s. 62; 1992, c. 1, s. 105; 1993, c. 19, s. 81; 1997, c. 3, s. 71; 1997, c. 85, s. 210; 1999, c. 83, s. 273; 2002, c. 45, s. 521; 2003, c. 9, s. 133; 2004, c. 37, s. 90; 2017, c. 29, s. 166.

2006-03-01

965.6.23.1. An investment fund that makes, in any particular year, a public security issue consisting of securities that may be included in a stock savings plan and is making, since its creation, its first such public security issue may, instead of stipulating in the final prospectus or in the application for an exemption from filing a prospectus relating to their issue that it undertakes to meet the requirements set out in section 965.6.23, elect to stipulate therein that it undertakes to meet the following requirements or may, once it has stipulated that it undertakes to meet the requirements set out in the said section 965.6.23, elect instead to undertake to meet the following requirements by sending to the Minister and to the Autorité des marchés financiers a written notice to that effect on or before 31 December in the year in which the receipt for the final prospectus or the exemption from filing a prospectus relating to their issue was obtained:

(a)  to use a determined percentage, which must be the same throughout any particular year during which securities are issued as part of the security issue, not lower than 50%, of the proceeds, for the particular year, of the issue of securities not redeemed by the investment fund on or before 31 December in the particular year, to acquire, on or before 31 December in the year following the particular year, qualifying non-guaranteed convertible securities, or qualifying shares that are common shares with voting rights, that are issued by growth corporations;

(a.1)  to cause the portion, expressed as a percentage, as is represented by the ratio between the adjusted cost and the cost, determined without taking into account the borrowing costs, brokerage or custody fees or other similar costs, to the investment fund, of the aggregate of all qualifying shares and all qualifying non-guaranteed convertible securities described in paragraph a that the fund has undertaken to acquire in accordance with the said paragraph a on or before 31 December in the year following the particular year, to be equal to or greater than the determined percentage, not lower than 50%, indicated in that respect by the investment fund, in respect of the public security issue, in the final prospectus or the application for an exemption from filing a prospectus relating to the issue or in the written notice to be sent by the investment fund to the Minister and to the Autorité des marchés financiers, as the case may be;

(b)  to acquire, on or before 31 December in the particular year, qualifying shares or qualifying non-guaranteed convertible securities with the proceeds, for the particular 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 particular year by the investment fund with the proceeds of the issue, that are not the subject of the undertaking under paragraph a and are not qualifying shares or qualifying non-guaranteed convertible securities having already been used, in respect of the particular year, for the purposes of paragraph c, and whose adjusted cost is not less than the amount by which the adjusted cost of the aggregate of all qualifying securities issued by the investment fund during the particular year and constituting valid qualifying securities exceeds the particular amount equal to the lesser of the proceeds of the issue of securities constituting, for the particular year, valid qualifying securities and the amount obtained by applying to the portion, that is the subject of the undertaking under paragraph a, of the proceeds, for the particular year, of the public security issue, the percentage determined under paragraph a.1 in respect of the public security issue;

(c)  to acquire, on or before 31 December in the year following the particular year, qualifying shares or qualifying non-guaranteed convertible securities described in paragraph a with the proceeds, for the particular 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 particular year or in the year following the particular year by the investment fund with the proceeds of the issue, other than any such qualifying shares or any such qualifying non-guaranteed convertible securities having already been used, in respect of the particular year, for the purposes of paragraph b, and whose adjusted cost is not less than the particular amount referred to in paragraph b in respect of the particular year;

(d)  to be the owner, on 31 December in the particular year and in each of the ensuing two years, of qualifying non-guaranteed convertible securities or shares that are qualifying shares or valid shares, other than qualifying non-guaranteed convertible securities, qualifying shares or valid shares having already been used, in respect of the same year, for the purposes of paragraph e or of this paragraph or than a qualifying non-guaranteed convertible security or qualifying share referred to in section 965.6.0.4 in respect of the year, and whose adjusted cost is not less than the amount by which the adjusted cost of the aggregate of all qualifying securities issued in the particular year by the investment fund and not redeemed by the investment fund on 31 December in the particular year, 31 December in the first year following the particular year or 31 December in the second year following the particular year, respectively, as the case may be, exceeds the particular amount referred to in paragraph b in respect of the particular year;

(e)  to be the owner, on 31 December in each of the three years following the particular year, of qualifying non-guaranteed convertible securities or shares that are qualifying shares or valid shares, other than qualifying non-guaranteed convertible securities, qualifying shares or valid shares having already been used, in respect of the same year, for the purposes of this paragraph or than a qualifying non-guaranteed convertible security or qualifying share referred to in section 965.6.0.4 in respect of the year, and whose adjusted cost is not less than the particular amount referred to in paragraph b in respect of the particular year.

1991, c. 8, s. 62; 1992, c. 1, s. 105; 1993, c. 19, s. 81; 1997, c. 3, s. 71; 1997, c. 85, s. 210; 1999, c. 83, s. 273; 2002, c. 45, s. 521; 2003, c. 9, s. 133; 2004, c. 37, s. 90.