I-3 - Taxation Act

Section 965.9.1.0.4 Disposition versions

2017-12-07

965.9.1.0.4. (Repealed).

1997, c. 85, s. 211; 1999, c. 83, s. 273; 2001, c. 7, s. 169; 2006, c. 13, s. 75; 2017, c. 29, s. 166.

2006-06-13

965.9.1.0.4. A share also qualifies for a stock savings plan if

(a)  it is a common share with voting rights issued by a growth corporation;

(b)  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 qualifying non-guaranteed convertible security issued, as a result of a transaction referred to in section 536, 541 or 544, in replacement for a qualifying non-guaranteed convertible security which was outstanding at the time of such transaction and which, were it not for such replacement, could have been converted into a qualifying share described in section 965.9.1.0.3, or in replacement for such a qualifying non-guaranteed convertible security which had been issued in substitution for a non-guaranteed convertible security which, were it not for such substitution, could have been converted into a qualifying share described in this section;

(c)  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;

(d)  under the conditions pertaining to the issue of the particular qualifying non-guaranteed convertible security, 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;

(e)  the growth corporation states, in the final prospectus in respect of the replacement of the particular qualifying non-guaranteed convertible security, 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;

(f)  it is a share of a class of the capital stock of the growth corporation having shares of the same class of its capital stock which, immediately after the transaction referred to in paragraph b, are listed on a Canadian stock exchange; and

(g)  before the transaction referred to in paragraph b, 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. 273; 2001, c. 7, s. 169; 2006, c. 13, s. 75.

2006-03-01

965.9.1.0.4. A share also qualifies for a stock savings plan if

(a)  it is a common share with voting rights issued by a growth corporation;

(b)  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 qualifying non-guaranteed convertible security issued, as a result of a transaction referred to in section 536, 541 or 544, in replacement for a qualifying non-guaranteed convertible security which was outstanding at the time of such transaction and which, were it not for such replacement, could have been converted into a qualifying share described in section 965.9.1.0.3, or in replacement for such a qualifying non-guaranteed convertible security which had been issued in substitution for a non-guaranteed convertible security which, were it not for such substitution, could have been converted into a qualifying share described in this section;

(c)  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;

(d)  under the conditions pertaining to the issue of the particular qualifying non-guaranteed convertible security, 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;

(e)  the growth corporation states, in the final prospectus in respect of the replacement of the particular qualifying non-guaranteed convertible security, 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;

(f)  it is a share of a class of the capital stock of the growth corporation having shares of the same class of its capital stock which, immediately after the transaction referred to in paragraph b, are listed on a Canadian stock exchange; and

(g)  before the transaction referred to in paragraph b, 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. 273(1)(5); 2001, c. 7, s. 169.