I-3 - Taxation Act

Section 965.9.1.0.5 Disposition versions

2017-12-07

965.9.1.0.5. (Repealed).

1997, c. 85, s. 211; 1999, c. 83, s. 132; 2001, c. 7, s. 169; 2006, c. 13, s. 78; 2017, c. 29, s. 166.

2006-06-13

965.9.1.0.5. A share also qualifies for a stock savings plan if it is issued by a corporation described in section 965.11.7.1 and is either

(a)  a common share with voting rights which

i.  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 preferred share that met the requirements of paragraph b,

ii.  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,

iii.  under the conditions pertaining to the issue of the preferred share referred to in subparagraph i, cannot

(1)  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

(2)  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

(3)  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,

iv.  is the subject of a statement by the issuing corporation, in the final prospectus or the application for an exemption from filing a prospectus relating to the public share issue as part of which the preferred share referred to in subparagraph i was issued, to the effect 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,

v.  before the receipt for the final prospectus or the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv has been obtained, was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title, and

vi.  is

(1)  on the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv, a share of a class listed on a Canadian stock exchange, or

(2)  a share of a class none of the shares of which, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv, has been issued but in respect of which the issuing corporation has undertaken, in the final prospectus or the application for an exemption from filing a prospectus, to have shares of that class listed on a Canadian stock exchange not later than 60 days after the date on which the issuing corporation demonstrates to the proper authorities of that stock exchange that it has distributed a sufficient quantity of shares of that class to holders; or

(b)  a preferred share that is a non-guaranteed preferred share issued as part of a public share issue by the corporation which

i.  subject to section 965.9.1.0.8, would meet the requirements of paragraphs c to f of section 965.7, where its acquirer is an investment fund, and the requirements of paragraphs c to g of the said section 965.7, where its acquirer is an individual or an investment group,

ii.  is convertible into a common share with voting rights meeting the requirements of paragraph a, and

iii.  is of a separate class relating to the public share issue.

1997, c. 85, s. 211; 1999, c. 83, s. 132; 2001, c. 7, s. 169; 2006, c. 13, s. 78.

2006-03-01

965.9.1.0.5. A share also qualifies for a stock savings plan if it is issued by a corporation described in section 965.11.7.1 and is either

(a)  a common share with voting rights which

i.  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 preferred share that met the requirements of paragraph b,

ii.  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,

iii.  under the conditions pertaining to the issue of the preferred share referred to in subparagraph i, cannot

(1)  be redeemed by the issuing corporation or purchased by anyone in any manner whatever, directly or indirectly, either in whole or in part,

(2)  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

(3)  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,

iv.  is the subject of a statement by the issuing corporation, in the final prospectus or the application for an exemption from filing a prospectus relating to the public share issue as part of which the preferred share referred to in subparagraph i was issued, to the effect 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,

v.  before the receipt for the final prospectus or the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv has been obtained, was the subject of a favourable advance ruling from the Ministère du Revenu to the effect that it respects the objectives of this Title, and

vi.  is

(1)  on the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv, a share of a class listed on a Canadian stock exchange, or

(2)  a share of a class none of the shares of which, on the date of the receipt for the final prospectus or of the exemption from filing a prospectus relating to the public share issue referred to in subparagraph iv, has been issued but in respect of which the issuing corporation has undertaken, in the final prospectus or the application for an exemption from filing a prospectus, to have shares of that class listed on a Canadian stock exchange not later than 60 days after the date on which the issuing corporation demonstrates to the proper authorities of that stock exchange that it has distributed a sufficient quantity of shares of that class to holders; or

(b)  a preferred share that is a non-guaranteed preferred share issued as part of a public share issue by the corporation which

i.  subject to section 965.9.1.0.8, would meet the requirements of paragraphs c to f of section 965.7, where its acquirer is an investment fund, and the requirements of paragraphs c to g of the said section 965.7, where its acquirer is an individual or an investment group,

ii.  is convertible into a common share with voting rights meeting the requirements of paragraph a, and

iii.  is of a separate class relating to the public share issue.

1997, c. 85, s. 211; 1999, c. 83, s. 132; 2001, c. 7, s. 169.