I-3 - Taxation Act

Section 965.9.8.2 Disposition versions

2017-12-07

965.9.8.2. (Repealed).

1992, c. 1, s. 113; 1997, c. 3, s. 71; 1999, c. 83, s. 135; 2001, c. 7, s. 169; 2017, c. 29, s. 166.

2006-03-01

965.9.8.2. The requirements referred to in paragraph f of section 965.9.8.1, in respect of a common share with voting rights which is to be issued by reason of the exercise of a conversion right conferred on the holder of a non-guaranteed convertible security issued as part of a non-guaranteed convertible security issue are as follows:

(a)  the share meets the requirements of paragraphs c and c.0.1 of section 965.7, where the holder of the non-guaranteed convertible security is an investment fund, and the requirements of paragraphs c, c.0.1 and g of the said section 965.7, where the holder of the non-guaranteed convertible security is an individual or an investment group;

(b)  under the conditions pertaining to the issue of the 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, neither in whole nor in part;

ii.  be the subject of a transaction that would result

(1)  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

(2)  in transferring property of the issuing corporation, other than a dividend, to the shareholder;

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;

(c)  the share is in a class listed on a Canadian stock exchange on the date of the receipt for the final prospectus relating to the issue of the non-guaranteed convertible security.

1992, c. 1, s. 113; 1997, c. 3, s. 71; 1999, c. 83, s. 135; 2001, c. 7, s. 169.