P-44.1 - Act respecting the legal publicity of enterprises

Section 0.4 Disposition versions

2023-05-31

0.4. In this Act, a natural person who meets any of the following conditions is considered to be an ultimate beneficiary of a registrant:

(1)  the person controls or holds, even indirectly, or is a beneficiary of, a number of shares or units of the registrant conferring on the person the power to exercise 25% or more of the voting rights attached to the shares or units issued by the registrant;

(2)  the person controls or holds, even indirectly, or is a beneficiary of, a number of shares or units of the registrant the value of which corresponds to 25% or more of the fair market value of the shares or units issued by the registrant;

(3)  the person has any direct or indirect influence that, if exercised, would result in control in fact of the registrant;

(4)  the person is the general partner of the registrant or, if a general partner of the registrant is not a natural person, the person meets one of the conditions described in subparagraphs 1 and 3 or is a party to an agreement referred to in the second paragraph in respect of the general partner; or

(5)  the person is the trustee of the registrant.

Where natural persons who are holders, even indirectly, or beneficiaries of shares or units of the registrant have agreed to jointly exercise the voting rights attached to the shares or units and the agreement confers on them, together, the power to exercise 25% or more of those voting rights, each of those natural persons is considered to be an ultimate beneficiary of the registrant.

In the case of a registrant who is a natural person operating a sole proprietorship, that person, unless the person declares otherwise, is presumed to be the only ultimate beneficiary of the registrant.

For the purposes of this section, a legal person acting as a trustee is considered to be a natural person.

To determine whether there has been influence within the meaning of subparagraph 3 of the first paragraph, sections 21.25 and 21.25.1 of the Taxation Act (chapter I-3) apply, with the necessary modifications.

The Government may make regulations determining other cases and conditions according to which a natural person is considered to be an ultimate beneficiary.

2021, c. 19, s. 1; 2023, c. 10, s. 37.

2023-03-31

0.4. In this Act, a natural person who meets any of the following conditions is considered to be an ultimate beneficiary of a registrant:

(1)  the person is a holder, even indirectly, or beneficiary of a number of shares or units of the registrant conferring on the person the power to exercise 25% or more of the voting rights attached to the shares or units;

(2)  the person is a holder, even indirectly, or beneficiary of a number of shares or units the value of which corresponds to 25% or more of the fair market value of all the shares or units issued by the registrant;

(3)  the person has any direct or indirect influence that, if exercised, would result in control in fact of the registrant;

(4)  the person is the general partner of the registrant or, if a general partner of the registrant is not a natural person, the person meets one of the conditions described in subparagraphs 1 and 3 or is a party to an agreement referred to in the second paragraph in respect of the general partner; or

(5)  the person is the trustee of the registrant.

Where natural persons who are holders, even indirectly, or beneficiaries of shares or units of the registrant have agreed to jointly exercise the voting rights attached to the shares or units and the agreement confers on them, together, the power to exercise 25% or more of those voting rights, each of those natural persons is considered to be an ultimate beneficiary of the registrant.

In the case of a registrant who is a natural person operating a sole proprietorship, that person, unless the person declares otherwise, is presumed to be the only ultimate beneficiary of the registrant.

For the purposes of this section, a legal person acting as a trustee is considered to be a natural person.

To determine whether there has been influence within the meaning of subparagraph 3 of the first paragraph, sections 21.25 and 21.25.1 of the Taxation Act (chapter I-3) apply, with the necessary modifications.

The Government may make regulations determining other cases and conditions according to which a natural person is considered to be an ultimate beneficiary.

2021, c. 19, s. 1.