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Insurance Companies Act (S.C. 1991, c. 47)

Act current to 2024-05-28 and last amended on 2024-01-01. Previous Versions

PART VIIOwnership (continued)

DIVISION IIConstraints on Ownership (continued)

Approval Process (continued)

Marginal note:Terms and conditions

 The Minister may impose any terms and conditions in respect of an approval given under this Part that the Minister considers necessary to ensure compliance with any provision of this Act.

  • 1991, c. 47, s. 421
  • 2001, c. 9, s. 413

Marginal note:Certifying receipt of application

  •  (1) If, in the opinion of the Superintendent, an application filed under this Part contains all the required information, the Superintendent shall without delay refer the application to the Minister and send a receipt to the applicant certifying the date on which the completed application was received by the Superintendent.

  • Marginal note:Incomplete application

    (2) If, in the opinion of the Superintendent, an application filed under this Part is incomplete, the Superintendent shall send a notice to the applicant specifying the information required by the Superintendent to complete the application.

  • 1991, c. 47, s. 422
  • 2001, c. 9, s. 414

Marginal note:Notice of decision to applicant

  •  (1) Subject to subsections (2) and (3) and 424(1), the Minister shall, within a period of thirty days after the certified date referred to in subsection 422(1), send to the applicant

    • (a) a notice approving the transaction to which the application relates; or

    • (b) where the Minister is not satisfied that the transaction to which the application relates should be approved, a notice to that effect, advising the applicant of the right to make representations to the Minister in respect of the matter.

  • Marginal note:Notice of decision

    (2) Subject to subsections (4) and 424(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 422(1) in the following cases:

    • (a) the application involves the acquisition of control of a company;

    • (b) the application is made by an eligible agent or an entity controlled by an eligible agent; or

    • (c) an application is made for the approval referred to in subsection 428(3).

  • Marginal note:Extension of period for notice

    (3) Where the Minister is unable to complete the consideration of an application within the period referred to in subsection (1), the Minister shall,

    • (a) within that period, send a notice to that effect to the applicant; and

    • (b) within a further period of thirty days after the date of the sending of the notice referred to in paragraph (a) or within such other further period as may be agreed on by the applicant and the Minister, send a notice referred to in paragraph (1)(a) or (b) to the applicant.

  • Marginal note:Idem

    (4) Where the Minister considers it appropriate to do so, the Minister may extend the period referred to in subsection (2) for one or more periods of forty-five days.

  • 1991, c. 47, s. 423
  • 2012, c. 31, s. 136

Marginal note:Reasonable opportunity to make representations

  •  (1) Where, after receipt of the notice referred to in paragraph 423(1)(b), the applicant advises the Minister that the applicant wishes to make representations, the Minister shall provide the applicant with a reasonable opportunity within a period of thirty days after the date of the notice, or within such further period as may be agreed on by the applicant and the Minister, to make representations in respect of the matter.

  • Marginal note:Reasonable opportunity to make representations

    (2) If, after receipt of the notice sent in accordance with subsection 423(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister shall provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.

  • 1991, c. 47, s. 424
  • 2012, c. 31, s. 137(E)

Marginal note:Notice of decision

  •  (1) Within a period of thirty days after the expiration of the period for making representations referred to in subsection 424(1), the Minister shall, in the light of any such representations and having regard to the matters to be taken into account, send a notice to the applicant indicating whether or not the Minister approves the share transaction to which the application relates.

  • Marginal note:Idem

    (2) Within a period of forty-five days after the expiration of the period for making representations referred to in subsection 424(2), the Minister shall, in the light of any such representations and having regard to the matters to be taken into account, send a notice to the applicant indicating whether or not the Minister approves the share transaction to which the application relates.

Marginal note:Deemed approval

 Where the Minister does not send a notice under subsection 423(1) or (3) or 425(1) within the period provided for in those subsections, the Minister is deemed to have approved the share transaction to which the application relates.

 [Repealed, 1994, c. 47, s. 124]

Marginal note:Mutual company constraints

 Subject to such regulations as the Governor in Council may make for the purpose, a mutual company may by by-law impose, change or remove restrictions on the issue, transfer or ownership of shares of any class issued under section 63, in order to prevent a person from having a significant interest in that class.

  • 1991, c. 47, s. 427
  • 1994, c. 47, s. 124
  • 1996, c. 6, s. 77.1

Marginal note:Constraining registration — Crown and foreign governments

  •  (1) No company shall record in its securities register a transfer or issue of any share of the company to

    • (a) Her Majesty in right of Canada or of a province or any agent or agency of Her Majesty in either of those rights; or

    • (b) the government of a foreign country or any political subdivision thereof, or any agent or agency thereof.

  • Marginal note:Exception

    (2) Despite subsection (1), a company may record in its securities register a transfer or issue of any share of the company to a foreign institution that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share that is transferred or issued is beneficially owned by the foreign institution or by an entity controlled by the foreign institution.

  • Marginal note:Exception

    (3) Despite subsection (1), a company may, with the Minister’s approval, record in its securities register the issue of any share of the company to an eligible agent.

  • Marginal note:Application made jointly

    (4) The application for the approval referred to in subsection (3) must be made jointly by the company and the eligible agent.

  • Marginal note:Matters for consideration

    (5) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 420(1)(a) to (h).

  • Marginal note:Consequence of revocation of approval

    (6) If an approval referred to in subsection (3) is revoked, the company shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.

  • Marginal note:Disposition of shareholdings

    (7) If a company or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the company beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.

  • Marginal note:Representations

    (8) No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.

  • Marginal note:Appeal

    (9) Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 1020.

  • 1991, c. 47, s. 428
  • 2012, c. 5, s. 127, c. 19, s. 341, c. 31, s. 138

 [Repealed, 1994, c. 47, s. 125]

  •  (1) [Repealed, 1994, c. 47, s. 126]

  • Marginal note:Suspension of voting rights held by governments

    (2) Notwithstanding section 152, where any voting shares of a company are beneficially owned by

    • (a) Her Majesty in right of Canada or of a province or any agency of Her Majesty in either of those rights, or

    • (b) the government of a foreign country or any political subdivision thereof, or any agency thereof,

    no person shall, in person or by proxy, exercise the voting rights attached to those shares.

  • Marginal note:Exception

    (2.1) Subsection (2) does not apply to a foreign institution that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the shares referred to in subsection (2) are beneficially owned by the foreign institution or by an entity controlled by the foreign institution.

  • Marginal note:Transitional

    (3) Subsection (2) does not apply in respect of a government or agency referred to in that subsection that, on September 27, 1990, beneficially owned shares of a former-Act company where the exercise of the voting rights attached to those shares was not prohibited under subsection 36(2) of the Canadian and British Insurance Companies Act, as that subsection read immediately prior to June 1, 1992.

  • Marginal note:Transitional

    (4) Subsection (3) ceases to apply where a government or agency referred to in that subsection acquires beneficial ownership of any additional voting shares of the former-Act company in such number that the percentage of the voting rights attached to all of the voting shares of the former-Act company beneficially owned by the government or agency is greater than the percentage of the voting rights attached to all of the voting shares of the former-Act company that were beneficially owned by the government or agency on September 27, 1990.

  • Marginal note:Exception — eligible agent

    (5) Subsection (2) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 428(3).

  • Marginal note:Consequence of suspension of approval

    (6) If an approval referred to in subsection 428(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the company that is beneficially owned by the eligible agent.

  • 1991, c. 47, s. 430
  • 1994, c. 47, s. 126
  • 2012, c. 5, s. 128, c. 19, s. 342, c. 31, s. 139

 [Repealed, 1994, c. 47, s. 127]

DIVISION IIIDirections

Marginal note:Disposition of shareholdings

  •  (1) If, with respect to any company, a person contravenes subsection 407(1), (4), (9), (11) or (15) or section 407.03, 407.1 or 407.2 or fails to comply with an undertaking referred to in subsection 416(2) or with any term or condition imposed under section 421, the Minister may, if the Minister considers it in the public interest to do so, by order, direct that person and any person controlled by that person to dispose of any number of shares of the company beneficially owned by any of those persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by that person that is specified in the order.

  • Marginal note:Representations

    (2) No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.

  • Marginal note:Appeal

    (3) Any person with respect to whom a direction has been made under subsection (1) may, within thirty days after the date of the direction, appeal the matter in accordance with section 1020.

  • (4) [Repealed, 2001, c. 9, s. 415]

  • 1991, c. 47, s. 432
  • 1996, c. 6, s. 78
  • 2001, c. 9, s. 415
  • 2012, c. 19, s. 343(E)

Marginal note:Disposition — threat to integrity or security

  •  (1) If the Minister is of the opinion that a person’s holding or beneficial ownership of shares of a company poses a threat to the integrity or security of the company or the financial system in Canada or a threat to national security, the Minister may, by order, direct that person and any person controlled by that person to dispose of any number of shares of the company held or beneficially owned by any of the persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by the person that is specified in the order.

  • Marginal note:Suspension of rights

    (2) A direction made under subsection (1) may also suspend any of the rights under Part VI attached to the shares referred to in that subsection until the shares are disposed of in accordance with the direction.

  • Marginal note:Representations

    (3) No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations.

  • Marginal note:Temporary direction

    (4) If, in the Minister’s opinion, the length of time required for representations to be made under subsection (3) might be prejudicial to the public interest, the Minister may make a temporary direction to suspend any of the rights under Part VI attached to any of the shares referred to in subsection (1).

  • Marginal note:Cessation of effect

    (5) A temporary direction ceases to have effect on the earlier of

    • (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified in the temporary direction, and

    • (b) if a direction is made under subsection (1) in respect of the shares, the day on which that direction takes effect.

  • Marginal note:Appeal

    (6) Any person with respect to whom a direction has been made under subsection (1) may, within 30 days after the day on which the direction was made, appeal the matter in accordance with section 1020.

  • Marginal note:Notice — Committee and Review Agency

    (7) If a direction has been made under subsection (1) or (4) for reasons related to national security, the Minister shall, within 30 days after the day on which the direction was made, notify

 

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