Marginal note:Restriction on control and substantial investments
493 (1) Subject to subsections (2) to (4), no company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.
Marginal note:Exception: indirect investments
(2) A company may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity other than a permitted entity by way of
(a) an acquisition of control of an entity referred to in any of paragraphs 495(1)(a) to (j), or of a prescribed entity, that controls or has a substantial investment in the entity; or
(b) an acquisition of shares or ownership interests in the entity by
(i) an entity referred to in any of paragraphs 495(1)(a) to (j), or a prescribed entity, that is controlled by the company, or
(ii) an entity controlled by an entity referred to in any of paragraphs 495(1)(a) to (j), or a prescribed entity, that is controlled by the company.
Marginal note:Exception: temporary investments, realizations and loan workouts
(3) A company may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity by way of
(a) a temporary investment permitted by section 498;
(b) an acquisition of shares of a body corporate or of ownership interests in an unincorporated entity permitted by section 499; or
(c) a realization of security permitted by section 500.
Marginal note:Exception: specialized financing regulations
(4) A life company may, subject to Part XI, acquire control of, or hold, acquire or increase a substantial investment in, an entity other than a permitted entity if it does so in accordance with regulations made under paragraph 494(d) concerning specialized financing.
Marginal note:Exception: uncontrolled event
(5) A company is deemed not to contravene subsection (1) if the company acquires control of, or acquires or increases a substantial investment in, an entity solely as the result of an event not within the control of the company.
- 1991, c. 47, s. 493
- 1997, c. 15, s. 265
- 2001, c. 9, s. 426
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