Nordion and Theratronics Divestiture Authorization Act
Marginal note:Mandatory provisions in articles of amendment
6 (1) The articles of amendment of Nordion shall contain provisions imposing constraints on the issue, transfer and ownership, including joint ownership, of voting shares of Nordion to prevent non-residents, together with the associates thereof, from holding, beneficially owning or controlling, directly or indirectly, otherwise than by way of security only, in the aggregate voting shares to which are attached more than twenty-five per cent of the votes that may ordinarily be cast to elect directors of Nordion.
Marginal note:Enforcement of constraint provisions
(2) The regulations made pursuant to subsection 174(6) of the Canada Business Corporations Act apply, with such modifications as the circumstances require, in respect of Nordion as if the constraints imposed pursuant to subsection (1) were a constraint referred to in paragraph 174(1)(a) of that Act.
(3) No provision imposing constraints pursuant to subsection (1) and no regulation referred to in subsection (2) apply in respect of voting shares of Nordion that are held
(a) by one or more underwriters solely for the purpose of distributing the shares to the public; or
(b) by any person providing centralized facilities for the clearing of trades in securities and acting in relation to trading in the shares solely as an intermediary in the payment of funds or the delivery of the shares, or both.
(4) For the purposes of this section, a person is an associate of a non-resident if
(a) one is a corporation of which the other is an officer or director;
(b) one is a corporation that is controlled by the other or by a group of persons of which the other is a member;
(c) one is a partnership of which the other is a partner;
(d) one is a trust of which the other is a trustee;
(e) both are corporations controlled by the same person;
(f) both are members of a voting trust that relates to voting shares of Nordion;
(g) both are parties to an agreement or arrangement, a purpose of which is to require them to act in concert with respect to their interests, direct or indirect, in Nordion; or
(h) both are at the same time associates, within the meaning of any of paragraphs (a) to (g), of the same non-resident.
(5) Notwithstanding subsection (4), for the purposes of this section,
(a) where a resident who, but for this paragraph, would be an associate of a non-resident submits to Nordion a statutory declaration stating that no voting shares of Nordion held or to be held by the resident are or will be, to the resident’s knowledge, held in the right of, for the use or benefit of or under the control of any non-resident of which, but for this paragraph, the resident would be an associate, that resident and that non-resident are not associates so long as the voting shares held by the resident are not held contrary to the statements made in the declaration;
(b) two corporations are not associates pursuant to paragraph (4)(h) by reason only that pursuant to paragraph (4)(a) each is an associate of the same individual; and
(c) where it appears from the central securities register of Nordion that any person holds, beneficially owns or controls voting shares to which are attached not more than the lesser of two one-hundredths of one per cent of the votes that may ordinarily be cast to elect directors of Nordion and two thousand such votes, that person is not an associate of anyone else and no one else is an associate of that person.
(6) For the purposes of this section,
(a) a body corporate is controlled by a person if
(i) securities of the body corporate to which are attached more than fifty per cent of the votes that may be cast to elect directors of the body corporate are held, otherwise than by way of security only, by or for the benefit of that person, and
(ii) the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate; and
(b) a partnership or unincorporated organization is controlled by a person if an ownership interest therein representing more than fifty per cent of the assets of the partnership or organization is held, otherwise than by way of security only, by or for the benefit of that person.
(7) In this section,
corporation includes a body corporate, partnership and unincorporated organization; (société)
(a) an individual, other than a Canadian citizen, who is not ordinarily resident in Canada,
(b) a corporation incorporated, formed or otherwise organized outside Canada,
(c) a foreign government or an agency thereof,
(d) a corporation controlled by non-residents as defined in any of paragraphs (a) to (c),
(e) a trust
(i) established by a non-resident as defined in any of paragraphs (b) to (d), other than a trust for the administration of a pension fund for the benefit of individuals a majority of whom are residents, or
(ii) in which non-residents as defined in any of paragraphs (a) to (d) have more than fifty per cent of the beneficial interest, or
(f) a corporation that is controlled by a trust described in paragraph (e); (non-résident)
person includes an individual, corporation, government or agency thereof, trustee, executor, administrator and other legal representative; (personne)
resident means an individual, corporation, government or agency thereof or trust that is not a non-resident; (résident)
action avec droit de vote
voting share means a share carrying voting rights under all circumstances or under some circumstances that have occurred and are continuing, and includes a security currently convertible into such a share and currently exercisable options and rights to acquire such a share or such a convertible security. (action avec droit de vote)
- 1990, c. 4, s. 6
- 1994, c. 24, s. 34(F)
- Date modified: