Teleglobe Canada Reorganization and Divestiture Act (S.C. 1987, c. 12)

Marginal note:Application of Public Service Superannuation Act

Footnote ^*26 Notwithstanding subsections 32(3) and (4) of the Public Service Superannuation Act, the Governor in Council may, by order,

• (a) add the name of the new corporation to Part I of Schedule A to that Act;

• (b) delete the name of the new corporation from Part I of Schedule A to that Act;

• (c) add the name of the new corporation to Part III of Schedule A to that Act; and

• (d) add the name of Teleglobe to Part III of Schedule A to that Act.

  • Return to footnote ^*[Note: Pursuant to paragraph 20(2)(a), the reference to “Teleglobe” in this section shall be construed as including a reference to “TH(1987)”.]

Marginal note:Transfer of undertaking

27 For greater certainty, the transfer of the business, works and undertaking of Teleglobe to the new corporation under section 4 is deemed to be,

• (a) for the purposes of Part III of the Canada Labour Code, a transfer of a particular federal work or undertaking or business within the meaning of section 45 of that Act; and

• (b) for the purposes of section 144 of that Act, a sale of a business within the meaning of that section.

Marginal note:Shares qualified

• 28 (1) For the purpose of qualifying the shares of the new corporation

  • (a) as an authorized investment under paragraph 63(1)(m) of the Canadian and British Insurance Companies Act, paragraph 60(1)(e) of the Loan Companies Act or paragraph 68(1)(j) of the Trust Companies Act,

  • (b) as a permitted investment under paragraph 1(s) of Schedule III to the Pension Benefits Standards Regulations, 1985, and

  • (c) as assets that may be vested in trust in Canada under paragraph 1(m) of Schedule II to the Canadian and British Insurance Companies Act or paragraph 1(m) of Schedule I to the Foreign Insurance Companies Act,

  the new corporation is deemed to have satisfied the requirements of those paragraphs with respect to each of the five years immediately preceding the privatization date.

• Marginal note:Debt obligations qualified

  (2) For the purpose of qualifying the bonds, debentures or other evidences of indebtedness of the new corporation

  • (a) as an authorized investment under subparagraph 63(1)(j)(i) of the Canadian and British Insurance Companies Act, subparagraph 60(1)(c)(i) of the Loan Companies Act or subparagraph 68(1)(g)(i) of the Trust Companies Act,

  • (b) as a permitted investment under paragraph 1(m) of Schedule III to the Pension Benefits Standards Regulations, 1985, and

  • (c) as assets that may be vested in trust in Canada under subparagraph 1(j)(i) of Schedule II to the Canadian and British Insurance Companies Act or subparagraph 1(j)(i) of Schedule I to the Foreign Insurance Companies Act,

  the new corporation is deemed

  • (d) to have satisfied the requirements of the paragraphs referred to in subsection (1) with respect to each of the five years immediately preceding the privatization date, and

  • (e) to have had amounts of paid-in capital, contributed surplus, retained earnings and total indebtedness at any relevant time prior to the privatization date identical to the corresponding amounts of Teleglobe at that time.

• Marginal note:Idem

  (3) For the purpose of qualifying

  • (a) the bonds, debentures or other evidences of indebtedness of or guaranteed by the new corporation as an authorized investment under subparagraph 63(1)(j)(ii) of the Canadian and British Insurance Companies Act, subparagraph 60(1)(c)(ii) of the Loan Companies Act or subparagraph 68(1)(g)(ii) of the Trust Companies Act,

  • (b) the bonds, debentures or other evidences of indebtedness of or guaranteed by the new corporation as a permitted investment under subparagraph 1(n)(i) of Schedule III to the Pension Benefits Standards Regulations, 1985, and

  • (c) the bonds, debentures or other evidences of indebtedness of the new corporation as assets that may be vested in trust in Canada under subparagraph 1(j)(ii) of Schedule II to the Canadian and British Insurance Companies Act or subparagraph 1(j)(ii) of Schedule I to the Foreign Insurance Companies Act,

  the new corporation is deemed to have had earnings and annual interest requirements for any relevant period prior to the privatization date identical to the corresponding amounts of Teleglobe for that period.

• Definition of privatization date

  (4) In this section, privatization date means the date of the first sale or other disposal of shares of the new corporation by Teleglobe.

Marginal note:Filing of first tariff

• 29 (1) The new corporation may continue to charge any telegraph toll or telephone toll previously charged by Teleglobe that is in force at the time the new corporation commences business notwithstanding that a tariff of the tolls is not then filed with the Commission, but the new corporation shall file a tariff of those tolls with the Commission forthwith after it commences business.

• Marginal note:Tolls for 1987

  (2) Subject to subsection (1), the new corporation shall file with the Commission in accordance with section 320 of the Railway Act tariffs of the telegraph tolls and telephone tolls of the new corporation in force from time to time in 1987, but such tolls are deemed to comply with, and to have been approved by the Commission for the purposes of, that section and section 321 of that Act and the Commission may not, for any period in that year, revise, replace, disallow, suspend or postpone them or require the new corporation to do so.

Marginal note:Direction respecting tolls in transitional period

• 30 (1) The Governor in Council shall, forthwith after the coming into force of this section, issue to the Commission a direction respecting the approval of the telegraph tolls and telephone tolls of the new corporation in force from time to time in the transitional period and the Commission shall give effect to the direction under and in accordance with the Act of Parliament that establishes the powers, duties and functions of the Commission in relation to the subject-matter of the direction.

• Marginal note:Tabling in Parliament

  (2) The Minister of Communications shall cause a copy of the direction issued under subsection (1) to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the direction is issued.

• Definition of transitional period

  (3) In this section, transitional period means the period from January 1, 1988 to December 31, 1991.

Marginal note:Contracts, etc., deemed approved

31 All contracts, agreements and arrangements entered into by Teleglobe and in force at the time the new corporation commences business that, but for this section, would be subject to the approval of the Commission before they have any force or effect shall be deemed to have been approved by the Commission and the Commission may not, for any period in 1987, revise, replace, disallow, suspend or postpone them or require the new corporation to do so.

Marginal note:Substitution

32 Wherever in any contract, agreement, deed, lease or other instrument Teleglobe is mentioned or referred to, there shall, in every case, unless the context otherwise requires, be substituted therefor a mention or reference to the new corporation.

Marginal note:Deemed approval

33 An agreement or arrangement referred to in section 29 of the Telecommunications Act or a limitation of liability referred to in section 31 of that Act that was entered into or imposed, respectively, by the new corporation, or to which the new corporation is an assignee or a successor on the coming into force of this section, and that is in effect on the coming into force of this section, is deemed to have been approved under section 29 or 31 of that Act.

34 [Repeal of another Act]

Coming into Force

Marginal note:Coming into force

Footnote ^*35 Subsection 4(4) and sections 20, 21, 25, 30 and 32 to 34 shall come into force on a day or days to fixed by proclamation.

• Return to footnote ^*[Note: Subsection 4(4) and sections 30 and 32 in force April 2, 1987, see SI/87-89; section 25 in force April 4, 1987, see SI/87-90; section 34 in force July 29, 1993, see SI/93-100; section 20 in force July 28, 1993, see SI/93-147; sections 21 and 33 in force July 29, 1993, see SI/93-148.]