Canadian Ownership and Control Determination Regulations, 1984



Registration 1984-05-31

Regulations Respecting the Determination of the Canadian Ownership Rate and Control Status of a Person

P.C. 1984-1847 1984-05-31

Her Excellency the Governor General in Council, on the recommendation of the Acting Minister of Energy, Mines and Resources, pursuant to section 52 of the Canadian Ownership and Control Determination ActFootnote *, is pleased hereby to revoke the Canadian Ownership and Control Determination Regulations made by Order in Council P.C. 1982-3929 of 23rd December, 1982Footnote ** and to make the annexed Regulations respecting the determination of the Canadian ownership rate and control status of a person, in substitution therefor.


Exclusions from Formal Equity

  •  (1) There shall, for the purpose of determining the Canadian ownership rate of any person or class of persons, be excluded from the formal equity of a corporation,

    • (a) during a 60 day period from the day on which the underwriting agreement was signed, any share of a publicly traded class of formal equity that a dealer, acting as an underwriter pursuant to an underwriting agreement, owns;

    • (b) any unit that was a bearer unit on February 9, 1982; and

    • (c) any unit that has a fixed or determinable yield not exceeding a reasonable yield in relation to the market yield of a comparable unit on the date of issue of the unit.

  • (2) For the purposes of paragraph (1)(c), the calculation of the yield shall take into consideration any incentive that the person or class of persons referred to in that subsection would, based on a Canadian ownership rate determined as if the unit and all other units of the same class of formal equity were included in formal equity, be qualified to receive pursuant to the Petroleum Incentives Program Act in respect of the consideration paid on the issue of the units.

  • (3) Where, in respect of units of a class of formal equity of an entity, the entity would have a total equity percentage of 100% calculated as if those units constituted all the formal equity of the entity, those units shall be excluded from formal equity for the purpose of determining the Canadian ownership rate of that entity