Bill C-38
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Application to
court
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957. (1) Where a person fails to comply
with a direction made under subsection
956(1), an application on behalf of the
Minister may be made to a court for an order
to enforce the direction.
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Court order
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(2) A court may, on an application under
subsection (1), make such order as the
circumstances require to give effect to the
terms of the direction and may, without
limiting the generality of the foregoing,
require the insurance holding company
concerned to sell the shares that are the
subject-matter of the direction.
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Appeal
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(3) An appeal from an order of a court under
this section lies in the same manner as, and to
the same court to which, an appeal may be
taken from any other order of the court.
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Interest of
securities
underwriter
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958. This Division does not apply to a
securities underwriter in respect of shares of a
body corporate or ownership interests in an
unincorporated entity that are acquired by the
underwriter in the course of a distribution to
the public of those shares or ownership
interests and that are held by the underwriter
for a period of not more than six months.
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Arrangements
to effect
compliance
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959. (1) The directors of an insurance
holding company may make such
arrangements as they deem necessary to carry
out the intent of this Division and, in
particular, but without limiting the generality
of the foregoing, may
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Order of
Superinten- dent
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(2) The Superintendent may, by order,
direct an insurance holding company to obtain
from any person in whose name a share of the
insurance holding company is held a
declaration setting out the name of every
entity controlled by that person and
containing information concerning
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Compliance
required
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(3) As soon as possible after receipt by an
insurance holding company of a direction
under subsection (2),
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Outstanding
declaration:
effect
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(4) Where, pursuant to this section, a
declaration is required to be submitted by a
shareholder or other person in respect of the
issue or transfer of any share, an insurance
holding company may refuse to issue the share
or register the transfer unless the required
declaration is submitted.
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Reliance on
information
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960. An insurance holding company and
any person who is a director or an officer,
employee or agent of the insurance holding
company may rely on any information
contained in a declaration required by the
directors pursuant to section 959 or on any
information otherwise acquired in respect of
any matter that might be the subject of such a
declaration, and no action lies against the
insurance holding company or any such
person for anything done or omitted to be done
in good faith in reliance on any such
information.
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Exemption
regulations
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961. The Governor in Council may, by
regulation, exempt from any of the provisions
of this Division any transaction or any class of
transactions involving the transfer of shares
on the death of the beneficial owner thereof,
or any arrangement made in contemplation of
the death of the beneficial owner, to one or
more members of the beneficial owner's
family, or to one or more trustees on their
behalf.
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Competition
Act
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962. Nothing in, or done under the authority
of, this Act affects the operation of the
Competition Act.
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DIVISION 8 |
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BUSINESS AND POWERS |
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Main business
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963. (1) Subject to this Part, an insurance
holding company shall not engage in or carry
on any business other than
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Regulations
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(2) The Governor in Council may make
regulations prescribing businesses or services
for the purposes of subsection (1).
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Restriction on
partnerships
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964. (1) Except with the approval of the
Superintendent, an insurance holding
company shall not be a general partner in a
limited partnership or a partner in a general
partnership.
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Meaning of
``general
partnership''
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(2) For the purposes of subsection (1),
``general partnership'' means any partnership
other than a limited partnership.
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Restriction on
guarantees
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965. (1) An insurance holding company
shall not guarantee on behalf of any person the
payment or repayment of any sum of money.
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Exception
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(2) Subsection (1) does not apply if
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Regulations
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(3) The Governor in Council may make
regulations imposing terms and conditions in
respect of guarantees permitted by this
section.
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DIVISION 9 |
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INVESTMENTS |
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Interpretation
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Definitions
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966. (1) The definitions in subsection
490(1) apply in respect of insurance holding
companies, subject to the following:
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Members of
an insurance
holding
company's
group
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(2) For the purpose of this Division, a
member of an insurance holding company's
group is any of the following:
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Non-applicati
on of Division
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(3) This Division does not apply in respect
of
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Investments
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Investments
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967. Subject to this Division, an insurance
holding company may invest its funds in
permitted entities or make any other
investment that its directors consider
necessary or advisable to manage the
insurance holding company's liquidity.
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General Constraints on Investments
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Investment
standards
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968. The directors of an insurance holding
company shall establish and the insurance
holding company shall adhere to investment
and lending policies, standards and
procedures that a reasonable and prudent
person would apply to avoid undue risk of loss
and obtain a reasonable return.
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Restriction on
control and
substantial
investments
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969. (1) Subject to subsections (2) and (3),
no insurance holding company shall acquire
control of, or hold, acquire or increase a
substantial investment in, any entity other
than a permitted entity.
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Exception:
indirect
investments
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(2) An insurance holding company may
acquire control of, or acquire or increase a
substantial investment in, an entity other than
a permitted entity by way of
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Exception:
temporary
investments,
realizations
and loan
workouts
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(3) An insurance holding company may
acquire control of, or acquire or increase a
substantial investment in, an entity by way of
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Exception:
uncontrolled
event
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(4) An insurance holding company is
deemed not to contravene subsection (1) if the
insurance holding 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
insurance holding company.
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Regulations re
limits
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970. The Governor in Council may make
regulations
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Subsidiaries and Equity Investments
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Permitted
investments
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971. (1) Subject to subsections (4) to (6), an
insurance holding company may acquire
control of, or acquire or increase a substantial
investment in,
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Permitted
investments
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(2) Subject to subsections (3) to (6), an
insurance holding company may acquire
control of, or acquire or increase a substantial
investment in, an entity, other than an entity
referred to in any of paragraphs (1)(a) to (j),
whose business is limited to one or more of the
following:
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