Insurance Companies Act — I-11.8 518
Related party of company 518 (1) For the purposes of this Part, a person is a related party of a company where the person (a) is a person who has a significant interest in a class of shares of the company; (b) is a director or senior officer of the company or of a body corporate that controls the company or is acting in a similar capacity in respect of an unincorporated entity that controls the company; (c) is the spouse or common-law partner, or a child who is less than eighteen years of age, of a person described in paragraph (a) or (b); (d) is an entity that is controlled by a person referred to in any of paragraphs (a) to (c); (e) is an entity in which a person who controls the company has a substantial investment; (f) is an entity in which the spouse or common-law partner, or a child who is less than eighteen years of age, of a person who controls the company has a substantial investment; or (g) is a person, or a member of a class of persons, designated under subsection (4) or (5) as, or deemed under subsection (6) to be, a related party of the company. (h) [Repealed, 1997, c. 15, s. 277] Exception — subsidiaries and substantial investments of companies (2) If an entity in which a company has a substantial investment would, but for this subsection, be a related party of the company only because a person who controls the company controls the entity or has a substantial investment in the entity, and the person does not control the entity or have a substantial investment in the entity otherwise than through the person’s controlling interest in the company, the entity is not a related party of the company. Deeming (3) The holding body corporate of a company is deemed not to be a person referred to in paragraph (1)(a) if the holding body corporate is a foreign company. Designated related party (4) For the purposes of this Part, the Superintendent may, with respect to a particular company, designate as a related party of the company (a) any person or class of persons whose direct or indirect interest in or relationship with the company or a related party of the company might reasonably be expected to affect the exercise of the best judgment of the company in respect of a transaction; or (b) any person who is a party to any agreement, commitment or understanding referred to in section 9 if the company referred to in that section is the particular company. Idem (5) Where a person is designated as a related party of a company pursuant to subsection (4), the Superintendent may also designate any entity in which the person has a substantial investment and any entity controlled by such an entity to be a related party of the company. Deemed related party (6) Where, in contemplation of a person becoming a related party of a company, the company enters into a transaction with the person, the person is deemed for the purposes of this Part to be a related party of the company in respect of that transaction. Holders of exempted shares (7) The Superintendent may, by order, designate a class of non-voting shares of a company for the purpose of this subsection. If a class of non-voting shares of a company is so designated, a person is deemed, notwithstanding paragraph (1)(a), not to be a related party of the company if the person would otherwise be a related party of the company only because the person has a significant interest in that class. Determination of substantial investment (8) For the purpose of determining whether an entity or a person has a substantial investment for the purposes of paragraph (1)(e) or (f), the references to “control” and “controlled” in section 10 shall be construed as references to “control, within the meaning of section 3, determined without regard to paragraph 3(1)(d)” and “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(d)”, respectively. Determination of control (9) For the purposes of paragraph (1)(d), controlled means “controlled, within the meaning of section 3, de