Nordion and Theratronics Divestiture Authorization Act — N-23.7 6
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. 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. Exceptions (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; (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; or (c) by any person if the acquisition of those shares by that person (i) is an investment that, under sections 21 to 23 of the Investment Canada Act , is, or is deemed, likely to be of net benefit to Canada, and (ii) is not prohibited under Part IV.1 of that Act. Exception  — subsequent holders (3.1) No provision imposing constraints under subsection (1) and no regulation referred to in subsection (2) apply in respect of any voting shares of Nordion referred to in paragraph (3)(c) that are subsequently held by any other person. Associates (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. Exceptions (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 associat