Financial Administration Act — F-11 83
hares necessary to qualify persons as directors, are held, otherwise than by way of security only, by, on behalf of or in trust for the Crown; or (b) all the directors of the corporation, other than ex officio directors, are appointed by the Governor in Council or by a minister of the Crown with the approval of the Governor in Council. Holding by agent corporations (3) For the purposes of subsection (2), shares held by a corporation that is an agent of the Crown (a) are deemed not to be held by or on behalf of the Crown; and (b) are not by reason of that fact alone shares held in trust for the Crown. Wholly owned by other corporation or corporations (4) For the purposes of this Part, a corporation is wholly owned by one or more other corporations if (a) all of the issued and outstanding shares of the corporation, other than shares necessary to qualify persons as directors, are held, otherwise than by way of security only, by, on behalf of or in trust for the one or more other corporations; (b) all the directors of the corporation are appointed by the board or boards of directors of the one or more other corporations; or (c) all the directors of the one or more other corporations are, by virtue of their being directors of the one or more other corporations, directors of the corporation. Affiliates (5) For the purposes of this Part, (a) one corporation is an affiliate of another corporation if one of them is the subsidiary of the other or both are subsidiaries of the same corporation or each of them is controlled by the same person; and (b) if two corporations are affiliates of the same corporation at the same time, they are deemed to be affiliates of each other. Subsidiaries (6) For the purposes of this Part, a corporation is a subsidiary of another corporation if it is controlled by that other corporation. Control (7) For the purposes of this Part, a corporation with share capital is controlled by a person if (a) shares of the corporation to which are attached more than fifty per cent of the votes that may be cast to elect directors of the corporation are held, otherwise than by way of security only, by, on behalf of or in trust for that person; and (b) the votes attached to those shares are sufficient, if exercised, to elect a majority of the directors of the corporation. Idem (8) For the purposes of this Part, a corporation without share capital is controlled by a person if that person is able to appoint the majority of the directors of the corporation, whether or not he does so. Appointment (9) For the purposes of this Part, a person is deemed to be appointed by another person or group of persons if that person is appointed on the direction of that other person or group, whether or not he is actually appointed by that other person or group. Major business or activity (10) Where, in the opinion of the Governor in Council, a parent Crown corporation or a wholly-owned subsidiary of a parent Crown corporation carries on, or a parent Crown corporation and any wholly-owned subsidiary of the corporation carry on, more than one business or activity, the parent Crown corporation shall, with the approval of the Governor in Council, classify the businesses or activities for the purposes of this Part. R.S., 1985, c. F-11, s. 83; R.S., 1985, c. 1 (4th Supp.), s. 26; 1991, c. 24, s. 21; 2005, c. 30, s. 133(E)