Bank Act — B-1.01 271
Extended meaning of insider 271 (1) In this section and sections 271.1 and 272, insider with respect to a bank means (a) the bank; (b) an affiliate of the bank; (c) a director or officer of the bank or of any person described in paragraph (b), (d) or (f); (d) a person who beneficially owns directly or indirectly, or who exercises control or direction over or has a combination of ownership, control and direction in respect of, shares of the bank carrying more than the prescribed percentage of the voting rights attached to all of the bank’s outstanding shares not including shares held by the person as underwriter while those shares are in the course of a distribution to the public; (e) a person, other than a person described in paragraph (f), who is employed or retained by the bank or by a person described in paragraph (f); (f) a person who engages in or proposes to engage in any business or professional activity with or on behalf of the bank; (g) a person who received material confidential information concerning the bank while they were a person described in any of paragraphs (a) to (f); (h) a person who receives material confidential information from a person who is and who they know or ought reasonably to have known is a person described in this subsection, including in this paragraph, or subsection (3) or (4); or (i) a prescribed person. Extended meaning of insider — federal credit union (1.1) In addition to subsection (1), in this section and sections 271.1 and 272, insider with respect to a bank that is a federal credit union means a member of the federal credit union who holds more than the prescribed percentage of the membership shares of the federal credit union. Extended meaning of security (2) For the purposes of this section, each of the following is deemed to be a security of a bank: (a) a membership share of the bank, if the bank is a federal credit union; (a.1) a put, call, option or other right or obligation to purchase or sell a security of the bank; and (b) a security of another entity, the market price of which varies materially with the market price of the securities of the bank. Deemed insider — take-over bid or business combination (3) For the purposes of this section and subsection 271.1(1), a person who proposes to make a take-over bid as defined in the regulations for securities of a bank or to enter into a business combination with a bank is an insider of the bank with respect to material confidential information obtained from the bank. Deemed insider — affiliate or associate (4) An insider of a person referred to in subsection (3), or the person’s affiliate or associate, is an insider of the bank referred to in that subsection. Paragraphs (1)(b) to (i) apply in making this determination except that references to “bank” are to be read as references to “person described in subsection (3)”. Meaning of associate (5) In subsection (4), associate means with respect to a person (a) a body corporate that the person directly or indirectly controls, determined without regard to paragraph 3(1)(d), or of which they beneficially own shares or securities currently convertible into shares carrying more than 10% of the voting rights under all circumstances or by reason of the occurrence of an event that has occurred and is continuing or a currently exercisable option or right to purchase the shares or convertible securities; (b) a partner of the person acting on behalf of the partnership of which they are partners; (c) a trust or estate in which the person has a substantial beneficial interest or in respect of which they serve as a trustee or a liquidator of the succession or in a similar capacity; (d) a spouse or common-law partner of the person; (e) a child of the person or of their spouse or common-law partner; or (f) if that relative has the same residence as the person, a relative of the person or of their spouse or common-law partner. Insider trading — compensation to sellers and purchasers (6) An insider of a b