Cooperative Credit Associations Act — C-41.01 410
Related party of association 410 (1) For the purposes of this Part, a person is a related party of an association where the person (a) is a person, other than a member, who has a significant interest in a class of shares of the association; (b) is a director or senior officer of the association or of a body corporate that controls the association; (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); (d.1) is an entity in which a person who controls the association has a substantial investment; or (e) is a person, or a member of a class of persons, designated under subsection (2) or (3) as, or deemed under subsection (4) to be, a related party of the association. (f) and (g) [Repealed, 1997, c. 15, s. 151] Related party of retail association (1.1) Subject to the regulations, for the purposes of this Part, a person is a related party of a retail association if the person is (a) a member of the association or of an association that controls, or has a significant interest in, the association; (b) a director or senior officer of the association or of a body corporate that controls the association; (c) the spouse or common-law partner, or a child who is less than eighteen years of age, of a person referred to in paragraph (a) or (b); (d) an entity that is controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(e), by a person referred to in any of paragraphs (a) to (c); or (e) a person, or a member of a class of persons, designated under subsection (2) or (3) as, or deemed under subsection (4) to be, a related party of the association. Exception — subsidiaries and substantial investments of associations (1.2) If an entity in which an association has a substantial investment would, but for this subsection, be a related party of the association only because a person who controls the association 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 association, the entity is not a related party of the association. Designated related party (2) For the purposes of this Part, the Superintendent may, with respect to a particular association, designate as a related party of the association any person or class of persons whose direct or indirect interest in or relationship with the association or a related party of the association might reasonably be expected to affect the exercise of the best judgment of the association in respect of a transaction. Idem (3) Where a person is designated as a related party of an association pursuant to subsection (2), 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 association. Deemed related party (4) Where, in contemplation of a person becoming a related party of an association, the association enters into a transaction with the person, the person is deemed for the purposes of this Part to be a related party of the association in respect of that transaction. Exemption (5) The Superintendent may, by order, designate a class of non-voting shares of an association for the purpose of this subsection. If a class of non-voting shares of an association is so designated, a person is deemed, notwithstanding paragraph (1)(a), not to be a related party of the association if the person would otherwise be a related party of the association only because the person has a significant interest in that class. Determination of control (6) For the purposes of paragraph (1)(d), “controlled” means “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(e)”. (7) [Repealed, 1997, c. 15, s. 151] 1991, c. 4