Broadcasting Distribution Regulations — 4
ctly or indirectly, the beneficial owner of the voting interest; or (b) the person, by means of an arrangement, a contract, an understanding or an agreement, determines the manner in which the interest is voted, but the solicitation of proxies or the seeking of instructions regarding the completion of proxies in respect of the exercise of voting interests is not considered to be such an arrangement, contract, understanding or agreement. (3) For the purposes of this section, effective control of a licensee or its undertaking includes situations in which (a) a person controls, directly or indirectly, other than by way of security only, a majority of the voting interests of the licensee; (b) a person has the ability to cause the licensee or its board of directors to undertake a course of action; or (c) the Commission, following a public hearing of an application for a licence, or in respect of an existing licence, determines that a person has such effective control and sets out that determination in a decision or public notice. (4) Except as otherwise provided under a condition of its licence, a licensee shall obtain the prior approval of the Commission in respect of any act, agreement or transaction that directly or indirectly would result in (a) a change of the effective control of its undertaking; or (b) a person who, alone, or together with an associate, (i) controls less than 30% of the voting interests of the licensee, having control of 30% or more of those interests, (ii) controls less than 30% of the voting interests of a person who has, directly or indirectly, effective control of the licensee, having control of 30% or more of those interests, (iii) owns less than 50% of the issued common shares of the licensee, owning 50% or more of those shares but not having, directly or indirectly, effective control of the licensee, or (iv) owns less than 50% of the issued common shares of a person who has, directly or indirectly, effective control of the licensee, owning 50% or more of those shares but not having, directly or indirectly, effective control of the licensee. (5) A licensee shall notify the Commission within 30 days after the occurrence of any act, agreement or transaction that, directly or indirectly, results in a person who, alone, or together with an associate, controls less than (a) 20% of the voting interests of the licensee, having control of 20% or more but less than 30% of those interests; (b) 20% of the voting interests of a person who has, directly or indirectly, effective control of the licensee, having control of 20% or more but less than 30% of those interests; (c) 40% of the voting interests of the licensee, having control of 40% or more but less than 50% of those interests but not having, directly or indirectly, effective control of the licensee; or (d) 40% of the voting interests of a person who has, directly or indirectly, effective control of the licensee, having control of 40% or more but less than 50% of those interests but not having, directly or indirectly, effective control of the licensee. (6) A notification referred to in subsection (5) shall set out the following information: (a) the name of the person or the names of the person and the associate; (b) the percentage of the voting interests controlled by the person or by the person and the associate; and (c) a copy or a complete description of the act, agreement or transaction. SOR/2001-357, s. 5; SOR/2006-109, s. 1; SOR/2012-151, s. 13