Canadian Ownership and Control Determination Regulations, 1984 — 7
7 (1) For the purposes of these Regulations, equity-related persons or persons equity-related to each other means (a) individuals connected by blood relationship, marriage or adoption; (b) an entity and (i) a person who has a direct equity percentage in the entity of more than 50%, (ii) a person who is a member of an equity-related group the members of which have an aggregate direct equity percentage in the entity of more than 50%, or (iii) any person equity-related to a person described in subparagraph (i) or (ii); or (c) any two entities (i) if one person has a direct equity percentage in each entity of more than 50% or the members of one equity-related group of persons have an aggregate direct equity percentage in the entity of more than 50%, (ii) if one person has a direct equity percentage in one of the entities of more than 50% and that person is equity-related to a person who has a direct equity percentage in the other entity of more than 50%, (iii) if one person has a direct equity percentage in one of the entities of more than 50% and that person is equity-related to any member of an equity-related group the members of which have an aggregate direct equity percentage in the other entity of more than 50%, (iv) if one person has a direct equity percentage in one entity of more than 50% and that person is equity-related to each member of an unrelated group the members of which have an aggregate direct equity percentage in the other entity of more than 50%, (v) if any member of an equity-related group the members of which have an aggregate direct equity percentage in one of the entities of more than 50% is equity-related to each member of an unrelated group the members of which have an aggregate direct equity percentage in the other entity of more than 50%, (vi) if each member of an unrelated group the members of which have an aggregate direct equity percentage in one of the entities of more than 50% is equity-related to at least one member of an unrelated group the members of which have an aggregate direct equity percentage in the other entity of more than 50%, or (vii) if any member of an equity-related group the members of which have an aggregate direct equity percentage in one of the entities of more than 50% is equity-related to each member of an equity-related group the members of which have an aggregate direct equity percentage in the other entity of more than 50%. (2) Where two entities are equity-related to the same entity, the entities are, for the purposes of these Regulations, equity-related to each other. (3) For the purposes of these Regulations, (a) equity-related group means a group of persons each member of which is equity-related to every other member of the group; (b) unrelated group means a group of persons that is not an equity-related group; and (c) where a person has a direct equity percentage in two or more entities, that person is, as a person having a direct equity percentage in one of the entities, equity-related to himself as a person having a direct equity percentage in each of the other entities. (4) For the purposes of these Regulations, (a) persons are connected by blood relationship if one is the child or other descendant of the other or if one is the brother or sister of the other; (b) persons are connected by marriage if one is married to the other or to a person who is connected by blood relationship to the other; and (c) persons are connected by adoption if one has been adopted, either legally or in fact, as the child of the other or as the child of a person who is connected by blood relationship, otherwise than as a brother or sister, to the other.