14 (1) No corporation shall be registered under this Part unless, (a) the corporation complies with all provisions of the legislation under which it is organized, the Securities Act, this Act and, in the case of a corporation referred to in clause 13 (1) (b), the Income Tax Act (Canada); (b) the corporation has never previously carried on business other than the business related to obtaining registration under this Act or the Income Tax Act (Canada); (c) the articles of the corporation provide that the authorized capital of the corporation shall consist only of, (i) Class A shares that are issuable to eligible investors only, (ii) Class B shares that are issuable only to and may be held only by an employee organization, and (iii) such additional classes of shares as may be authorized, if the rights, privileges, restrictions and conditions attached to the shares are approved by the board of directors of the corporation and by the Minister; (d) the articles of the corporation restrict the business of the corporation to, (i) assisting the development of eligible businesses, creating, maintaining and protecting jobs by providing financial and managerial advice to eligible businesses and by making eligible investments, and (ii) incorporating and controlling such other corporations as the corporation may consider advisable to provide services to the corporation in connection with the distribution of the corporation’s shares or to provide financial, investment or managerial advice and expertise; (e)  Repealed:  2001, c. 23, s. 10 (2). (f) the articles of the corporation prohibit the corporation from lending money, guaranteeing a loan or providing other financial assistance to a shareholder of the corporation, to a person related to a shareholder of the corporation or to an employee organization; (g)  Repealed:  1997, c. 43, Sched. C, s. 6. (h) the corporation provides an undertaking in a form satisfactory to the Minister that, (i) the value of its shares will be determined on an annual basis by means of a valuation carried out by an independent qualified person, (ii) the corporation will provide to its shareholders an updated valuation of its shares and disclosure of all major decisions of the corporation that may materially affect that valuation in accordance with the practices of the mutual fund industry, and (iii) the amount to be received by a shareholder on the redemption of a Class A share will be based on the value of the shares determined on the date of the redemption; and (i) the corporation meets all other prescribed conditions.  1992, c. 18, s. 14 (1); 1994, c. 17, s. 84 (1-12); 1997, c. 43, Sched. C, s. 6; 1999, c. 9, s. 53; 2000, c. 42, s. 4; 2001, c. 23, s. 10; 2004, c. 16, s. 1 (2). Definition, eligible investors (2) For the purposes of clause (1) (c), “eligible investors”, of a corporation that is registered under Part X.3 of the
Income Tax Act (Canada) and that has a permanent establishment in Ontario, means individuals who are ordinarily resident in Canada and who would be eligible investors under this Part if they were ordinarily resident in Ontario but does not include trusts which are not qualifying trusts for individuals, as defined by subsection 127.4 (1) of the Income Tax Act (Canada).  1992, c. 18, s. 14 (2); 1994, c. 17, s. 84 (13); 2004, c. 16, s. 1 (2). Interpretation, restrictions (3) Restrictions on the issue, ownership or transfer of any class or series of shares of a corporation that are required by this Act or by Part X.3 of the Income Tax Act
(Canada) to be contained in the articles of the corporation in order to entitle it to registration under this Act or under Part X.3 of the Income Tax Act (Canada), as the case requires, shall be deemed for the purpose of subsection 42 (2) of the Business Corporations Act to be restrictions necessary for the obtaining and holding of authority to engage in an activity necessary to the undertaking of the corporation.  1992, c. 18, s. 14 (3); 2004, c. 16, s. 1 (2). Investments outside Ontario (4) For the purposes of subclause (1) (d) (i), where a corporation is registered under Part X.3 of the Income Tax Act (Canada) and has a permanent establishment in Ontario, “eligible businesses” include businesses that are eligible for investment by investment corporations registered under that Part.  1994, c. 17, s. 84 (14); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1994, c. 17, s. 84 (1) - 15/10/1991; 1994, c. 17, s. 84 (10) - 15/10/1991; 1994, c. 17, s. 84 (11, 12, 14) - 20/05/1993; 1994, c. 17, s. 84 (13) - 3/12/1992; 1997, c. 43, Sched. C, s. 6, 23 (1) - 7/05/1997; 1999, c. 9, s. 53 - 14/12/1999 2001, c. 23, s. 10
- 5/12/2001 2004, c. 16, s. 1 (2)
- 1/01/2004