PART IV HYDRO ONE INC.
Restriction on share ownership
48.2 (1) No person or entity, and no combination of persons or entities acting jointly or in concert, may beneficially own or exercise control or direction over more than 10 per cent of any class or series of voting securities of Hydro One Inc.  However this restriction does not apply with respect to voting securities of Hydro One Inc. held by the Minister on behalf of Her Majesty in right of Ontario. 2015, c. 20, Sched. 9, s. 3. Exception for underwriters (2) Subsection (1) does not apply to an underwriter who holds voting securities solely for the purpose of distributing voting securities to purchasers who comply with subsection (1). 2015, c. 20, Sched. 9, s. 3. If limits exceeded (3) Where any person or entity or combination of persons or entities acting jointly or in concert beneficially owns or exercises control or direction over more than 10 per cent of any class or series of voting securities, Hydro One Inc. shall promptly take steps under its articles of incorporation to remedy the situation. 2015, c. 20, Sched. 9, s. 3. Remedies, articles of incorporation (4) The articles of incorporation of Hydro One Inc. shall include the restriction provided for in subsection (1) and provisions to enforce that restriction, which may include, without being limited to, provisions respecting, (a) the filing of declarations; (b) the suspension of voting rights; (c) the forfeiture of dividends; (d) the refusal of the issuance or registration of voting securities; and (e) the sale or redemption of voting securities held contrary to the restriction and the payment of the net proceeds to the person or entity entitled to them. 2015, c. 20, Sched. 9, s. 3. Restrictions on Province’s sale, etc. (5) The Minister on behalf of Her Majesty in right of Ontario shall not sell, dispose of or otherwise divest any voting securities of Hydro One Inc. of any class or series of voting securities of Hydro One Inc. if the sale, disposal or divestment would result in the Minister on behalf of Her Majesty in right of Ontario owning less than 40 per cent of the outstanding number of voting securities of that class or series. 2015, c. 20, Sched. 9, s. 3. Maintaining provincial ownership (6) If as a result of the issuance of additional voting securities of any class or series by Hydro One Inc., the Minister on behalf of Her Majesty in right of Ontario owns less than 40 per cent of the outstanding number of voting securities of that class or series, then the Minister shall, subject to the approval of the Lieutenant Governor in Council and subject to the requirements set out in this section, take steps to acquire as many voting securities of that class or series of voting securities as are necessary to increase the Minister’s ownership to not less than 40 per cent of the outstanding number of voting securities of that class or series. 2015, c. 20, Sched. 9, s. 3. When may acquire voting securities (7) The Minister shall acquire voting securities in accordance with subsection (6) only if, (a) the Lieutenant Governor in Council has determined the manner by which, and the time by or within which, the voting securities shall be acquired and the Minister acquires them in accordance with that determination; and (b) the Minister’s actions and the acquisition comply with the Securities Act and any other applicable Act or regulation. 2015, c. 20, Sched. 9, s. 3. Funding (8) The money required for the purposes of subsection (6) shall be paid out of the money appropriated for those purposes by the Legislature. 2015, c. 20, Sched. 9, s. 3. Reports (9) The Minister shall table reports in the Assembly from time to time regarding the steps the Minister has taken under subsection (6). 2015, c. 20, Sched. 9, s. 3. Issuing shares to employees (10) Despite section 23 of the Business Corporations Act, the board of directors of Hydro One Inc. may authorize the issuance of shares of Hydro One Inc. to employees of  Hydro One Inc. or of any of its subsidiaries, or for their benefit or on their behalf, for no consideration or for such consideration as the board of directors may approve. 2015, c. 20, Sched. 9, s. 3. Same, stated capital account (11) Despite section 24 of the Business Corporations Act, Hydro One Inc. may add to the appropriate stated capital account for shares issued under subsection (10) the amounts received by Hydro One Inc. for those shares. 2015, c. 20, Sched. 9, s. 3. Non-application of Business Corporations Act, s. 42 (12) Section 42 of the Business Corporations Act does not apply to Hydro One Inc. 2015, c. 20, Sched. 9, s. 3. Section Amendments with date in force (d/m/y) 2002, c. 1, Sched. A, s. 10 - 27/06/2002 2015, c. 20, Sched. 9, s. 3 - 31/08/2015