18.1 (1) In this section, “listed company” means, in relation to a labour sponsored investment fund corporation, a business described in subsection (6); (“société cotée”) “small business” means a business that meets the requirements set out in subsection (11). (“petite entreprise”)  1999, c. 9, s. 56; 2001, c. 23, s. 13 (1, 2); 2004, c. 16, s. 1 (2). (2)-(4) Repealed:  2001, c. 23, s. 13 (3). Limit on investment in listed companies (5) During 2004, a labour sponsored investment fund corporation shall not make investments in eligible businesses that are listed companies to the extent that the cost of those investments exceeds 25 per cent of the total cost of all investments made in eligible businesses by the corporation in 2004 or in 2003, whichever is greater.  2006, c. 9, Sched. C, s. 5 (1). Status of listed company (6) For the purposes of subsection (5), a business is a listed company in relation to a labour sponsored investment fund corporation if, when the corporation makes an eligible investment in the business, any of the shares of the business are listed on a stock exchange prescribed by Regulation 3200 or 3201 made under the
Income Tax Act (Canada).  2001, c. 23, s. 13 (5); 2004, c. 16, s. 1 (2). (7) Repealed:  2001, c. 23, s. 13 (5). Required investment in small businesses (8) At the end of each calendar year before 2005, a labour sponsored investment fund corporation shall hold eligible investments in small businesses, and the eligible investments must have an aggregate cost of not less than the amount determined using the formula, D – E – F – G + H – I in which, “D” is 70 per cent of the sum of, (a) 10 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were issued after May 6, 1996 and before March 2, 1997, that are outstanding at the end of the applicable calendar year and that have been outstanding for less than eight years, (b) 15 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were issued after March 1, 1997 and before March 2, 1999, that are outstanding at the end of the applicable calendar year and that have been outstanding for less than eight years, and (c) 20 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were issued after March 1, 1999, that are outstanding at the end of the applicable calendar year and that have been outstanding for less than eight years; “E” is 4 per cent of the equity capital received by the corporation on the issue of Class A shares that were issued during the period beginning on the sixty-first day of the preceding calendar year and ending on the sixtieth day of the applicable calendar year and that are outstanding at the end of the applicable calendar year; “F” is the greater of, (a) 20 per cent of the realised investment losses relating to all eligible investments made after May 6, 1996, net of realised gains relating to all eligible investments made after that date, or (b) the amount of the realised investment losses relating to eligible investments made after May 6, 1996, net of realised gains relating to eligible investments made after that date in small businesses; “G” is the total of all amounts permitted by subsections 24.1 (3) and (4) to be deducted from the investment requirement imposed by this subsection; “H” is the amount required by subsection 24.1 (3.1) to be invested in small businesses; “I” is the amount determined under subsection (9). 1999, c. 9, s. 56; 2004, c. 16, s. 1 (2); 2006, c. 9, Sched. C, s. 5 (2). Same (9) The variable “I” in subsection (8) is 20 per cent of the amount calculated using the formula, J + (K × L/M) in which, “J” is the aggregate amount of tax that the corporation has paid under subsection 28 (3) and that has not been refunded before the end of the applicable calendar year; “K” is the aggregate amount of tax and penalties that the corporation has paid under Part X.3 of the Income Tax Act (Canada) and that have not been refunded before the end of the applicable calendar year; “L” is the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were issued to shareholders who were ordinarily resident in Ontario when the shares were issued and that were outstanding when the taxes or penalties were paid under Part X.3 of the Income Tax Act (Canada); and “M” is the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were outstanding when the taxes or penalties were paid under Part X.3 of the Income Tax Act (Canada). 1999, c. 9, s. 56; 2004, c. 16, s. 1 (2). (9.1) Repealed:  2006, c. 9, Sched. C, s. 5 (3). Disposal of investment in small business (10) For the purposes of subsection (8) and subject to the regulations, a labour sponsored investment fund corporation that disposes of an investment in a small business shall be deemed to continue to hold the investment for nine months after the date of disposition.  1999, c. 9, s. 56; 2004, c. 16, s. 1 (2); 2005, c. 28, Sched. C, s. 3 (3). Status of small business (11) For the purposes of subsections (8) and (10), a business is a small business if it meets the following requirements when the labour sponsored investment fund corporation invests in it: 1. It is an eligible business. 2. The total gross assets (as determined in the prescribed manner) of the business and of each corporation and partnership related to it do not exceed $5 million. 3. The total number of employees (as determined in the prescribed manner) of the business and of each corporation and partnership related to it does not exceed 50.  1999, c. 9, s. 56; 2004, c. 16, s. 1 (2). Same, number of employees (12) For the purposes of paragraph 3 of subsection (11), an employee who normally works at least 20 hours per week shall be counted as one employee and an employee who normally works less than 20 hours per week shall be counted as half an employee.  1999, c. 9, s. 56; 2004, c. 16, s. 1 (2). Restriction re certain corporations (13) If a labour sponsored investment fund corporation is registered under Part X.3 of the Income Tax Act (Canada), this section applies only with respect to, (a) equity capital received by the corporation on the issue of Class A shares to persons ordinarily resident in Ontario when the shares were issued; and (b) amounts paid as a return of capital for Class A shares issued to persons ordinarily resident in Ontario when the shares were issued.  1999, c. 9, s. 56; 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1999, c. 9, s. 56 - 14/12/1999 2001, c. 23, s. 13 - 5/12/2001 2004, c. 16, s. 1 (2) - 1/01/2004; 2004, c. 31, Sched. 7, s. 7 (8) - 1/01/2004 2005, c. 28, Sched. C, s. 3 - 12/12/2005 2006, c. 9, Sched. C, s. 5 - 1/01/2005 PART III.1 
COMMUNITY SMALL BUSINESS INVESTMENT FUND CORPORATIONS