Air Canada Public Participation Act (R.S.C., 1985, c. 35 (4th Supp.))

Marginal note:Deemed approval

• 10.1 (1) The proposed acquisition described in a letter dated December 21, 1999 from 853350 Alberta Ltd. and Air Canada to the Minister of Transport is deemed to be a transaction that has been approved by the Governor in Council under subsection 53.2(7) of the Canada Transportation Act on the day on which that subsection comes into force.

• Marginal note:Deemed terms and conditions

  (2) The undertakings provided by 853350 Alberta Ltd. and Air Canada to the Minister of Transport in the letter referred to in subsection (1) are deemed to be terms and conditions specified in an approval by the Governor in Council under subsection 53.2(7) of the Canada Transportation Act that relate to national transportation concerns, and the undertakings provided by 853350 Alberta Ltd. and Air Canada to the Commissioner of Competition that are set out in Annex A to a letter from the Commissioner dated December 21, 1999 in respect of the acquisition referred to in that subsection are deemed to be terms and conditions of an approval under subsection 53.2(7) of the Canada Transportation Act that relate to potential prevention or lessening of competition.

• Marginal note:Deemed affiliates

  (3) For the purposes of sections 45 and 61 of the Competition Act, Canadian Airlines Corporation, Canadian Airlines International Ltd. and Canadian Regional Airlines Ltd. are deemed to be affiliates of Air Canada in respect of any thing they do after December 21, 1999 and before the earlier of the coming into force of this subsection and the day on which the undertakings referred to in subsection (2) cease to have effect.

• Marginal note:If undertakings cease to have effect

  (4) The Governor in Council may, by order, declare that 853350 Alberta Ltd. and Air Canada are not subject to the terms and conditions referred to in subsection (2) if the undertakings cease to have effect and are not revived in the circumstances described in

  • (a) the paragraph entitled “Effective Date” in the letter referred to in subsection (1); and

  • (b) undertaking #15, set out in Annex A referred to in subsection (2).

• Marginal note:Revocation of deemed approval

  (5) If the Governor in Council makes an order under subsection (4), the deemed approval under subsection (1) is revoked and any certification under paragraph 94(c) of the Competition Act in respect of the acquisition referred to in that paragraph ceases to have effect.

Transitional, Consequential, Repeal and Coming into Force Provisions

Transitional

Marginal note:Continuation in office

• 11 (1) Subject to subsection (2), the members of the Board of Directors of the Corporation who were appointed pursuant to the Air Canada Act and held office immediately prior to the day on which the Corporation becomes a corporation to which the Canada Business Corporations Act applies continue to hold office according to the terms of their appointment.

• Marginal note:Directors cease to hold office

  (2) The members of the Board of Directors of the Corporation cease to hold office at the close of the first annual meeting of shareholders of the Corporation held after the issuance date, which meeting shall be held not later than six months following the end of the Corporation’s financial year in which that date falls.

• Marginal note:No right to compensation

  (3) No person has any right to claim or receive any compensation, damages, indemnity or other form of relief from Her Majesty in right of Canada or any servant or agent thereof for ceasing to hold office pursuant to, or for the abolition of that office by, this Act.

• Definition of issuance date

  (4) In this section and section 12, issuance date means the date on which shares of the Corporation are first issued after the coming into force of those sections to any person, other than the Minister.

Marginal note:Qualification of shares

• 12 (1) For the purpose of qualifying the shares of the Corporation

  • (a) as an authorized investment under paragraph 86(n) of the Canadian and British Insurance Companies Act, paragraph 61(1)(j) of the Loan Companies Act or paragraph 78(1)(j) of the Trust Companies Act,

  • (b) as a permitted investment under paragraph 1(n) of Schedule III to the Pension Benefits Standards Regulations, 1985, and

  • (c) as assets that may be vested in trust in Canada under paragraph 1(n) of Schedule II to the Canadian and British Insurance Companies Act or paragraph 1(n) of the schedule to the Foreign Insurance Companies Act,

  the Corporation is deemed to have satisfied the requirements of those paragraphs with respect to each of the five years immediately preceding the issuance date.

• Marginal note:Qualification of debt obligations

  (2) For the purpose of qualifying the bonds, debentures or other evidences of indebtedness of the Corporation

  • (a) as an authorized investment under subparagraph 86(k)(i) of the Canadian and British Insurance Companies Act, paragraph 61(1)(g) of the Loan Companies Act or paragraph 78(1)(g) of the Trust Companies Act,

  • (b) as a permitted investment under paragraph 1(m) of Schedule III to the Pension Benefits Standards Regulations, 1985, and

  • (c) as assets that may be vested in trust in Canada under subparagraph 1(k)(i) of Schedule II to the Canadian and British Insurance Companies Act or subparagraph 1(k)(i) of the schedule to the Foreign Insurance Companies Act,

  the Corporation is deemed to have satisfied the requirements of the paragraphs referred to in subsection (1) with respect to each of the five years immediately preceding the issuance date.

Consequential Amendments

13 [Amendments]

Repeal

Marginal note:Repeal of R.S., c. A-10

• 14 (1) The Air Canada Act is repealed on the day on which the Corporation becomes a corporation to which the Canada Business Corporations Act applies.

• Marginal note:Director to give notice

  (2) The Director is not required to comply with subsection 187(6) of the Canada Business Corporations Act in respect of the Corporation, but the Director shall, on issuing the certificate of continuance of the Corporation, cause a notice to be published in the Canada Gazette setting out the date on which the certificate was issued and on which the Air Canada Act was repealed.

Coming into Force

Marginal note:Coming into force

Footnote ^*15 Section 13 shall come into force on a day to be fixed by order of the Governor in Council.

• Return to footnote ^*[Note: Section 13 in force October 12, 1988, see SI/88-201.]