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Insurance Companies Act

Version of section 493 from 2003-01-01 to 2007-04-19:


Marginal note:Restriction on control and substantial investments

  •  (1) Subject to subsections (2) to (4), no company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.

  • Marginal note:Exception: indirect investments

    (2) A company may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity other than a permitted entity by way of

    • (a) an acquisition of control of an entity referred to in any of paragraphs 495(1)(a) to (j), or of a prescribed entity, that controls or has a substantial investment in the entity; or

    • (b) an acquisition of shares or ownership interests in the entity by

      • (i) an entity referred to in any of paragraphs 495(1)(a) to (j), or a prescribed entity, that is controlled by the company, or

      • (ii) an entity controlled by an entity referred to in any of paragraphs 495(1)(a) to (j), or a prescribed entity, that is controlled by the company.

  • Marginal note:Exception: temporary investments, realizations and loan workouts

    (3) A company may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity by way of

    • (a) a temporary investment permitted by section 498;

    • (b) an acquisition of shares of a body corporate or of ownership interests in an unincorporated entity permitted by section 499; or

    • (c) a realization of security permitted by section 500.

  • Marginal note:Exception: specialized financing regulations

    (4) A life company may, subject to Part XI, acquire control of, or hold, acquire or increase a substantial investment in, an entity other than a permitted entity if it does so in accordance with regulations made under paragraph 494(d) concerning specialized financing.

  • Marginal note:Exception: uncontrolled event

    (5) A company is deemed not to contravene subsection (1) if the company acquires control of, or acquires or increases a substantial investment in, an entity solely as the result of an event not within the control of the company.

  • 1991, c. 47, s. 493
  • 1997, c. 15, s. 265
  • 2001, c. 9, s. 426

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