Archived — CPC-2-0-15 — Canadian Ownership and Control

Footnotes

Footnote 1

Radiocommunication Act, R.S.C., 1985, c. R-2, as amended

  • 5.(1) Subject to any regulations made under section 6, the Minister may, taking into account all matters that the Minister considers relevant for ensuring the orderly establishment or modification of radio stations and the orderly development and efficient operation of radiocommunication in Canada,
  • issue
    • (i) radio licences in respect of radio apparatus,
    • (i.1) spectrum licences in respect of the utilization of specified radio frequencies within a defined geographic area.
    • 5.(1.1) In exercising the powers conferred by subsection (1), the Minister may have regard to the objectives of the Canadian telecommunications policy set out in section 7 of the Telecommunications Act.

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Footnote 2

Telecommunications Act ( 1993, c. 38 ), as amended

  • Canadian Telecommunications Policy
  • Objectives
  • 7. It is hereby affirmed that telecommunications performs an essential role in the maintenance of Canada's identity and sovereignty and that the Canadian telecommunications policy has as its objectives
    • to facilitate the orderly development throughout Canada of a telecommunications system that serves to safeguard, enrich and strengthen the social and economic fabric of Canada and its regions;
    • to render reliable and affordable telecommunications services of high quality accessible to Canadians in both urban and rural areas in all regions of Canada;
    • to enhance the efficiency and competitiveness, at the national and international levels, of Canadian telecommunications;
    • to promote the ownership and control of Canadian carriers by Canadians;
    • to promote the use of Canadian transmission facilities for telecommunications within Canada and between Canada and points outside Canada;
    • to foster increased reliance on market forces for the provision of telecommunications services and to ensure that regulation, where required, is efficient and effective;
    • to stimulate research and development in Canada in the field of telecommunications and to encourage innovation in the provision of telecommunications services;
    • to respond to the economic and social requirements of users of telecommunications services; and
    • to contribute to the protection of the privacy of persons.

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Footnote 3

Radiocommunication Act, R.S.C., 1985, c. R-2, as amended

  • 6. (1) The Governor in Council may make regulations
    • (b) prescribing the eligibility of persons to whom radio authorizations, or any class thereof, may be issued, including eligibility criteria based on
      • in the case of an individual, citizenship or permanent residence, or
      • in the case of a corporation, residence, ownership or control of the corporation, and the citizenship or permanent residence status of the directors and officers of the corporation.

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Footnote 4

Radiocommunication Regulations

  • 9. (1) The following persons are eligible to be issued radio licences as radiocommunication users or radiocommunication service providers other than radiocommunication carriers in all services except the amateur radio service:

    an individual who is
    • a citizen within the meaning of subsection 2(1) of the Citizenship Act,
    • a permanent resident within the meaning of subsection 2(1) of the Immigration Act, or
    • a non-resident who has been issued an employment authorization under the Immigration Act;
    • a corporation that is incorporated or continued under the laws of Canada or a province;
    • a partnership or joint venture where each partner or co-venturer is eligible to be issued a radio licence under this subsection;
    • a Canadian government, whether federal, provincial or local, or an agency thereof;
    • the Government of a country other than Canada, which is a signatory to the Vienna Convention on Diplomatic Relations, done at Vienna, April 18, 1961;
    • any person who is the registered owner of an aircraft that is registered in Canada, for the establishment and operation of a station on board the aircraft;
    • any person who is the registered or licensed owner of a ship or vessel that is registered under the Canada Shipping Act or licensed under the Coasting Trade Act, for the establishment and operation of a station on board the ship or vessel; and
    • any person who is a resident of a country other than Canada, who
    • seeks to establish and operate a radio station designed for interconnection with a public switched network, or
    • requires a radio licence for radio apparatus used for a special event of a limited duration.

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Footnote 5

Radiocommunication Regulations

  • 10.(1) For purposes of this section, "Canadian" has the same meaning as in the Canadian Telecommunications Common Carrier Ownership and Control Regulations; "Canadian-owned and controlled" means, in respect of a corporation, that
    • not less than 80 per cent of the members of the board of directors of the corporation are individual Canadians,
    • Canadians beneficially own, directly or indirectly, in the aggregate and otherwise than by way of security only, not less than 80 per cent of the corporation's voting shares issued and outstanding, and
    • the corporation is not otherwise controlled by persons who are not Canadians;
    • "control" means control in any manner that results in control in fact, whether directly through the ownership of securities or indirectly through a trust, agreement or arrangement, the ownership of any body corporate or otherwise;
    • "voting share" has the same meaning as in the Canadian Telecommunications Common Carrier Ownership and Control Regulations.
  • (2) The following persons or entities are eligible to be issued radio licences as radiocommunication carriers:

    an individual who is
    • a citizen within the meaning of subsection 2(1) of the Citizenship Act who is ordinarily resident in Canada, or
    • a permanent resident within the meaning of subsection 2(1) of the Immigration Act who is ordinarily resident in Canada, and who has been ordinarily resident in Canada for not more than one year after the date on which that person first became eligible to apply for Canadian citizenship;
    • a partnership or joint venture where each partner or co-venturer is eligible to be issued a radio licence under this subsection;
    • a Canadian government, whether federal, provincial or local, or an agency thereof; and
    • a corporation that is
    • Canadian-owned and controlled and is incorporated or continued under the laws of Canada or a province, or
    • a Canadian carrier that meets the eligibility criteria set out in subsection 16(1) or (2) of the Telecommunications Act, whether or not the carrier is exempt from the application of that Act or that Act does not otherwise apply to the corporation.

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Footnote 6

Canadian Telecommunications Common Carrier Ownership and Control Regulations

  • "Canadian" means
    • a citizen within the meaning of subsection 2(1) of the Citizenship Act who is ordinarily resident in Canada,
    • a permanent resident within the meaning of subsection 2(1) of the Immigration Act who is ordinarily resident in Canada, and has been ordinarily resident in Canada for not more than one year after the date on which that person first became eligible to apply for Canadian citizenship,
    • a Canadian government, whether federal, provincial or local, or an agency thereof,
    • a corporation without share capital, where a majority of its directors or officers, as the case may be, are appointed or designated, either by their personal names or by their names of office, by one or more of
    • a federal or provincial statute or regulations made under a federal or provincial statute,
    • the Governor in Council or the lieutenant governor in Council of a province, or
    • a minister of the Crown in right of Canada or of a province,
    • a qualified corporation,
    • a qualified trust,
    • a qualified mutual insurance company,
    • a qualified partnership, or
    • a qualified pension fund society.
    • "non-Canadian" means a person or entity that is not a Canadian;
    • "qualified corporation" means a corporation in which those of its shareholders who are Canadians beneficially own, and control, in the aggregate and otherwise than by way of security only, not less than 66 2/3 per cent of the issued and outstanding voting shares, and which is not otherwise controlled by non-Canadians;
    • "voting share" means a share of any class of shares of a corporation carrying voting rights under all circumstances or by reason of an event that has occurred and is continuing or by reason of a condition that has been fulfilled, and includes
    • a security that is convertible into such a share at the time a calculation of the percentage of shares owned and controlled by Canadians is made, and
    • an option or a right to acquire such a share, or the security referred to in paragraph (a), that is exercisable at the time the calculation referred to in that paragraph is made.

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Footnote 7

Ibid 4.

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Footnote 8

Ibid 5.

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Footnote 9

Ibid 6.

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Footnote 10

Qualified corporation as defined under the Canadian Telecommunications Common Carrier Ownership and Control Regulations means a corporation in which those of its shareholders who are Canadians beneficially own, and control, in the aggregate and otherwise than by way of security only, not less than 66 2/3 per cent of the issued and outstanding voting shares, and which is not otherwise controlled by non-Canadians.

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Footnote 11

Citizenship Act ( R.S., 1985, c. C-29 ), as amended

  • 2.(1) In this Act,
    …"citizen" means a Canadian citizen…

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Footnote 12

Immigration and Refugee Protection Act ( 2001, c. 27 ), as amended

  • 2.(1) The definitions in this subsection apply in this Act.
    …."permanent resident" means a person who has acquired permanent resident status and has not subsequently lost that status under section 46….

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Footnote 13

See definition of "control" in Endnote 5 (Radiocommunication Regulations s.10(1)).

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Footnote 14

Ibid 5.

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Footnote 15

National Transportation Agency, Decision No.297-A-1993, Proposed Acquisition of an Interest in Canadian Airlines International Ltd. by Aurora Investments, Inc. and proposed Acquisition of an Interest in Air Atlantic Ltd., Calm Air International Ltd. and Inter-Canadian (1991) Inc. by Canadian International Ltd., File Nos. D-2715-1 and D-2715-2.

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Footnote 16

See the Determination of the Canadian Radio-television and Telecommunications Commission, in the Matter of Unitel's Eligibility to Operate in Canada as a Telecommunications Common Carrier Pursuant to Section 16 of the Telecommunications Act, October 16, 1996.

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Footnote 17

Telecommunications Act, S.C., 1993, c.38, as amended

  • 16.(1) A Canadian carrier is eligible to operate as a telecommunications common carrier if it is a Canadian-owned and controlled corporation incorporated or continued under the laws of Canada or a province.
  • (2) A Canadian carrier other than a corporation described in subsection (1) is eligible to operate as a telecommunications common carrier if it is a corporation incorporated or continued under the laws of Canada or a province and the following conditions are met:
    • the corporation was acting, or is a successor to a person that was acting, as a telecommunications common carrier in Canada on July 22, 1987, whether or not the telecommunications operations of the corporation or the person it succeeded were regulated under any Act of Parliament on that day;
    • the telecommunications operations on July 22, 1987 of the corporation or the person it succeeded have been continued substantially without interruption since that day by that person, if any, and the corporation;
    • the corporation and the person it succeeded, if any, satisfied the prescribed criteria respecting continuous ownership and control by Canadians since July 22, 1987; and
    • the corporation and the person it succeeded, if any, have operated as a telecommunications common carrier only in the territory in which the corporation or that person operated as such on July 22, 1987, or in such greater territory and in such manner as is specified by the Minister.
  • (3) For the purposes of subsection (1), a corporation is Canadian-owned and controlled if
    • not less than eighty per cent of the members of the board of directors of the corporation are individual Canadians;
    • Canadians beneficially own, directly or indirectly, in the aggregate and otherwise than by way of security only, not less than eighty per cent of the corporation's voting shares issued and outstanding; and
    • the corporation is not otherwise controlled by persons that are not Canadians.
  • (4) No Canadian carrier shall operate as a telecommunications common carrier unless it is eligible under this section to operate as such.

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Footnote 18

Ibid 5.

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