Modifies the Investment Canada Act

On 26 June 2013, changes to the Investment Canada Act (ICA) received Royal assent. The changes introduce the possibility for the Minister (Industry Canada) to decide – in the context of 'net benefit‘ reviews under the ICA – that an entity is controlled by one or more state-owned enterprises even though it would qualify as Canadian-controlled under the criteria established by the act; this decision can be made retroactively for any date after the 29 April 2013. The amendments also introduce a definition of the term "state-owned enterprise" for the purpose of the Act; a definition of State-owned enterprises had already been established on 7 December 2012 in a "Statement Regarding Investment by Foreign State-Owned Enterprises", but the definition in the ICA expands the scope of SOEs further to include, inter alia individuals that are acting under the direction or influence of a foreign state.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • Parliament of Canada, "An Act to Implement Certain Provisions of the Budget Tabled in Parliament on March 21, 2013 and other Measures," Statutes of Canada 2013, Chapter 33, http://www.parl.gc.ca/HousePublications/Publication.aspx?Language=E&Mode=1&DocId=6249902&File=4, 26 Jun 2013
  • Industry Canada, Statement Regarding Investment by Foreign State-Owned Enterprises, http://www.ic.gc.ca/eic/site/ica-lic.nsf/eng/lk81147.html, 07 Dec 2012