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The Labour-Sponsored Venture Capital Corporations Act

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If you need an official copy, contact Statutory Publications.

S.M. 1997, c. 39

THE LABOUR-SPONSORED VENTURE CAPITAL CORPORATIONS ACT


Table of Contents

(Assented to June 28, 1997)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

INTERPRETATION

Definitions

1(1)      In this Act,

"Canadian partnership", "record", "registered retirement savings plan" and "taxable Canadian corporation" have the same meaning as in the Income Tax Act (Canada); (« associé détenant une participation majoritaire », « régime enregistré d'épargne-retraite » et « registre »)

"Class A share" means a share of the capital stock of a corporation that is issuable only to an individual (other than a trust) or a trust governed by a registered retirement savings plan and that entitles the holder

(a) to receive notice of and, subject to The Corporations Act, to attend and vote at all meetings of the shareholders of the corporation,

(b) to receive dividends at the discretion of the board of directors,

(c) to receive, on the dissolution of the corporation, pro rata with all the other holders of Class A shares, all the assets of the corporation that remain after payment of all amounts payable to the holders of other classes of shares of the corporation; (« action de catégorie A »)

"Class B share" means a share of the capital stock of a corporation that is issuable only to, and may be held only by, an employee organization and that entitles the holder

(a) to receive notice of and, subject to The Corporations Act, to attend and vote at all meetings of the shareholders of the corporation,

(b) to receive, on the dissolution of the corporation, an amount equal to the amount of the consideration received by the corporation on the issue of the Class B shares divided by the number of Class B shares issued,

but does not entitle the holder to receive dividends; (« action de catégorie B »)

"Class G special share" means a share of the capital stock of a corporation that

(a) is issuable for the sum of $1.,

(b) is issuable only to, and may be held only by, the minister on behalf of the Crown in right of Manitoba,

(c) is redeemable at the exclusive option of the holder for the sum of $1.,

(d) entitles the holder to elect one director to the board of the corporation, and

(e) does not entitle the holder to any dividends; (« action spéciale de catégorie G »)

"eligible business entity", at any time, means a particular entity where

(a) all or substantially all of the fair market value of the property of the particular entity is at that time attributable to

(i) property used in a specified active business carried on by the particular entity or by a corporation controlled by it,

(ii) shares of the capital stock or debt obligations of one or more entities that, at that time are eligible business entities related to the particular entity, or

(iii) any combination of properties described in subclause (i) or (ii),

(b) the total carrying value immediately before that time of all the property of the particular entity and all entities related to it (determined in accordance with generally accepted accounting principles on a consolidated and combined basis, where applicable) does not exceed $50,000,000., and

(c) the total number of employees each of whom is employed at that time by the particular entity or an entity related to it does not exceed 500; (« entreprise admissible »)

"eligible investment" of a labour-sponsored venture capital corporation means

(a) a share that was issued to the corporation by an entity that was an eligible business entity at the time the share was issued,

(b) a debt obligation that was issued to the corporation by an entity that was an eligible business entity at the time it was issued where

(i) the entity is not restricted by the terms of the debt obligation, or by the terms of any agreement related to the obligation, from incurring other debts,

(ii) the debt obligation, if secured, is secured solely by a floating charge on the assets of the entity or by a guarantee referred to in clause (c), and

(iii) the debt obligation, by its terms or the terms of any agreement related to it, is subordinate to all other debt obligations of the entity except that, where the entity is a corporation, the debt obligation need not be subordinate to

(A) a debt obligation issued by the entity that is prescribed as a small business security for the purposes of paragraph (a) of the definition "small business property" in subsection 206(1) of the Income Tax Act (Canada), or

(B) a debt obligation owing to a shareholder of the entity or to a person related to any such shareholder,

(c) a guarantee provided by the corporation in respect of a debt obligation that, if the debt obligation had been issued to the corporation at the time the guarantee was provided, would have been an eligible investment because of clause (b), and

(d) an option or right granted by an eligible business entity, in conjunction with the issue by the entity of a share or debt obligation that is an eligible investment of the corporation, to acquire a share of the capital stock of the entity that would be an eligible investment of the corporation if that share were issued at the time that the option or right was granted,

but does not include an investment declared under section 10 by the minister to be an ineligible investment; (« placement admissible »)

"employee organization" means an organization of employees formed for purposes which include the regulation of relations between employers and employees, and includes a duly organized group or federation of such organizations; (« association de salariés »)

"entity" means a Canadian partnership and a taxable Canadian corporation; (« entité »)

"labour-sponsored venture capital corporation" means a corporation that

(a) is registered, or

(b) has been registered and has any issued and outstanding Class A share; (« corporation à capital de risque de travailleurs »)

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; (« ministre »)

"prescribed" means prescribed by regulation;

"registered" means registered under this Act and "registration" means registration under this Act; (« inscrire »)

"regulation", except as otherwise provided, means a regulation made under this Act; (« règlement »)

"selling period" means a period beginning on the 61st day of a calendar year and ending on the 60th day of the following calendar year; (« période de vente »)

"shareholders' equity", in relation to a class of shares of the capital stock of a corporation at any time, means the amount by which

(a) the total fair market value of the consideration received by the corporation before that time for the issuance of shares of that class or of a class of shares for which shares of that class were substituted

exceeds

(b) the total of the amounts by which the stated capital of the shares of that class or substituted class has been reduced before that time in a manner permitted by this Act or the regulations; (« avoir des actionnaires »)

"specified active business", at any time in relation to a particular entity, means an active business carried on in Canada by the entity where

(a) of the full-time employees employed at that time in the business or in a similar business carried on by an entity related to the particular entity

(i) not fewer than 50% are employed in Canada, and

(ii) not fewer than a prescribed percentage are employed in Manitoba, and

(b) of the total of the salaries and wages paid to employees employed at that time in the business or in a similar business carried on by an entity related to the particular entity

(i) not less than 50% is reasonably attributable to services rendered in Canada by the employees, and

(ii) not less than a prescribed percentage is reasonably attributable to services rendered in Manitoba by the employees. (« entreprise active »)

Interpretation of "related"

1(2)      For the purposes of this Act, a person or entity is related to another person or entity if they are related persons under section 251 of the Income Tax Act (Canada) and, in determining whether they are related persons,

(a) a partnership is deemed to be a corporation with 100 shares of one class of its capital stock issued and outstanding, and each member of the partnership is deemed to own that proportion of the 100 shares that the fair market value of the member's interest in the partnership is of the fair market value of all the interests in the partnership; and

(b) a person who has a right under a contract, in equity or otherwise, immediately or in the future and absolutely or contingently, to acquire a share or a partnership interest shall, unless the right is not exercisable until the death, bankruptcy or permanent disability of an individual, be deemed to be in the same position in relation to the corporation or to the partnership as if the share or partnership interest were owned by the person.

PART 2

REGISTRATION

Register of labour-sponsored venture capital corporations

2(1)      The minister shall maintain a register in which shall be listed all the corporations registered under this Act.

Inspection of register

2(2)      The register shall be made available for public inspection during normal office hours of the department over which the minister presides.

Application for registration

3(1)      A corporation that was caused to be incorporated under The Corporations Act by an employee organization may apply to the minister to be registered under this Act.

Form of application

3(2)      An application under this section shall be made by filing with the minister an application setting out

(a) the name of the corporation and the address of its registered office;

(b) the name and address of the employee organization that caused the corporation to be incorporated;

(c) the number of directors of the corporation and the name in full and residential address of each of them;

(d) the name in full and residential address of each officer of the corporation and the office held by him or her; and

(e) any other prescribed information.

Additional materials to accompany application

3(3)      An application for registration by a corporation shall be accompanied by

(a) a certified copy of the articles of the corporation;

(b) a true copy of all shareholders' agreements and proposed agreements entered into or to be entered into by the corporation;

(c) payment of the prescribed application fee; and

(d) any other prescribed materials.

Officer's or director's certificate

3(4)      An application for registration shall be signed by two officers or one director and one officer of the applicant and shall include a certificate signed by one of them certifying that the information contained in the application is complete and accurate.

Conditions for registration

4         The minister may register a corporation for the purposes of this Act if

(a) the corporation has made an application for registration in accordance with section 3;

(b) the corporation has never previously carried on business other than the business related to obtaining registration under this Act;

(c) the total shareholders' equity of all classes of the corporation's capital stock is not less than $25,000.;

(d) the articles of the corporation provide that

(i) the business of the corporation is restricted to assisting the development of eligible business entities and to creating, maintaining and protecting jobs by providing financial and managerial advice to such entities and by investing funds of the corporation in accordance with this Act and the regulations,

(ii) the authorized capital of the corporation consists only of

(A) Class A shares,

(B) Class B shares,

(C)  one Class G special share, and

(D) any additional classes of shares approved by the minister,

(iii) the business and affairs of the corporation shall be managed by a board of directors at least ½ of whom are elected by the holder or holders of the Class B shares,

(iv) the corporation may not redeem, purchase or acquire for cancellation a Class A share except in prescribed circumstances, and

(v) the shares of the corporation may not be transferred except in prescribed circumstances; and

(e) following the registration, the total of all amounts, each of which is the amount determined in respect of a labour-sponsored venture capital corporation under clause (b) of the definition "approved share limit" in subsection 11.1(1) of The Income Tax Act for the current selling period, will not exceed a prescribed amount.

Suspension or revocation of registration

5(1)      The minister may suspend, for a period not exceeding six months, or revoke the registration of a corporation where

(a) the number of Class A shares of the capital stock of the corporation that are issued or irrevocably subscribed and paid for during a selling period exceeds the corporation's approved share limit, as defined in section 11.1 of The Income Tax Act, for that period;

(b) the corporation fails to file with the minister before April of a calendar year an information return containing prescribed information in respect of the Class A shares issued by the corporation, or irrevocably subscribed and paid for, during the selling period ending in that year;

(c) the corporation fails to issue to an individual who irrevocably subscribes and pays for a Class A share in the capital stock of the corporation during a selling period an information return containing information in respect of the share prescribed by regulation under The Income Tax Act;

(d) the corporation fails to present to its shareholders or to file with the minister, within six months after the end of a fiscal period of the corporation, audited financial statements for that period prepared in accordance with generally accepted accounting principles;

(e) the corporation fails to have a valuation of its shares made at a time or in the manner required by the regulations;

(f) at any time in the first three taxation years of the corporation beginning with the first taxation year in which the corporation issues a Class A share, the corporation does not have eligible investments and liquid reserves the total cost to the corporation of which is not less than a prescribed percentage of the shareholders' equity at that time in respect of the Class A shares;

(g) the corporation fails to maintain the prescribed level of investment in eligible investments;

(h) the liquid reserves of the corporation at any time are less than the amount determined under subsection 9(1);

(i) the corporation fails to pay a tax or penalty payable under section 11.1, 11.2 or 11.3 of The Income Tax Act on or before the day on or before which it is required to be paid; or

(j) the articles of the corporation are amended without the approval of the minister.

Notice of suspension

5(2)      A suspension under subsection (1) of a corporation's registration is effective upon notice of the suspension being given to the corporation.

Removal of suspension

5(3)      Where, after reviewing the business and affairs of a corporation whose registration is suspended under subsection (1), the minister is satisfied that the corporation is conducting itself in a manner consistent with the spirit and intent of the Act, the regulations and the corporation's articles, the minister may remove the suspension generally or with any conditions the minister considers appropriate.

Notice of intent to revoke

5(4)      The minister shall not revoke the registration of a corporation without first giving written notice of the proposal to revoke the registration, with reasons, to the corporation by registered mail.

Notice of objection

5(5)      A corporation whose registration the minister proposes to revoke may, within 30 days after the day the notice is mailed under subsection (4), object to the proposed revocation by filing a written notice of objection with the minister setting out the relevant facts and its reasons for the objection.

Publication of notice of revocation

5(6)      Where the minister has mailed the notice of a proposed revocation of registration to a corporation under subsection (4) and

(a) no notice of objection is filed under subsection (5) within the 30-day period referred to in that subsection; or

(b) the minister, after considering any notice of objection received under subsection (5), wishes to confirm the proposal;

the minister may, by publishing a notice of revocation in The Manitoba Gazette, revoke the registration of the corporation, and the revocation is effective on the day of publication of the notice.

PART 3

INVESTMENTS

Investment policies and criteria

6         Each labour-sponsored venture capital corporation shall by by-law establish investment policies and criteria, consistent with this Act and the regulations, with respect to

(a) the creation, retention or protection of employment in Manitoba;

(b) employment practices, workplace safety, environmental and economic sustainability and other matters; and

(c) the composition of the investment portfolio of the corporation in terms of industry sectors, income, growth and risk.

Investment advisory committee

7(1)      A labour-sponsored venture capital corporation shall establish an investment advisory committee to advise its board of directors regarding the financial merits of proposed acquisitions of eligible investments.

Composition of investment advisory committee

7(2)      The investment advisory committee of a labour-sponsored venture capital corporation shall consist of a minimum of five persons

(a) one of whom is appointed by its board of directors to chair the committee;

(b) a majority of whom are selected and appointed by the corporation from a list of nominees approved by the board for their experience or expertise in a particular business sector or in the management of investments; and

(c) a majority of whom are not employees, directors or officers of the corporation.

Conflict of interest

7(3)      A member of the investment advisory committee of a labour-sponsored venture capital corporation who has a material interest in a proposed investment by the corporation that is under consideration by the committee

(a) shall disclose the nature and extent of his or her interest in writing to the committee

(i) at or before the meeting of the committee at which the proposed investment is first considered,

(ii) if the member did not then have an interest in the proposed investment, at the first meeting after he or she becomes interested in it, or

(iii) if the member had an interest in the proposed investment before becoming a member, at the first meeting after he or she becomes a member at which the proposed investment is considered; and

(b) shall thereafter not participate in the committee's deliberations or advice to the board regarding the proposed investment.

Committee to advise board

7(4)      A labour-sponsored venture capital corporation shall provide the particulars of each proposed acquisition of an eligible investment to its investment advisory committee, and the committee shall advise the corporation's board of directors regarding the financial merits of the proposed acquisition.

Board to consider committee's advice

7(5)      Before approving the acquisition of an eligible investment, the board of a labour-sponsored venture capital corporation shall consider its investment advisory committee's advice regarding the investment.

Investment restrictions

8         In making and holding investments, a labour-sponsored venture capital corporation shall

(a) maintain a prescribed level of investment in eligible investments;

(b) not make an investment in any entity or group of related entities in an amount that would result in the total cost to the corporation of its investments in the entity or related entities being greater than the lesser of

(i) a prescribed percentage of the total shareholders' equity in respect of all classes of the corporation's capital stock, and

(ii) a prescribed amount;

(c) unless authorized in writing by the minister, not invest in

(i) entities or classes of entities that are prescribed, or

(ii) an entity that proposes or is expected to use the proceeds of the investment for a prescribed purpose;

(d) not provide security or a guarantee in respect of any obligation that is a prescribed investment;

(e) not prohibit investment in either unionized or non-unionized eligible business entities; and

(f) not act, or allow itself to be used, as an instrument for organizing employees into unions.

Liquid reserves

9(1)      A labour-sponsored venture capital corporation shall at all times maintain liquid reserves having a total cost to the corporation equal to or greater than the greater of

(a) a prescribed percentage of its shareholders' equity; and

(b) a prescribed percentage of the amount of all guarantees issued by the corporation.

Assets of liquid reserves

9(2)      A labour-sponsored venture capital corporation shall keep its liquid reserves invested in

(a) money on deposit with a bank to which the Bank Act (Canada) applies, a credit union or caisse populaire to which The Credit Unions and Caisses Populaires Act applies or a trust company incorporated under the laws of Canada or of a province of Canada that carries on the business of a trust company in Manitoba;

(b) guaranteed investment certificates issued by a bank, credit union, caisse populaire or trust company referred to in clause (a);

(c) debt obligations of

(i) the Province of Manitoba,

(ii) municipal governments within Manitoba,

(iii) Manitoba crown corporations, or

(iv) corporations that carry on business in Manitoba and whose shares are listed on a Canadian stock exchange prescribed for the purposes of section 146 of the Income Tax Act (Canada);

(d) prescribed investments; or

(e) any combination of investments referred to in clauses (a) to (d).

Notice of intent to declare investment ineligible

10(1)     Where,

(a) at any time during the course of a series of transactions or events that included the acquisition of an eligible investment by a labour-sponsored venture capital corporation, the investment would, if it were acquired at that time, not be an eligible investment of the corporation; and

(b) in the minister's opinion, the corporation's acquisition of the investment as an eligible investment is contrary to the object and spirit of this Act;

the minister may, by written notice to the corporation within two years after the day on which the series of transactions or events came to the attention of the minister, propose that the investment be declared to be an ineligible investment.

Objection

10(2)     A labour-sponsored venture capital corporation any of whose investments the minister proposes to declare to be an ineligible investment may, within 30 days after receiving the notice under subsection (1), object to the proposed declaration by filing a written notice of objection with the minister setting out the relevant facts and its reasons for the objection.

Action of minister

10(3)     Where the minister has made a proposal under subsection (1) in respect of an investment, the minister may, after considering any objection made under subsection (2),

(a) abandon the proposal; or

(b) declare the investment to be an ineligible investment;

and shall give the corporation that made the investment written notice of the decision.

PART 4

ADMINISTRATION

Prohibition against reduction of stated capital, dissolution

11        Notwithstanding The Corporations Act, a labour-sponsored venture capital corporation shall not

(a) reduce its stated capital in respect of a class of shares otherwise than on a redemption, acquisition or cancellation of shares of that class by the corporation or under prescribed circumstances; or

(b) be wound up or dissolved without the prior written approval of the minister, which may be given without conditions or with any conditions the minister considers appropriate.

Valuation of shares

12(1)     For the purpose of determining the issue or redemption price of its Class A shares from time to time, a labour-sponsored venture capital corporation shall

(a) value the shares in prescribed manner annually or at such more frequent intervals as are prescribed; and

(b) file a copy of the annual valuation report with the minister within 90 days after the valuation date.

Audited financial statements

12(2)     A corporation that was a labour-sponsored venture capital corporation at any time during a fiscal period of the corporation shall file with the minister, within six months after the end of the fiscal period, a copy of its audited financial statements, together with the auditor's report thereon.

Request for additional information

12(3)     The minister may at any time, by written notice to a labour-sponsored venture capital corporation or to an entity in which such a corporation has invested, require the corporation or entity to file with the minister, within the time specified in the notice, a return of information on any subject connected with the business, affairs, assets or liabilities of the corporation or entity that, in the minister's opinion, is relevant to the administration of this Act or of the provisions of The Income Tax Act or the regulations under that Act relating to labour-sponsored venture capital corporations.

Return of additional information

12(4)     An entity that has received a notice under subsection (3) shall provide the return of information required by the notice within the time specified in the notice.

Extension of time

12(5)     The minister may extend the time for filing any statement, report or return of information under this section.

Books and records

13(1)     Each labour-sponsored venture capital corporation and each entity any share or debt obligation of which is an eligible investment of a labour-sponsored venture capital corporation shall maintain records in such form and containing such information as the minister considers necessary to determine whether the corporation is in compliance with this Act, the regulations, the articles of the corporation and the provisions of The Income Tax Act and the regulations thereunder relating to labour-sponsored venture capital corporations.

Location and time for retention of records

13(2)     Each entity that is required to keep records under subsection (1) shall

(a) keep them at its place of business in Manitoba or at any other location in Manitoba as the minister in writing permits; and

(b) retain them for the period of time its records are required to be retained for the purposes of the administration and enforcement of The Income Tax Act.

"Authorized person" defined

14(1)     In this section, "authorized person" means a person authorized by the minister for the purposes of this section.

Demand for production of records

14(2)     If the minister considers it necessary for the administration or enforcement of this Act or the regulations, he or she may, by a demand served personally or by registered letter, require any entity required to keep records under subsection 13(1) to produce those records for inspection, audit or examination by an authorized person.

Audits and inspections

14(3)     An authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine

(a) records produced pursuant to a demand made under subsection (2); or

(b) records of an entity referred to in subsection 13(1), including documents that relate, or in the opinion of the authorized person may relate, to records that are required to be kept by the entity;

and the authorized person may make or cause to be made one or more copies of those records or documents.

Authorized entry

14(4)     Subject to subsection (5), a person authorized by the minister may, in order to carry out an inspection, audit or examination permitted by this section,

(a) enter into any premises or place where business is carried on, anything is done or property is kept in relation to an entity referred to in subsection 13(1); and

(b) require the owner or manager of the business or property, or any other person in the premises or place, to give the authorized person all reasonable assistance and to answer all proper questions relating to the administration and enforcement of this Act and, for that purpose, require the owner or manager to attend at the premises or place with the authorized person.

No entry into residence without warrant

14(5)     A person authorized by the minister may not enter into a residence without the consent of the occupant except under the authority of a warrant obtained under subsection (6).

Application for warrant

14(6)      Where, on an ex parte application by the minister to a judge of the Court of Queen's Bench, the judge is satisfied by information on oath that

(a) a residence is a place or premises referred to in subsection (4);

(b) entry into the residence is necessary for any purpose relating to the administration and enforcement of this Act; and

(c) entry into the residence has been, or there are reasonable grounds to believe that it will be, refused;

the judge may issue a warrant authorizing an authorized person to enter the residence subject to any conditions the judge specifies in the warrant.

Minister's decision final

15(1)     A decision of the minister under

(a) section 4 not to register a corporation;

(b) section 5 to suspend or revoke the registration of a corporation; or

(c) section 10 to declare an investment to be an ineligible investment;

is final and is not subject to appeal.

Determination of issue by court

15(2)     Notwithstanding subsection (1), where a corporation whose registration is suspended or revoked disputes the decision or action of the minister under section 5 and the dispute involves

(a) the interpretation of a provision of this Act or the regulations;

(b) an issue solely of law in which no facts are in dispute; or

(c) the proper inference to be drawn from facts that are not in dispute;

the corporation may apply to the Court of Queen's Bench to have the issue in dispute determined.

Offences and penalties

16(1)     Every person who

(a) makes a false or misleading statement in any document filed with the minister under or for the purposes of this Act or the regulations;

(b) fails to file or provide information as required by section 12;

(c) fails to keep or to produce records as required by section 13 or 14; or

(d) interferes with an inspection, audit or investigation by an authorized person under section 14;

is guilty of an offence and is liable on summary conviction

(e) if the person is an individual, to a fine of not less than $1,000. and not more than $20,000., imprisonment for a term of not more than 2 years, or both the fine and the imprisonment; or

(f) if the person is a corporation, to a fine of not less than $5,000. and not more than $100,000.

Liability of officer, director, etc.

16(2)     Every director, officer or agent of a corporation who directed, authorized, participated or acquiesced in the commission of an offence under this Act or the regulations is guilty of an offence and is liable on summary conviction to the penalties provided for the offence whether or not the corporation has been prosecuted for or convicted of the offence.

Limitation on prosecution

17        No proceedings to enforce any provision of this Act or the regulations may be instituted more than two years after the day on which evidence sufficient to justify a prosecution for the offence came to the knowledge of the minister, and a certificate of the minister as to the day on which the evidence came to his or her knowledge is evidence of that date.

L.G. in C. may make regulations

18(1)     The Lieutenant Governor in Council may make regulations

(a) defining, enlarging, or restricting the meaning of any word used in this Act or the regulations;

(b) for the purpose of the definition "specified active business" in subsection 1(1), prescribing

(i) the minimum percentage of the full-time employees an entity or group of related entities that must be employed in Manitoba, and

(ii) the minimum percentage of the salaries and wages that must be attributable to services performed in Manitoba;

(c) prescribing the fee for filing an application for registration;

(d) respecting the circumstances in which a labour-sponsored venture capital corporation may

(i) reduce its stated capital, or

(ii) redeem, acquire or purchase for cancellation any share or shares of its capital stock;

(e) respecting the circumstances in which the shares of the capital stock of a labour-sponsored venture capital corporation may be transferred;

(f) prescribing an amount for the purpose of clause 4(e);

(g) for the purpose of clause 5(1)(f), prescribing the minimum percentage of a corporation's shareholders' equity that must be invested in eligible investments or liquid reserves;

(h) respecting the times at which and the manner in which the shares of the capital stock of a labour-sponsored venture capital corporation are to be valued;

(i) for the purpose of clause 8(a), respecting the level of investment to be maintained by a registered corporation in eligible investments;

(j) for the purpose of clause 8(b), respecting the maximum amount or percentage of a corporation's shareholders' equity in respect of one or more classes of shares of that may be invested in an eligible business entity or group of related entities;

(k) prescribing entities or classes of entities in which a labour-sponsored venture capital corporation may not invest;

(l) prescribing purposes for which proceeds of an investment by a labour-sponsored venture capital corporation may not be used;

(m) prescribing obligations in respect of which a labour-sponsored venture capital corporation may not provide a guarantee or security;

(n) for the purpose of subsection 9(1), prescribing the minimum percentage of shareholders' equity and the minimum percentage of the amount of the guarantees provided by a corporation that must be maintained in liquid reserves;

(o) prescribing other forms of investment for the purpose of subsection 9(2);

(p) respecting any other matter that the Lieutenant Governor in Council considers necessary for carrying out the purposes of this Act.

Minister may make regulations

18(2)     The minister may make regulations

(a) prescribing forms for the purposes of this Act;

(b) prescribing the information to be contained

(i) in an application for registration under subsection 3(2), or

(ii) in a return of information to filed with the minister under this Act;

(c) respecting any additional materials to be filed with an application for registration;

(d) respecting the information to be contained in books and records to be kept under this Act.

C.C.S.M. reference

19        This Act may be referred to as chapter L12 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

20        This Act comes into force on a day fixed by proclamation.