Employee Investment Act
Registration Requirements for ESOP Plan
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Financial statements of the corporation. |
s. 2 (1) (a) |
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Copy of the corporation's constitution (the memorandum and articles or other constitutional documents of a corporation) |
s. 2 (1) (b) |
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An employee share ownership plan. |
s. 2 (1) (c) |
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A share offering document |
s. 4 (1) (k) |
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Incorporation in BC or Canada or registered to do business in BC if incorporated extra provincially |
s. 3 (a) |
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BC wages greater than 25% of total wages |
s. 3 (b) |
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No more than $500 million in total assets |
s. 3 (c) |
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Less than $10 million employee equity raised in previous two years |
s. 3 (d) |
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State estimated number of eligible employees |
s. 4 (1) (a) |
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State amount of equity capital to be raised, maximum $10 in a 2-year period |
s. 4 (1) (b) |
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Equal entitlement or length of service pro rata entitlement |
s. 4 (1) (c) |
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Shares are equity shares |
s. 4 (1) (d) (i) |
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Shares are of one class and never previously issued (except for succession plans) |
s. 4 (1) (d) (ii) |
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Shares only to be issued from treasury and only on being fully paid for in cash (except for succession plans) |
s. 4 (1) (d) (iii) |
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After issue, shares registered in name of shareholder or trustee, and held in escrow for 3 years |
s. 4 (1) (d) (iv) |
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Shares do not contain rights or restrictions that create a debt between the holder and any other person, will entitle the holder to reduce the impact of any loss sustained in holding the share, or create materially different rights among series of the same class of shares (except under specified conditions such as death, disability, bankruptcy or involuntary loss of employment) |
s. 4 (1) (d) (v) + Regulation 9 |
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Investment confirmation within 30 days to new shareholder |
s. 4 (1) (e) |
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Share valuation formula |
s. 4 (1) f) + Regulation 13 (2) |
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Annual report to shareholders of share value and of major corporate decisions that affect share value |
s. 4 (1) (g) |
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Share redemption provisions |
s. 4 (1) (h) (i) (j) |
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Use of funds declaration if contrary to section 6 (a) |
s. 4 (1) (l) |