Telus 2013 Annual Report Download - page 18

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18
Our subsidiary, TELUS Sourcing Solutions Inc., is a signatory to a collective agreement
with the B.C. Government and Services Employees' Union (BCGEU) which covers
approximately 60 employees. That agreement came into effect on May 1, 2013 and
expires on April 30, 2016.
RISK FACTORS
The risk factors in MD&A Section 10 Risks and risk management are hereby
incorporated by reference.
FOREIGN OWNERSHIP RESTRICTIONS
Certain subsidiaries of TELUS Corporation (TELUS) or partnerships in which TELUS
has a controlling interest, are Canadian carriers, holders of radio authorizations or
spectrum licences, and holders of broadcasting licences, and are required by the
Telecommunications Act (Canada) (Telecommunications Act), the Radiocommunication
Act (Canada) (Radiocommunication Act) and the Direction to the CRTC (Ineligibility of
Non-Canadians) issued pursuant to the Broadcasting Act (Canada) (Broadcasting Act)
to be Canadian-owned and controlled. Under the Telecommunications Act, a Canadian
carrier is considered to be Canadian-owned and controlled as long as: (a) not less than
80% of the members of its board of directors are individual Canadians; (b) Canadians
beneficially own not less than 80% of its issued and outstanding voting shares; and (c) it
is not otherwise controlled in fact by persons who are not Canadians. Substantially the
same rules apply under the Radiocommunication Act and the Broadcasting Act. TELUS
has filed with the CRTC the requisite documentation affirming TCC’s status as a
Canadian carrier. We further intend that TCC will remain controlled by TELUS
Corporation and that it will remain “Canadian” for the purposes of Canadian ownership
requirements.
The Canadian Telecommunications Common Carrier Ownership and Control
Regulations (Ownership and Control Regulations), made pursuant to the
Telecommunications Act further provide that in order for a company that holds shares in
a carrier to be considered Canadian, not less than 66-2/3% of the issued and
outstanding voting shares of that company must be owned by Canadians and that such
company must not otherwise be controlled in fact by non-Canadians. Accordingly, not
less than 66-2/3% of the issued and outstanding voting shares of TELUS must be owned
by Canadians and we must not otherwise be controlled in fact by non-Canadians. To the
best of our knowledge, Canadians beneficially own and control in the aggregate not less
than 66-2/3% of the issued and outstanding Common Shares of TELUS and TELUS is
not otherwise controlled in fact by non-Canadians. For the purposes of these
regulations, “Canadian” means among other things:
(i) a Canadian citizen who is ordinarily resident in Canada;
(ii) a permanent resident of Canada who is ordinarily resident in Canada and has
been so for more than one year after the date he or she was eligible to apply for
Canadian citizenship;
(iii) a corporation with not less than 66-2/3% of the issued and outstanding voting
shares of which are beneficially owned and controlled by Canadians and which is
not otherwise controlled in fact by non-Canadians; or