Telus 2013 Annual Report Download - page 19

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(iv) a pension fund society the majority of whose members of its board of directors
are individual Canadians, and that is established under applicable federal
legislation or any provincial legislation relating to the establishment of pension
fund societies.
The Ownership and Control Regulations provide Canadian carriers and carrier holding
companies, such as TELUS Corporation, with the time and ability to rectify ineligibility
resulting from insufficient Canadian ownership of voting shares. Under the Ownership
and Control Regulations, such companies may restrict the issue, transfer, ownership and
voting of shares, if necessary, to ensure that they and their subsidiaries remain qualified
under such legislation. For such purposes, in particular but without limitation, a company
may, in accordance with the provisions contained in such regulations:
(i) refuse to accept any subscription for any voting shares;
(ii) refuse to allow any transfer of voting shares to be recorded in its share register;
(iii) suspend the rights of a holder of voting shares to vote at a meeting of its
shareholders; and
(iv) sell, repurchase or redeem any voting shares.
To ensure that TELUS remains Canadian and that any subsidiary of TELUS, including
TCC, is and continues to be eligible to operate as a telecommunication common carrier
under the Telecommunications Act, to be issued radio authorizations or radio licences as
a radiocommunications carrier under the Radiocommunication Act, or to be issued
broadcasting licences under the Broadcasting Act, provisions substantially similar to the
foregoing have been incorporated into TELUS’ Articles permitting its directors to make
determinations to effect any of the foregoing actions.
The Telecommunications Act was amended in June 2012 to remove foreign ownership
restrictions for telecommunications carriers that hold less than a 10% share of the total
Canadian telecommunications services revenues. This change was made to enable non-
Canadian owned entities to start up or acquire Canadian carriers that hold less than a
10% share of total Canadian telecommunications services revenues. These changes
represent a first step towards liberalizing foreign ownership limits by the federal
government. Canadian ownership requirements for licensees under the Broadcasting
Act remain unchanged.
See MD&A Section 10.4 Regulatory matters for further details related to regulation
generally and specifically in relation to restrictions on foreign ownership and changes to
restrictions on foreign ownership for small common carriers.
REGULATION
General
The provision of telecommunications services and broadcasting services in Canada is
regulated by the CRTC pursuant to the Telecommunications Act and the Broadcasting
Act, respectively. In addition, the provision of cellular and other wireless services using