Telus 2014 Annual Report Download - page 22

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22
CANADIAN OWNERSHIP REQUIREMENTS
Certain subsidiaries of TELUS Corporation or partnerships in which TELUS Corporation
has a controlling interest, are Canadian carriers, holders of radio authorizations and
holders of broadcasting licences, and are required by the Telecommunications Act
(Canada) (Telecommunications 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, such as TCC is considered to be Canadian-owned and controlled if:
(i) not less than 80% of the members of its board of directors are individual
Canadians;
(ii) Canadians beneficially own not less than 80% of its voting interests; and
(iii) it is not otherwise controlled in fact by persons who are not Canadians.
Substantially the same rules apply under the Broadcasting Act, but an additional
requirement under the Broadcasting Act is that the chief executive officer of a company
that is a licensed broadcasting undertaking must be a Canadian citizen or a permanent
resident of Canada. TELUS Corporation 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 (carrier holding corporation) to be considered Canadian, not less than 66-2/3%
of the issued and outstanding voting shares of that company must be beneficially 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 Corporation must be beneficially 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 Corporation and TELUS Corporation
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 not 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
(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