Each enterprise needs applicable investments. (6) For the needs of subsection (5), a enterprise is a listed firm in relation to a labour sponsored investment fund company if, when the corporation makes an eligible investment within the business, any of the shares of the business are listed on a inventory alternate prescribed by Regulation 3200 or 3201 made below the Earnings Tax Act (Canada).
As the SBA itself mentioned, “almost any person or group with a minimal preliminary non-public capitalization of $5 million and an SBA-accepted full time manager who can be in control of the licensee’s operations and who is able to serve the licensee’s small enterprise issues, may be authorized for ownership.” Indeed, the SBA’s interest in encouraging SBICs is obvious within the comparatively palms-off regulatory setting that they have established for such enterprises.
(5) If the labour sponsored funding fund company fails to withhold or remit an amount below subsection (four), the company is liable to pay to the Minister as tax beneath subsection (2) on behalf of the shareholder the quantity that the company did not withhold or remit.
16.1 (1) A labour sponsored funding fund corporation that intends to situation shares as a analysis oriented investment fund in an eligible 12 months shall give notice of its intention to the Minister in a type authorized by the Minister and shall achieve this by the end of the preceding yr.
(2) For the purposes of this section, a labour sponsored investment fund corporation shall be deemed to be broadly held if the company has ten or more shareholders and no shareholder or associated group of which a shareholder is a member owns greater than 10 per cent of the issued and outstanding voting shares of the corporation.