from a special correspondent
Mr. ‘alter Gordon, the Canadian Finance Minister, announced in the House of Commons on September 22 that there should be a limit of nonresident shareholdings in banks, life insurance companies, trust companies and ,loan companies of 25% of issued shares. Individuals should be restricted & 10% holding. Shares held by the shareholders associated with the nonresident will be taken into account in determining the 10%. The proposa s came into effect from midnight September 22-23, There will be nothing to prevent shares from being registered in the name of a Carian where a nonresident is the beneficial owner, but in such cases the shares will be non-voting onesSe
A Royal Bank of Canada spokesman said that these curbs were primarily directed at American investment in Canada, although there might be some effect on British insurance companies, Stiff fines and jail sentences could be incurred by company directors who break the new laws. The Bill provides a fine or up to 5,000 dollars or up to a year in prison or both.