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Article: Canada's New Foreign Investment Screening Rules: What Every Eager Foreign Investor Should Know.
- Article from:
- Mondaq Business Briefing
- Article date:
- September 19, 2009
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In March 2009, the Canadian Parliament amended several laws that impact foreign investment in Canada. It both reduced and clarified some important foreign investment restrictions, while also imposing what could be significant new burdens on investors.
The Investment Canada Act authorizes the Canadian government to screen foreign investment to determine if it is likely to be of "net benefit" to Canada. Foreign direct acquisitions of Canadian businesses with assets that exceed $312 million, for most industries, and $5 million, for certain sensitive sectors of the economy, must endure a "review" by one of the two government departments that deal with such matters. ...