Hedge Fund Regulation (PLI's Corporate and Securities Law

Categories Corporate Law

Format: Ring-bound

Language: English

Format: PDF / Kindle / ePub

Size: 8.44 MB

Downloadable formats: PDF

NI 45-106 consolidates and harmonizes the prospectus and registration exemptions that had been previously contained in various provincial securities statutes and other instruments into a single national instrument. (See the link to NI 45-106in the Resources section of this How-To Brief.) An "accredited investor" is a person who purchases as principal (i.e., not as an agent for someone else) and includes an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000 an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year an individual who, either alone or with a spouse, has net assets of at least $5,000,000 are beneficially owned, directly or indirectly, by not more than 50 persons, and directors, officers, employees, founders, control persons of the issuer (essentially, a person who owns more than 20% of the outstanding voting securities), or A person who purchases the security as principal and is a founder (essentially, a promoter), an affiliate of a founder, a spouse, parent, brother, sister, grandparent or child of an executive officer, director or founder or a control person is exempt.

Pages: 400

Publisher: Practising Law Institute (PLI); 1st edition (March 5, 2008)

ISBN: 1402408269

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