ARTV Inc. - Cour du Québec finds that a shareholder’s right to put its shares did not give the other shareholder a s. 251(5)(b)(i) “right” to acquire those shares

ARTV would have been associated with its largest shareholder (Radio Canada) under the Quebec equivalent of s. 251(5)(b)(i) if the obligation of Radio Canada to acquire the ARTV shares of another shareholder (ARTE France) in the event ARTE France exercised a put right constituted a contingent “right” to acquire those shares for s. 251(5)(b)(i) purposes. In rejecting this proposition (so that ARTV and Radio Canada were not associated), Cameron JCQ stated:

Before the exercise by ARTE France of its option, which depended on its will, Radio Canada had no right and, notwithstanding the irrevocability of its obligation to purchase, no expectation of purchasing, given the absence of control or influence over ARTE France.

Neal Armstrong. Summaries of ARTV Inc. v. Agence du revenu du Québec, 2016 QCCQ 8757 (Cour du Québec) under s. 251(5)(b) and Interpretation Act, s. 8.1.