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(ICA) do not override section 74 of the ICA, which precludes a company from holding, directly or through a subsidiary, any shares of, or ownership interests in, an entity that controls it. Exceptions to this restriction are set out in sections 76 (Holding as personal representative and security interest) and 76.1 (Holding in market indexed segregated funds) of the ICA. However, the purchase of shares or ownership interests issued by an entity that controls the company, where the holding of such shares or ownership interests is permitted by sections 76 or 76.1 of the ICA, is subject to the self- dealing provisions set out in Part XI of the ICA. Therefore, a company may make use of the materiality criteria set out in Bulletin E-6 to enter into such related party transactions.
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