Industry Committee on May 15th, 2023

Evidence of meeting #74 for Industry, Science and Technology in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was investors.

A video is available from Parliament.

On the agenda

Bill C-34

Committee Business

MPs speaking

Also speaking

Subrata Bhattacharjee Partner and National Chair, Competition and Foreign Investment Review Group, Borden Ladner Gervais LLP, As an Individual

Chris Hersh Partner, Norton Rose Fulbright Canada LLP, As an Individual

Navin Joneja Partner and Co-Chair, Competition, Antitrust and Foreign Investment Group, Blake, Cassels and Graydon LLP, As an Individual

Joshua Krane Partner, Competition, Antitrust and Foreign Investment, McMillan LLP

5:20 p.m.

Partner, Norton Rose Fulbright Canada LLP, As an Individual

Chris Hersh

Again, that's an accountancy question. Generally speaking, it is often for the purpose of the sale, or it's the transaction value, which will in some cases be a more realistic assessment of fair market value than, perhaps, a low book value. In many cases, companies have to prepare reports or do a detailed accounting prior to engaging in a sale, or the purchaser may do a fair market value assessment of the intangible assets.

5:20 p.m.

Liberal

Tony Van Bynen Liberal Newmarket—Aurora, ON

Is that a discipline you'd like to see at ISED as well?

5:20 p.m.

Partner, Norton Rose Fulbright Canada LLP, As an Individual

Chris Hersh

Again, this is different from the national security provisions, which would apply to sectors regardless of the value.

This is more of what might trigger a net benefit review in terms of that, but I think in many cases, for the enterprise value test that's used under the net benefit test, the thresholds capture the fair market value versus the book value of the assets. In fact, that's why the enterprise value thresholds were introduced. What's interesting is that the thresholds applicable to state-owned investors are asset-based, as opposed to enterprise value-based.

5:20 p.m.

Liberal

Tony Van Bynen Liberal Newmarket—Aurora, ON

Thank you.

Are there any comments from the other members?

5:20 p.m.

Conservative

The Vice-Chair Conservative Rick Perkins

Would any of the witnesses like to comment on those questions, the online witnesses in particular?

No, apparently not.

Thank you, witnesses. I appreciate your testimony before the committee. I'm sure I speak for all the members. Thank you for coming in.

If you'll bear with us, we're going to switch over to an in camera session for a few moments. It will take us a few moments to do some committee business.

Thank you again.

[Proceedings continue in camera]