In Quebec, when shares or other securities are issued or transferred, the corporation must ensure that it complies with the conditions necessary to maintain its status as a closed issuer in order to obtain an exemption from preparing a prospectus under Regulation 45-106. To do so, certain prospectus exemptions are available to it, and each transaction must be reviewed for this purpose.
Canadian Standard 45-106 on Prospectus Exemptions, adopted by the Canadian Securities Administrators, has been in effect in all jurisdictions in Canada since September 14, 2005; It applies to all federally incorporated corporations and must also be verified in connection with an issuance or transfer of shares by a federally incorporated corporation.