Securities Law & Instruments

Headnote

Subsection 59(1) of Schedule 1 to the Regulation under the Act - reduction in feeotherwise due as a result of a takeover bid in connection with a corporatereorganization involving no change in beneficial ownership.

Statutes Cited

Securities Act, R.S.O. 1990, c.S.5, as am., s.93(1)(c).

Regulations Cited

Regulation made under the Securities Act, R.R.O. 1990, Reg. 1015, as am. Schedule 1s.32(1), 59(1).


IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, CHAPTER S.5, AS AMENDED (the "Act")

AND

IN THE MATTER OF THE REGULATION UNDER THE SECURITIES ACT, R.R.O. 1990, REGULATION 1015,AS AMENDED (the "Regulation")

AND

IN THE MATTER OF
1401057 ONTARIO LIMITED

RULING
(Section 59 of Schedule 1)


UPON the application (the "Application") of 1401057 Ontario Limited (the"Applicant") to the Ontario Securities Commission (the "Commission") for a ruling, pursuantto section 59 of Schedule 1 (the "Schedule") to the Regulation under the Act, exemptingthe Applicant from payment in part of the fee payable pursuant to section 32(1) of theSchedule;

AND UPON reading the Application and the recommendation of the staff of theCommission;

AND UPON the Applicant having represented to the Commission as follows:

1. The Applicant is a corporation incorporated under the laws of Ontario and is not areporting issuer under the Act. The Applicant is a wholly-owned subsidiary of KRTInvestments Corp. ("KRTIC").

2. On March 7, 2000, the Applicant acquired 1,915,399 common shares of TheThomson Corporation ("TTC") (the "Shares") from KRTIC with the considerationtherefor being satisfied by common shares of the Applicant. TTC is a reportingissuer under the Act.

3. The Applicant and KRTIC are both controlled by Kenneth R. Thomson and, as aresult, the Applicant and KRTIC are affiliated corporations. Given that the Applicantis deemed to own beneficially all of the TTC shares beneficially owned bycompanies controlled by Kenneth R. Thomson, the acquisition of the Shares by theApplicant resulted in the Applicant owning in excess of 20% of the outstandingcommon shares of TTC. Accordingly, the acquisition of the Shares by the Applicantconstituted a take-over bid under the Act.

4. The Shares were acquired pursuant to the take-over bid exemption in clause93(1)(c) of the Act.

5. The transaction was an internal corporate reorganization within the same controlgroup and did not result in a change in beneficial ownership of the Shares.

6. In the absence of the relief provided by this ruling and pursuant to the formula inclause 32(1)(b) of the Schedule, the Applicant would be required to pay a fee of$15,016.02 as a result of the transaction described above.

AND UPON the Commission being satisfied that to do so would not be prejudicialto the public interest;

IT IS RULED, pursuant to subsection 59(1) of the Schedule, that the Applicant beexempt from the requirement to pay the fee otherwise payable pursuant to clause 32(1)(b)of the Schedule, provided that the minimum fee of $900.00 is paid.

March 24th, 2000.

"J. A. Geller"     "Howard I. Wetston"