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Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Canada | Publication | January 18, 2021
On January 12, Ontario declared a second emergency under the Emergency Management and Civil Protection Act. The province then issued a stay-at-home order under the Act, O. Reg. 11/21, which–as of January 14 at 12:01 a.m. EST–requires every individual in the province to “remain in their place of residence at all times unless leaving their place of residence is necessary.”
Individuals may only leave home for “work” where the individual’s work requires attendance at the workplace, a determination made by the individual’s employer
The stay-at-home order imposes rules on individuals themselves. While individuals must remain home at all times, the order enumerates situations when individuals are permitted to leave home. Most notably for businesses, individuals can leave their place of residence for “work” where, under s. 1 (1) 1. of Schedule 1:
the nature of the work or volunteering requires the individual to leave their residence, including when the individual’s employer has determined that the nature of the individual’s work requires attendance at the workplace.
Some businesses are not permitted to serve the public from their physical workplace or have workers work from the physical workplace as a matter of law
While the stay-at-home order imposes rules on individuals themselves, some businesses and workplaces are not permitted to serve the public from their physical workplace or have workers work from the physical workplace under O. Reg. 10/21 and O. Reg. 82/20, Rules for Areas in Stage 1, of the Reopening Ontario (A Flexible Response to COVID-19) Act. Section 1 (6) of Schedule 1 of the stay-at-home order, O. Reg. 11/21, states that, “Nothing in this Order permits a business or place to be open if it is required to be closed under the Stage 1 Order.”
In short, even if an employer determines a worker’s attendance in the physical workplace is necessary under the stay-at-home order, this determination would not necessarily allow the business to serve the public and have workers attend the physical location if such permissions are not equally recognized in O. Reg. 10/21 and O. Reg. 82/20, Rules for Areas in Stage 1.
As noted above, in addition to the stay-at-home order in O. Reg. 11/21, Ontario amended its “Rules for Areas in Stage 1” as of January 14 at 12:01 a.m. EST. See O. Reg. 10/21 and O. Reg. 82/20, Rules for Areas in Stage 1, for COVID-19 rules and restrictions for both businesses and individuals.
These instruments address issues such as:
As of January 14 at 12:01 a.m., some major changes brought by O. Reg. 10/21 under the Reopening Ontario Act include the following:
Face coverings are required in the indoor premises of businesses by every individual
O. Reg. 10/21 amends O. Reg. 82/20 as follows:
3.1 (1) Every person in the premises of a business or organization that is open shall ensure that they wear a mask or face covering in a manner that covers their mouth, nose and chin during any period in which they are in an indoor area of the premises, unless they are subject to an exception set out in subsection 2 (4).
(2) Every member of the public in a place of business or facility that is open to the public shall maintain a physical distance of at least two metres from every other person, except from their caregiver or from members of the person’s household.
(3) The physical distancing described in subsection (2) is not required,
(a) where necessary to complete a transaction or to receive a service, if the member of the public wears a mask or face covering in a manner that covers their mouth, nose and chin or is subject to an exception set out in subsection 2 (4);
(b) when passing one another in a confined location, such as in a hallway or aisle, if the member of the public wears a mask or face covering in a manner that covers their mouth, nose and chin or is subject to an exception set out in subsection 2 (4); and
(c) in situations where another provision of this Order expressly authorizes persons to be closer than two metres from each other.
All non-essential retail stores, including hardware stores, alcohol retailers, and those offering curbside pickup or delivery, must open no earlier than 7 a.m. and close no later than 8 p.m. The restricted hours of operation do not apply to stores that primarily sell food, pharmacies, gas stations, convenience stores, and restaurants for takeout or delivery
O. Reg. 10/21 amends O. Reg. 82/20 to require that non-essential retail stores, as specifically defined, open no earlier than 7 a.m. and close no later than 8 p.m., and may not deliver goods to patrons outside of those hours. Generally, whether a retail business is deemed non-essential is fact specific.
Non-essential construction is further restricted
O. Reg. 10/21 amends O. Reg. 82/20 to narrow which construction activities are permitted at this time.
The construction activities enumerated in O. Reg. 10/21, constituting s. 43 of Schedule 2, “BUSINESSES THAT MAY OPEN,” of O. Reg. 82/20, are permitted at this time. Review the entire enumerated list as it is set out in O. Reg. 10/21. Whether a construction activity is captured by the enumerated list will depend on the particular circumstances. Businesses involved in construction activities should expressly document why their activities are permitted under O. Reg. 10/21 and O. Reg. 82/20 if they continue operate. These businesses should also be mindful of respecting gathering limits, physical distancing rules, and face covering rules, among others, as they are set out in O. Reg. 10/21 and O. Reg. 82/20. Where a business’ construction activities are not captured by the enumerated list, they are currently not permitted.
Ontario’s stay-at-home-order is expected to remain in effect until at least February 11. The rules under the Reopening Ontario Act can be modified by regulation as COVID-19 infection numbers in the province improve or worsen.
Publication
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
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On February 2, 2024, the Belgian Presidency of the Council of the European Union confirmed that the Committee of Permanent Representatives had signed the Artificial Intelligence (AI) Regulation, referred to as the AI Act. Approval by the EU Parliament followed on 13 March 2024, and the AI Act is likely to appear in the EU’s Official Journal around May 2024. The AI Act aims to establish a stringent legal framework governing the development, marketing, and utilisation of artificial intelligence within the region, thereby marking a significant advancement in the regulation of this burgeoning domain.
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The EU’s Artificial Intelligence Regulation, commonly referred to as the AI Act, is expected to come into force during the summer of 2024 (the AI Act). The AI Act will be the first comprehensive legal framework for the use and development of artificial intelligence (AI), and is intended to ensure that AI systems developed and used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly.
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