The appellant Crown appealed a declaration that the respondent, Regulvar Ontario, was not a 'person resident in a designated jurisdiction' under the Fairness is a Two-Way Street Act.
The Act restricts construction access for corporations controlled directly or indirectly by residents of Quebec.
Regulvar Quebec owned 30% of Regulvar Ontario's shares, with the rest held by individuals who were directors or officers of Regulvar Quebec.
The Court of Appeal upheld the application judge's use of the de jure control test, finding that Regulvar Quebec did not have the ability to elect the majority of the board of directors.
The appeal was dismissed.