2.3 Background Checks

Cannabis Representative Handbook

Policies

  1. A thorough background check is conducted on an applicant, the applicant’s associates and any key employees of the applicant as defined by AGLC pursuant to Section 9 and 9.1 of the Gaming, Liquor and Cannabis Regulation (GLCR).
  2. The background check is to ensure criminal interests, or those who otherwise would be a detriment to the lawful conduct of cannabis in the province, are prevented from operating, having a financial interest in or having an association with a cannabis representative.
  3. The applicant may be responsible to pay for the actual cost of the background checks pursuant to Section 127 of the GLCR.
  4. The cannabis representative applicant and its key persons are required to complete a consent to records check form (#8009) for AGLC to conduct all requisite criminal and financial background checks. Associates of the cannabis representative applicant may be required to complete a consent to records check form (#8009).
  5. An applicant’s key employees include individual(s) that exercise influence or control over day to day operations or decision-making and individuals who have the authority to hire or terminate the employment of qualified cannabis workers, and include but are not limited to:
    1. individuals employed in senior management positions such as CEO, CFO, controller and senior compliance officers;
    2. the manager;
    3. a person holding a position specified by AGLC as related to the business; and
    4. any other person holding a key position as determined by AGLC.
  6. An applicant’s associates include:
    1. any person that has a financial interest in the applicant, in the applicant’s business,
    2. if the applicant is an individual or partnership in which one (1) or more of the partners is an individual, this also includes:
      1. any corporation controlled by the individual;
      2. an officer or director of, and any person with a financial interest in, a corporation controlled by the individual,
      3. any corporation that is affiliated with the corporation referred to in Subclause ii), the affiliated corporation's officers and directors, and any person having a financial interest in the affiliated corporation, and
    3. if the applicant is a corporation or a partnership in which one (1) or more of the partners is a corporation,
    4. an officer or director of the corporation;
    5. any corporation affiliated with the applicant;
    6. an officer or director of an affiliated corporation; and
    7. any person who has a financial interest in the affiliated corporation.
  7. A corporation is controlled by a person, if he or she has indirect influence over the corporation or if:
    1. securities of the corporation to which are attached more than 50% of the votes that may be cast to elect directors of the corporation are controlled, other than by way of security only, directly or indirectly by the person or entity; and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the corporation; or
    2. the person has in relation to the corporation any direct or indirect influence which, if exercised, would result in control in fact of the corporation.
  8. A corporation is affiliated with another corporation if:
    1. one (1) of the corporations controls the other; or
    2. both of the corporations are controlled by the same person or group of persons.

 

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