22Effect of reduction of total allowable commercial catch

1. If the Crown owns any unencumbered quota shares for a stock as at the date the total allowable commercial catch for that stock is reduced under section 20, the chief executive shall transfer to every quota owner at the time the reduction takes effect, in the form in which that quota is held by that person, a number of quota shares calculated in accordance with the following formula:

   $a\; ÷\; (100 000 000\; –\; b)\; \times \; c\; =\; d$

   Where:

   • a a

     is the number of quota shares for the stock held by the person immediately before the reduction in the total allowable commercial catch for the stock takes effect; and

   • b b

     is the number of unencumbered quota shares for the stock owned by the Crown immediately before the reduction in the total allowable commercial catch for the stock takes effect; and

   • c c

     is the lesser of—

   • the number of unencumbered quota shares for the stock owned by the Crown immediately before the reduction in the total allowable commercial catch for the stock takes effect:
   • the number of quota shares for the stock the quota weight equivalent of which is equivalent to the amount of the reduction in the total allowable commercial catch for the stock; and
   • d d

     is the number of quota shares to be transferred to the quota owner under this section.

2. If there has been a reduction in the total allowable commercial catch for any stock but the Crown does not hold any unencumbered quota shares for that stock as at the date the reduction takes effect, no deductions or transfers of quota shall be made under this section.

3. The chief executive shall, as soon as practicable after the reduction takes effect, notify every quota owner affected by a reduction in the total allowable commercial catch for any stock of—

4. the reduced total allowable commercial catch; and
5. any consequential change in the number of the quota shares for that stock that are owned by that person; and
6. the quota weight equivalent of 1 quota share of the reduced total allowable commercial catch.

7. The chief executive shall, as soon as practicable after any reduction in the total allowable commercial catch for any stock takes effect, notify the Registrar of Quota for any stock of any quota transfer necessary to give effect to the reduction.

8. For the purposes of subsection (1), the Crown is a quota owner except in relation to its unencumbered quota.