An Act to amend the Canada Business Corporations Act and the Canada Cooperatives Act and to amend other Acts in consequence (S.C. 2001, c. 14)
Full Document:
Assented to 2001-06-14
15. (1) Subsection 27(1) of the Act is replaced by the following:
Marginal note:Shares in series
27. (1) The articles may authorize, subject to any limitations set out in them, the issue of any class of shares in one or more series and may do either or both of the following:
(a) fix the number of shares in, and determine the designation, rights, privileges, restrictions and conditions attaching to the shares of, each series; or
(b) authorize the directors to fix the number of shares in, and determine the designation, rights, privileges, restrictions and conditions attaching to the shares of, each series.
(2) Subsection 27(4) of the Act is replaced by the following:
Marginal note:Amendment of articles
(4) If the directors exercise their authority under paragraph (1)(b), they shall, before the issue of shares of the series, send, in the form that the Director fixes, articles of amendment to the Director to designate a series of shares.
16. The portion of subsection 29(1) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Options et droits
29. (1) La société peut émettre des titres, notamment des certificats, constatant des privilèges de conversion, ainsi que des options ou des droits d’acquérir des valeurs mobilières de celle-ci, aux conditions qu’elle énonce :
17. (1) Paragraph 30(1)(a) of the French version of the Act is replaced by the following:
a) ni détenir ses propres actions ni celles de sa personne morale mère;
(2) The portion of subsection 30(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Subsidiary holding shares of its parent
(2) Subject to section 31, a corporation shall cause a subsidiary body corporate of the corporation that holds shares of the corporation to sell or otherwise dispose of those shares within five years from the date
18. (1) Section 31 of the French version of the Act is replaced by the following:
Marginal note:Exception
31. (1) La société peut, en qualité de mandataire, détenir ses propres actions ou des actions de sa personne morale mère, à l’exception de celles dont l’une ou l’autre d’entre elles ou leurs filiales ont la propriété effective.
Marginal note:Exception
(2) La société peut détenir ses propres actions, ou des actions de sa personne morale mère, à titre de garantie dans le cadre d’opérations conclues dans le cours ordinaire d’une activité commerciale comprenant le prêt d’argent.
(2) Section 31 of the Act is amended by adding the following after subsection (2):
Marginal note:Exception — subsidiary acquiring shares
(3) A corporation may permit any of its subsidiary bodies corporate to acquire shares of the corporation
(a) in the subsidiary’s capacity as a legal representative, unless the subsidiary would have a beneficial interest in the shares; or
(b) by way of security for the purposes of a transaction entered into by the subsidiary in the ordinary course of a business that includes the lending of money.
Marginal note:Exception — conditions precedent
(4) A corporation may permit any of its subsidiary bodies corporate to acquire shares of the corporation through the issuance of those shares by the corporation to the subsidiary body corporate if, before the acquisition takes place, the conditions prescribed for the purposes of this subsection are met.
Marginal note:Conditions subsequent
(5) After an acquisition has taken place under the purported authority of subsection (4), the conditions prescribed for the purposes of this subsection must be met.
Marginal note:Non-compliance with conditions
(6) If
(a) a corporation permits a subsidiary body corporate to acquire shares of the corporation under the purported authority of subsection (4), and
(b) either
(i) one or more of the conditions prescribed for the purposes of subsection (4) were not met, or
(ii) one or more of the conditions prescribed for the purposes of subsection (5) are not met or cease to be met,
then, notwithstanding subsections 16(3) and 26(2), the prescribed consequences apply in respect of the acquisition of the shares and their issuance.
19. Section 33 of the Act is replaced by the following:
Marginal note:Voting shares
33. (1) A corporation holding shares in itself or in its holding body corporate shall not vote or permit those shares to be voted unless the corporation
(a) holds the shares in the capacity of a legal representative; and
(b) has complied with section 153.
Marginal note:Subsidiary body corporate
(2) A corporation shall not permit any of its subsidiary bodies corporate holding shares in the corporation to vote, or permit those shares to be voted, unless the subsidiary body corporate satisfies the requirements of subsection (1).
20. The portion of subsection 34(2) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
(2) La société ne peut faire aucun paiement en vue d’acheter ou d’acquérir autrement des actions qu’elle a émises s’il existe des motifs raisonnables de croire que :
21. (1) The portion of subsection 35(3) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
(3) La société ne peut faire aucun paiement en vue d’acheter ou d’acquérir autrement, conformément au paragraphe (1), des actions qu’elle a émises s’il existe des motifs raisonnables de croire que :
(2) Subparagraph 35(3)(b)(ii) of the Act is replaced by the following:
(ii) the amount required for payment on a redemption or in a liquidation of all shares the holders of which have the right to be paid before the holders of the shares to be purchased or acquired, to the extent that the amount has not been included in its liabilities.
22. (1) Subsection 36(1) of the French version of the Act is replaced by the following:
Marginal note:Rachat des actions
36. (1) Malgré les paragraphes 34(2) ou 35(3), mais sous réserve du paragraphe (2) et de ses statuts, la société peut acheter ou racheter des actions rachetables qu’elle a émises à un prix ne dépassant pas le prix de rachat fixé par les statuts ou calculé en conformité avec ces derniers.
(2) The portion of subsection 36(2) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
(2) La société ne peut faire aucun paiement en vue d’acheter ou de racheter des actions rachetables qu’elle a émises s’il existe des motifs raisonnables de croire que :
(3) Subparagraph 36(2)(b)(ii) of the Act is replaced by the following:
(ii) the amount that would be required to pay the holders of shares that have a right to be paid, on a redemption or in a liquidation, rateably with or before the holders of the shares to be purchased or redeemed, to the extent that the amount has not been included in its liabilities.
23. Subsection 38(6) of the Act is repealed.
24. Subsection 39(12) of the French version of the Act is replaced by the following:
Marginal note:Acquisition et réémission de titres de créance
(12) La société qui acquiert ses titres de créance peut soit les annuler, soit, sous réserve de tout acte de fiducie ou convention applicable, les réémettre ou les donner en garantie de l’exécution de ses obligations existantes ou futures; l’acquisition, la réémission ou le fait de donner en garantie ne constitue pas l’annulation de ces titres.
25. Section 40 of the Act is replaced by the following:
Marginal note:Enforcement of contract to buy shares
40. (1) A corporation shall fulfil its obligations under a contract to buy shares of the corporation, except if the corporation can prove that enforcement of the contract would put it in breach of any of sections 34 to 36.
Marginal note:Status of contracting party
(2) Until the corporation has fulfilled all its obligations under a contract referred to in subsection (1), the other party retains the status of claimant entitled to be paid as soon as the corporation is lawfully able to do so or, in a liquidation, to be ranked subordinate to the rights of creditors and to the rights of holders of any class of shares whose rights were in priority to the rights given to the holders of the class of shares being purchased, but in priority to the rights of other shareholders.
Marginal note:1994, c. 24, s. 10
26. Section 44 of the Act is repealed.
27. Subsections 45(1) and (2) of the Act are replaced by the following:
Marginal note:Shareholder immunity
45. (1) The shareholders of a corporation are not, as shareholders, liable for any liability, act or default of the corporation except under subsection 38(4), 118(4) or (5), 146(5) or 226(4) or (5).
Marginal note:Lien on shares
(2) Subject to subsection 49(8), the articles may provide that the corporation has a lien on a share registered in the name of a shareholder or the shareholder’s personal representative for a debt of that shareholder to the corporation, including an amount unpaid in respect of a share issued by a body corporate on the date it was continued under this Act.
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