name: Trust and Loan Companies Act
unofficial_text: # Trust and Loan Companies Act
  
  SC 1991, c 45
  
  An Act to revise and amend the law governing federal trust and loan companies and to provide for related and consequential matters
  
  Assented to 1991-12-13
  
  Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 
  
  ## Short Title 
  
  ### Short title
  
  1 This Act may be cited as the Trust and Loan Companies Act.  
  
  # PART I 
  
  ## Interpretation and Application 
  
  ## Definitions 
  
  ### Definitions
  
  2 In this Act,  
  *affairs*, with respect to a company, means the relationships among the company and its affiliates and the shareholders, directors and officers of the company and its affiliates, but does not include the business of the company or any of its affiliates; (affaires internes)   
  *affiliate* means an entity that is affiliated with another entity within the meaning of section 6; (groupe)   
  *Agency* means the Financial Consumer Agency of Canada established under section 3 of the Financial Consumer Agency of Canada Act ; (Agence)   
  *annual statement* means the annual financial statement of a company within the meaning of paragraph 313(1)(a); (rapport annuel)   
  *assets*, in respect of a company that is a trust company pursuant to subsection 57(2), includes assets held by the company in respect of guaranteed trust money; (actif)   
  *auditor* includes a firm of accountants; (vérificateur)   
  *bank holding company* means a body corporate that is incorporated or formed under Part XV of the Bank Act ; (société de portefeuille bancaire)   
  *bearer*, in relation to a security, means the person in possession of a security payable to bearer or endorsed in blank; (porteur)   
  *bearer form*, in respect of a security, means a security in bearer form as determined in accordance with subsection 86(2); (titre au porteur)   
  *beneficial ownership* includes ownership through one or more trustees, legal representatives, agents or other intermediaries; (véritable propriétaire et propriété effective)   
  *body corporate* means an incorporated body wherever or however incorporated; (personne morale)   
  *branch*, in respect of a company, means an agency, the head office and any other office of the company; (bureau)   
  *Canadian financial institution* means a financial institution that is incorporated or formed by or under an Act of Parliament or of the legislature of a province; (institution financière canadienne)   
  *central securities register* or 
  *securities register* means the register referred to in section 253; (registre central des valeurs mobilières ou registre des valeurs mobilières)   
  *Commissioner* means the Commissioner of the Financial Consumer Agency of Canada appointed under section 4 of the Financial Consumer Agency of Canada Act ; (commissaire)   
  *common-law partner*, in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year; (conjoint de fait)   
  *company* means a body corporate to which this Act applies; (société)   
  *complainant*, in relation to a company or any matter concerning a company, means  
  (a) a registered holder or beneficial owner, and a former registered holder or beneficial owner, of a security of a company or any of its affiliates, 
  (b) a director or an officer, or a former director or officer, of a company or any of its affiliates, or 
  (c) any other person who, in the discretion of a court, is a proper person to make an application under section 339, 343 or 537; ( plaignant)   
  *consumer provision* means a provision referred to in paragraph (d) or (d.1) of the definition consumer provision in section 2 of the Financial Consumer Agency of Canada Act ; (disposition visant les consommateurs)   
  *court* means  
  (a) in the Province of Ontario, the Superior Court of Justice, 
  (b) in the Province of Quebec, the Superior Court of the Province, 
  (c) in the Provinces of Nova Scotia, British Columbia and Prince Edward Island, the Supreme Court of the Province, 
  (d) in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of Queen’s Bench for the Province, 
  (e) in the Province of Newfoundland and Labrador, the Trial Division of the Supreme Court of the Province, and 
  (f) in Yukon and the Northwest Territories, the Supreme Court, and in Nunavut, the Nunavut Court of Justice; ( tribunal)   
  *court of appeal* means the court to which an appeal lies from a decision or order of a court; (cour d’appel)   
  *creditor*, in respect of a company that is a trust company pursuant to subsection 57(2), includes a person who has money deposited with the company as guaranteed trust money; (créancier)   
  *debt obligation* means a bond, debenture, note or other evidence of indebtedness of an entity, whether secured or unsecured; (titre de créance)   
  *deposit*, in respect of money received by a company that is a trust company pursuant to subsection 57(2), means money received as guaranteed trust money; (dépôt)   
  *deposit liabilities*, in respect of a company that is a trust company pursuant to subsection 57(2), means liabilities of the company in respect of guaranteed trust money; (dette)   
  *director* means a natural person occupying the position of director, by whatever name called, of a body corporate, and 
  *board of directors* or 
  *directors* refers to the directors of a body corporate as a body; (administrateur, conseil d’administration ou conseil)   
  *entity* means a body corporate, trust, partnership, fund, an unincorporated association or organization, Her Majesty in right of Canada or of a province, an agency of Her Majesty in either of such rights and the government of a foreign country or any political subdivision thereof and any agency thereof; (entité)   
  *equity*, in respect of a company, means its equity as determined in accordance with the regulations; (capitaux propres)   
  *federal credit union* has the same meaning as in section 2 of the Bank Act ; (coopérative de crédit fédérale)   
  *federal financial institution* means  
  (a) a company, 
  (b) a bank, 
  (c) an association to which the Cooperative Credit Associations Act applies, or  
  (d) an insurance company or a fraternal benefit society incorporated or formed under the Insurance Companies Act ; (institution financière fédérale)   
  *fiduciary* means any person acting in a fiduciary capacity and includes a personal representative of a deceased person; (représentant)   
  *financial institution* means  
  (a) a company, 
  (b) a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act,  
  (c) an association to which the Cooperative Credit Associations Act applies,  
  (d) an insurance company or a fraternal benefit society incorporated or formed under the Insurance Companies Act,  
  (e) a trust, loan or insurance corporation incorporated by or under an Act of the legislature of a province, 
  (f) a cooperative credit society incorporated and regulated by or under an Act of the legislature of a province, 
  (g) an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province and that is primarily engaged in dealing in securities, including portfolio management and investment counselling, and 
  (h) a foreign institution; ( institution financière)   
  *foreign institution* means an entity that is  
  (a) engaged in the business of banking, the trust, loan or insurance business, the business of a cooperative credit society or the business of dealing in securities or is otherwise engaged primarily in the business of providing financial services, and 
  (b) incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province; ( institution étrangère)   
  *former Act* means the Trust Companies Act or the Loan Companies Act ; (loi antérieure)   
  *former-Act company* means a body corporate referred to in paragraph 12(b) or (c); (société antérieure)   
  *form of proxy* means a written or printed form that, when completed and executed by or on behalf of a shareholder, constitutes a proxy; (formulaire de procuration)   
  *going-private transaction* means a going-private transaction as defined in the regulations; (transaction de fermeture)   
  *guarantee* includes a letter of credit; (garantie)   
  *guaranteed trust money* means money that is received in trust for investment by a company that is a trust company pursuant to subsection 57(2) and that is subject to a guarantee by the company in respect of the payment of interest or repayment of the principal or both; (fonds en fiducie garantie)   
  *head office* means the office required to be maintained by a company pursuant to section 242; (siège)   
  *holder* means  
  (a) in respect of a security certificate, the person in possession of the certificate issued or endorsed to that person or to bearer or in blank, and 
  (b) in respect of the ownership of a share, the shareholder of the share within the meaning of section 7; ( détenteur)   
  *holding body corporate* means a holding body corporate within the meaning of section 4; (société mère)   
  *incorporated*, when used with reference to a body corporate that is incorporated by or under an Act of Parliament or of the legislature of a province, also refers to a body corporate that is continued by or under any such Act; (constitué en personne morale)   
  *incorporating instrument* means the special Act, letters patent, instrument of continuance or other constating instrument by which a body corporate was incorporated or continued and includes any amendment to or restatement of the constating instrument; (acte constitutif)   
  *incorporator*, in relation to a company, means a person who applied for letters patent to incorporate the company; (fondateur)   
  *insurance holding company* means a body corporate that is incorporated or formed under Part XVII of the Insurance Companies Act ; (société de portefeuille d’assurances)   
  *issuer*, in respect of a security, means the entity that issues or issued the security; (émetteur)   
  *letters patent*, in respect of an instrument authorized to be issued under this Act, means letters patent in a form approved by the Superintendent; (lettres patentes)   
  *Minister* means the Minister of Finance; (ministre)   
  *minor* has the same meaning as in the applicable provincial law and in the absence of any such law has the same meaning as the word “child” in the United Nations Convention on the Rights of the Child adopted in the United Nations General Assembly on November 20, 1989; (mineur)   
  *non-WTO Member foreign institution* means a foreign institution that is not controlled by a WTO Member resident; (institution étrangère d’un non-membre de l’OMC)   
  *officer* means  
  (a) in relation to a body corporate, a chief executive officer, president, vice-president, secretary, controller, treasurer and any other natural person designated as an officer of the body corporate by by-law or by resolution of the directors of the body corporate, and 
  (b) in relation to any other entity, any natural person designated as an officer of the entity by by-law, by resolution of the members thereof or otherwise; ( dirigeant)   
  *order form*, in respect of a security, means a security in order form as determined in accordance with subsection 86(3); (titre à ordre)   
  *ordinary resolution* means a resolution passed by a majority of the votes cast by or on behalf of the shareholders who voted in respect of that resolution; (résolution ordinaire)   
  *person* means a natural person, an entity or a personal representative; (personne)   
  *personal representative* means a person who stands in place of and represents another person and, without limiting the generality of the foregoing, includes, as the circumstances require, a trustee, an executor, an administrator, a committee, a guardian, a tutor, a curator, an assignee, a receiver, an agent or an attorney of any person; (représentant personnel)   
  *prescribed* means prescribed by regulation; (Version anglaise seulement)   
  *property*, in respect of a company that is a trust company pursuant to subsection 57(2), includes property held by the company in respect of guaranteed trust money; (biens)   
  *proxy* means a completed and executed form of proxy by means of which a shareholder appoints a proxyholder to attend and act on the shareholder’s behalf at a meeting of shareholders; (procuration)   
  *proxyholder* means the person appointed by proxy to attend and act on behalf of a shareholder at a meeting of shareholders; (fondé de pouvoir)   
  *real property* includes a leasehold interest in real property; (biens immeubles)   
  *recorded address* means  
  (a) in relation to a person who is a shareholder of a company, the latest postal address of the person according to the central securities register of the company, and 
  (b) in relation to a person in any other respect, the latest postal address of the person according to the records of the branch concerned; ( adresse enregistrée)   
  *registered form*, in respect of a security, means a security in registered form as determined in accordance with subsection 86(4); (titre nominatif)   
  *regulated foreign entity* means an entity that is  
  (a) incorporated or formed otherwise in a country or territory, other than Canada, in which a trade agreement listed in Schedule IV of the Bank Act is applicable, and  
  (b) subject to financial services regulation in that country or territory; ( entité étrangère réglementée)   
  *regulatory capital*, in respect of a company, has the meaning given that expression by the regulations; (capital réglementaire)   
  *resident Canadian* means a natural person who is  
  (a) a Canadian citizen ordinarily resident in Canada, 
  (b) a Canadian citizen not ordinarily resident in Canada who is a member of a prescribed class of persons, or 
  (c) a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act and ordinarily resident in Canada, except a permanent resident who has been ordinarily resident in Canada for more than one year after the time at which the individual first became eligible to apply for Canadian citizenship; (résident canadien)   
  *residential property* means real property consisting of buildings that are used, or are to be used, to the extent of at least one half of the floor space thereof, as one or more private dwellings; (immeuble résidentiel)   
  *securities underwriter* means a person who, as principal, agrees to purchase securities with a view to the distribution of the securities or who, as agent for a body corporate or other person, offers for sale or sells securities in connection with a distribution of the securities, and includes a person who participates, directly or indirectly, in a distribution of securities, other than a person whose interest in the distribution of securities is limited to receiving a distributor’s or seller’s commission payable by a securities underwriter; (souscripteur à forfait)   
  *security* means  
  (a) in relation to a body corporate, a share of any class of shares of the body corporate or a debt obligation of the body corporate, and includes a warrant of the body corporate, but does not include a deposit with a financial institution or any instrument evidencing such a deposit, and 
  (b) in relation to any other entity, any ownership interest in or debt obligation of the entity; ( titre ou valeur mobilière)   
  *security interest* means an interest in or charge on property by way of mortgage, lien, pledge or otherwise taken by a creditor or guarantor to secure the payment or performance of an obligation; (sûreté)   
  *send* includes deliver; (envoyer)   
  *series*, in respect of shares, means a division of a class of shares; (série)   
  *significant interest* means a significant interest determined in accordance with section 8; (intérêt substantiel)   
  *special resolution* means a resolution passed by a majority of not less than two thirds of the votes cast by or on behalf of the shareholders who voted in respect of that resolution or signed by all the shareholders entitled to vote on that resolution; (résolution extraordinaire)   
  *squeeze-out transaction* means a transaction by a company that is not a distributing company that requires an amendment to a by-law referred to in subsection 222(1) and that would directly or indirectly result in the interest of a holder of shares of a class of shares being terminated without their consent and without substituting an interest of equivalent value in shares issued by the company that have rights and privileges equal to or greater than those of the shares of the affected class; (transaction d’éviction)   
  *subordinated indebtedness* means an instrument evidencing an indebtedness of a company that by its terms provides that the indebtedness will, in the event of the insolvency or winding-up of the company, be subordinate in right of payment to all deposit liabilities of the company and all other liabilities of the company except those that, by their terms, rank equally with or are subordinate to such indebtedness; (titre secondaire)   
  *subsidiary* means an entity that is a subsidiary of another entity within the meaning of section 5; (filiale)   
  *substantial investment* means a substantial investment determined in accordance with section 10; (intérêt de groupe financier)   
  *Superintendent* means the Superintendent of Financial Institutions appointed pursuant to the Office of the Superintendent of Financial Institutions Act ; (surintendant)   
  *trade*, in respect of securities, means any sale or disposition of securities for valuable consideration; (opération)   
  *transfer*, in respect of securities, includes a transmission by operation of law; (transfert)   
  *voting share* means a share of any class of shares of a body corporate carrying voting rights under all circumstances or by reason of an event that has occurred and is continuing or by reason of a condition that has been fulfilled; (action avec droit de vote)   
  *WTO Member resident* means a WTO Member resident within the meaning of section 11.1. (résident d’un membre de l’OMC)  
  
  ## Interpretation 
  
  ### Major shareholder
  
  2.1 For the purposes of this Act, a person is a major shareholder of a body corporate if 
  (a) the aggregate of the shares of any class of voting shares of the body corporate that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 20 per cent of the outstanding shares of that class of voting shares of the body corporate; or 
  (b) the aggregate of the shares of any class of non-voting shares of the body corporate that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 30 per cent of the outstanding shares of that class of non-voting shares of the body corporate. 
  
  ### Widely held
  
  2.2 For the purposes of this Act, a body corporate is widely held if it has no major shareholder. 
  
  ### Regulations — distributing company
  
  2.3 (1) The Governor in Council may make regulations respecting the determination of what constitutes a distributing company for the purposes of this Act. 
  
  ### Exemption — company
  
  (2) On the application of a company, the Superintendent may determine that it is not or was not a distributing company if the Superintendent is satisfied that the determination would not prejudice any of its security holders. 
  
  ### Exemption — class of companies
  
  (3) The Superintendent may determine that members of a class of companies are not or were not distributing companies if the Superintendent is satisfied that the determination would not prejudice any security holder of a member of the class. 
  
  ### Control
  
  3 (1) For the purposes of this Act, 
  (a) a person controls a body corporate if securities of the body corporate to which are attached more than 50 per cent of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate; 
  (b) a person controls an unincorporated entity, other than a limited partnership, if more than 50 per cent of the ownership interests, however designated, into which the entity is divided are beneficially owned by that person and the person is able to direct the business and affairs of the entity; 
  (c) the general partner of a limited partnership controls the limited partnership; and 
  (d) a person controls an entity if the person has any direct or indirect influence that, if exercised, would result in control in fact of the entity. 
  
  ### Deemed control
  
  (2) A person who controls an entity is deemed to control any entity that is controlled, or deemed to be controlled, by the entity. 
  
  ### Deemed control
  
  (3) A person is deemed to control, within the meaning of paragraph (1)(a) or (b), an entity if the aggregate of 
  (a) any securities of the entity that are beneficially owned by that person, and 
  (b) any securities of the entity that are beneficially owned by any entity controlled by that person is such that, if that person and all of the entities referred to in paragraph (b) that beneficially own securities of the entity were one person, that person would control the entity. 
  
  ### Guidelines
  
  (4) The Minister may, for any purpose of any provision of this Act that refers to control within the meaning of paragraph (1)(d), make guidelines respecting what constitutes such control, including guidelines describing the policy objectives that the guidelines and the relevant provisions of the Act are intended to achieve and, if any such guidelines are made, the reference to paragraph (1)(d) in that provision shall be interpreted in accordance with the guidelines. 
  
  ### Holding body corporate
  
  4 A body corporate is the holding body corporate of any entity that is its subsidiary. 
  
  ### Subsidiary
  
  5 An entity is a subsidiary of another entity if it is controlled by the other entity. 
  
  ### Affiliated entities
  
  6 (1) One entity is affiliated with another entity if one of them is controlled by the other or both are controlled by the same person. 
  
  ### Affiliated entities
  
  (2) Despite subsection (1), for the purposes of subsections 270(1) and 288(1), one entity is affiliated with another entity if one of them is controlled, determined without regard to paragraph 3(1)(d), by the other or both are controlled, determined without regard to paragraph 3(1)(d), by the same person. 
  
  ### Shareholder
  
  7 (1) For the purposes of this Act, a person is a shareholder of a body corporate when, according to the securities register of the body corporate, the person is the owner of one or more shares of the body corporate or is entitled to be entered in the securities register or like record of the body corporate as the owner of the share or shares. 
  
  ### Holder of a share
  
  (2) A reference in this Act to the holding of a share by or in the name of any person is a reference to the fact that the person is registered or is entitled to be registered in the securities register or like record of the body corporate as the holder of that share. 
  
  ### Significant interest
  
  8 (1) A person has a significant interest in a class of shares of a company where the aggregate of 
  (a) any shares of that class beneficially owned by the person, and 
  (b) any shares of that class beneficially owned by entities controlled by the person exceeds 10 per cent of all of the outstanding shares of that class of shares of the company. 
  
  ### Increasing significant interest
  
  (2) A person who has a significant interest in a class of shares of a company increases that significant interest in the class of shares where the person or any entity controlled by the person 
  (a) acquires beneficial ownership of additional shares of that class, or 
  (b) acquires control of any entity that beneficially owns shares of that class, in such number as to increase the percentage of shares of that class that are beneficially owned by the person and by any entities controlled by the person. 
  
  ### Acting in concert
  
  9 (1) For the purposes of Part VII, if two or more persons have agreed, under any agreement, commitment or understanding, whether formal or informal, verbal or written, to act jointly or in concert in respect of 
  (a) shares of a company that they beneficially own, 
  (b) shares or ownership interests that they beneficially own of any entity that beneficially owns shares of a company, or 
  (c) shares or ownership interests that they beneficially own of any entity that controls any entity that beneficially owns shares of a company, those persons shall be deemed to be a single person who is acquiring beneficial ownership of the aggregate number of shares of the company or shares or ownership interests of the entity that are beneficially owned by them. 
  
  ### Idem
  
  (2) Without limiting the generality of subsection (1), any agreement, commitment or understanding by or between two or more persons who beneficially own shares of a company or shares or ownership interests of any entity referred to in paragraph (1)(b) or (c), 
  (a) whereby any of them or their nominees may veto any proposal put before the board of directors of the company, or 
  (b) pursuant to which no proposal put before the board of directors of the company may be approved except with the consent of any of them or their nominees, shall be deemed to be an agreement, commitment or understanding referred to in subsection (1). 
  
  ### Exceptions
  
  (3) For the purposes of this section, persons shall be presumed not to have agreed to act jointly or in concert solely by reason of the fact that 
  (a) one is the proxyholder of one or more of the others in respect of shares or ownership interests referred to in subsection (1); or 
  (b) they vote the voting rights attached to shares or ownership interests referred to in subsection (1) in the same manner. 
  
  ### Designation
  
  (4) Where in the opinion of the Superintendent it is reasonable to conclude that an agreement, commitment or understanding referred to in subsections (1) and (2) exists by or among two or more persons, the Superintendent may designate those persons as persons who have agreed to act jointly or in concert. 
  
  ### Contravention
  
  (5) A person contravenes a provision of Part VII if the person agrees to act jointly or in concert with one or more other persons in such a manner that a deemed single person contravenes the provision. 
  
  ### Substantial investment in body corporate
  
  10 (1) A person has a substantial investment in a body corporate where 
  (a) the voting rights attached to the aggregate of any voting shares of the body corporate beneficially owned by the person and by any entities controlled by the person exceed 10 per cent of the voting rights attached to all of the outstanding voting shares of the body corporate; or 
  (b) the aggregate of any shares of the body corporate beneficially owned by the person and by any entities controlled by the person represents ownership of greater than 25 per cent of the shareholders’ equity of the body corporate. 
  
  ### Increasing substantial investment in body corporate
  
  (2) A person who has a substantial investment in a body corporate pursuant to paragraph (1)(a) increases that substantial investment when the person or any entity controlled by the person 
  (a) acquires beneficial ownership of additional voting shares of the body corporate in such number as to increase the percentage of voting rights attached to the aggregate of the voting shares of the body corporate beneficially owned by the person and by any entities controlled by the person; or 
  (b) acquires control of any entity that beneficially owns any voting shares of the body corporate in such number as to increase the percentage of voting rights attached to the aggregate of the voting shares of the body corporate beneficially owned by the person and by any entities controlled by the person. 
  
  ### Idem
  
  (3) A person who has a substantial investment in a body corporate pursuant to paragraph (1)(b) increases that substantial investment when the person or any entity controlled by the person 
  (a) acquires beneficial ownership of additional shares of the body corporate in such number as to increase the percentage of the shareholders’ equity of the body corporate represented by the aggregate of the shares of the body corporate beneficially owned by the person and by any entities controlled by the person; or 
  (b) acquires control of any entity that beneficially owns any shares of the body corporate in such number as to increase the percentage of the shareholders’ equity of the body corporate represented by the aggregate of the shares of the body corporate beneficially owned by the person and by any entities controlled by the person. 
  
  ### New substantial investment
  
  (4) For greater certainty, 
  (a) where a person has a substantial investment in a body corporate pursuant to paragraph (1)(a) and the person, or any entity controlled by the person, 
  (i) purchases or otherwise acquires beneficial ownership of shares of the body corporate, or 
  (ii) acquires control of any entity that beneficially owns shares of the body corporate, in such number as to cause the shareholders’ equity of the body corporate represented by the aggregate of the shares of the body corporate beneficially owned by the person and by any entities controlled by the person to exceed 25 per cent of the shareholders’ equity of the body corporate, or 
  (b) where a person has a substantial investment in a body corporate pursuant to paragraph (1)(b) and the person or any entity controlled by the person 
  (i) purchases or otherwise acquires beneficial ownership of voting shares of the body corporate, or 
  (ii) acquires control of any entity that beneficially owns voting shares of the body corporate, in such number as to cause the voting rights attached to the aggregate of the voting shares beneficially owned by the person and by any entities controlled by the person to exceed 10 per cent of the voting rights attached to all of the outstanding voting shares of the body corporate, the acquisition is deemed to cause the person to increase a substantial investment in the body corporate. 
  
  ### Substantial investment in unincorporated entity
  
  (5) A person has a substantial investment in an unincorporated entity where the aggregate of any ownership interests, however designated, into which the entity is divided, beneficially owned by the person and by any entities controlled by the person exceeds 25 per cent of all of the ownership interests into which the entity is divided. 
  
  ### Increasing substantial investment in unincorporated entities
  
  (6) A person who has a substantial investment in an unincorporated entity increases that substantial investment when the person or any entity controlled by the person 
  (a) acquires beneficial ownership of additional ownership interests in the unincorporated entity in such number as to increase the percentage of ownership interests in the unincorporated entity beneficially owned by the person and by any entities controlled by the person; or 
  (b) acquires control of any entity that beneficially owns ownership interests in the unincorporated entity in such number as to increase the percentage of ownership interests beneficially owned by the person and by any entities controlled by the person. 
  11  [Repealed, 2005, c. 54, s. 370]  
  
  ### WTO Member resident
  
  11.1 (1) For the purposes of this Act, a WTO Member resident is 
  (a) a natural person who is ordinarily resident in a country or territory that is a WTO Member as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act, other than Canada;  
  (b) a body corporate, association, partnership or other organization that is incorporated, formed or otherwise organized in a country or territory that is a WTO Member, as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act, other than Canada, and that is controlled,  
  (i) directly or indirectly, by one or more persons referred to in paragraph (a), or 
  (ii) by a government of a WTO Member, whether federal, state or local, or an agency of one of those governments; 
  (c) a trust established by one or more persons referred to in paragraph (a) or (b) or a trust in which one or more of those persons have more than 50 per cent of the beneficial interest; or 
  (d) a body corporate, association, partnership or other organization that is controlled, directly or indirectly, by a trust referred to in paragraph (c). 
  
  ### Interpretation
  
  (2) For the purposes of subsection (1), 
  (a) a body corporate is controlled by one or more persons if 
  (i) securities of the body corporate to which are attached more than 50 per cent of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person or persons, and 
  (ii) the votes attached to those securities are sufficient to elect a majority of the directors of the body corporate; 
  (b) an association, partnership or other organization is controlled by one or more persons if 
  (i) more than 50 per cent of the ownership interests, however designated, into which the association, partnership or other organization is divided are beneficially owned by the person or persons, and 
  (ii) the person or persons are able to direct the business and affairs of the association, partnership or other organization; 
  (c) a body corporate, association, partnership or other organization is controlled by one or more persons if the person or persons have, directly or indirectly, control in fact of the body corporate, association, partnership or other organization; and 
  (d) a body corporate, association, partnership or other organization that controls another body corporate, association, partnership or other organization is deemed to control any body corporate, association, partnership or other organization that is controlled or deemed to be controlled by the other body corporate, association, partnership or other organization. 
  
  ## Application 
  
  ### Application of Act
  
  12 This Act applies to every body corporate 
  (a) that is incorporated or continued under this Act, 
  (b) to which the Trust Companies Act applied immediately before the coming into force of this section, or  
  (c) to which the Loan Companies Act applied immediately before the coming into force of this section,  and that is not discontinued under this Act. 
  
  ### Conflicting provisions
  
  13 Where there is a conflict or inconsistency between a provision of this Act and a provision of the incorporating instrument of a former-Act company, the provision of this Act prevails. 
  
  # PART II 
  
  ## Status and Powers 
  
  ### Corporate powers
  
  14 (1) A company has the capacity of a natural person and, subject to this Act, the rights, powers and privileges of a natural person. 
  
  ### Powers restricted
  
  (2) A company shall not carry on any business or exercise any power that it is restricted by this Act from carrying on or exercising, or exercise any of its powers in a manner contrary to this Act. 
  
  ### Business in Canada
  
  (3) A company may carry on business throughout Canada. 
  
  ### Powers outside Canada
  
  (4) Subject to this Act, a company has the capacity to carry on its business, conduct its affairs and exercise its powers in any jurisdiction outside Canada to the extent and in the manner that the laws of that jurisdiction permit. 
  
  ### Policies and procedures — integrity or security
  
  14.1 A company shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference. 
  
  ### No invalidity
  
  15 No act of a company, including any transfer of property to or by a company, is invalid by reason only that the act or transfer is contrary to the company’s incorporating instrument or this Act. 
  
  ### By-law not necessary
  
  16 It is not necessary for a company to pass a by-law in order to confer any particular power on the company or its directors. 
  
  ### No personal liability
  
  17 The shareholders of a company are not, as shareholders, liable for any liability, act or default of the company except as otherwise provided by this Act. 
  
  ### No constructive notice
  
  18 No person is affected by or is deemed to have notice or knowledge of the contents of a document concerning a company by reason only that the document has been filed with the Superintendent or the Minister or is available for inspection at a branch of the company. 
  
  ### Authority of directors and officers
  
  19 (1) No company and no guarantor of an obligation of a company may assert against a person dealing with the company or against a person who has acquired rights from the company that 
  (a) the company’s incorporating instrument or any by-laws of the company have not been complied with; 
  (b) the persons named as directors of the company in the most recent return sent to the Superintendent under section 499 are not the directors of the company; 
  (c) the place named in the incorporating instrument or by-laws of the company is not the place where the head office of the company is situated; 
  (d) a person held out by the company as a director, officer or representative of the company has not been duly appointed or has no authority to exercise the powers and perform the duties that are customary in the business of the company or usual for a director, officer or representative; or 
  (e) a document issued by any director, officer or representative of the company with actual or usual authority to issue the document is not valid or not genuine. 
  
  ### Exception — knowledge
  
  (2) Subsection (1) does not apply in respect of a person who has or ought to have knowledge of a situation described in that subsection by virtue of their relationship to the company. 
  
  ### Sunset provision
  
  20 (1) Subject to subsections (2) and (4), companies shall not carry on business after June 30, 2025. 
  
  ### Extension
  
  (2) The Governor in Council may, by order, extend by up to six months the time during which companies may continue to carry on business. No more than one order may be made under this subsection. 
  
  ### Order not a regulation
  
  (3) The order is not a regulation for the purposes of the Statutory Instruments Act. However, it shall be published in Part II of the Canada Gazette.  
  
  ### Exception — dissolution
  
  (4) If Parliament dissolves on the day set out in subsection (1) or on any day within the six-month period before that day or on any day within an extension ordered under subsection (2), companies may continue to carry on business until the end of the 180th day after the first day of the first session of the next Parliament. 
  
  # PART III 
  
  ## Incorporation, Continuance and Discontinuance 
  
  ## Formalities of Incorporation 
  
  ### Incorporation of company
  
  21 On the application of one or more persons made in accordance with this Act, the Minister may, subject to this Part, issue letters patent incorporating a company. 
  
  ### Restrictions on incorporation
  
  22 Letters patent incorporating a company may not be issued if the application therefor is made by or on behalf of 
  (a) Her Majesty in right of Canada or in right of a province, an agency of Her Majesty in either of those rights, or an entity controlled by Her Majesty in either of those rights; 
  (b) the government of a foreign country or any political subdivision thereof; 
  (c) an agency of the government of a foreign country or any political subdivision thereof; or 
  (d) an entity, other than a foreign institution or any subsidiary of a foreign institution, that is controlled by the government of a foreign country or any political subdivision thereof. 
  
  ### Subsidiary of foreign institution
  
  23 If a proposed company would be a subsidiary of a foreign institution that is engaged in trust or loan business and the application for letters patent to incorporate the company is made by a non-WTO Member foreign institution, letters patent to incorporate the company may not be issued unless the Minister is satisfied that treatment as favourable for companies to which this Act applies exists or will be provided in the jurisdiction in which the foreign institution principally carries on business, either directly or through a subsidiary. 
  
  ### Application for incorporation
  
  24 (1) An application for letters patent to incorporate a company setting out the names of the first directors of the company shall be filed with the Superintendent, together with such other information, material and evidence as the Superintendent may require. 
  
  ### Publishing notice of intent
  
  (2) Before filing an application referred to in subsection (1), the applicant or one of the applicants, as the case may be, shall, at least once a week for a period of four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the company is to be situated.  
  
  ### Objections to incorporation
  
  25 (1) Any person who objects to the proposed incorporation of a company may, within thirty days after the date of the last publication under subsection 24(2) in respect of the proposed company, submit the objection in writing to the Superintendent. 
  
  ### Minister to be informed
  
  (2) On receipt of an objection under subsection (1), the Superintendent shall inform the Minister of the objection. 
  
  ### Inquiry into objection and report
  
  (3) On receipt of an objection under subsection (1), and if the application for the issuance of the letters patent to which the objection relates has been received, the Superintendent shall, if satisfied that it is necessary and in the public interest to do so, hold or cause to be held a public inquiry into the objection as it relates to the application and, on completion of the inquiry, the Superintendent shall report the findings of the inquiry to the Minister. 
  
  ### Report to be made available
  
  (4) Within thirty days after receiving a report under subsection (3), the Minister shall make the report available to the public. 
  
  ### Rules governing proceedings
  
  (5) Subject to the approval of the Governor in Council, the Superintendent may make rules governing the proceedings at public inquiries held under this section. 
  
  ### Matters for consideration
  
  26 Before issuing letters patent to incorporate a company, the Minister shall take into account all matters that the Minister considers relevant to the application, including 
  (a) the nature and sufficiency of the financial resources of the applicant or applicants as a source of continuing financial support for the company; 
  (b) the soundness and feasibility of the plans of the applicant or applicants for the future conduct and development of the business of the company; 
  (c) the business record and experience of the applicant or applicants; 
  (d) the character and integrity of the applicant or applicants or, if the applicant or any of the applicants is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good character and integrity; 
  (e) whether the company will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution; 
  (f) the impact of any integration of the businesses and operations of the applicant or applicants with those of the company on the conduct of those businesses and operations; and 
  (g) the best interests of the financial system in Canada. 
  
  ### Contents of letters patent
  
  27 (1) There shall be set out in the letters patent incorporating a company 
  (a) the name of the company; 
  (b) the province in which the head office of the company is to be situated; and 
  (c) the date that the company came, or is to come, into existence. 
  
  ### Provisions in letters patent
  
  (2) The Minister may set out in the letters patent incorporating a company any provision not contrary to this Act that the Minister considers advisable in order to take into account the particular circumstances of the proposed company. 
  
  ### Terms and conditions
  
  (3) The Minister may impose such terms and conditions in respect of the issuance of letters patent incorporating a company as the Minister considers necessary or appropriate. 
  
  ### Notice of issue of letters patent
  
  28 The Superintendent shall cause to be published in the Canada Gazette a notice of the issuance of letters patent incorporating a company.  
  
  ### First directors
  
  29 The first directors of a company are the directors named in the application for letters patent to incorporate the company. 
  
  ### Effect of letters patent
  
  30 A company comes into existence on the date provided therefor in its letters patent. 
  
  ## Continuance 
  
  ### Federal corporations
  
  31 (1) A body corporate incorporated under the Canada Business Corporations Act or any other Act of Parliament, other than a federal credit union, may apply to the Minister for letters patent continuing the body corporate as a company under this Act.  
  
  ### Other corporations
  
  (2) A body corporate incorporated otherwise than by or under an Act of Parliament may, if so authorized by the laws of the jurisdiction where it is incorporated, apply to the Minister for letters patent continuing the body corporate as a company under this Act. 
  
  ### Application for continuance
  
  32 (1) Where a body corporate applies for letters patent under subsection 31(1) or (2), sections 22 to 26 apply in respect of the application, with such modifications as the circumstances require. 
  
  ### Special resolution approval
  
  (2) Where a body corporate applies for letters patent under subsection 31(1) or (2), the application must be duly authorized by a special resolution. 
  
  ### Copy of special resolution
  
  (3) A copy of the special resolution referred to in subsection (2) shall be filed with the application. 
  
  ### Power to issue letters patent
  
  33 (1) On the application of a body corporate under subsection 31(1) or (2), the Minister may, subject to this Part, issue letters patent continuing the body corporate as a company under this Act. 
  
  ### Issue of letters patent
  
  (2) Where letters patent are issued to a body corporate under subsection (1), section 27 applies in respect of the issue of letters patent, with such modifications as the circumstances require. 
  
  ### Effect of letters patent
  
  34 On the day set out in the letters patent continuing a body corporate as a company under subsection 33(1), 
  (a) the body corporate becomes a company as if it had been incorporated under this Act; and 
  (b) the letters patent are deemed to be the incorporating instrument of the continued company. 
  
  ### Copy of letters patent
  
  35 (1) Where a body corporate is continued as a company under this Part, the Superintendent shall forthwith send a copy of the letters patent to the appropriate official or public body in the jurisdiction in which the body corporate was authorized to apply to be continued under this Act. 
  
  ### Notice of issuance of letters patent
  
  (2) The Superintendent shall cause to be published in the Canada Gazette a notice of the issuance of letters patent continuing a body corporate as a company under this Act.  
  
  ### Effects of continuance
  
  36 Where a body corporate is continued as a company under this Part, 
  (a) the property of the body corporate continues to be the property of the company; 
  (b) the company continues to be liable for the obligations of the body corporate; 
  (c) an existing cause of action or claim by or against the body corporate or any liability of the body corporate to prosecution is unaffected; 
  (d) a civil, criminal or administrative action or proceeding pending by or against the body corporate may continue to be prosecuted by or against the company; 
  (e) a conviction against, or any ruling, order or judgment in favour of or against the body corporate may be enforced by or against the company; 
  (f) a person who, on the day the body corporate becomes a company, was the holder of a security issued by the body corporate is not deprived of any right or privilege available to the person at that time in respect of the security or relieved of any liability in respect thereof, but any such right or privilege may be exercised only in accordance with this Act; and 
  (g) the by-laws of the body corporate, except those that are in conflict with this Act, continue as the by-laws of the company. 
  
  ### Transitional
  
  37 (1) Notwithstanding any other provision of this Act or the regulations, the Minister may, on the recommendation of the Superintendent, by order, grant to a company in respect of which letters patent were issued under subsection 33(1) permission to 
  (a) engage in a business activity specified in the order that a company is not otherwise permitted by this Act to engage in and that the body corporate continued as the company was engaging in at the time the application for the letters patent was made; 
  (b) continue to have issued and outstanding debt obligations the issue of which is not authorized by this Act if the debt obligations were outstanding at the time the application for the letters patent was made; 
  (c)  [Repealed, 1994, c. 47, s. 202]  
  (d) hold assets that a company is not otherwise permitted by this Act to hold if the assets were held by the body corporate continued as the company at the time the application for the letters patent was made; 
  (e) acquire and hold assets that a company is not otherwise permitted by this Act to acquire or hold if the body corporate continued as the company was obliged, at the time the application for the letters patent was made, to acquire those assets; and 
  (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada. 
  
  ### Duration
  
  (2) The permission granted under subsection (1) shall be expressed to be granted for a period specified in the order not exceeding 
  (a) with respect to any activity described in paragraph (1)(a), thirty days after the date of issue of the letters patent or, where the activity is conducted pursuant to an agreement existing on the date of issue of the letters patent, the expiration of the agreement; 
  (b) with respect to any matter described in paragraph (1)(b), ten years; and 
  (c) with respect to any matter described in any of paragraph (1)(d) to (f), two years. 
  
  ### Non-application
  
  (2.1) Paragraph (2)(a) does not apply to a company if the body corporate continued as the company was, at any time before the coming into force of this subsection, engaged in any personal property leasing activity in which a financial leasing entity, as defined in subsection 449(1), is not permitted to engage. 
  
  ### Renewal
  
  (3) Subject to subsection (4), the Minister may, on the recommendation of the Superintendent, by order, renew a permission granted by order under subsection (1) with respect to any matter described in paragraphs (1)(b) to (e) for such further period or periods as the Minister considers necessary. 
  
  ### Limitation
  
  (4) The Minister shall not grant to a company any permission 
  (a) with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the date of the approval for the company to commence and carry on business, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the company that the company will not be able at law to redeem at the end of the ten years the outstanding debt obligations to which the permission relates; and 
  (b) with respect to matters referred to in paragraphs (1)(d) and (e), that purports to be effective more than ten years after the date of the approval for the company to commence and carry on business. 
  
  ## Discontinuance 
  
  ### Transferring to other federal Acts
  
  38 (1) A company may 
  (a) apply, under the Bank Act, for letters patent continuing the company as a bank or a bank holding company under that Act, or amalgamating and continuing the company as a bank or a bank holding company under that Act;  
  (b) apply, with the approval in writing of the Minister, under the Canada Business Corporations Act, for a certificate of continuance as a corporation under that Act;  
  (c) apply, with the approval in writing of the Minister, under the Canada Cooperatives Act, for a certificate of continuance, or a certificate of continuance and a certificate of amalgamation, as a cooperative under that Act;  
  (d) apply, under the Cooperative Credit Associations Act, for letters patent continuing the company as an association under that Act, or amalgamating and continuing the company as an association under that Act; or  
  (e) apply, under the Insurance Companies Act, for letters patent continuing the company as a company (other than a mutual company) or an insurance holding company under that Act, or amalgamating and continuing the company as a company (other than a mutual company) or an insurance holding company under that Act.  
  
  ### Conditions for approval
  
  (2) The approval referred to in paragraph (1)(b) or (c) may be given only if the Minister is satisfied that 
  (a) the company has published, once a week for four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the company is situated, a notice of its intention to apply for the approval;  
  (b) the company is not carrying on any of the fiduciary activities referred to in section 412; 
  (c) unless the company is a subsidiary of another company and it uses the name of the other company in its name as permitted by section 48, the company will not use the word “ fiduciaire ”, “fiduciary”, “ fiducie ”, “loan”, “loanco”, “ prêt ”, “trust” or “trustco” in its name after the certificate referred to in that paragraph is issued;  
  (d) the company does not hold deposits, other than deposits that are made by a person who controls the company or by a person who has a significant interest in a class of shares of the company and that are not insured by the Canada Deposit Insurance Corporation; and 
  (e) the application has been authorized by a special resolution. 
  
  ### Withdrawing application
  
  (3) If a special resolution authorizing the application for the certificate or letters patent so states, the directors of the company may, without further approval of the shareholders, withdraw the application before it is acted on. 
  
  ### Restriction on other transfers
  
  (4) A company may not apply to be continued, or to be amalgamated and continued, as the case may be, as a body corporate other than one referred to in subsection (1). 
  
  ### Act ceases to apply
  
  39 If a company applies for a certificate or letters patent referred to in section 38 in accordance with that section and the certificate is given or the letters patent are issued, this Act ceases to apply to the company as of the day the certificate or the letters patent take effect. 
  40  [Repealed, 2007, c. 6, s. 340]  
  
  ## Corporate Name 
  
  ### Prohibited names
  
  41 (1) A company may not be incorporated under this Act with a name 
  (a) that is prohibited by an Act of Parliament; 
  (b) that is, in the opinion of the Superintendent, deceptively misdescriptive; 
  (c) that is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing 
  (i) trademark or trade name, or 
  (ii) corporate name of a body corporate, except where the trademark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name and consent to the use of the trademark, trade name or corporate name is signified to the Superintendent in such manner as the Superintendent may require; 
  (d) that is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any entity carries on business or is identified; or 
  (e) that is reserved under section 45 for another company or a proposed company. 
  
  ### Exception
  
  (2) Paragraph (1)(a) does not apply with respect to any former-Act company incorporated by or under an Act of Parliament that expressly authorizes the use of any name that would otherwise be prohibited. 
  
  ### Trust company
  
  42 A company that is a trust company pursuant to subsection 57(2) must have the word “fiduciaire”, “fiduciary”, “fiducie”, “trust” or “trustco” included in its name. 
  
  ### Affiliated company
  
  43 Despite section 41, a company that is affiliated with another entity may, with the consent of that entity, be incorporated with, or change its name to, substantially the same name as that of the affiliated entity. 
  
  ### French or English form of name
  
  44 (1) The name of a company may be set out in its letters patent in an English form, a French form, an English form and a French form or in a combined English and French form, and the company may use and be legally designated by any such form. 
  
  ### Alternate name
  
  (2) A company may identify itself outside Canada by its name in any language and the company may use and be legally designated by any such form of its name outside Canada. 
  
  ### Other name
  
  (3) Subject to subsection (4) and section 260, a company may carry on business under or identify itself by a name other than its corporate name. 
  
  ### Directions
  
  (4) Where a company is carrying on business under or identifying itself by a name other than its corporate name, the Superintendent may, by order, direct the company not to use that other name if the Superintendent is of the opinion that that other name is a name referred to in any of paragraphs 41(1)(a) to (e). 
  
  ### Reserved name
  
  45 The Superintendent may, on request, reserve for ninety days a name for a proposed company or for a company that intends to change its name. 
  
  ### Directing change of name
  
  46 (1) If through inadvertence or otherwise a company 
  (a) comes into existence or is continued with a name, or 
  (b) on an application to change its name, is granted a name that is prohibited by section 41, the Superintendent may, by order, direct the company to change its name and the company shall comply with that direction. 
  
  ### Revoking name
  
  (2) If a company has been directed under subsection (1) to change its name and has not, within sixty days after the service of the direction, changed its name to a name that is not prohibited by this Act, the Superintendent may revoke the name of the company and assign to it a name and, until changed in accordance with section 220 or 222, the name of the company is thereafter the name so assigned. 
  
  ### Restriction re trust company name
  
  47 (1) No entity incorporated or formed by or under an Act of Parliament other than this Act shall use the word “fiduciaire”, “fiduciary”, “fiducie”, “trust” or “trustco” or any word or words of import equivalent to any of those words in its name. 
  
  ### Restriction re loan company name
  
  (2) No entity incorporated or formed by or under any Act of Parliament other than this Act shall use the word “loan”, “loanco” or “prêt” or any word or words of import equivalent to any of those words in its name. 
  
  ### Exception
  
  (3) Subsections (1) and (2) do not apply to 
  (a) an entity the business of which is not financial activities; or 
  (b) an entity that was, on the day immediately preceding the day on which 
  (i) subsection (1) comes into force, using the word “fiduciaire”, “fiduciary”, “fiducie”, “trust” or “trustco” or any word or words of import equivalent to any of those words in its name, or 
  (ii) subsection (2) comes into force, using the word “loan”, “loanco” or “prêt” or any word or words of import equivalent to any of those words in its name. 
  
  ### Subsidiaries
  
  48 Despite subsections 47(1) and (2), a subsidiary of a company may use the company’s name in its name. 
  
  ### Definition of reserved name 
  
  48.1 (1) In this section, 
  *reserved name* means a name that includes as part thereof the word “assurance”, “assurances”, “insurance”, “lifeco”, “fiduciaire”, “fiduciary”, “fiducie”, “trust”, “trustco”, “loan”, “loanco” or “prêt” or any word or words of import equivalent to any of those words.  
  
  ### Termination of control required in certain cases
  
  (2) No person, other than a financial institution, who 
  (a) is carrying on business in Canada under a reserved name, and 
  (b) has control or acquires control of a company, shall control the company on the later of 
  (c) one year after this section comes into force, and 
  (d) one year after the date of acquisition of the control. 
  
  ### Prohibition
  
  (3) No person, other than a financial institution, who 
  (a) controls an entity that is not a financial institution that carries on business in Canada under a reserved name, and 
  (b) has control or acquires control of a company, shall control the company on the later of 
  (c) one year after this section comes into force, and 
  (d) one year after the date of the acquisition of the control. 
  
  ### Continuing control prohibited
  
  (4) Notwithstanding subsection (3), where a financial institution controls an entity that 
  (a) is not a financial institution, 
  (b) carries on business in Canada under a reserved name, and 
  (c) has control or acquires control of a company, the entity shall not control the company on the later of 
  (d) one year after this section comes into force, and 
  (e) one year after the date on which the entity acquires control of the company. 
  
  ### Exceptions
  
  (5) Subsections (2) to (4) do not apply with respect to a person or entity that was carrying on business in Canada under a reserved name on the day immediately preceding the day on which those subsections come into force. 
  
  # PART IV 
  
  ## Organization and Commencement 
  
  ## Organization Meetings 
  
  ### First directors’ meeting
  
  49 (1) After letters patent incorporating a company are issued, a meeting of the directors of the company shall be held at which the directors may, subject to this Part, 
  (a) make by-laws; 
  (b) adopt forms of share certificates and corporate records; 
  (c) authorize the issue of shares of the company; 
  (d) appoint officers; 
  (e) appoint an auditor to hold office until the first meeting of shareholders; 
  (f) make banking arrangements; and 
  (g) deal with any other matters necessary to organize the company. 
  
  ### Calling directors’ meeting
  
  (2) An incorporator or a director named in the application for letters patent may call the meeting referred to in subsection (1) by giving, subject to subsection 185(2), no fewer than five days notice of the purpose, time and place of the meeting to each director of the company. 
  
  ### Calling shareholders’ meeting
  
  50 (1) If at least five million dollars, or any greater amount that the Minister may specify, has been received by a company in respect of which letters patent were issued under section 21 from the issue of its shares, the directors of the company shall without delay call a meeting of the shareholders of the company. 
  
  ### Meeting of shareholders
  
  (2) The shareholders of a company shall, by resolution at the meeting of shareholders called pursuant to subsection (1), 
  (a) approve, amend or reject any by-law made by the directors of the company; 
  (b) subject to section 172, elect directors to hold office for a term expiring not later than the close of the third annual meeting of shareholders following the election; and 
  (c) appoint an auditor to hold office until the close of the first annual meeting of shareholders. 
  
  ### Term of first directors
  
  51 A director named in the application for letters patent to incorporate a company holds office until the election of directors at the meeting of shareholders called pursuant to subsection 50(1). 
  
  ## Commencement and Carrying on of Business 
  
  ### Order to commence and carry on business
  
  52 (1) A company shall not carry on any business until the Superintendent has, by order, approved the commencement and carrying on of business by the company. 
  
  ### Former-Act companies — Loan Companies Act 
  
  (2) A licence that was issued to a company under section 76 of the Loan Companies Act and that is in effect immediately before the coming into force of this Part is deemed to be an order of the Superintendent of indeterminate duration under subsection 53(1) and the company remains subject to any and all other restrictions and conditions in the licence.  
  
  ### Former-Act companies
  
  (3) A licence that was issued to a company under section 87 of the Trust Companies Act or under section 112 of the Loan Companies Act and that is in effect immediately before the coming into force of this Part is deemed to be an order of the Superintendent of indeterminate duration under subsection 53(1) containing the authorization referred to in subsection 57(1) or the designation referred to in subsection 57(3), as the case may be, and the company remains subject to any and all other restrictions and conditions contained in the licence.  
  
  ### Continued company
  
  (4) Except in respect of a body corporate that is continued as a company under this Act for the purposes of forthwith amalgamating with one or more bodies corporate and continuing as a company under this Act, where letters patent continuing a body corporate as a company under this Act are issued, the Superintendent shall make an order approving the commencement and carrying on of business by the company. 
  
  ### Amalgamated company
  
  (5) Where letters patent amalgamating and continuing two or more bodies corporate as a company under this Act are issued, the Superintendent shall make an order approving the commencement and carrying on of business by the company. 
  
  ### Subsection 53(2) and section 56 do not apply
  
  (6) For greater certainty, subsection 53(2) and section 56 do not apply in respect of a company referred to in subsections (4) and (5). 
  
  ### Authority to make order
  
  53 (1) On application by a company, the Superintendent may make an order approving the commencement and carrying on of business by the company. 
  
  ### Statement of payments
  
  (2) An application by a company for an order under subsection (1) must contain a statement setting out the amounts paid or to be paid by the company in connection with its incorporation and organization. 
  
  ### No payments before order
  
  54 Until an order approving the commencement and carrying on of business is made for a company, the company shall not make any payment on account of incorporation or organization expenses out of moneys received from the issue of the shares of the company and interest thereon, except reasonable sums 
  (a) for the remuneration of not more than two officers; 
  (b) for the payment of costs related to the issue of shares of the company; and 
  (c) for the payment of clerical assistance, legal services, accounting services, office accommodation at one location, office expenses, advertising, stationery, postage and travel expenses. 
  
  ### Deposits and investments before order
  
  55 Where a company comes into existence but no order approving the commencement and carrying on of business is made for the company, the company may only 
  (a) deposit, in Canada, paid-in capital of the company in another deposit-taking Canadian financial institution; or 
  (b) invest paid-in capital of the company in unencumbered securities of the Government of Canada or the government of any province. 
  
  ### Conditions for order
  
  56 (1) The Superintendent shall not make an order approving the commencement and carrying on of business by a company until it has been shown to the satisfaction of the Superintendent that 
  (a) the meeting of shareholders of the company referred to in subsection 50(1) has been duly held; 
  (b) the company has paid-in capital of at least five million dollars or any greater amount that is specified by the Minister under subsection 50(1); 
  (c) the expenses of incorporation and organization to be borne by the company are reasonable; and 
  (d) all other relevant requirements of this Act have been complied with. 
  
  ### Time limit
  
  (2) The Superintendent shall not make an order approving the commencement and carrying on of business by a company more than one year after the day on which the company comes into existence. 
  
  ### Authorization in order
  
  57 (1) An order approving the commencement and carrying on of business by a company may, at the discretion of the Superintendent, contain the authorization for the company to carry on the activities referred to in section 412. 
  
  ### Trust company
  
  (2) Where an order approving the commencement and carrying on of business by a company contains the authorization referred to in subsection (1), subsection 52(3) or paragraph 58(1)(a), the company is a trust company under this Act. 
  
  ### Mortgage investment company
  
  (3) An order approving the commencement and carrying on of business by a company, other than a company that is a trust company pursuant to subsection (2), may, at the discretion of the Superintendent, contain a designation that the company is a mortgage investment company under this Act. 
  
  ### Conditions of order
  
  (4) An order approving the commencement and carrying on of business by a company may contain such conditions or limitations that are consistent with this Act and relate to the business of the company as the Superintendent deems expedient and necessary. 
  
  ### Variations
  
  58 (1) In respect of the order approving the commencement and carrying on of business by a company, the Superintendent may at any time, by further order, 
  (a) add to the order the authorization for the company to carry on the activities referred to in section 412, or the designation referred to in subsection 57(3), 
  (b) make the order subject to such conditions or limitations that are consistent with this Act and that relate to the business of the company as the Superintendent deems expedient and necessary, 
  (c) amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject, or 
  (d) revoke any designation contained in the order, but before making any such further order the Superintendent shall provide the company with an opportunity to make representations regarding that further order. 
  (2) to (6)  [Repealed, 1996, c. 6, s. 116]  
  
  ### Public notice
  
  59 (1) On the making of an order approving the commencement and carrying on of business by a company, the company shall publish a notice of the making of the order in a newspaper in general circulation at or near the place where the head office of the company is located. 
  
  ### Notice in Canada Gazette 
  
  (2) The Superintendent shall cause to be published in the Canada Gazette a notice of the making of an order approving the commencement and carrying on of business by a company.  
  
  ### Non-application to former-Act company
  
  (3) For greater certainty, this section does not apply to a company referred to in subsections 52(2) and (3). 
  
  ### Cessation of existence
  
  60 Except for the sole purpose of winding up the company’s affairs, a company ceases to exist one year after the day on which its incorporating instrument became effective if it does not obtain an order approving the commencement and carrying on of business within that year. 
  
  ### Allowed disbursements
  
  61 (1) Where an order approving the commencement and carrying on of business is not made for a company, no part of the moneys of the company shall be used for the payment of incorporation and organization expenses, other than remuneration and costs referred to in section 54, unless the payment has been approved by a special resolution. 
  
  ### Application to court to settle disbursements
  
  (2) If the amount allowed by a special resolution for the payment of any incorporation and organization expenses referred to in subsection (1) is considered insufficient by the directors or if no special resolution for the payment of such expenses is passed, the directors may apply to any court having jurisdiction in the place where the head office of the company is situated to settle and determine the amounts to be paid out of any moneys of the company before distribution of the balance to the shareholders or, where there are no shareholders, to the incorporators. 
  
  ### Notice of application to court
  
  (3) The directors shall, at least twenty-one days prior to the date fixed for the hearing of the application referred to in subsection (2), send to the shareholders or incorporators, as the case may be, a notice of the application, which notice shall contain a statement of the amounts that are proposed to be settled and determined by the court. 
  
  ### Ratio payable
  
  (4) In order that the amounts paid and payable under this section may be equitably borne by the shareholders or incorporators, as the case may be, the directors shall, after the amounts of the payments have been approved by special resolution or settled and determined by a court, fix the proportionate part thereof chargeable to each shareholder or incorporator as the ratio of the amount paid in by the shareholder or incorporator to the aggregate of all the amounts paid in by the shareholders or incorporators. 
  
  ### Return of excess
  
  (5) After the amounts referred to in this section have been paid, the directors shall pay, with any interest earned thereon, to the shareholders or incorporators, the respective balances of the moneys paid in by them, less the amount chargeable to each shareholder or incorporator under subsection (4). 
  
  # PART V 
  
  ## Capital Structure 
  
  ## Share Capital 
  
  ### Power to issue shares
  
  62 (1) Subject to this Act and the by-laws of the company, shares of a company may be issued at such times and to such persons and for such consideration as the directors of the company may determine. 
  
  ### Shares
  
  (2) Shares of a company shall be in registered form and shall be without nominal or par value. 
  
  ### Shares of former-Act company
  
  (3) Shares with nominal or par value of a former-Act company are deemed to be shares without nominal or par value. 
  
  ### Shares of continued company
  
  (4) Where a body corporate is continued as a company under this Act, shares with nominal or par value issued by the body corporate before it was so continued are deemed to be shares without nominal or par value. 
  
  ### Deemed share conditions
  
  (5) Where any right of a holder of a share with nominal or par value of a former-Act company or a body corporate continued as a company under this Act, other than a voting right, was stated or expressed in terms of the nominal or par value of the share immediately before the coming into force of this Part or the continuance under this Act, as the case may be, that right is thereafter deemed to be the same right stated or expressed without reference to the nominal or par value of the share. 
  
  ### Common shares
  
  63 (1) A company shall have one class of shares, to be designated as “common shares”, which are non-redeemable and in which the rights of the holders thereof are equal in all respects, and those rights include 
  (a) the right to vote at all meetings of shareholders except where only holders of a specified class of shares are entitled to vote; 
  (b) the right to receive dividends declared on those shares; and 
  (c) the right to receive the remaining property of the company on dissolution. 
  
  ### Designations of shares
  
  (2) No company shall designate more than one class of its shares as “common shares” or any variation of that term. 
  (3)  [Repealed, 2012, c. 5, s. 164]  
  
  ### Continued company
  
  (4) A body corporate continued as a company under this Act that is not in compliance with subsection (2) on the date letters patent continuing it as a company are issued shall, within twelve months after that date, redesignate its shares to comply with that subsection. 
  
  ### Exception
  
  (5) Subsections (1) and (2) do not apply in respect of a former-Act company whose shareholders are confined to entities incorporated or formed by or under an Act of Parliament or of the legislature of a province that are, in the opinion of the directors, operating as credit unions or cooperative associations. 
  
  ### Classes of shares
  
  64 (1) The by-laws of a company may provide for more than one class of shares and, if they so provide, shall set out 
  (a) the rights, privileges, restrictions and conditions attaching to the shares of each class; and 
  (b) the maximum number, if any, of shares of any class that the company is authorized to issue. 
  
  ### Shareholder approval
  
  (2) Where a by-law referred to in subsection (1) is made, the directors of the company shall submit the by-law to the shareholders at the next meeting of shareholders. 
  
  ### Effective date
  
  (3) A by-law referred to in subsection (1) is not effective until it is confirmed or confirmed with amendments by special resolution of the shareholders at the meeting referred to in subsection (2). 
  
  ### Shares issued in series
  
  65 (1) The by-laws of a company may, subject to any limitations set out in them, authorize the issue of any class of shares in one or more series and may 
  (a) fix the maximum number of shares in each series and determine the designation, rights, privileges, restrictions and conditions attaching to them; and 
  (b) authorize the directors to do anything referred to in paragraph (a). 
  
  ### Series participation
  
  (2) If any cumulative dividend or amounts payable on return of capital in respect of a series of shares are not paid in full, the shares of all series of the same class participate rateably in respect of accumulated dividends and return of capital. 
  
  ### Voting rights
  
  (3) Where voting rights are attached to any series of a class of shares, the shares of every other series of that class shall have the same voting rights. 
  
  ### Restriction on series
  
  (4) No rights, privileges, restrictions or conditions attached to a series of shares authorized under this section confer on the series a priority in respect of dividends or return of capital over any other series of shares of the same class that are then outstanding. 
  
  ### Material to Superintendent
  
  (5) If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors. 
  
  ### One share, one vote
  
  66 (1) Where voting rights are attached to a share of a company, the voting rights may confer only one vote in respect of that share. 
  
  ### Exception
  
  (2) Subsection (1) does not apply in respect of 
  (a) a share of a former-Act company issued on or before September 27, 1990 that entitled the holder to more than one vote, or to a fraction of a vote, in respect of that share; and 
  (b) any share of a former-Act company that is issued after September 27, 1990 pursuant to the conversion of a security of the former-Act company that was issued with such a conversion privilege prior to that date. 
  
  ### Shares non-assessable
  
  67 Shares issued by a company after the coming into force of this section are non-assessable and the shareholders are not liable to the company or to its creditors in respect thereof. 
  
  ### Consideration for share
  
  68 (1) No share of any class of shares of a company shall be issued until it is fully paid for in money or, with the approval of the Superintendent, in property. 
  
  ### Transitional
  
  (2) Where any share of a company is not fully paid for on the day this Part comes into force, the provisions of the Trust Companies Act or the Loan Companies Act that applied to the company immediately prior to that day and that relate to  
  (a) the liability of holders of shares of a company that are not fully paid for and the enforcement of that liability, 
  (b) the forfeiture of the share, and 
  (c) the forfeiture of the right to vote the share continue to apply in respect of that share. 
  
  ### Other currencies
  
  (3) When issuing shares, a company may provide that any aspect of the shares relating to money or involving the payment of or the liability to pay money be in a currency other than the currency of Canada. 
  
  ### Stated capital account
  
  69 (1) A company shall maintain a separate stated capital account for each class and series of shares it issues. 
  
  ### Addition to stated capital account
  
  (2) A company shall record in the appropriate stated capital account the full amount of any consideration it receives for any shares it issues. 
  
  ### Exception
  
  (2.1) Despite subsection (2), a company may, subject to subsection (2.2), record in the stated capital account maintained for the shares of a class or series any part of the consideration it receives in an exchange if it issues shares 
  (a) in exchange for 
  (i) property of a person who immediately before the exchange did not deal with the company at arm’s length within the meaning of that expression in the Income Tax Act,  
  (ii) shares of or another interest in a body corporate that immediately before the exchange or because of it did not deal with the company at arm’s length within the meaning of that expression in the Income Tax Act, or  
  (iii) property of a person who immediately before the exchange dealt with the company at arm’s length within the meaning of that expression in the Income Tax Act if the person, the company and all of the holders of shares in the class or series of shares so issued consent to the exchange;  
  (b) under an agreement referred to in subsection 229(1); or 
  (c) to shareholders of an amalgamating body corporate who receive the shares in addition to or instead of securities of the amalgamated company. 
  
  ### Limit on addition to a stated capital account
  
  (2.2) On the issuance of a share, a company shall not add to the stated capital account in respect of the share an amount greater than the amount of the consideration it receives for the share. 
  
  ### Constraint on addition to a stated capital account
  
  (2.3) Where a company that has issued any outstanding shares of more than one class or series proposes to add to a stated capital account that it maintains in respect of a class or series of shares an amount that was not received by the company as consideration for the issue of shares, the addition must be approved by special resolution unless all the issued and outstanding shares are of not more than two classes of convertible shares referred to in subsection 80(4). 
  
  ### Stated capital of former-Act company
  
  (3) On the coming into force of this Part, a former-Act company shall record in the stated capital account maintained for each class and series of shares then outstanding an amount that is equal to the aggregate of 
  (a) the aggregate amount paid up on the shares of each class and series of shares immediately before the coming into force of this Part, and 
  (b) the amount of the contributed surplus of the company that is attributable to those shares. 
  
  ### Contributed surplus entry
  
  (4) The amount of any contributed surplus recorded in the stated capital account pursuant to paragraph (3)(b) shall be deducted from the contributed surplus account of the company. 
  
  ### Share issued before coming into force
  
  (5) Any amount unpaid in respect of a share issued by a former-Act company before the coming into force of this Part and paid after the coming into force of this Part shall be recorded in the stated capital account maintained by the company for the shares of that class or series. 
  
  ### Stated capital of continued company
  
  70 (1) Where a body corporate is continued as a company under this Act, the company shall record in the stated capital account maintained for each class and series of shares then outstanding an amount that is equal to the aggregate of 
  (a) the aggregate amount paid up on the shares of each class and series of shares immediately before the body corporate was so continued, and 
  (b) the amount of the contributed surplus of the company that is attributable to those shares. 
  
  ### Contributed surplus entry
  
  (2) The amount of any contributed surplus recorded in the stated capital account pursuant to paragraph (1)(b) shall be deducted from the contributed surplus account of the company. 
  
  ### Shares issued before continuance
  
  (3) Any amount unpaid in respect of a share issued by a body corporate before it was continued as a company under this Act and paid after it was so continued shall be recorded in the stated capital account maintained by the company for the shares of that class or series. 
  
  ### Pre-emptive right
  
  71 (1) Where the by-laws of a company so provide, no shares of any class shall be issued unless the shares have first been offered to the shareholders holding shares of that class, and those shareholders have a pre-emptive right to acquire the offered shares in proportion to their holdings of the shares of that class, at such price and on such terms as those shares are to be offered to others. 
  
  ### Exception
  
  (2) Notwithstanding the existence of a pre-emptive right, a shareholder of a company has no pre-emptive right in respect of shares of a class to be issued 
  (a) for a consideration other than money; 
  (b) as a share dividend; or 
  (c) pursuant to the exercise of conversion privileges, options or rights previously granted by the company. 
  
  ### Idem
  
  (3) Notwithstanding the existence of a pre-emptive right, a shareholder of a company has no pre-emptive right in respect of shares to be issued 
  (a) where the issue of shares to the shareholder is prohibited by this Act; or 
  (b) where, to the knowledge of the directors of the company, the offer of shares to a shareholder whose recorded address is in a country other than Canada ought not to be made unless the appropriate authority in that country is provided with information in addition to that submitted to the shareholders at the last annual meeting. 
  
  ### Conversion privileges
  
  72 (1) A company may issue conversion privileges, options or rights to acquire securities of the company, and shall set out the conditions thereof 
  (a) in the documents that evidence the conversion privileges, options or rights; or 
  (b) in the securities to which the conversion privileges, options or rights are attached. 
  
  ### Transferable rights
  
  (2) Conversion privileges, options and rights to acquire securities of a company may be made transferable or non-transferable, and options and rights to acquire such securities may be made separable or inseparable from any securities to which they are attached. 
  
  ### Reserved shares
  
  (3) Where a company has granted privileges to convert any securities issued by the company into shares, or into shares of another class or series, or has issued or granted options or rights to acquire shares, if the by-laws limit the number of authorized shares, the company shall reserve and continue to reserve sufficient authorized shares to meet the exercise of such conversion privileges, options and rights. 
  
  ### Holding of own shares
  
  73 Except as provided in sections 74 to 77, or unless permitted by the regulations, a company shall not 
  (a) hold shares of the company or of any body corporate that controls the company; 
  (b) hold any ownership interests of any unincorporated entity that controls the company; 
  (c) permit any of its subsidiaries to hold any shares of the company or of any body corporate that controls the company; or 
  (d) permit any of its subsidiaries to hold any ownership interests of any unincorporated entity that controls the company. 
  
  ### Purchase and redemption of shares
  
  74 (1) Subject to subsection (2) and to its by-laws, a company may, with the consent of the Superintendent, purchase, for the purpose of cancellation, any shares issued by it, or redeem any redeemable shares issued by it at prices not exceeding the redemption price thereof calculated according to a formula stated in its by-laws or the conditions attaching to the shares. 
  
  ### Restrictions on purchase and redemption
  
  (2) A company shall not make any payment to purchase or redeem any shares issued by it if there are reasonable grounds for believing that the company is, or the payment would cause the company to be, in contravention of any regulation referred to in subsection 473(1) or (2) or any direction made pursuant to subsection 473(3). 
  
  ### Donated shares
  
  (3) A company may accept from any shareholder a share of the company surrendered to it as a gift, but may not extinguish or reduce a liability in respect of an amount unpaid on any such share except in accordance with section 78. 
  
  ### Holding as personal representative
  
  75 (1) A company may, and may permit its subsidiaries to, hold, in the capacity of a personal representative, shares of the company or of any body corporate that controls the company or ownership interests in any unincorporated entity that controls the company, but only where the company or the subsidiary does not have a beneficial interest in the shares or ownership interests. 
  
  ### Security interest
  
  (2) A company may, and may permit its subsidiaries to, by way of a security interest 
  (a) hold shares of the company or of any body corporate that controls the company, or 
  (b) hold any ownership interests of any entity that controls the company, where the security interest is nominal or immaterial when measured by criteria established by the company that have been approved in writing by the Superintendent. 
  
  ### Saving
  
  (3) Nothing in subsection (2) precludes a former-Act company or any of its subsidiaries from holding any security interest held immediately prior to the coming into force of this Part. 
  
  ### Exception — conditions before acquisition
  
  75.1 (1) A company may permit any of its subsidiaries to acquire shares of the company through the issuance of those shares by the company to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares. 
  
  ### Conditions after acquisition
  
  (2) After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met. 
  
  ### Non-compliance with conditions
  
  (3) If a company permits any of its subsidiaries to acquire shares of the company under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 15 and subsection 69(2), the company must comply with the prescribed requirements. 
  
  ### Cancellation of shares
  
  76 (1) Subject to subsection (2), where a company purchases shares of the company or fractions thereof or redeems or otherwise acquires shares of the company, the company shall cancel those shares. 
  
  ### Requirement to sell
  
  (2) Where a company or any of its subsidiaries, through the realization of security, acquires any shares of the company or of any body corporate that controls the company or any ownership interests in an unincorporated entity that controls the company, the company shall, or shall cause its subsidiaries to, as the case may be, within six months after the day of the realization, sell or otherwise dispose of the shares or ownership interests. 
  
  ### Subsidiary holding shares
  
  77 Subject to the regulations, a former-Act company shall cause any subsidiary of the company that holds shares of the company, or of any body corporate that controls the company, or any ownership interests of any unincorporated entity that controls the company to sell or otherwise dispose of those shares or ownership interests within six months after the day this section comes into force. 
  
  ### Reduction of capital
  
  78 (1) The stated capital of a company may be reduced by special resolution. 
  
  ### Limitation
  
  (2) A company shall not reduce its stated capital by special resolution if there are reasonable grounds for believing that the company is, or the reduction would cause the company to be, in contravention of any regulation referred to in subsection 473(1) or (2) or any direction made pursuant to subsection 473(3). 
  
  ### Contents of special resolution
  
  (3) A special resolution to reduce the stated capital of a company shall specify the stated capital account or accounts from which the reduction of stated capital effected by the special resolution will be deducted. 
  
  ### Approval by Superintendent
  
  (4) A special resolution to reduce the stated capital of a company has no effect until it is approved in writing by the Superintendent. 
  
  ### Exception
  
  (4.1) Subsection (4) does not apply if 
  (a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 313(4); and 
  (b) there is to be no return of capital to shareholders as a result of the reduction. 
  
  ### Conditions for approval
  
  (5) No approval to reduce the stated capital of a company may be given by the Superintendent unless application therefor is made within three months after the time of the passing of the special resolution and a copy of the special resolution, together with a notice of intention to apply for approval, has been published in the Canada Gazette.  
  
  ### Statements to be submitted
  
  (6) In addition to evidence of the passing of a special resolution to reduce the stated capital of a company and of the publication thereof, statements showing 
  (a) the number of the company’s shares issued and outstanding, 
  (b) the results of the voting by class of shares of the company, 
  (c) the company’s assets and liabilities, and 
  (d) the reason why the company seeks the reduction of capital shall be submitted to the Superintendent at the time of the application for approval of the special resolution. 
  
  ### Recovery by action
  
  79 (1) Where any money or property was paid or distributed to a shareholder or other person as a consequence of a reduction of capital made contrary to section 78, a creditor of the company may apply to a court for an order compelling the shareholder or other person to pay the money or deliver the property to the company. 
  
  ### Shares held by personal representative
  
  (2) No person holding shares in the capacity of a personal representative and registered on the records of the company as a shareholder and therein described as the personal representative of a named person is personally liable under subsection (1), but the named person is subject to all the liabilities imposed by that subsection. 
  
  ### Limitation
  
  (3) An action to enforce a liability imposed by subsection (1) may not be commenced more than two years after the date of the act complained of. 
  
  ### Remedy preserved
  
  (4) This section does not affect any liability that arises under section 212. 
  
  ### Adjustment of stated capital account
  
  80 (1) On a purchase, redemption or other acquisition by a company of shares or fractions thereof issued by it, other than shares acquired pursuant to section 75 or acquired through the realization of security and sold pursuant to subsection 76(2), the company shall deduct from the stated capital account maintained for the class or series of shares so purchased, redeemed or otherwise acquired an amount equal to the result obtained by multiplying the stated capital in respect of the shares of that class or series by the number of shares of that class or series so purchased, redeemed or otherwise acquired and dividing by the number of shares of that class or series outstanding immediately before the purchase, redemption or other acquisition. 
  
  ### Idem
  
  (2) A company shall adjust its stated capital account or accounts in accordance with any special resolution referred to in section 78. 
  
  ### Shares converted to another class
  
  (3) On a conversion of outstanding shares of a company into shares of another class or series, or on a change of outstanding shares of the company into shares of another class or series, the company shall 
  (a) deduct from the stated capital account maintained for the class or series of shares converted or changed an amount equal to the result obtained by multiplying the stated capital of the shares of that class or series by the number of shares of that class or series converted or changed, and dividing by the number of outstanding shares of that class or series immediately before the conversion or change; and 
  (b) record the result obtained under paragraph (a) and any additional consideration received pursuant to the conversion or change in the stated capital account maintained or to be maintained for the class or series of shares into which the shares have been converted or changed. 
  
  ### Stated capital of convertible shares
  
  (4) For the purposes of subsection (3) and subject to the company’s by-laws, where a company issues two classes of shares and there is attached to each class a right to convert a share of one class into a share of the other class and a share is so converted, the amount of stated capital attributable to a share in either class is the aggregate of the stated capital of both classes divided by the number of outstanding shares of both classes immediately before the conversion. 
  
  ### Conversion or change of shares
  
  (5) Shares issued by a company and converted into shares of another class or series, or changed under subsection 222(1) into shares of another class or series, become issued shares of the class or series of shares into which the shares have been converted or changed. 
  
  ### Addition to stated capital account
  
  81 On a conversion of any debt obligation of a company into shares of a class or series of shares, the company shall 
  (a) deduct from the liabilities of the company the nominal value of the debt obligation being converted; and 
  (b) record the result obtained under paragraph (a) and any additional consideration received for the conversion in the stated capital account maintained or to be maintained for the class or series of shares into which the debt obligation has been converted. 
  
  ### Declaration of dividend
  
  82 (1) The directors of a company may declare and a company may pay a dividend by issuing fully paid shares of the company or options or rights to acquire fully paid shares of the company and, subject to subsection (4), the directors of a company may declare and a company may pay a dividend in money or property, and where a dividend is to be paid in money, the dividend may be paid in a currency other than the currency of Canada. 
  
  ### Notice to Superintendent
  
  (2) The directors of a company shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment. 
  
  ### Share dividend
  
  (3) If shares of a company are issued in payment of a dividend, the company shall record in the stated capital account maintained or to be maintained for the shares of the class or series issued in payment of the dividend the declared amount of the dividend stated as an amount of money. 
  
  ### When dividend not to be declared
  
  (4) The directors of a company shall not declare and a company shall not pay a dividend if there are reasonable grounds for believing that the company is, or the payment would cause the company to be, in contravention of any regulation referred to in subsection 473(1) or (2) or any direction made pursuant to subsection 473(3). 
  (5)  [Repealed, 2007, c. 6, s. 345]  
  
  ## Subordinated Indebtedness 
  
  ### Restriction on subordinated indebtedness
  
  83 (1) A company shall not issue subordinated indebtedness unless the subordinated indebtedness is fully paid for in money or, with the approval of the Superintendent, in property. 
  
  ### References to subordinated indebtedness
  
  (2) A person shall not in any prospectus, advertisement, correspondence or literature relating to any subordinated indebtedness issued or to be issued by a company refer to the subordinated indebtedness otherwise than as subordinated indebtedness. 
  
  ### Deemed not to be a deposit
  
  (3) Subordinated indebtedness issued by a company is deemed not to be a deposit. 
  
  ### Other currencies
  
  (4) When issuing subordinated indebtedness, a company may provide that any aspect of the subordinated indebtedness relating to money or involving the payment of or the liability to pay money in relation thereto be in a currency other than that of Canada including, without restricting the generality of the foregoing, the payment of any interest thereon. 
  
  ## Security Certificates and Transfers 
  
  ### Definitions
  
  84 In this section and sections 85 to 138,  
  *adverse claim* includes a claim that a transfer was or would be wrongful or that a particular adverse person is the owner of or has an interest in a security; (opposition)   bona fide purchaser means a purchaser for value in good faith and without notice of any adverse claim who takes delivery of a security in bearer form or order form or of a security in registered form issued to the purchaser or endorsed to the purchaser or endorsed in blank; (acheteur de bonne foi)   
  *clearing agency* means a person designated as a recognized clearing agency by the Superintendent; (agence de compensation et de dépôt)   
  *delivery* means voluntary transfer of possession; (livraison ou remise)   
  *fungible*, in respect of securities, means securities of which any unit is, by nature or usage of trade, the equivalent of any other like unit; (fongibles)   
  *genuine* means free of forgery or counterfeit; (authentique)   
  *good faith* means honesty in fact in the conduct of the transaction concerned; (bonne foi)   
  *over-issue* means the issue of securities in excess of any maximum number of securities that the issuer is authorized to issue; (émission excédentaire)   
  *purchaser* means a person who takes an interest in a security by sale, mortgage, pledge, issue, reissue, gift or any other voluntary transaction; (acquéreur)   
  *securities broker* means a person who is engaged for all or part of the person’s time in the business of buying and selling securities and who, in the transaction concerned, acts for, or buys a security from, or sells a security to, a customer; (courtier)   
  *security* or 
  *security certificate* means an instrument issued by a company that is  
  (a) in bearer, order or registered form, 
  (b) of a type commonly dealt in on securities exchanges or markets or commonly recognized in any area in which it is issued or dealt in as a medium for investment, 
  (c) one of a class or series or by its terms divisible into a class or series of instruments, and 
  (d) evidence of a share, participation or other interest in or obligation of a company, but does not include an instrument evidencing a deposit; ( valeur mobilière ou certificat de valeur mobilière)   
  *trust indenture* has the meaning given that expression by section 299; (acte de fiducie)   
  *unauthorized*, in relation to a signature or an endorsement, means a signature or an endorsement made without actual, implied or apparent authority, and includes a forgery; (non autorisé)   
  *uncertificated security* means a security, not evidenced by a security certificate, the issue and any transfer of which is registered or recorded in records maintained for that purpose by or on behalf of a company; (valeur mobilière sans certificat)   
  *valid* means issued in accordance with the applicable law or validated under section 100. (valide)  
  
  ### Provisions governing transfers of securities
  
  85 The transfer of a security is governed by sections 86 to 138. 
  
  ### Security a negotiable instrument
  
  86 (1) A security is a negotiable instrument but, in the case of any inconsistency between the provisions of the Bills of Exchange Act and this Act, this Act prevails to the extent of the inconsistency.  
  
  ### Bearer form
  
  (2) A security is in bearer form if it is payable to bearer according to its terms and not by reason of any endorsement. 
  
  ### Order form
  
  (3) A security is in order form where the security is not a share and, by its terms, it is payable to the order or assigns of any person therein specified with reasonable certainty or to the person or the person’s order. 
  
  ### Registered form
  
  (4) A security is in registered form if 
  (a) it specifies a person entitled to the security or to the rights it evidences, and its transfer is capable of being recorded in a securities register; or 
  (b) it bears a statement that it is in registered form. 
  
  ### Status of guarantor
  
  87 A guarantor for an issuer of a security is deemed to be an issuer to the extent of the guarantee, whether or not the guarantor’s obligation is noted on the security. 
  
  ### Rights of holder
  
  88 (1) Subject to Part VII, every security holder is entitled at the holder’s option to a security certificate that complies with this Act or to a non-transferable written acknowledgement of the holder’s right to obtain a security certificate that complies with this Act from a company in respect of the securities of that company held by the security holder. 
  
  ### Fee for security certificate
  
  (2) A company may charge a fee, not exceeding a prescribed amount, for a security certificate issued in respect of a transfer. 
  
  ### Joint holders
  
  (3) A company is not required to issue more than one security certificate in respect of securities held jointly by several persons, and delivery of a security certificate to one of several joint holders is sufficient delivery to all joint holders of the security. 
  
  ### Signatures
  
  89 (1) A security certificate shall be signed by or bear the printed or otherwise mechanically reproduced signature of at least one of the following: 
  (a) a director or officer of the company; 
  (b) a registrar or transfer agent of the company or a branch transfer agent or a natural person on their behalf; or 
  (c) a trustee who certifies it in accordance with a trust indenture. 
  
  ### Continuation of validity of signature
  
  (2) If a security certificate contains a person’s printed or mechanically reproduced signature, the company may issue the security certificate even if the person has ceased to be a director or officer of the company. The security certificate is as valid as if the person were a director or officer at the date of its issue. 
  
  ### Contents of share certificate
  
  90 There shall be stated on the face of each share certificate issued by a company after the coming into force of this section 
  (a) the name of the company; 
  (b) a statement that the company is subject to the Trust and Loan Companies Act ;  
  (c) the name of the person to whom the share certificate is issued; and 
  (d) the number and class of shares and the designation of any series that the certificate represents. 
  
  ### Restrictions and charges
  
  91 (1) No charge in favour of a company and no restriction on transfer other than a constraint under Part VII is effective against a transferee of a security issued by the company if the transferee has no actual knowledge of the charge or restriction unless it or a reference to it is noted conspicuously on the security certificate. 
  
  ### No restriction
  
  (2) If any of the issued shares of a distributing company remain outstanding and are held by more than one person, the company may not restrict the transfer or ownership of its shares except by way of a constraint under Part VII. 
  
  ### Continuance
  
  (3) If a body corporate that is continued as a company under this Act has outstanding security certificates and the words “private company” or “private corporation” appear on the certificates, those words are deemed to be a notice of a charge or restriction for the purposes of subsection (1). 
  
  ### Particulars of class
  
  92 (1) There shall be stated legibly on a share certificate issued after the coming into force of this section by a company that is authorized to issue shares of more than one class or series 
  (a) the rights, privileges, restrictions and conditions attached to the shares of each class and series existing when the share certificate is issued; or 
  (b) that the class or series of shares that the certificate represents has rights, privileges, restrictions or conditions attached thereto and that the company will furnish a shareholder, on demand and without charge, with a full copy of 
  (i) the text of the rights, privileges, restrictions and conditions attached to each class authorized to be issued and to each series in so far as those rights, privileges, restrictions and conditions have been fixed by the directors, and 
  (ii) the text of the authority of the directors, if the directors are so authorized, to fix the rights, privileges, restrictions and conditions of subsequent series of shares. 
  
  ### Duty
  
  (2) Where a share certificate issued by a company contains the statement mentioned in paragraph (1)(b), the company shall provide a shareholder, on demand and without charge, with a full copy of the texts referred to in subparagraphs (1)(b)(i) and (ii). 
  
  ### Fractional share
  
  93 A company may issue a certificate for a fractional share or may issue in place thereof a scrip certificate in bearer form that entitles the holder to receive a certificate for a full share by exchanging scrip certificates aggregating a full share. 
  
  ### Scrip certificates
  
  94 The directors of a company may attach conditions to any scrip certificate issued by the company, including conditions that 
  (a) the scrip certificate becomes void if not exchanged for a share certificate representing a full share before a specified date; and 
  (b) any shares for which the scrip certificate is exchangeable may, notwithstanding any pre-emptive right, be issued by the company to any person and the proceeds thereof may be distributed rateably to the holders of all the scrip certificates. 
  
  ### Holders of fractional shares
  
  95 (1) A holder of a fractional share issued by a company is not entitled to exercise voting rights or to receive a dividend in respect of the fractional share. 
  
  ### Holders of scrip certificates
  
  (2) A holder of a scrip certificate is not entitled to exercise voting rights or to receive a dividend in respect of the scrip certificate. 
  
  ### Dealings with registered owner
  
  96 (1) A company or a trustee within the meaning of section 299 may, subject to subsections 140(5) to (7) and sections 141 to 144 and 148, treat the registered owner of a security as the person exclusively entitled to vote, to receive notices, to receive any interest, dividend or other payment in respect of the security and to exercise all of the rights and powers of an owner of the security. 
  
  ### Constructive registered holder
  
  (2) Notwithstanding subsection (1), a company may treat a person as a registered security holder entitled to exercise all of the rights of the security holder that the person represents, if that person provides the company with evidence as described in subsection 130(4) that the person is 
  (a) the heir or personal representative of a deceased security holder or the personal representative of the heirs of the deceased security holder; 
  (b) the personal representative of a registered security holder who is a minor, an incompetent person or a missing person; or 
  (c) a liquidator of, or a trustee in bankruptcy for, a registered security holder. 
  
  ### Permissible registered holder
  
  (3) If a person on whom the ownership of a security of a company devolves by operation of law, other than a person described in subsection (2), provides proof of that person’s authority to exercise rights or privileges in respect of a security of the company that is not registered in the person’s name, the company shall, subject to this Act, treat that person as entitled to exercise those rights or privileges. 
  
  ### Immunity of company
  
  (4) A company is not required to inquire into the existence of, or see to the performance or observance of, any duty owed to a third person by a registered holder of any of its securities or by anyone whom it treats, as permitted or required by this Part, as the owner or registered holder thereof. 
  
  ### Minors
  
  97 If a minor exercises any rights of ownership in the securities of a company, no subsequent repudiation or avoidance is effective against the company. 
  
  ### Joint shareholders
  
  98 A company may treat as owners of a security the survivors of persons to whom the security was issued as joint holders, if the company receives proof satisfactory to it of the death of any of the joint holders. 
  
  ### Transmission of securities
  
  99 (1) Subject to the provisions of Part VII and any applicable law relating to the collection of taxes, a person referred to in paragraph 96(2)(a) is entitled to become registered as the owner of a security, or to designate another person to be registered as the owner of a security, if the person referred to in paragraph 96(2)(a) delivers to the company or its transfer agent 
  (a) the original grant of probate or of letters of administration, or a copy thereof certified to be a true copy by 
  (i) the court that granted the probate or letters of administration, 
  (ii) a company that is a trust company pursuant to subsection 57(2) or a trust company incorporated by or under the laws of a province, or 
  (iii) a lawyer or notary acting on behalf of the person referred to in paragraph 96(2)(a), or 
  (b) in the case of transmission by notarial will in the Province of Quebec, a copy thereof authenticated pursuant to the laws of that Province, together with 
  (c) an affidavit or declaration of transmission made by the person referred to in paragraph 96(2)(a) that states the particulars of the transmission, and 
  (d) the security certificate that was owned by the deceased holder 
  (i) in the case of a transfer to the person referred to in paragraph 96(2)(a), with or without the endorsement of that person, and 
  (ii) in the case of a transfer to any other person, endorsed in accordance with section 114, and accompanied by any assurance the company may require under section 130. 
  
  ### Excepted transmissions
  
  (2) Notwithstanding subsection (1), if the laws of the jurisdiction governing the transmission of a security of a deceased holder do not require a grant of probate or of letters of administration in respect of the transmission, a personal representative of the deceased holder is entitled, subject to Part VII and any applicable law relating to the collection of taxes, to become registered as the owner or to designate a person to be registered as the owner, if the personal representative delivers to the company or its transfer agent the following documents, namely, 
  (a) the security certificate that was owned by the deceased holder; and 
  (b) reasonable proof of the governing laws, of the deceased holder’s interest in the security and of the right of the personal representative or the designated person to become the registered shareholder. 
  
  ### Right of company to treat as owner
  
  (3) Subject to Part VII, delivery of the documents referred to in this section empowers a company or its transfer agent to record in a securities register the transmission of a security from the deceased holder to a person referred to in paragraph 96(2)(a) or to such person as the person referred to in that paragraph may designate and, thereafter, to treat the person who becomes so registered as the owner of that security. 
  
  ### Over-issue
  
  100 (1) The provisions of this Part that validate a security or compel its issue or reissue do not apply to the extent that a validation, issue or reissue would result in over-issue, but 
  (a) if a valid security similar in all respects to the security involved in the over-issue is reasonably available for purchase, the person entitled to the validation or issue may compel the issuer to purchase and deliver such a security to that person against surrender of the security that the person holds; or 
  (b) if a valid security similar in all respects to the security involved in the over-issue is not reasonably available for purchase, the person entitled to the validation or issue may recover from the issuer an amount equal to the price the last purchaser for value paid for the invalid security. 
  
  ### Retroactive validation
  
  (2) Where an issuer is subsequently authorized to issue securities of a number equal to or exceeding the number of securities previously authorized plus the amount of the securities over-issued, the securities so over-issued are valid from the date of their issue. 
  
  ### Payment not a purchase or redemption
  
  (3) A purchase or payment by an issuer under subsection (1) is not a purchase or payment in respect of which section 74 or 80 applies. 
  
  ### Burden of proof
  
  101 In any action on a security, 
  (a) unless specifically denied in the pleadings, each signature on the security or in a necessary endorsement is admitted; 
  (b) a signature on the security is presumed to be genuine and authorized but, if the effectiveness of the signature is put in issue, the burden of establishing that it is genuine and authorized is on the party claiming under the signature; 
  (c) if a signature is admitted or established, production of the instrument entitles a holder to recover on it unless the defendant establishes a defence or a defect going to the validity of the security; and 
  (d) if the defendant establishes that a defence or defect exists, the plaintiff has the burden of establishing that the defence or defect is ineffective against the plaintiff or any person under whom the plaintiff claims. 
  
  ### Securities fungible
  
  102 Unless otherwise agreed, and subject to any applicable law, regulation or stock exchange rule, a person required to deliver securities may deliver any security of the specified issue in bearer form or registered in the name of the transferee or endorsed to the transferee or in blank. 
  
  ### Notice of defect
  
  103 (1) Even against a purchaser for value and without notice of a defect going to the validity of a security, the terms of the security include those stated on the security and those incorporated therein by reference to another instrument, statute, rule, regulation or order to the extent that the terms so referred to do not conflict with the stated terms, but such a reference is not of itself notice to a purchaser for value of a defect going to the validity of the security, notwithstanding that the security expressly states that a person accepting it admits the notice. 
  
  ### Purchaser for value
  
  (2) A security is valid in the hands of a purchaser for value without notice of any defect going to its validity. 
  
  ### Lack of genuineness
  
  (3) Except as provided in section 104, the fact that a security is not genuine is a complete defence even against a purchaser for value and without notice. 
  
  ### Ineffective defences
  
  (4) All defences of an issuer, including non-delivery and conditional delivery of a security but not including lack of genuineness, are ineffective against a purchaser for value without notice of the particular defence. 
  
  ### Staleness as defect notice
  
  (5) After an event that creates a right to immediate performance of the principal obligation evidenced by a security, or that sets a date on or after which a security is to be presented or surrendered for redemption or exchange, a purchaser is deemed to have notice of any defect in its issue or of any defence of the issuer 
  (a) if the event requires the payment of money or the delivery of securities, or both, on presentation or surrender of the security, and the funds or securities are available on the date set for payment or exchange, and the purchaser takes the security more than one year after that date; or 
  (b) if the purchaser takes the security more than two years after the date set for presentation or surrender or the date on which the performance became due. 
  
  ### Unauthorized signature
  
  104 An unauthorized signature on a security before or in the course of issue is ineffective, except that the signature is effective in favour of a purchaser for value and without notice of the lack of authority, if the signing has been done by 
  (a) an authenticating trustee, registrar, transfer agent or other person entrusted by the issuer with the signing of the security, or of similar securities, or their immediate preparation for signing; or 
  (b) an employee of the issuer or of a person referred to in paragraph (a) who, in the ordinary course of the employee’s duties, handles the security. 
  
  ### Completion or alteration
  
  105 (1) Where a security contains the signatures necessary to its issue or transfer but is incomplete in any other respect, 
  (a) any person may complete it by filling in the blanks in accordance with the person’s authority; and 
  (b) notwithstanding that the blanks are incorrectly filled in, the security as completed is enforceable by a purchaser who took it for value and without notice of the incorrectness. 
  
  ### Enforceability
  
  (2) A completed security that has been improperly altered, even if fraudulently altered, remains enforceable, but only according to its original terms. 
  
  ### Warranties of agents
  
  106 (1) A person signing a security, as authenticating trustee, registrar, transfer agent or other person entrusted by the issuer with the signing of the security, warrants to a purchaser for value without notice that 
  (a) the security is genuine; 
  (b) the person’s acts in connection with the issue of the security are within the person’s authority; and 
  (c) the person has reasonable grounds for believing that the security is in the form and within the amount the issuer is authorized to issue. 
  
  ### Limitation of liability
  
  (2) Unless otherwise agreed, a person referred to in subsection (1) does not assume any further liability for the validity of a security. 
  
  ### Title of purchaser
  
  107 (1) Subject to Part VII, on delivery of a security the purchaser acquires the rights in the security that the purchaser’s transferor had or had authority to convey, except that the position of a purchaser who has been a party to any fraud or illegality affecting the security or who as a prior holder had notice of an adverse claim is not improved by taking from a later bona fide purchaser.  
  
  ### Title of bona fide purchaser 
  
  (2) A bona fide purchaser, in addition to acquiring the rights of a purchaser, also acquires the security free from any adverse claim.  
  
  ### Limited interest purchaser
  
  (3) A purchaser of a limited interest acquires rights only to the extent of the interest purchased. 
  
  ### Deemed notice of adverse claim
  
  108 A purchaser of a security, or any securities broker for a seller or purchaser, is deemed to have notice of an adverse claim if 
  (a) the security, whether in bearer form or registered form, has been endorsed “for collection” or “for surrender” or for some other purpose not involving transfer; or 
  (b) the security is in bearer form and has on it a statement that it is the property of a person other than the transferor, except that the mere writing of a name on a security is not such a statement. 
  
  ### Notice of fiduciary duty
  
  109 Notwithstanding that a purchaser, or any securities broker for a seller or purchaser, has notice that a security is held for a third person by, or is registered in the name of or endorsed by, a fiduciary, neither the purchaser nor the securities broker has any duty to inquire into the rightfulness of the transfer or any notice of an adverse claim, except that if the purchaser or securities broker for the seller or purchaser knows that the consideration is to be used for, or that the transaction is for, the personal benefit of the fiduciary or is otherwise in breach of the fiduciary’s duty, the purchaser or securities broker is deemed to have notice of an adverse claim. 
  
  ### Staleness as notice
  
  110 An event that creates a right to immediate performance of the principal obligation evidenced by a security or that sets a date on or after which the security is to be presented or surrendered for redemption or exchange is not of itself notice of an adverse claim, except in the case of a purchase 
  (a) made more than one year after any date set for such a presentation or surrender; or 
  (b) made more than six months after any date set for payment of money against such a presentation or surrender if funds are available for payment on that date. 
  
  ### Warranties to issuer
  
  111 (1) A person who presents a security for registration of transfer or for payment or exchange warrants to the issuer that the person is entitled to the registration, payment or exchange, except that a purchaser for value without notice of an adverse claim who receives a new, reissued or re-registered security on registration of transfer warrants only that the purchaser has no knowledge of any unauthorized signature in a necessary endorsement. 
  
  ### Warranties to purchaser
  
  (2) A person by transferring a security to a purchaser for value warrants only that 
  (a) the transfer is effective and rightful; 
  (b) the security is genuine and has not been materially altered; and 
  (c) the person knows of nothing that might impair the validity of the security. 
  
  ### Warranties of intermediary
  
  (3) Where a security is delivered by an intermediary known by the purchaser to be entrusted with delivery of the security on behalf of another or with collection of a draft or other claim to be collected against that delivery, the intermediary by that delivery warrants only the intermediary’s own good faith and authority even if the intermediary has purchased or made advances against the draft or other claim to be collected against the delivery. 
  
  ### Warranties of pledgee
  
  (4) A pledgee or other holder for purposes of security who redelivers a security received, or after payment and on order of the debtor delivers that security to a third person, gives only the warranties of an intermediary under subsection (3). 
  
  ### Warranties of securities broker
  
  (5) A securities broker gives to the broker’s customer, to the issuer and to a purchaser, as the case may be, the warranties provided in subsections (1) to (4) and has the rights and privileges of a purchaser under those subsections, and those warranties of and in favour of the broker acting as an agent are in addition to warranties given by the broker’s customer and warranties given in favour of the broker’s customer. 
  
  ### Right to compel endorsement
  
  112 Where a security in registered form is delivered to a purchaser without a necessary endorsement, the purchaser may become a bona fide purchaser only as of the time the endorsement is supplied, but against the transferor the transfer is complete on delivery and the purchaser has a specifically enforceable right to have any necessary endorsement supplied.  
  
  ### Definition of 
  *appropriate person* 
  
  113 (1) In this section, section 114, subsections 121(1), 124(4) and 129(1) and section 133, 
  *appropriate person* means  
  (a) the person specified by the security or by special endorsement to be entitled to the security; 
  (b) if a person described in paragraph (a) is described as a fiduciary but is no longer serving in the described capacity, either that person or that person’s successor; 
  (c) if the security or endorsement mentioned in paragraph (a) specifies more than one person as fiduciaries and one or more of those persons are no longer serving in the described capacity, the remaining fiduciary or fiduciaries, whether or not a successor has been appointed; 
  (d) if a person described in paragraph (a) is a natural person and is without capacity to act by reason of death, incompetence, minority or other reason, the person’s fiduciary; 
  (e) if the security or endorsement mentioned in paragraph (a) specifies more than one person with right of survivorship and by reason of death not all of the persons can sign, the survivor or survivors; 
  (f) a person having power to sign under any applicable law or a power of attorney; or 
  (g) to the extent that a person described in any of paragraphs (a) to (f) may act through an agent, the person’s authorized agent. 
  
  ### Determining an 
  *appropriate person* 
  
  (2) Whether the person signing is an appropriate person is determined as of the time of signing, and an endorsement by such a person does not become unauthorized for the purposes of this Part by reason of any subsequent change of circumstances. 
  
  ### Endorsement
  
  114 (1) An endorsement of a security in registered form is made when an appropriate person signs, either on the security or on a separate document, an assignment or transfer of the security or a power to assign or transfer it, or when the signature of an appropriate person is written without more on the back of the security. 
  
  ### Special or blank
  
  (2) An endorsement may be special or in blank. 
  
  ### Blank endorsement
  
  (3) An endorsement in blank includes an endorsement to bearer. 
  
  ### Special endorsement
  
  (4) A special endorsement specifies the person to whom the security is to be transferred, or who has power to transfer it. 
  
  ### Right of holder
  
  (5) A holder may convert an endorsement in blank into a special endorsement. 
  
  ### Immunity of endorser
  
  115 Unless otherwise agreed, the endorser by the endorsement assumes no obligation that the security will be honoured by the issuer. 
  
  ### Partial endorsement
  
  116 An endorsement purporting to be an endorsement of only part of a security representing units intended by the issuer to be separately transferable is effective to the extent of the endorsement. 
  
  ### Effect of failure by fiduciary to comply
  
  117 Failure of a fiduciary to comply with a controlling instrument or with the law of the jurisdiction governing the fiduciary relationship, including any law requiring the fiduciary to obtain court approval of a transfer, does not render the fiduciary’s endorsement unauthorized for the purposes of this Part. 
  
  ### Effect of endorsement without delivery
  
  118 An endorsement of a security, whether special or in blank, does not constitute a transfer until delivery of the security on which it appears or, if the endorsement is on a separate document, until delivery of both the security and that document. 
  
  ### Endorsement in bearer form
  
  119 An endorsement of a security in bearer form may give notice of an adverse claim under section 108 but does not otherwise affect any of the holder’s rights. 
  
  ### Effect of unauthorized endorsement
  
  120 (1) The owner of a security may assert the ineffectiveness of an endorsement against the issuer or any purchaser, other than a purchaser for value and without notice of an adverse claim, who has in good faith received a new, reissued or re-registered security on registration of transfer, unless the owner 
  (a) has ratified an unauthorized endorsement of the security; or 
  (b) is otherwise precluded from impugning the effectiveness of an unauthorized endorsement. 
  
  ### Liability of issuer
  
  (2) An issuer who registers the transfer of a security on an unauthorized endorsement is liable for improper registration. 
  
  ### Warranties of guarantor of signature
  
  121 (1) A person who guarantees the signature of an endorser of a security warrants that, at the time of signing, 
  (a) the signature was genuine; 
  (b) the signer was an appropriate person to endorse; and 
  (c) the signer had legal capacity to sign. 
  
  ### Limitation of liability
  
  (2) A person who guarantees the signature of an endorser does not otherwise warrant the rightfulness of the transfer to which the signature relates. 
  
  ### Warranties of guarantor of endorsement
  
  (3) A person who guarantees the endorsement of a security warrants both the signature and the rightfulness, in all respects, of the transfer to which the signature relates, but an issuer may not require a guarantee of endorsement as a condition to registration of transfer. 
  
  ### Extent of warrantor’s liability
  
  (4) The warranties referred to in subsections (1) to (3) are made to any person who, relying on the guarantee, takes or deals with the security, and the guarantor is liable to such a person for any loss resulting from breach of warranty. 
  
  ### Constructive delivery of a security
  
  122 Delivery to a purchaser occurs when 
  (a) the purchaser or a person designated by the purchaser acquires possession of a security; 
  (b) the purchaser’s securities broker acquires possession of a security specially endorsed to or issued in the name of the purchaser; 
  (c) the purchaser’s securities broker sends the purchaser confirmation of the purchase and the broker in the broker’s records identifies a specific security as belonging to the purchaser; or 
  (d) in respect of an identified security to be delivered while still in the possession of a third person, that person acknowledges that it is held for the purchaser. 
  
  ### Constructive ownership of security
  
  123 (1) A purchaser is the owner of a security held for the purchaser by a securities broker, but a purchaser is not a holder except in the cases referred to in paragraphs 122(b) and (c). 
  
  ### Ownership of part of fungible bulk
  
  (2) If a security is part of a fungible bulk, a purchaser of the security is the owner of the proportionate interest in the fungible bulk. 
  
  ### Notice to securities broker of adverse claim
  
  (3) Notice of an adverse claim received by a securities broker or by a purchaser after the broker takes delivery as a holder for value is not effective against the broker or the purchaser, except that, as between the broker and the purchaser, the purchaser may demand delivery of an equivalent security in respect of which no notice of an adverse claim has been received. 
  
  ### Delivery of security
  
  124 (1) Unless otherwise agreed, if a sale of a security is made on a stock exchange or otherwise through securities brokers, 
  (a) the selling customer fulfils the customer’s duty to deliver when the customer delivers the security to the selling securities broker or to a person designated by the selling securities broker or causes an acknowledgement to be made to the selling securities broker that it is held for the selling securities broker; and 
  (b) the selling securities broker, including a correspondent broker, acting for a selling customer fulfils the securities broker’s duty to deliver by delivering the security or a like security to the buying securities broker or to a person designated by the buying securities broker or by effecting clearance of the sale in accordance with the rules of the exchange on which the transaction took place. 
  
  ### Duty to deliver
  
  (2) Except as otherwise provided in this section and unless otherwise agreed, a transferor’s duty to deliver a security under a contract of purchase is not fulfilled until the transferor delivers the security in negotiable form to the purchaser or to a person designated by the purchaser, or causes an acknowledgement to be made to the purchaser that the security is held for the purchaser. 
  
  ### Delivery to securities broker
  
  (3) A sale to a securities broker purchasing for the securities broker’s own account is subject to subsection (2) and not subsection (1), unless the sale is made on a stock exchange. 
  
  ### Transfer through clearing agency
  
  (4) If a security shown in the records of a clearing agency is evidenced by 
  (a) a security certificate in the custody of the clearing agency or a custodian, or a nominee of either, subject to the instructions of the clearing agency, and is in bearer form or endorsed in blank by an appropriate person or registered in the name of the clearing agency or a custodian, or of a nominee of either, or 
  (b) an uncertificated security registered or recorded in records maintained by or on behalf of the company in the name of the clearing agency or a custodian, or of a nominee of either, subject to the instructions of the clearing agency, then, in addition to other methods, a transfer or pledge of the security or any interest therein may be effected by the making of an appropriate entry in the records of the clearing agency. 
  
  ### Interest in fungible bulk
  
  (5) Under subsections (4) to (10), entries may be in respect of like securities or interests therein as part of a fungible bulk and may refer merely to a quantity of a particular security without reference to the name of the registered owner, certificate or bond number or the like and, in appropriate cases, may be on a net basis taking into account other transfers or pledges of the same security. 
  
  ### Constructive endorsement and delivery
  
  (6) A transfer or pledge under subsections (4) to (10) has the effect of a delivery of a security in bearer form or duly endorsed in blank representing the amount of the obligation or the number of shares or rights transferred or pledged. 
  
  ### Idem
  
  (7) If a pledge or the creation of a security interest is intended, the making of entries has the effect of a taking of delivery by the pledgee or a secured party and the pledgee or secured party shall be deemed to have taken possession for all purposes. 
  
  ### Holder
  
  (8) A person depositing a security certificate or an uncertificated security with a clearing agency, or a transferee or pledgee of a security under subsections (4) to (10), is a holder of the security and shall be deemed to have possession of the security so deposited, transferred or pledged, as the case may be, for all purposes. 
  
  ### Not registration
  
  (9) A transfer or pledge under subsections (4) to (10) does not constitute a registration of transfer under sections 129 to 136. 
  
  ### Error in records
  
  (10) That entries made in the records of the clearing agency as provided in subsection (4) are not appropriate does not affect the validity or effect of the entries nor the liabilities or obligations of the clearing agency to any person adversely affected thereby. 
  
  ### Right to reclaim possession
  
  125 (1) A person against whom the transfer of a security is wrongful for any reason, including the person’s incapacity, may, against anyone except a bona fide purchaser,  
  (a) reclaim possession of the security or obtain possession of any new security evidencing all or part of the same rights; or 
  (b) claim damages. 
  
  ### Recovery where unauthorized endorsement
  
  (2) If the transfer of a security is wrongful by reason of an unauthorized endorsement, the owner may reclaim possession of the security or a new security even from a bona fide purchaser if the ineffectiveness of the purported endorsement is asserted against the purchaser under section 120.  
  
  ### Remedies
  
  (3) The right to reclaim possession of a security may be specially enforced, its transfer may be restrained and the security may be impounded pending litigation. 
  
  ### Right to requisites for registration
  
  126 (1) Unless otherwise agreed, a transferor shall, on demand, supply a purchaser with proof of the transferor’s authority to transfer a security or with any other requisite that is necessary to obtain registration of the transfer of a security, but if the transfer is not for value, it is not necessary for a transferor to prove authority to transfer unless the purchaser pays the reasonable and necessary costs of the proof and transfer. 
  
  ### Rescission of transfer
  
  (2) If a transferor fails to comply with a demand under subsection (1) within a reasonable time, the purchaser may reject or rescind the transfer. 
  
  ### Seizure of security
  
  127 No seizure of a security or other interest evidenced thereby is effective until the person making the seizure obtains possession of the security. 
  
  ### No conversion if good faith delivery
  
  128 An agent or bailee who in good faith, including observance of reasonable commercial standards if the agent or bailee is in the business of buying, selling or otherwise dealing with securities of a company, has received securities and sold, pledged or delivered them according to the instructions of the agent’s or bailee’s principal is not liable for conversion or for participation in breach of fiduciary duty even though the principal has no right to dispose of the securities. 
  
  ### Duty to register transfer
  
  129 (1) Subject to Part VII, where a security in registered form is presented for transfer, the issuer shall register the transfer if 
  (a) the security is endorsed by an appropriate person; 
  (b) reasonable assurance is given that the endorsement is genuine and effective; 
  (c) the issuer has no duty to inquire into adverse claims or has discharged any such duty; 
  (d) all applicable laws relating to the collection of taxes have been complied with; 
  (e) the transfer is rightful or is to a bona fide purchaser; and  
  (f) the fee, if any, referred to in subsection 88(2) has been paid. 
  
  ### Liability for delay
  
  (2) Where an issuer has a duty to register a transfer of a security, the issuer is liable to the person presenting it for registration for any loss resulting from any unreasonable delay in registration or from the failure or refusal to register the transfer. 
  
  ### Assurance of endorsements
  
  130 (1) An issuer may require an assurance that each necessary endorsement on a security is genuine and effective by requiring a guarantee of the signature of the person endorsing the security and by requiring 
  (a) if the endorsement is by an agent, reasonable assurance of authority to sign; 
  (b) if the endorsement is by a fiduciary, evidence of appointment or incumbency; 
  (c) if there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and 
  (d) in any other case, assurance that corresponds as closely as practicable to the foregoing. 
  
  ### Definition of 
  *guarantee of the signature* 
  
  (2) For the purposes of subsection (1), 
  *guarantee of the signature* means a guarantee signed by or on behalf of a person whom the issuer believes, on reasonable grounds, to be a responsible person.  
  
  ### Standards
  
  (3) An issuer may adopt reasonable standards to determine responsible persons for the purposes of subsection (2). 
  
  ### Definition of 
  *evidence of appointment or incumbency* 
  
  (4) For the purposes of paragraph (1)(b), 
  *evidence of appointment or incumbency* means  
  (a) in the case of a fiduciary appointed by a court and referred to in subsection 99(1), a copy of the certified court order referred to in subsection 99(1) and dated not earlier than sixty days before the day a security is presented for transfer; or 
  (b) in the case of any other fiduciary, a copy of a document showing the appointment or other evidence believed by the issuer to be appropriate. 
  
  ### Standards
  
  (5) An issuer may adopt reasonable standards with respect to evidence referred to in paragraph (4)(b). 
  
  ### No notice to issuer
  
  (6) An issuer is deemed not to have notice of the contents of any document referred to in subsection (4) that is obtained by the issuer except to the extent that the contents relate directly to appointment or incumbency. 
  
  ### Notice from additional documentation
  
  131 If an issuer, in relation to a transfer, demands assurance other than an assurance specified in subsection 130(1) and obtains a copy of a will, trust or partnership agreement or a by-law or similar document, the issuer is deemed to have notice of all matters contained therein affecting the transfer. 
  
  ### Limited duty of inquiry
  
  132 (1) An issuer to whom a security is presented for registration has a duty to inquire into adverse claims if 
  (a) the issuer receives written notice of an adverse claim at a time and in a manner that provides the issuer with a reasonable opportunity to act on it before the issue of a new, reissued or re-registered security and the notice discloses the name and address of the claimant, the registered owner and the issue of which the security is a part; or 
  (b) the issuer is deemed to have notice of an adverse claim from a document that it obtained under section 131. 
  
  ### Discharge of duty
  
  (2) An issuer may discharge a duty of inquiry by any reasonable means, including notifying an adverse claimant by registered mail sent to the address provided by the adverse claimant or, if no such address has been provided, to the adverse claimant’s residence or regular place of business, that a security has been presented for registration of transfer by a named person and that the transfer will be registered unless, within thirty days after the date of mailing of the notice, either 
  (a) the issuer is served with a restraining order or other order of a court, or 
  (b) the issuer is provided with an indemnity bond sufficient in the issuer’s judgment to protect the issuer and any registrar, transfer agent or other agent of the issuer from any loss that may be incurred by any of them as a result of complying with the adverse claim. 
  
  ### Inquiry into adverse claims
  
  133 Unless an issuer is deemed to have notice of an adverse claim from a document that it obtained under section 131 or has received notice of an adverse claim under subsection 132(1), if a security presented for registration is endorsed by the appropriate person, the issuer has no duty to inquire into adverse claims and, in particular, 
  (a) an issuer registering a security in the name of a person who is a fiduciary or who is described as a fiduciary is not bound to inquire into the existence, extent or correct description of the fiduciary relationship and thereafter the issuer may assume without inquiry that the newly registered owner continues to be the fiduciary until the issuer receives written notice that the fiduciary is no longer acting as such with respect to the particular security; 
  (b) an issuer registering a transfer on an endorsement by a fiduciary has no duty to inquire into whether the transfer is made in compliance with the document or with the law of the jurisdiction governing the fiduciary relationship; and 
  (c) an issuer is deemed not to have notice of the contents of any court record or any registered document even if the record or document is in the issuer’s possession and even if the transfer is made on the endorsement of a fiduciary to the fiduciary specifically or to the fiduciary’s nominee. 
  
  ### Duration of notice of adverse claim
  
  134 A written notice of adverse claim received by an issuer is effective for twelve months after the day it was received unless the notice is renewed in writing. 
  
  ### Limitation on issuer’s liability
  
  135 (1) Except as otherwise provided in any applicable law relating to the collection of taxes, an issuer is not liable to the owner or any other person who incurs a loss as a result of the registration of a transfer of a security if 
  (a) the necessary endorsements were on or with the security; and 
  (b) the issuer had no duty to inquire into adverse claims or had discharged any such duty. 
  
  ### Duty of issuer on default
  
  (2) If an issuer has registered a transfer of a security to a person not entitled to it, the issuer shall on demand deliver a like security to the owner unless 
  (a) the issuer is not liable by virtue of subsection (1); 
  (b) the owner is precluded by subsection 136(1) from asserting any claim; or 
  (c) the delivery would result in over-issue in respect of which section 100 applies. 
  
  ### Lost or stolen security
  
  136 (1) Where a security has been lost, apparently destroyed or wrongfully taken, and the owner fails to notify the issuer of that fact by giving the issuer written notice of the owner’s adverse claim within a reasonable time after the owner knows of the loss, destruction or taking, then, if the issuer has registered a transfer of the security before receiving the notice, the owner is precluded from asserting against the issuer any claim to a new security. 
  
  ### Duty to issue new security
  
  (2) Where the owner of a security claims that the security has been lost, destroyed or wrongfully taken, the issuer shall issue a new security in place of the original security if the owner 
  (a) so requests before the issuer has notice that the security has been acquired by a bona fide purchaser;  
  (b) provides the issuer with a sufficient indemnity bond; and 
  (c) satisfies any other reasonable requirements imposed by the issuer. 
  
  ### Duty to register transfer
  
  (3) If, after the issue of a new security under subsection (2), a bona fide purchaser of the original security presents the original security for registration of transfer, the issuer shall register the transfer unless registration would result in over-issue in respect of which section 100 applies.  
  
  ### Right of issuer to recover
  
  (4) In addition to the rights that an issuer has by reason of an indemnity bond, the issuer may recover the new security issued under subsection (2) from the person to whom it was issued or any person taking under that person other than a bona fide purchaser.  
  
  ### Authenticating agent’s duty
  
  137 An authenticating trustee, registrar, transfer agent or other agent of an issuer has, in respect of the issue, registration of transfer and cancellation of a security of the issuer, 
  (a) a duty to the issuer to exercise good faith and reasonable diligence; and 
  (b) the same obligations to the holder or owner of a security and the same rights, privileges and immunities as the issuer. 
  
  ### Notice to agent
  
  138 Notice to an authenticating trustee, registrar, transfer agent or other agent of an issuer is notice to the issuer in respect of the functions performed by the agent. 
  
  # PART VI 
  
  ## Corporate Governance 
  
  ## Shareholders 
  
  ### Place of meetings
  
  139 (1) Meetings of shareholders of a company shall be held at the place within Canada provided for in the by-laws of the company or, in the absence of any such provision, at the place within Canada that the directors determine. 
  
  ### Participation by electronic means
  
  (2) Unless the by-laws provide otherwise, any person who is entitled to attend a meeting of shareholders may participate in the meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting if the company makes one available. A person who is participating in a meeting by one of those means is deemed for the purposes of this Act to be present at the meeting. 
  
  ### Regulations
  
  (3) The Governor in Council may make regulations respecting the manner of and conditions for participating in a meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting. 
  
  ### Calling meetings
  
  140 (1) The directors of a company 
  (a) shall, after the meeting called pursuant to subsection 50(1), call the first annual meeting of shareholders of the company, which meeting must be held not later than six months after the end of the first financial year of the company, and subsequently call an annual meeting of shareholders, which meeting must be held not later than six months after the end of each financial year; and 
  (b) may at any time call a special meeting of shareholders. 
  
  ### Order to delay calling annual meeting
  
  (2) Despite subsection (1), the company may apply to the court for an order extending the time for calling an annual meeting. 
  
  ### Obligation to notify Superintendent
  
  (3) The company shall give notice of the application to the Superintendent before any hearing concerning the application and shall provide the Superintendent with a copy of any order that is issued. 
  
  ### Superintendent’s right to appear
  
  (4) The Superintendent is entitled to appear and be heard in person or by counsel at any hearing concerning the application. 
  
  ### Authority to fix record date
  
  (5) The directors may in advance fix a record date, that is within the prescribed period, for the determination of shareholders for any purpose, including for a determination of which shareholders are entitled to 
  (a) receive payment of a dividend; 
  (b) participate in a liquidation distribution; 
  (c) receive notice of a meeting of shareholders; or 
  (d) vote at a meeting of shareholders. 
  
  ### Determination of record date
  
  (6) If no record date is fixed, 
  (a) the record date for the determination of shareholders who are entitled to receive notice of a meeting of shareholders is 
  (i) at the close of business on the day immediately preceding the day on which the notice is given, or 
  (ii) if no notice is given, the day on which the meeting is held; and 
  (b) the record date for the determination of shareholders for any other purpose, other than to establish a shareholder’s right to vote, is at the close of business on the day on which the directors pass a resolution in respect of that purpose. 
  
  ### Notice of record date
  
  (7) If a record date is fixed and unless notice of the record date is waived in writing by every holder of a share of the class or series affected whose name is set out in the securities register at the close of business on the day on which the directors fix the record date, notice of the record date shall be given within the prescribed period by 
  (a) advertisement in a newspaper in general circulation in the place where the company’s head office is situated and in each place in Canada where the company has a transfer agent or where a transfer of its shares may be recorded; and 
  (b) written notice to each stock exchange in Canada on which the company’s shares are listed for trading. 
  
  ### Notice of meeting
  
  141 (1) Notice of the time and place of a meeting of shareholders of a company shall be sent within the prescribed period to 
  (a) each shareholder entitled to vote at the meeting; 
  (b) each director; 
  (c) the auditor of the company; and 
  (d) the Superintendent. 
  
  ### Exception
  
  (1.01) In the case of a company that is not a distributing company, notice may be sent within any shorter period specified in its by-laws. 
  
  ### Publication in newspaper
  
  (2) In addition to the notice required under subsection (1), where any class of shares of a company is publicly traded on a recognized stock exchange in Canada, notice of the time and place of a meeting of shareholders shall be published once a week for at least four consecutive weeks before the date of the meeting in a newspaper in general circulation in the place where the head office of the company is situated and in each place in Canada where the company has a transfer agent or where a transfer of the company’s shares may be recorded. 
  
  ### Notice not required
  
  142 (1) Notice of a meeting is not required to be sent to shareholders who are not registered on the records of the company or the company’s transfer agent on the record date fixed under paragraph 140(5)(c) or determined under paragraph 140(6)(a). 
  
  ### Effect of default
  
  (2) Failure to receive a notice of a meeting of shareholders does not deprive a shareholder of the right to vote at the meeting. 
  
  ### Notice of adjourned meeting
  
  143 (1) If a meeting of shareholders is adjourned for less than thirty days, it is not necessary, unless the by-laws otherwise provide, to give notice of the adjourned meeting, other than by announcement at the earliest meeting that is adjourned. 
  
  ### Notice of continuation of meeting
  
  (2) If a meeting of shareholders is adjourned by one or more adjournments for a total of thirty days or more, notice of the continuation of the meeting shall be given as for an original meeting but, unless the meeting is adjourned by one or more adjournments for a total of more than ninety days, subsection 160.04(1) does not apply. 
  
  ### Special business
  
  144 (1) All matters dealt with at a special meeting of shareholders and all matters dealt with at an annual meeting of shareholders, except consideration of the financial statements, auditor’s report, election of directors, remuneration of directors and reappointment of the incumbent auditor, are deemed to be special business. 
  
  ### Notice of special business
  
  (2) Notice of a meeting of shareholders at which special business is to be transacted must 
  (a) state the nature of the special business in sufficient detail to permit a shareholder to form a reasoned judgment thereon; and 
  (b) contain the text of any special resolution to be submitted to the meeting. 
  
  ### Waiver of notice
  
  145 (1) A shareholder and any other person entitled to attend a meeting of shareholders may in any manner waive notice of a meeting of shareholders. 
  
  ### Idem
  
  (2) Attendance at a meeting of shareholders is a waiver of notice of the meeting, except when a person attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. 
  
  ### Proposals
  
  146 (1) Subject to subsections (1.1) and (1.2), a registered holder or beneficial owner of shares that may be voted at an annual meeting of shareholders may 
  (a) submit to the company notice of any matter that they propose to raise at the meeting (in this section and section 147 referred to as a “proposal”); and 
  (b) discuss at the meeting any matter in respect of which they would have been entitled to submit a proposal. 
  
  ### Eligibility to submit proposal
  
  (1.1) To be eligible to submit a proposal a person shall 
  (a) for at least the prescribed period be the registered holder or beneficial owner of at least the prescribed number of the company’s outstanding shares; or 
  (b) have the support of persons who, in the aggregate and including or not including the person who submits the proposal, have for at least the prescribed period been the registered holders or beneficial owners of at least the prescribed number of the company’s outstanding shares. 
  
  ### Information to be provided
  
  (1.2) A proposal is to be accompanied by the following information: 
  (a) the name and address of the person submitting the proposal and the names and addresses of their supporters, if any; and 
  (b) the number of shares held or owned by the person and their supporters, if any, and the date that the shares were acquired. 
  
  ### Information not part of proposal
  
  (1.3) The information provided under subsection (1.2) does not form part of a proposal or of the supporting statement referred to in subsection (3) and is not to be included for the purpose of the prescribed maximum number of words referred to in subsection (3). 
  
  ### Proof may be required
  
  (1.4) If the company requests within the prescribed period that a person provide proof that they are eligible to submit a proposal, the person shall within the prescribed period provide proof that they meet the requirements of subsection (1.1). 
  
  ### Management proxy
  
  (2) A company that solicits proxies shall, in the management proxy circular required by subsection 160.05(1), set out any proposal of a shareholder submitted for consideration at a meeting of shareholders or attach the proposal to the management proxy circular. 
  
  ### Supporting statement
  
  (3) At the request of the person who submits a proposal, the company shall set out in the management proxy circular or attach to it the person’s statement in support of the proposal and their name and address. The statement and proposal together are not to exceed the prescribed maximum number of words. 
  
  ### Nomination of directors
  
  (4) A proposal may include nominations for the election of directors if it is signed by one or more registered holders or beneficial owners of shares representing in the aggregate not less than 5% of the shares of the company or 5% of the shares of a class of its shares entitled to vote at the meeting at which the proposal is to be presented. 
  
  ### Exemption
  
  (5) A company is not required to comply with subsections (2) and (3) if 
  (a) the proposal is not submitted to the company at least the prescribed number of days before the anniversary date of the notice of meeting that was sent to shareholders in respect of the previous annual meeting of shareholders; 
  (b) it clearly appears that the primary purpose of the proposal is to enforce a personal claim or redress a personal griev­ance against the company or its directors, officers or security holders; 
  (b.1) it clearly appears that the proposal does not relate in a significant way to the business or affairs of the company; 
  (c) the person submitting the proposal failed within the prescribed period before the company receives their proposal to present, in person or by proxy, at a meeting of shareholders a proposal that at their request had been set out in or attached to a management proxy circular; 
  (d) substantially the same proposal was set out in or attached to a management proxy circular or dissident’s proxy circular relating to, and presented to shareholders at, a meeting of shareholders held within the prescribed period before the receipt of the proposal and did not receive the prescribed minimum amount of support at the meeting; or 
  (e) the rights conferred by subsections (1) to (4) are being abused to secure publicity. 
  
  ### Company may refuse to include proposal
  
  (5.1) If a person who submits a proposal fails to continue to hold or own shares in accordance with paragraph (1.1)(a) or, as the case may be, does not continue to have the support of persons who are in the aggregate the registered holders or beneficial owners of the prescribed number of shares in accordance with paragraph (1.1)(b) until the end of the meeting, the company is not required to set out any proposal submitted by that person in or attach it to a management proxy circular for any meeting held within the prescribed period after the day of the meeting. 
  
  ### Immunity for proposal and statement
  
  (6) No company or person acting on behalf of a company incurs any liability by reason only of circulating a proposal or statement in compliance with subsections (2) and (3). 
  
  ### Notice of refusal
  
  147 (1) If a company refuses to include a proposal in a management proxy circular, it shall in writing notify the person submitting the proposal of its intention to omit the proposal from the management proxy circular and of the reasons for the refusal. It shall notify the person within the prescribed period after either the day on which it receives the proposal or, if it has requested proof under subsection 146(1.4), the day on which it receives the proof. 
  
  ### Application to court
  
  (2) On the application of a person submitting a proposal who claims to be aggrieved by a company’s refusal under subsection (1), a court may restrain the holding of the meeting at which the proposal is sought to be presented and make any further order that it thinks fit. 
  
  ### Idem
  
  (3) A company or any person claiming to be aggrieved by a proposal may apply to a court for an order permitting the company to omit the proposal from the management proxy circular, and the court, if it is satisfied that subsection 146(5) applies, may make such order as it thinks fit. 
  
  ### Notice to Superintendent
  
  (4) An applicant under subsection (2) or (3) shall give the Superintendent written notice of the application and the Superintendent may appear and be heard at the hearing of the application in person or by counsel. 
  
  ### List of shareholders entitled to notice
  
  148 (1) A company shall prepare an alphabetical list of shareholders entitled to receive notice of a meeting showing the number of shares held by each shareholder 
  (a) if a record date is fixed under paragraph 140(5)(c), no later than 10 days after that date; and 
  (b) if no record date is fixed, on the record date determined under paragraph 140(6)(a). 
  
  ### Voting list
  
  (2) The company shall prepare an alphabet­ical list of shareholders entitled to vote as of the record date showing the number of shares held by each shareholder 
  (a) if a record date is fixed under paragraph 140(5)(d), no later than 10 days after that date; and 
  (b) if no record date is fixed under paragraph 140(5)(d), no later than 10 days after a record date is fixed under paragraph 140(5)(c) or no later than the record date determined under paragraph 140(6)(a), as the case may be. 
  
  ### Entitlement to vote
  
  (3) A shareholder whose name appears on a list prepared under subsection (2) is entitled to vote the shares shown opposite their name. 
  
  ### Examination of list
  
  (4) A shareholder may examine the list of shareholders 
  (a) during usual business hours at the head office of the company or at the place where its central securities register is maintained; and 
  (b) at the meeting of shareholders for which the list was prepared. 
  
  ### Quorum
  
  149 (1) Unless the by-laws otherwise provide, a quorum of shareholders is present at a meeting of shareholders if the holders of a majority of the shares who are entitled to vote at the meeting are present in person or represented by proxyholders. 
  
  ### Idem
  
  (2) If a quorum is present at the opening of a meeting of shareholders, the shareholders present may, unless the by-laws otherwise provide, proceed with the business of the meeting, notwithstanding that a quorum is not present throughout the meeting. 
  
  ### Idem
  
  (3) If a quorum is not present at the opening of a meeting of shareholders, the shareholders present may adjourn the meeting to a fixed time and place but may not transact any other business. 
  
  ### One shareholder meeting
  
  150 If a company has only one shareholder, or only one holder of any class or series of shares, the shareholder present in person or represented by a proxyholder constitutes a meeting of shareholders or a meeting of shareholders of that class or series. 
  
  ### One share — one vote
  
  151 (1) Where a share of a company entitles the holder thereof to vote at a meeting of shareholders, that share entitles the shareholder to one vote at the meeting. 
  
  ### Exception
  
  (2) Notwithstanding subsection (1), a share of a former-Act company issued 
  (a) on or before September 27, 1990 that entitled the holder to more than one vote, or to a fraction of a vote, at a meeting of shareholders in respect of that share, or 
  (b) after September 27, 1990 pursuant to the conversion of a security of the former-Act company that was issued with such conversion privilege prior to that date continues to entitle that holder or any subsequent holder of the share to exercise such voting rights. 
  
  ### Representative shareholder
  
  152 (1) If an entity is a shareholder of a company, the company shall recognize any natural person authorized by a resolution of the directors or governing body or similar authority of the entity to represent it at meetings of shareholders of the company. 
  
  ### Idem
  
  (2) A natural person authorized under subsection (1) to represent an entity may exercise on behalf of the entity all the powers the entity could exercise if it were a natural person as well as a shareholder. 
  
  ### Joint shareholders
  
  153 Unless the by-laws otherwise provide, if two or more persons hold shares jointly, one of those holders present at a meeting of shareholders may in the absence of the others vote the shares, but if two or more of those persons who are present in person or represented by proxyholder vote, they shall vote as one on the shares jointly held by them. 
  
  ### Voting by hands or ballot
  
  154 (1) Unless the by-laws otherwise provide, voting at a meeting of shareholders shall take place by show of hands except when a ballot is demanded by either a shareholder or proxyholder entitled to vote at the meeting. 
  
  ### Ballot
  
  (2) A shareholder or proxyholder may demand a ballot either before or after any vote by show of hands. 
  
  ### Electronic voting
  
  (3) Despite subsection (1) and unless the by-laws provide otherwise, any vote referred to in that subsection may be held entirely by means of a telephonic, electronic or other communication facility if the company makes one available. 
  
  ### Voting while participating electronically
  
  (4) Unless the by-laws provide otherwise, any person who is participating in a meeting of shareholders under subsection 139(2) and entitled to vote at that meeting may vote by means of the telephonic, electronic or other communication facility that the company has made available for that purpose. 
  
  ### Regulations
  
  (5) The Governor in Council may make regulations respecting the manner of and conditions for voting at a meeting of shareholders by means of a telephonic, electronic or other communication facility. 
  
  ### Resolution in lieu of meeting
  
  155 (1) Except where a written statement is submitted by a director under section 178 or by an auditor under subsection 326(1), 
  (a) a resolution in writing signed by all the shareholders entitled to vote on that resolution at a meeting of shareholders is as valid as if it had been passed at a meeting of the shareholders; and 
  (b) a resolution in writing dealing with all matters required by this Act to be dealt with at a meeting of shareholders, and signed by all the shareholders entitled to vote at that meeting, satisfies all the requirements of this Act relating to meetings of shareholders. 
  
  ### Filing resolution
  
  (2) A copy of every resolution referred to in subsection (1) shall be kept with the minutes of the meetings of shareholders. 
  
  ### Evidence
  
  (3) Unless a ballot is demanded, an entry in the minutes of a meeting that the chairperson declared a resolution to be carried or defeated is in the absence of evidence to the contrary proof of that fact without proof of the number or proportion of votes recorded in favour of or against the resolution. 
  
  ### Requisitioned meeting
  
  156 (1) Shareholders who together hold not less than 5 per cent of the issued and outstanding shares of a company that carry the right to vote at a meeting sought to be held may requisition the directors to call a meeting of shareholders for the purposes stated in the requisition. 
  
  ### Form
  
  (2) A requisition referred to in subsection (1) 
  (a) must state the business to be transacted at the meeting and must be sent to each director and to the head office of the company; and 
  (b) may consist of several documents of like form, each signed by one or more shareholders. 
  
  ### Directors calling meeting
  
  (3) On receipt of a requisition referred to in subsection (1), the directors shall call a meeting of shareholders to transact the business stated in the requisition, unless 
  (a) a record date has been fixed under paragraph 140(5)(c) and notice of it has been given under subsection 140(7); 
  (b) the directors have called a meeting of shareholders and have given notice thereof under section 141; or 
  (c) the business of the meeting as stated in the requisition includes matters described in paragraphs 146(5)(b) to (e). 
  
  ### Shareholders’ power
  
  (4) If the directors do not call a meeting within twenty-one days after receiving the requisition referred to in subsection (1), any shareholder who signed the requisition may call the meeting. 
  
  ### Procedure
  
  (5) A meeting called under this section shall be called as nearly as possible in the manner in which meetings are to be called pursuant to the by-laws and this Act. 
  
  ### Reimbursement
  
  (6) Unless the shareholders otherwise resolve at a meeting called under subsection (4), the company shall reimburse the shareholders for any expenses reasonably incurred by them in requisitioning, calling and holding the meeting. 
  
  ### Court may order meeting to be called
  
  157 (1) A court may, on the application of a director, a shareholder who is entitled to vote at a meeting of shareholders or the Superintendent, order a meeting to be called, held or conducted in the manner that the court directs if 
  (a) it is impracticable to call the meeting within the time or in the manner in which it is to be called; 
  (b) it is impracticable to conduct the meeting in the manner required by this Act or the by-laws; or 
  (c) the court thinks that the meeting ought to be called, held or conducted within the time or in the manner that it directs for any other reason. 
  
  ### Varying quorum
  
  (2) Without restricting the generality of subsection (1), a court may order that the quorum required by the by-laws or this Act be varied or dispensed with at a meeting called, held and conducted pursuant to this section. 
  
  ### Valid meeting
  
  (3) A meeting called, held and conducted pursuant to this section is for all purposes a meeting of shareholders of the company duly called, held and conducted. 
  
  ### Court review of election
  
  158 (1) A company or a shareholder or director of a company may apply to a court to resolve any dispute in respect of the election or appointment of a director or an auditor of the company. 
  
  ### Powers of court
  
  (2) On an application under subsection (1), a court may make any order it thinks fit including, without limiting the generality of the foregoing, 
  (a) an order restraining a director or auditor whose election or appointment is challenged from acting pending determination of the dispute; 
  (b) an order declaring the result of the disputed election or appointment; 
  (c) an order requiring a new election or appointment, and including in the order directions for the management of the business and affairs of the company until a new election is held or the new appointment is made; and 
  (d) an order determining the voting rights of shareholders and of persons claiming to own shares. 
  
  ### Notice to Superintendent
  
  159 (1) A person who makes an application under subsection 157(1) or 158(1) shall give notice of the application to the Superintendent before the hearing and shall deliver a copy of the order of the court, if any, to the Superintendent. 
  
  ### Superintendent representation
  
  (2) The Superintendent may appear and be heard in person or by counsel at the hearing of an application referred to in subsection (1). 
  
  ### Pooling agreement
  
  160 A written agreement between two or more shareholders may provide that in exercising voting rights the shares held by them will be voted as provided in the agreement. 
  
  ## Proxies 
  
  ### Definitions
  
  160.01 The definitions in this section apply in this section and in sections 160.02 to 160.08.  
  *intermediary* means a person who holds a security on behalf of another person who is not the registered holder of the security, and includes  
  (a) a securities broker or dealer required to be registered to trade or deal in securities under the laws of any jurisdiction; 
  (b) a securities depositary; 
  (c) a financial institution; 
  (d) in respect of a clearing agency, a securities dealer, trust company, association within the meaning of section 2 of the Cooperative Credit Associations Act, bank or other person, including another clearing agency, on whose behalf the clearing agency or its nominee holds securities of an issuer;  
  (e) a trustee or administrator of a self-administered retirement savings plan, retirement income fund or education savings plan or another similar self-administered savings or investment plan that is registered under the Income Tax Act ;  
  (f) a nominee of a person referred to in any of paragraphs (a) to (e); and 
  (g) a person who performs functions similar to those performed by a person referred to in any of paragraphs (a) to (e) and holds a security registered in their name, or in the name of their nominee, on behalf of another person who is not the registered holder of the security. ( intermédiaire)   
  *registrant* [Repealed, 2005, c. 54, s. 392]   
  *solicit* or 
  *solicitation* includes  
  (a) a request for a proxy, whether or not accompanied by or included in a form of proxy, 
  (b) a request to execute or not to execute a form of proxy or to revoke a proxy, 
  (c) the sending of a form of proxy or other communication to a shareholder under circumstances reasonably calculated to result in the procurement, withholding or revocation of a proxy, and 
  (d) the sending of a form of proxy to a shareholder under section 160.04, but does not include 
  (e) the sending of a form of proxy in response to an unsolicited request made by or on behalf of a shareholder, 
  (f) the performance of administrative acts or professional services on behalf of a person soliciting a proxy, 
  (g) the sending by a registrant of the documents referred to in section 160.07, or 
  (h) a solicitation by a person in respect of shares of which that person is the beneficial owner. ( sollicitation)   
  *solicitation by or on behalf of the management of a company* means a solicitation by any person pursuant to a resolution or instruction of, or with the acquiescence of, the directors or a committee of the directors of the company. (sollicitation effectuée par la direction d’une société ou pour son compte)  
  
  ### Appointing proxyholder
  
  160.02 (1) A shareholder who is entitled to vote at a meeting of shareholders may, by executing a form of proxy, appoint a proxyholder or one or more alternate proxyholders, who are not required to be shareholders, to attend and act at the meeting in the manner and to the extent authorized by the proxy and with the authority conferred by the proxy. 
  
  ### Execution of proxy
  
  (2) A form of proxy shall be executed by a shareholder or by a shareholder’s attorney authorized in writing to do so. 
  
  ### Limit on authority
  
  (3) No appointment of a proxyholder provides authority for the proxyholder to act in respect of the appointment of an auditor or the election of a director unless a nominee proposed in good faith for the appointment or election is named in the form of proxy, a management proxy circular, a dissident’s proxy circular or a proposal under subsection 146(1). 
  
  ### Required information
  
  (4) A form of proxy must indicate, in bold-face type, that the shareholder by whom or on whose behalf it is executed may appoint a proxyholder, other than a person designated in the form of proxy, to attend and act on the shareholder’s behalf at a meeting to which the proxy relates, and must contain instructions as to the manner in which the shareholder may do so. 
  
  ### Validity of proxy
  
  (5) A proxy is valid only at the meeting in respect of which it is given or at a continuation of the meeting after an adjournment. 
  
  ### Revocation of proxy
  
  (6) A shareholder may revoke a proxy 
  (a) by depositing an instrument in writing executed by the shareholder or by the shareholder’s attorney authorized in writing to do so 
  (i) at the head office of the company at any time up to and including the last business day before the day of a meeting, or a continuation of the meeting after an adjournment, at which the proxy is to be used, or 
  (ii) with the chairperson of the meeting on the day of the meeting or a continuation of the meeting after an adjournment; or 
  (b) in any other manner permitted by law. 
  
  ### Deposit of proxies
  
  160.03 The directors may specify, in a notice calling a meeting of shareholders or a continuation of a meeting of shareholders after an adjournment, a time before which executed forms of proxy to be used at the meeting or the continued meeting must be deposited with the company or its transfer agent. The time specified must not be more than forty-eight hours, excluding Saturdays and holidays, before the meeting or the continued meeting. 
  
  ### Mandatory solicitation
  
  160.04 (1) Subject to subsections (2) and 143(2), the management of a company shall, concurrently with sending notice of a meeting of shareholders, send a form of proxy that is in accordance with the regulations to each shareholder entitled to receive notice of the meeting. 
  
  ### Exception
  
  (2) The management of a company is not required to send a form of proxy under subsection (1) if the company 
  (a) is not a distributing company; and 
  (b) has 50 or fewer shareholders who are entitled to vote at a meeting, two or more joint holders of a share being counted as one shareholder. 
  
  ### Soliciting proxies
  
  160.05 (1) A person shall not solicit proxies unless a proxy circular that is in accordance with the regulations is sent to the auditor of the company, to each shareholder whose proxy is solicited and, in the case set out in paragraph (b), to the company as follows: 
  (a) in the case of solicitation by or on behalf of the management of a company, a management proxy circular, either as an appendix to or as a separate document accompanying the notice of the meeting; and 
  (b) in the case of any other solicitation, a dissident’s proxy circular stating the purposes of the solicitation. 
  
  ### Exception — solicitation to 15 or fewer shareholders
  
  (1.1) Despite subsection (1), a person may solicit proxies, other than by or on behalf of the management of the company, without sending a dissident’s proxy circular, if the total number of shareholders whose proxies are solicited is 15 or fewer, two or more joint holders being counted as one shareholder. 
  
  ### Exception — solicitation by public broadcast
  
  (1.2) Despite subsection (1), a person may solicit proxies, other than by or on behalf of the management of the company, without sending a dissident’s proxy circular if the solicitation is, in the prescribed circumstances, conveyed by public broadcast, speech or publication. 
  
  ### Copy to Superintendent
  
  (2) A person who sends a management proxy circular or dissident’s proxy circular shall concurrently send to the Superintendent a copy of it together with the form of proxy, any other documents for use in connection with the meeting and, in the case of a management proxy circular, a copy of the notice of meeting. 
  
  ### Exemption by Superintendent
  
  (3) On the application of an interested person, the Superintendent may, on any terms that the Superintendent thinks fit, exempt the person from any of the requirements of subsection (1) and section 160.04, and the exemption may be given retroactive effect. 
  
  ### Publication
  
  (4) The Superintendent shall publish in a publication generally available to the public, a notice of a decision made by the Superintendent granting an exemption under subsection (3). 
  
  ### Attendance at meeting
  
  160.06 (1) A person who solicits a proxy and is appointed proxyholder shall attend in person or cause an alternate proxyholder to attend every meeting in respect of which the proxy is valid, and the proxyholder or alternate proxyholder shall comply with the directions of the shareholder who executed the form of proxy. 
  
  ### Rights of proxyholder
  
  (2) A proxyholder or an alternate proxyholder has the same rights as the appointing shareholder to speak at a meeting of shareholders in respect of any matter, to vote by way of ballot at the meeting and, except where a proxyholder or an alternate proxyholder has conflicting instructions from more than one shareholder, to vote at the meeting in respect of any matter by way of a show of hands. 
  
  ### Vote by show of hands
  
  (3) Despite subsections (1) and (2) and unless a shareholder or proxyholder demands a ballot, if the chairperson of a meeting of shareholders declares to the meeting that, if a ballot were conducted, the total number of votes attached to shares represented at the meeting by proxy required to be voted against what, to the knowledge of the chairperson, would be the decision of the meeting on a matter or group of matters is less than 5% of all the votes that might be cast by shareholders in person or by proxy, 
  (a) the chairperson may conduct the vote in respect of that matter or group of matters by way of a show of hands; and 
  (b) a proxyholder or alternate proxyholder may vote in respect of that matter or group of matters by way of a show of hands. 
  
  ### Duty of intermediary
  
  160.07 (1) Shares of a company that are registered in the name of an intermediary or an intermediary’s nominee and not beneficially owned by the intermediary may not be voted unless the intermediary sends to the beneficial owner 
  (a) a copy of the notice of the meeting, annual statement, management proxy circular and dissident’s proxy circular and any other documents, other than the form of proxy, that were sent to shareholders by or on behalf of any person for use in connection with the meeting; and 
  (b) a written request for voting instructions except if the intermediary has already received written voting instructions from the beneficial owner. 
  
  ### When documents to be sent
  
  (2) The intermediary shall send the documents referred to in subsection (1) without delay after they receive the documents referred to in paragraph (1)(a). 
  
  ### Restriction on voting
  
  (3) An intermediary or a proxyholder appointed by them may not vote shares that the intermediary does not beneficially own and that are registered in the name of the intermediary or their nominee unless the intermediary or proxyholder, as the case may be, receives written voting instructions from the beneficial owner. 
  
  ### Copies
  
  (4) A person by or on behalf of whom a solicitation is made shall on request and without delay provide the intermediary, at the person’s expense, with the necessary number of copies of the documents referred to in paragraph (1)(a). 
  
  ### Instructions to intermediary
  
  (5) The intermediary shall vote or appoint a proxyholder to vote in accordance with any written voting instructions received from the beneficial owner. 
  
  ### Beneficial owner as proxyholder
  
  (6) If a beneficial owner so requests and provides an intermediary with the appropriate documentation, the intermediary shall appoint the beneficial owner or a nominee of the beneficial owner as proxyholder. 
  
  ### Effect of intermediary’s failure to comply
  
  (7) The failure of an intermediary to comply with any of subsections (1) to (6) does not render void any meeting of shareholders or any action taken at the meeting. 
  
  ### Intermediary may not vote
  
  (8) Nothing in this Part gives an intermediary the right to vote shares that they are otherwise prohibited from voting. 
  
  ### Regulations
  
  160.071 The Governor in Council may make regulations 
  (a) respecting the powers that may be granted by a shareholder in a form of proxy; 
  (b) respecting proxy circulars and forms of proxy, including the form and content of those documents; and 
  (c) respecting the conditions under which a company is exempt from any of the requirements of sections 160.02 to 160.07. 
  
  ### Restraining order
  
  160.08 (1) If a form of proxy, management proxy circular or dissident’s proxy circular contains an untrue statement of a material fact or omits to state a material fact that is required to be contained in it or that is necessary to make a statement contained in it not misleading in light of the circumstances in which the statement is made, an interested person or the Superintendent may apply to a court and the court may make any order it thinks fit, including 
  (a) an order restraining the solicitation or the holding of the meeting, or restraining any person from implementing or acting on a resolution passed at the meeting, to which the form of proxy, management proxy circular or dissident’s proxy circular relates; 
  (b) an order requiring correction of any form of proxy or proxy circular and a further solicitation; and 
  (c) an order adjourning the meeting. 
  
  ### Notice of application
  
  (2) Where a person other than the Superintendent is an applicant under subsection (1), the applicant shall give notice of the application to the Superintendent and the Superintendent is entitled to appear and to be heard in person or by counsel. 
  
  ## Directors and Officers 
  
  ## Duties 
  
  ### Duty to manage
  
  161 (1) Subject to this Act, the directors of a company shall manage or supervise the management of the business and affairs of the company. 
  
  ### Specific duties
  
  (2) Without limiting the generality of subsection (1), the directors of a company shall 
  (a) establish an audit committee to perform the duties referred to in subsections 198(3) and (4); 
  (b) establish a conduct review committee to perform the duties referred to in subsection 199(3); 
  (c) establish procedures to resolve conflicts of interest, including techniques for the identification of potential conflict situations and for restricting the use of confidential information; 
  (d) designate a committee of the board of directors to monitor the procedures referred to in paragraph (c); 
  (e) establish procedures to provide disclosure of information to customers of the company that is required to be disclosed by this Act and for dealing with complaints as required by subsection 441(1); 
  (f) designate a committee of the board of directors to monitor the procedures referred to in paragraph (e) and satisfy itself that they are being adhered to by the company; and 
  (g) establish investment and lending policies, standards and procedures in accordance with section 450. 
  
  ### Exception
  
  (3) Paragraphs (2)(a) and (b) do not apply to the directors of a company if 
  (a) all the voting shares of the company, other than directors’ qualifying shares, if any, are beneficially owned by a Canadian financial institution described by any of paragraphs (a) to (d) of the definition “financial institution” in section 2; and 
  (b) the audit committee or the conduct review committee of the Canadian financial institution performs for and on behalf of the company all the functions that would otherwise be required to be performed by the audit committee or conduct review committee of the company under this Act. 
  
  ### Duty of care
  
  162 (1) Every director and officer of a company in exercising any of the powers of a director or an officer and discharging any of the duties of a director or an officer shall 
  (a) act honestly and in good faith with a view to the best interests of the company; and 
  (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. 
  
  ### Duty to comply
  
  (2) Every director, officer and employee of a company shall comply with this Act, the regulations, the company’s incorporating instrument and the by-laws of the company. 
  
  ### No exculpation
  
  (3) No provision in any contract, in any resolution or in the by-laws of a company relieves any director, officer or employee of the company from the duty to act in accordance with this Act and the regulations or relieves a director, officer or employee from liability for a breach thereof. 
  
  ## Qualification and Number — Directors 
  
  ### Minimum number of directors
  
  163 (1) A company shall have at least seven directors. 
  
  ### Residency requirement
  
  (2) At least one half of the directors of a company that is a subsidiary of a foreign institution or of a prescribed holding body corporate of a foreign institution and a majority of the directors of any other company must be, at the time of each director’s election or appointment, resident Canadians. 
  
  ### Disqualified persons
  
  164 The following persons are disqualified from being directors of a company: 
  (a) a person who is less than eighteen years of age; 
  (b) a person who is of unsound mind and has been so found by a court in Canada or elsewhere; 
  (c) a person who has the status of a bankrupt; 
  (d) a person who is not a natural person; 
  (e) a person who is prohibited by section 386 or 399 from exercising voting rights attached to shares of the company or whose voting rights attached to the shares are suspended under section 401.1 or subsection 527.5(4); 
  (f) a person who is an officer, director or full time employee of an entity that is prohibited by section 386 or 399 from exercising voting rights attached to shares of the company or whose voting rights attached to the shares are suspended under section 401.1 or subsection 527.5(4); 
  (f.1) a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of section 374.1; 
  (g)  [Repealed, 2013, c. 40, s. 160]  
  (h) a minister of Her Majesty in right of Canada or in right of a province; and 
  (i) a person who is an agent or employee of the government of a foreign country or any political subdivision thereof. 
  
  ### No shareholder requirement
  
  165 A director of a company is not required to hold shares of the company. 
  
  ### Affiliated person
  
  166 The Governor in Council may make regulations specifying the circumstances under which a natural person is affiliated with a company for the purposes of this Act. 
  
  ### Affiliated director determination
  
  166.1 (1) Notwithstanding section 166, the Superintendent may determine that a particular director is affiliated with a company for the purposes of this Act if, in the opinion of the Superintendent, the director has a significant or sufficient commercial, business or financial relationship with the company or with an affiliate of the company to the extent that the relationship can be construed as being material to the director and can reasonably be expected to affect the exercise of the director’s best judgment. 
  
  ### Notification by Superintendent
  
  (2) A determination by the Superintendent under subsection (1) 
  (a) becomes effective on the day of the next annual meeting of the shareholders unless a notice in writing by the Superintendent revoking the determination is received by the company prior to that day; and 
  (b) ceases to be in effect on the day of the next annual meeting of the shareholders after a notice in writing by the Superintendent revoking the determination is received by the company. 
  
  ### Unaffiliated directors
  
  167 (1) At the election of directors at each annual meeting of a company and at all times until the day of the next annual meeting, no more than two thirds of the directors may be persons affiliated with the company. 
  
  ### Exception
  
  (2) Subsection (1) does not apply where all the voting shares of a company, other than directors’ qualifying shares, if any, are beneficially owned by a Canadian financial institution incorporated by or under an Act of Parliament. 
  
  ### Determination of affiliation
  
  (3) For the purposes of subsection (1), whether or not a person is affiliated with a company shall be determined as at the day the notice of the annual meeting is sent to shareholders pursuant to section 141 and that determination becomes effective on the day of that meeting, and a person shall be deemed to continue to be affiliated or unaffiliated, as the case may be, until the next annual meeting of the shareholders. 
  
  ### Limit on directors
  
  168 No more than 15 per cent of the directors of a company may, at each director’s election or appointment, be employees of the company or a subsidiary of the company, except that up to four persons who are employees of the company or a subsidiary of the company may be directors of the company if those directors constitute not more than one half of the directors of the company. 
  
  ## Election and Tenure — Directors 
  
  ### Number of directors
  
  169 (1) Subject to subsection 163(1) and sections 172 and 222, the directors of a company shall, by by-law, determine the number of directors or the minimum and maximum number of directors, but no by-law that decreases the number of directors shortens the term of an incumbent director. 
  
  ### Election at annual meeting
  
  (2) A by-law made pursuant to subsection (1) that provides for a minimum and maximum number of directors may provide that the number of directors to be elected at any annual meeting of the shareholders be such number as is fixed by the directors prior to the annual meeting. 
  
  ### Election or appointment as director
  
  169.1 The election or appointment of a person as a director is subject to the following: 
  (a) the person was present at the meeting when the election or appointment took place and did not refuse to hold office as a director; or 
  (b) the person was not present at the meeting when the election or appointment took place but 
  (i) consented in writing to hold office as a director before the election or appointment or within 10 days after it, or 
  (ii) acted as a director after the election or appointment. 
  
  ### Term of directors
  
  170 (1) Except where this Act or the by-laws of a company provide for cumulative voting, a company may, by by-law, provide that the directors be elected for terms of one, two or three years. 
  
  ### Term of one, two or three years
  
  (2) A director elected for a term of one, two or three years holds office until the close of the first, second or third annual meeting of shareholders, as the case may be, following the election of the director. 
  
  ### No stated term
  
  (3) A director who is not elected for an expressly stated term of office ceases to hold office at the close of the next annual meeting of shareholders following the election of the director. 
  
  ### Tenure of office
  
  (4) It is not necessary that all directors elected at a meeting of shareholders hold office for the same term. 
  
  ### Idem
  
  (5) If a by-law of a company provides that the directors be elected for a term of two or three years, it may also provide that the term of office of each director be for the whole of that term, or that, as nearly as may be, one half of the directors retire each year if the term is two years, and that one third of the directors retire each year if the term is three years. 
  
  ### Composition requirements
  
  (6) Where a director of a company is elected or appointed for a term of more than one year, the company shall comply with subsections 163(2) and 167(1) and section 168 at each annual meeting of shareholders during the director’s term of office as if that director were elected or appointed on that date. 
  
  ### Transitional
  
  (7) Subsection (6) does not apply in respect of a former-Act company until the day of the third annual meeting of shareholders after the coming into force of this section. 
  
  ### Determining election of directors
  
  171 (1) Except where this Act or the by-laws of a company provide for cumulative voting, the persons, to the number authorized to be elected, who receive the greatest number of votes at an election of directors of a company shall be the directors thereof. 
  
  ### Idem
  
  (2) If, at any election of directors referred to in subsection (1), two or more persons receive an equal number of votes and there are not sufficient vacancies remaining to enable all the persons receiving an equal number of votes to be elected, the directors who receive a greater number of votes or the majority of them shall, in order to complete the full number of directors, determine which of the persons so receiving an equal number of votes are to be elected. 
  
  ### Cumulative voting
  
  172 (1) Where this Act or the by-laws provide for cumulative voting, 
  (a) there shall be a stated number of directors fixed by by-law and not a minimum and maximum number of directors; 
  (b) each shareholder entitled to vote at an election of directors has the right to cast a number of votes equal to the number of votes attached to the shares held by the shareholder multiplied by the number of directors to be elected, and the shareholder may cast all such votes in favour of one candidate or distribute them among the candidates in any manner; 
  (c) a separate vote of shareholders shall be taken with respect to each candidate nominated for director unless a resolution is passed unanimously permitting two or more persons to be elected by a single vote; 
  (d) if a shareholder has voted for more than one candidate without specifying the distribution of the votes among the candidates, the shareholder is deemed to have distributed the votes equally among the candidates for whom the shareholder voted; 
  (e) if the number of candidates nominated for director exceeds the number of positions to be filled, the candidates who receive the least number of votes shall be eliminated until the number of candidates remaining equals the number of positions to be filled; 
  (f) each director ceases to hold office at the close of the next annual meeting of shareholders following the director’s election; 
  (g) a director may be removed from office only if the number of votes cast in favour of a motion to remove the director is greater than the product of the number of directors required by the by-laws and the number of votes cast against the motion; and 
  (h) the number of directors required by the by-laws may be decreased only if the number of votes cast in favour of a motion to decrease the number of directors is greater than the product of the number of directors required by the by-laws and the number of votes cast against the motion. 
  
  ### Mandatory cumulative voting
  
  (2) Where the aggregate of the voting shares beneficially owned by a person and any entities controlled by the person carries more than 10 per cent of the voting rights attached to all the outstanding voting shares of a company, the directors shall be elected by cumulative voting. 
  
  ### Exception
  
  (3) Subsection (2) does not apply 
  (a) where all the voting shares of the company that are outstanding, other than directors’ qualifying shares, if any, are beneficially owned by 
  (i) one person, 
  (ii) one person and one or more entities controlled by that person, 
  (iii) one or more entities controlled by the same person; or 
  (b) in respect of a former-Act company whose shareholders are confined to entities incorporated or formed by or under an Act of Parliament or of the legislature of a province that are, in the opinion of the directors, operating as credit unions or cooperative associations. 
  
  ### Transitional election
  
  (4) Where this Act or the by-laws of a company provide for cumulative voting, the shareholders of the company shall, 
  (a) at the first annual meeting of shareholders held not earlier than ninety days following the date that cumulative voting is required under subsection (2) or provided for in the by-laws, and 
  (b) at each succeeding annual meeting, elect the stated number of directors to hold office until the close of the next annual meeting of shareholders following their election. 
  
  ### Exception
  
  (5) Nothing in this Act precludes the holders of any class or series of shares of a company from having an exclusive right to elect one or more directors. 
  
  ### Re-election of directors
  
  173 A director who has completed a term of office is, if otherwise qualified, eligible for re-election. 
  
  ## Incomplete Elections and Director Vacancies 
  
  ### Void election or appointment
  
  174 (1) If, immediately after the time of any purported election or appointment of directors, the board of directors would fail to comply with subsection 163(2) or 167(1) or section 168, the purported election or appointment of all persons purported to be elected or appointed at that time is void unless the directors, within forty-five days after the discovery of the non-compliance, develop a plan, approved by the Superintendent, to rectify the non-compliance. 
  
  ### Failure to elect minimum
  
  (2) Where, at the close of a meeting of shareholders of a company, the shareholders have failed to elect the number or minimum number of directors required by this Act or the by-laws of a company, the purported election of directors at the meeting 
  (a) is valid if the directors purported to be elected and those incumbent directors, if any, whose terms did not expire at the close of the meeting, together constitute a quorum; or 
  (b) is void if the directors purported to be elected and those incumbent directors, if any, whose terms did not expire at the close of the meeting, together do not constitute a quorum. 
  (3) and (4)  [Repealed, 1997, c. 15, s. 353]  
  
  ### Directors where elections incomplete or void
  
  175 (1) Notwithstanding subsections 170(2) and (3) and paragraphs 172(1)(f) and 176(1)(a), where subsection 174(1) or (2) applies at the close of any meeting of shareholders of a company, the board of directors shall, until their successors are elected or appointed, consist solely of 
  (a) where paragraph 174(2)(a) applies, the directors referred to in that paragraph; or 
  (b) where subsection 174(1) or paragraph 174(2)(b) applies, the persons who were the incumbent directors immediately before the meeting. 
  
  ### Where there is no approved rectification plan
  
  (2) Notwithstanding subsections 170(2) and (3) and paragraphs 172(1)(f) and 176(1)(a), where a plan to rectify the non-compliance referred to in subsection 174(1) has not been approved by the Superintendent by the end of the forty-five day period referred to in that subsection, the board of directors shall, until their successors are elected or appointed, consist solely of the persons who were the incumbent directors immediately before the meeting at which the purported election or appointment referred to in that subsection occurred. 
  
  ### Directors to call meeting
  
  (3) Where subsection (1) or (2) applies, the board of directors referred to in that subsection shall without delay call a special meeting of shareholders to fill the vacancies, where paragraph 174(2)(a) applies, or elect a new board of directors, where subsection 174(1) or paragraph 174(2)(b) applies. 
  
  ### Shareholder may call meeting
  
  (4) Where the directors fail to call a special meeting required by subsection (3), the meeting may be called by any shareholder. 
  
  ### Ceasing to hold office
  
  176 (1) A director ceases to hold office 
  (a) at the close of the annual meeting at which the director’s term of office expires; 
  (b) when the director dies or resigns; 
  (c) when the director becomes disqualified under section 164 or ineligible to hold office pursuant to subsection 208(2); 
  (d) when the director is removed under section 177; or 
  (e) when the director is removed from office under section 509.1 or 509.2. 
  
  ### Date of resignation
  
  (2) The resignation of a director of a company becomes effective at the time a written resignation is sent to the company by the director or at the time specified in the resignation, whichever is later. 
  
  ### Removal of director
  
  177 (1) Subject to paragraph 172(1)(g), the shareholders of a company may by resolution at a special meeting remove any director or all the directors from office. 
  
  ### Exception
  
  (2) Where the holders of any class or series of shares of a company have the exclusive right to elect one or more directors, a director so elected may be removed only by a resolution at a meeting of the shareholders of that class or series. 
  
  ### Vacancy by removal
  
  (3) Subject to paragraphs 172(1)(b) to (e), a vacancy created by the removal of a director may be filled at the meeting of the shareholders at which the director is removed or, if not so filled, may be filled under section 181 or 182. 
  
  ### Statement of director
  
  178 (1) A director who 
  (a) resigns, 
  (b) receives a notice or otherwise learns of a meeting of shareholders called for the purpose of removing the director from office, or 
  (c) receives a notice or otherwise learns of a meeting of directors or shareholders at which another person is to be appointed or elected to fill the office of director, whether because of the director’s resignation or removal or because the director’s term of office has expired or is about to expire, is entitled to submit to the company a written statement giving the reasons for the resignation or the reasons why the director opposes any proposed action or resolution. 
  
  ### Statement re disagreement
  
  (2) Where a director resigns as a result of a disagreement with the other directors or the officers of a company, the director shall submit to the company and the Superintendent a written statement setting out the nature of the disagreement. 
  
  ### Circulation of statement
  
  179 (1) A company shall without delay on receipt of a director’s statement referred to in subsection 178(1) relating to a matter referred to in paragraph 178(1)(b) or (c), or a director’s statement referred to in subsection 178(2), send a copy of it to each shareholder entitled to receive a notice of meetings and to the Superintendent, unless the statement is included in or attached to a management proxy circular required by subsection 160.05(1). 
  
  ### Immunity for statement
  
  (2) No company or person acting on its behalf incurs any liability by reason only of circulating a director’s statement in compliance with subsection (1). 
  
  ### Shareholders filling vacancy
  
  180 The by-laws of a company may provide that a vacancy among the directors is to be filled only 
  (a) by a vote of the shareholders; or 
  (b) by a vote of the holders of any class or series of shares having an exclusive right to elect one or more directors if the vacancy occurs among the directors elected by the holders of that class or series. 
  
  ### Directors filling vacancy
  
  181 (1) Despite section 187 but subject to subsection (2) and sections 180 and 182, a quorum of directors may fill a vacancy among the directors except a vacancy resulting from a change in the by-laws by which the number or the minimum or maximum number of directors is increased or from a failure to elect the number or minimum number of directors provided for in the by-laws. 
  
  ### Where composition fails
  
  (2) Notwithstanding sections 180 and 187, where by reason of a vacancy the number of directors or the composition of the board of directors fails to meet any of the requirements of section 163, subsection 167(1) and section 168, the directors who, in the absence of any by-law, would be empowered to fill that vacancy shall do so forthwith. 
  
  ### Class vacancy
  
  182 Notwithstanding section 187, where the holders of any class or series of shares of a company have an exclusive right to elect one or more directors and a vacancy occurs among those directors, then, subject to section 180, 
  (a) the remaining directors elected by the holders of that class or series of shares may fill the vacancy except one resulting from an increase in the number or the minimum or maximum number of directors for that class or series or from a failure to elect the number or minimum number of directors provided for in the by-laws for that class or series; 
  (b) if there are no such remaining directors and, by reason of the vacancy, the number of directors or the composition of the board of directors fails to meet any of the requirements of section 163, subsection 167(1) and section 168, the other directors may fill that vacancy; and 
  (c) if there are no such remaining directors and paragraph (b) does not apply, any holder of shares of that class or series may call a meeting of the holders thereof for the purpose of filling the vacancy. 
  
  ### Unexpired term
  
  183 (1) Unless the by-laws otherwise provide, a director elected or appointed to fill a vacancy holds office for the unexpired term of the director’s predecessor in office. 
  
  ### Affiliation
  
  (2) Notwithstanding subsection 167(3), the affiliation of a person to be elected or appointed to fill a vacancy shall be determined as at the date of the person’s election or appointment and that person shall be deemed to continue to be affiliated or unaffiliated, as the case may be, until the next annual meeting of the shareholders. 
  
  ### Additional directors
  
  183.1 (1) The directors may appoint one or more additional directors where the by-laws of the company allow them to do so and the by-laws determine the minimum and maximum numbers of directors. 
  
  ### Term of office
  
  (2) A director appointed under subsection (1) holds office for a term expiring not later than the close of the next annual meeting of shareholders of the company. 
  
  ### Limit on number appointed
  
  (3) The total number of directors appointed under subsection (1) may not exceed one third of the number of directors elected at the previous annual meeting of shareholders of the company. 
  
  ## Meetings of the Board 
  
  ### Meetings required
  
  184 (1) The directors shall meet at least four times during each financial year. 
  
  ### Place for meetings
  
  (2) The directors may meet at any place unless the by-laws provide otherwise. 
  
  ### Notice for meetings
  
  (3) The notice for the meetings must be given as required by the by-laws. 
  
  ### Notice of meeting
  
  185 (1) A notice of a meeting of directors shall specify each matter referred to in section 202 that is to be dealt with at the meeting but, unless the by-laws otherwise provide, need not otherwise specify the purpose of or the business to be transacted at the meeting. 
  
  ### Waiver of notice
  
  (2) A director may in any manner waive notice of a meeting of directors and the attendance of a director at a meeting of directors is a waiver of notice of that meeting except where the director attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. 
  
  ### Adjourned meeting
  
  (3) Notice of an adjourned meeting of directors is not required to be given if the time and place of the adjourned meeting was announced at the original meeting. 
  
  ### Quorum
  
  186 (1) Subject to section 187, the number of directors referred to in subsection (2) constitutes a quorum at any meeting of directors or a committee of directors and, notwithstanding any vacancy among the directors, a quorum of directors may exercise all the powers of the directors. 
  
  ### Idem
  
  (2) The number of directors constituting a quorum at any meeting of directors or a committee of directors shall be 
  (a) a majority of the minimum number of directors required by this Act for the board of directors or a committee of directors; or 
  (b) such greater number of directors than the number calculated pursuant to paragraph (a) as may be established by the by-laws of the company. 
  
  ### Director continues to be present
  
  (3) A director who is present at a meeting of directors or of a committee of directors but is not, in accordance with subsection 208(1), present at any particular time during the meeting is considered to be present for the purposes of this section. 
  
  ### Resident Canadian majority
  
  187 (1) The directors of a company shall not transact business at a meeting of directors unless 
  (a) in the case of a company that is the subsidiary of a foreign institution, at least one half of the directors present are resident Canadians; and 
  (b) in the case of any other company, a majority of the directors present are resident Canadians. 
  
  ### Exception
  
  (2) Despite subsection (1), the directors of a company may transact business at a meeting of directors without the required proportion of directors who are resident Canadians if 
  (a) a director who is a resident Canadian unable to be present approves, in writing or by telephonic, electronic or other communications facilities, the business transacted at the meeting; and 
  (b) there would have been present the required proportion of directors who are resident Canadians had that director been present at the meeting. 
  
  ### Presence of unaffiliated director
  
  187.1 (1) The directors of a company shall not transact business at a meeting of directors unless at least one of the directors who is not affiliated with the company is present. 
  
  ### Exception
  
  (2) Despite subsection (1), the directors of a company may transact business at a meeting of directors if a director who is not affiliated with the company and who is not able to be present approves, in writing or by telephonic, electronic or other communications facilities, the business transacted at the meeting. 
  
  ### Exception
  
  (3) Subsection (1) does not apply if all the voting shares of the company, other than directors’ qualifying shares, if any, are beneficially owned by a Canadian financial institution incorporated by or under an Act of Parliament. 
  
  ### Electronic meeting
  
  188 (1) Subject to the by-laws of a company, a meeting of directors or of a committee of directors may be held by means of such telephonic, electronic or other communications facilities as permit all persons participating in the meeting to communicate adequately with each other during the meeting. 
  
  ### Deemed present
  
  (2) A director participating in a meeting by any means referred to in subsection (1) is deemed for the purposes of this Act to be present at that meeting. 
  
  ### Resolution outside board meeting
  
  188.1 (1) A resolution in writing signed by all the directors entitled to vote on that resolution at a meeting of directors is as valid as if it had been passed at a meeting of directors. 
  
  ### Filing directors’ resolution
  
  (2) A copy of the resolution referred to in subsection (1) shall be kept with the minutes of the proceedings of the directors. 
  
  ### Resolution outside committee meeting
  
  (3) A resolution in writing signed by all the directors entitled to vote on that resolution at a meeting of a committee of directors, other than a resolution of the audit committee in carrying out its duties under subsection 198(3) or a resolution of the conduct review committee in carrying out its duties under subsection 199(3), is as valid as if it had been passed at a meeting of that committee. 
  
  ### Filing committee resolution
  
  (4) A copy of the resolution referred to in subsection (3) shall be kept with the minutes of the proceedings of that committee. 
  
  ### Evidence
  
  (5) Unless a ballot is demanded, an entry in the minutes of a meeting that the chairperson declared a resolution to be carried or defeated is in the absence of evidence to the contrary proof of that fact without proof of the number or proportion of votes recorded in favour of or against the resolution. 
  
  ### Dissent of director
  
  189 (1) A director of a company who is present at a meeting of directors or a committee of directors is deemed to have consented to any resolution passed or action taken at that meeting unless 
  (a) the director requests that the director’s dissent be entered or the director’s dissent is entered in the minutes of the meeting; 
  (b) the director sends a written dissent to the secretary of the meeting before the meeting is adjourned; or 
  (c) the director sends the director’s dissent by registered mail or delivers it to the head office of the company immediately after the meeting is adjourned. 
  
  ### Loss of right to dissent
  
  (2) A director of a company who votes for or consents to a resolution is not entitled to dissent under subsection (1). 
  
  ### Dissent of absent director
  
  (3) A director of a company who is not present at a meeting at which a resolution is passed or action taken is deemed to have consented thereto unless, within seven days after the director becomes aware of the resolution, the director 
  (a) causes the director’s dissent to be placed with the minutes of the meeting; or 
  (b) sends the director’s dissent by registered mail or delivers it to the head office of the company. 
  
  ### Record of attendance
  
  190 (1) A company shall keep a record of the attendance at each meeting of directors and each committee meeting of directors. 
  
  ### Statement to shareholders
  
  (2) A company shall attach to the notice of each annual meeting it sends to its shareholders a statement showing, in respect of the financial year immediately preceding the meeting, the total number of directors’ meetings and directors’ committee meetings held during the financial year and the number of those meetings attended by each director. 
  
  ### Meeting required by Superintendent
  
  191 (1) Where in the opinion of the Superintendent it is necessary, the Superintendent may, by notice in writing, require a company to hold a meeting of directors of the company to consider the matters set out in the notice. 
  
  ### Attendance of Superintendent
  
  (2) The Superintendent may attend and be heard at a meeting referred to in subsection (1). 
  
  ## By-laws 
  
  ### By-laws
  
  192 (1) Unless this Act otherwise provides, the directors of a company may by resolution make, amend or repeal any by-law that regulates the business or affairs of the company. 
  
  ### Shareholder approval
  
  (2) The directors shall submit a by-law, or an amendment to or a repeal of a by-law, that is made under subsection (1) to the shareholders at the next meeting of shareholders, and the shareholders may, by resolution, confirm or amend the by-law, amendment or repeal. 
  
  ### Effective date of by-law
  
  (3) Unless this Act otherwise provides, a by-law, or an amendment to or a repeal of a by-law, is effective from the date of the resolution of the directors under subsection (1) until it is confirmed, confirmed as amended or rejected by the shareholders under subsection (2) or until it ceases to be effective under subsection (4) and, where the by-law is confirmed, or confirmed as amended, it continues in effect in the form in which it was so confirmed. 
  
  ### Effect where no shareholder approval
  
  (4) If a by-law, or an amendment to or a repeal of a by-law, is rejected by the shareholders, or is not submitted to the shareholders by the directors as required under subsection (2), the by-law, amendment or repeal ceases to be effective from the date of its rejection or the date of the next meeting of shareholders, as the case may be, and no subsequent resolution of the directors to make, amend or repeal a by-law having substantially the same purpose or effect is effective until it is confirmed, or confirmed as amended, by the shareholders. 
  
  ### Shareholder proposal of by-law
  
  193 A shareholder entitled to vote at an annual meeting of shareholders may, in accordance with sections 146 and 147, make a proposal to make, amend or repeal a by-law. 
  
  ### By-laws of former-Act company
  
  194 Subject to section 195, where a by-law of a former-Act company is in effect on the coming into force of this section, the by-law continues in effect until amended or repealed, unless it is contrary to a provision of this Act. 
  
  ### By-laws re remuneration
  
  195 (1) A by-law of a company respecting the remuneration of the directors of the company, as directors, that is in effect on the coming into force of this section ceases to have effect on the day on which the first annual meeting is held following the coming into force of this section. 
  
  ### Existing by-laws
  
  (2) A by-law made by the directors of a company under section 29 of the Trust Companies Act or section 29 of the Loan Companies Act as that section read immediately before the coming into force of this section, and not confirmed by the shareholders of the company in accordance with that section on or before the coming into force of this section, continues to have effect, unless it is contrary to the provisions of this Act, until the first meeting of the shareholders following the coming into force of this section.  
  
  ### Shareholder approval
  
  (3) A by-law referred to in subsection (2) shall be submitted to the shareholders at the first meeting of shareholders following the coming into force of this section. 
  
  ### Existing resolutions
  
  (4) Where the remuneration of directors of a former-Act company was, immediately prior to the coming into force of this section, fixed by a resolution of the directors, that resolution continues to have effect, unless it is contrary to the provisions of this Act, until the first meeting of the shareholders following the coming into force of this section. 
  
  ### Application of ss. 192(3) and (4) and 193
  
  (5) Subsections 192(3) and (4) and section 193 apply in respect of a by-law referred to in this section as if it were a by-law made under section 192. 
  
  ### Deemed by-laws
  
  196 (1) Any matter provided for in the incorporating instrument of a former-Act company on the coming into force of this section or of a body corporate continued as a company under this Act at the time of continuance that, under this Act, would be provided for in the by-laws of a company is deemed to be provided for in the by-laws of the company. 
  
  ### By-law prevails
  
  (2) Where a by-law of the company made in accordance with sections 192 and 193 amends or repeals any matter referred to in subsection (1), the by-law prevails. 
  
  ## Committees of the Board 
  
  ### Committees
  
  197 The directors of a company may appoint from their number, in addition to the committees referred to in subsection 161(2), such other committees as they deem necessary and, subject to section 202, delegate to those committees such powers of the directors, and assign to those committees such duties, as the directors consider appropriate. 
  
  ### Audit committee
  
  198 (1) The audit committee of a company shall consist of at least three directors. 
  
  ### Membership
  
  (2) A majority of the members of the audit committee must consist of directors who are not persons affiliated with the company and none of the members of the audit committee may be officers or employees of the company or a subsidiary of the company. 
  
  ### Duties of audit committee
  
  (3) The audit committee of a company shall 
  (a) review the annual statement of the company before the annual statement is approved by the directors; 
  (b) review such returns of the company as the Superintendent may specify; 
  (c) require the management of the company to implement and maintain appropriate internal control procedures; 
  (c.1) review, evaluate and approve those procedures; 
  (d) review such investments and transactions that could adversely affect the well-being of the company as the auditor or any officer of the company may bring to the attention of the committee; 
  (e) meet with the auditor to discuss the annual statement and the returns and transactions referred to in this subsection; and 
  (f) meet with the chief internal auditor of the company, or the officer or employee of the company acting in a similar capacity, and with management of the company, to discuss the effectiveness of the internal control procedures established for the company. 
  
  ### Report
  
  (4) In the case of the annual statement and returns of a company that under this Act must be approved by the directors of the company, the audit committee of the company shall report thereon to the directors before the approval is given. 
  
  ### Required meeting of directors
  
  (5) The audit committee of a company may call a meeting of the directors of the company to consider any matter of concern to the committee. 
  
  ### Conduct review committee
  
  199 (1) The conduct review committee of a company shall consist of at least three directors. 
  
  ### Membership
  
  (2) A majority of the members of the conduct review committee of a company must consist of directors who are not persons affiliated with the company and none of the members of the conduct review committee may be officers or employees of the company or a subsidiary of the company. 
  
  ### Duties of conduct review committee
  
  (3) The conduct review committee of a company shall 
  (a) require the management of the company to establish procedures for complying with Part XI; 
  (b) review those procedures and their effectiveness in ensuring that the company is complying with Part XI; 
  (b.1) if a widely held bank holding company or a widely held insurance holding company has a significant interest in any class of shares of the company, 
  (i) establish policies for entering into transactions referred to in subsection 483.1(1), and 
  (ii) review transactions referred to in subsection 483.3(1); and 
  (c) review the practices of the company to ensure that any transactions with related parties of the company that may have a material effect on the stability or solvency of the company are identified. 
  
  ### Company report to Superintendent
  
  (4) A company shall report to the Superintendent on the mandate and responsibilities of the conduct review committee and the procedures referred to in paragraph (3)(a). 
  
  ### Committee report to directors
  
  (5) After each meeting of the conduct review committee of a company, the committee shall report to the directors of the company on matters reviewed by the committee. 
  
  ### Directors’ report to Superintendent
  
  (6) Within ninety days after the end of each financial year, the directors of a company shall report to the Superintendent on what the conduct review committee did during the year in carrying out its responsibilities under subsection (3). 
  
  ## Directors and Officers — Authority 
  
  ### Chief executive officer
  
  200 (1) The directors of a company shall appoint from their number a chief executive officer who must be ordinarily resident in Canada and, subject to section 202, may delegate to that officer any of the powers of the directors. 
  
  ### Exception
  
  (2) Subsection (1) does not apply in respect of a former-Act company whose shareholders are confined to entities incorporated or formed by or under an Act of Parliament or of the legislature of a province that are, in the opinion of the directors, operating as credit unions or cooperative associations. 
  
  ### Appointment of officers
  
  201 (1) The directors of a company may, subject to the by-laws, designate the offices of the company, appoint officers thereto, specify the duties of those officers and delegate to them powers, subject to section 202, to manage the business and affairs of the company. 
  
  ### Directors as officers
  
  (2) Subject to section 168, a director of a company may be appointed to any office of the company. 
  
  ### Two or more offices
  
  (3) Two or more offices of a company may be held by the same person. 
  
  ### Limits on power to delegate
  
  202 The directors of a company may not delegate any of the following powers, namely, the power to 
  (a) submit to the shareholders a question or matter requiring the approval of the shareholders; 
  (b) fill a vacancy among the directors, on a committee of directors or in the office of auditor, or appoint additional directors; 
  (c) issue or cause to be issued securities, including an issue of shares of a series that is authorized in accordance with section 65, except in accordance with any authorization made by the directors; 
  (d) declare a dividend; 
  (e) authorize the redemption or other acquisition by the company pursuant to section 74 of shares issued by the company; 
  (f) authorize the payment of a commission on a share issue; 
  (g) approve a management proxy circular; 
  (h) except as provided in this Act, approve the annual statement of the company and any other financial statements issued by the company; or 
  (i) adopt, amend or repeal by-laws. 
  
  ### Exercise of trustee powers
  
  203 (1) Where authorized to do so by a special resolution, the directors of a company that is a trust company pursuant to subsection 57(2) may delegate, with or without the power of sub-delegation, to the chief executive officer of the company, the exercise of all or any of the powers or authorities of the company, whether discretionary or otherwise, arising out of any will, trust, deed, contract or other instrument creating a trust. 
  
  ### Performance by company
  
  (2) The exercise of any power or authority referred to in subsection (1) by the chief executive officer or that officer’s delegate, if any, constitutes an exercise of the power or authority by the company. 
  
  ### Remuneration of directors, officers and employees
  
  204 (1) Subject to this section and the by-laws, the directors of a company may fix the remuneration of the directors, officers and employees of the company. 
  
  ### By-law required
  
  (2) No remuneration shall be paid to a director as director until a by-law fixing the aggregate of all amounts that may be paid to all directors in respect of directors’ remuneration during a fixed period of time has been confirmed by special resolution. 
  
  ### Validity of acts
  
  205 (1) An act of a director or an officer of a company is valid notwithstanding a defect in the director’s qualification or an irregularity in the director’s election or in the appointment of the director or officer. 
  
  ### Idem
  
  (2) An act of the board of directors of a company is valid notwithstanding a defect in the composition of the board or an irregularity in the election of the board or in the appointment of a member of the board. 
  
  ### Right to attend meetings
  
  206 A director of a company is entitled to attend and to be heard at every meeting of shareholders. 
  
  ## Conflicts of Interest 
  
  ### Disclosure of interest
  
  207 (1) A director or officer of a company shall disclose to the company, in writing or by requesting to have it entered in the minutes of a meeting of directors or a meeting of a committee of directors, the nature and extent of any interest they have in a material contract or material transaction with the company, whether entered into or proposed, if they 
  (a) are a party to the contract or transaction; 
  (b) are a director or officer of a party to the contract or transaction or a person acting in a similar capacity; or 
  (c) have a material interest in a party to the contract or transaction. 
  
  ### Time of disclosure — director
  
  (2) The disclosure shall be made in the case of a director 
  (a) at the meeting of directors, or of a committee of directors, at which the proposed contract or transaction is first considered; 
  (b) if at the time of the meeting referred to in paragraph (a) the director was not interested in the proposed contract or transaction, at the first one after they become interested in it; 
  (c) if the director becomes interested after a contract or transaction is entered into, at the first one after they become interested; or 
  (d) if a person who is interested in a contract or transaction becomes a director, at the first one after they become a director. 
  
  ### Time of disclosure — officer
  
  (3) The disclosure shall be made in the case of an officer who is not a director 
  (a) immediately after they become aware that the contract, transaction, proposed contract or proposed transaction is to be considered or has been considered at a meeting of directors or of a committee of directors; 
  (b) if they become interested after the contract or transaction is entered into, immediately after they become interested; or 
  (c) if a person who is interested in a contract or transaction becomes an officer, immediately after they become an officer. 
  
  ### Time of disclosure — contract not requiring approval
  
  (4) If the material contract or material transaction, whether entered into or proposed, is one that in the ordinary course of the company’s business would not require approval by the directors or shareholders, the director or officer shall disclose to the company, in writing or by requesting to have it entered in the minutes of a meeting of directors or of a committee of directors, the nature and extent of their interest immediately after they become aware of the contract or transaction. 
  
  ### Director to abstain
  
  208 (1) A director who is required to make a disclosure under subsection 207(1) shall not be present at any meeting of directors, or of a committee of directors, while the contract or transaction is being considered or vote on any resolution to approve it unless the contract or transaction 
  (a) relates primarily to their remuneration as a director, officer, employee or agent of the company, an entity controlled by the company or an entity in which the company has a substantial investment; 
  (b) is for indemnity under section 217 or insurance under section 218; or 
  (c) is with an affiliate of the company. 
  
  ### Ineligibility
  
  (2) Any director who knowingly contravenes subsection (1) ceases to hold office as director and is not eligible, for a period of five years after the date on which the contravention occurred, for election or appointment as a director of any financial institution that is incorporated or formed by or under an Act of Parliament. 
  
  ### Validity of acts
  
  (3) An act of the board of directors of a company or of a committee of the board of directors is not invalid because a person acting as a director had ceased under subsection (2) to hold office as a director. 
  
  ### General notice
  
  209 (1) For the purposes of subsection 207(1), a general notice to the directors declaring that a director or officer is to be regarded as interested for any of the following reasons in a contract or transaction entered into with a party is a sufficient declaration of interest in relation to any contract or transaction with that party: 
  (a) the director or officer is a director or officer of a party referred to in paragraph 207(1)(b) or (c) or a person acting in a similar capacity; 
  (b) the director or officer has a material interest in the party; or 
  (c) there has been a material change in the nature of the director’s or officer’s interest in the party. 
  
  ### Access to disclosures
  
  (2) The shareholders of the company may examine the portions of any minutes of meetings of directors or committees of directors that contain disclosures under subsection 207(1), or the portions of any other documents that contain those disclosures, during the usual business hours of the company. 
  
  ### Avoidance standards
  
  210 (1) A contract or transaction for which disclosure is required under subsection 207(1) is not invalid and a director or officer is not accountable to the company or its shareholders for any profit realized from it by reason only of the director’s or officer’s interest in the contract or transaction or the fact that the director was present or was counted to determine whether a quorum existed at the meeting of directors, or of a committee of directors, that considered it if 
  (a) the director or officer disclosed their interest in accordance with section 207 and subsection 209(1); 
  (b) the directors approved the contract or transaction; and 
  (c) the contract or transaction was reasonable and fair to the company at the time that it was approved. 
  
  ### Confirmation by shareholders
  
  (2) Even if the conditions set out in subsection (1) are not met, a director or officer acting honestly and in good faith is not accountable to the company or its shareholders for any profit realized from a contract or transaction for which disclosure was required and the contract or transaction is not invalid by reason only of the director’s or officer’s interest in it if 
  (a) the contract or transaction is approved or confirmed by special resolution at a meeting of shareholders; 
  (b) disclosure of the interest was made to the shareholders in a manner sufficient to indicate its nature before the contract or transaction was approved or confirmed; and 
  (c) the contract or transaction was reasonable and fair to the company at the time that it was approved or confirmed. 
  
  ### Court may set aside or require accounting
  
  211 If a director or officer of a company fails to comply with any of sections 207 to 210, a court, on application of the company or any of its shareholders, may set aside the contract or transaction on any terms that the court thinks fit and may require the director or officer to account to the company for any profit or gain realized on it. 
  
  ## Liability, Exculpation and Indemnification 
  
  ### Director liability
  
  212 (1) Directors of a company who vote for or consent to a resolution of the directors authorizing the issue of a share contrary to subsection 68(1) or the issue of subordinated indebtedness contrary to section 83 for a consideration other than money are jointly and severally, or solidarily, liable to the company to make good any amount by which the consideration received is less than the fair equivalent of the money that the company would have received if the share or subordinated indebtedness had been issued for money on the date of the resolution. 
  
  ### Further liability
  
  (2) Directors of a company who vote for or consent to a resolution of the directors authorizing any of the following are jointly and severally, or solidarily, liable to restore to the company any amounts so distributed or paid and not otherwise recovered by the company and any amounts in relation to any loss suffered by the company: 
  (a) a redemption or purchase of shares contrary to section 74; 
  (b) a reduction of capital contrary to section 78; 
  (c) a payment of a dividend contrary to section 82; 
  (d) a payment of an indemnity contrary to section 217; or 
  (e) any transaction contrary to Part XI. 
  
  ### Contribution
  
  213 (1) A director who has satisfied a judgment in relation to the director’s liability under section 212 is entitled to contribution from the other directors who voted for or consented to the unlawful act on which the judgment was founded. 
  
  ### Recovery
  
  (2) A director who is liable under section 212 is entitled to apply to a court for an order compelling a shareholder or other person to pay or deliver to the director 
  (a) any money or property that was paid or distributed to the shareholder or other person contrary to section 74, 78, 82 or 217; or 
  (b) an amount equal to the value of the loss suffered by the company as a result of any transaction contrary to Part XI. 
  
  ### Court order
  
  (3) Where an application is made to a court under subsection (2), the court may, where it is satisfied that it is equitable to do so, 
  (a) order a shareholder or other person to pay or deliver to a director any money or property that was paid or distributed to the shareholder or other person contrary to section 74, 78, 82 or 217 or any amount referred to in paragraph (2)(b); 
  (b) order a company to return or issue shares to a person from whom the company has purchased, redeemed or otherwise acquired shares; or 
  (c) make any further order it thinks fit. 
  
  ### Limitation
  
  214 An action to enforce a liability imposed by section 212 may not be commenced after two years from the date of the resolution authorizing the action complained of. 
  
  ### Directors liable for wages
  
  215 (1) Subject to subsections (2) and (3), the directors of a company are jointly and severally, or solidarily, liable to each employee of the company for all debts not exceeding six months wages payable to the employee for services performed for the company while they are directors. 
  
  ### Conditions precedent
  
  (2) A director is not liable under subsection (1) unless 
  (a) the company has been sued for the debt within six months after it has become due and execution has been returned unsatisfied in whole or in part; 
  (b) the company has commenced liquidation and dissolution proceedings or has been dissolved and a claim for the debt has been proven within six months after the earlier of the date of commencement of the liquidation and dissolution proceedings and the date of dissolution; or 
  (c) a winding-up order has been issued in respect of the company under the Winding-up and Restructuring Act and a claim for the debt has been allowed or proven within six months after the issue of the winding-up order.  
  
  ### Limitations
  
  (3) A director is not liable under subsection (1) unless the director is sued for a debt referred to in that subsection while a director or within two years after the director has ceased to be a director. 
  
  ### Amount due after execution
  
  (4) Where execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution. 
  
  ### Subrogation of director
  
  (5) Where a director of a company pays a debt referred to in subsection (1) that is proven in liquidation and dissolution or winding-up proceedings, the director is entitled to any preference that the employee would have been entitled to and, where a judgment has been obtained, the director is entitled to an assignment of the judgment. 
  
  ### Contribution entitlement
  
  (6) A director of a company who has satisfied a claim under this section is entitled to a contribution from the other directors of the company who are liable for the claim. 
  
  ### Defence — due diligence
  
  216 (1) A director, officer or employee of a company is not liable under section 212 or 215 or subsection 494(1) and has fulfilled their duty under subsection 162(2) if they exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on 
  (a) financial statements of the company that were represented to them by an officer of the company or in a written report of the auditor of the company fairly to reflect the financial condition of the company; or 
  (b) a report of a person whose profession lends credibility to a statement made by them. 
  
  ### Defence — good faith
  
  (2) A director or officer of a company has fulfilled their duty under subsection 162(1) if they relied in good faith on 
  (a) financial statements of the company that were represented to them by an officer of the company or in a written report of the auditor of the company fairly to reflect the financial condition of the company; or 
  (b) a report of a person whose profession lends credibility to a statement made by them. 
  
  ### Indemnification
  
  217 (1) A company may indemnify a director or officer of the company, a former director or officer of the company or another person who acts or acted, at the company’s request, as a director or officer of or in a similar capacity for another entity against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by them in respect of any civil, criminal, administrative, investigative or other proceeding in which they are involved because of that association with the company or other entity. 
  
  ### Advances
  
  (2) A company may advance amounts to the director, officer or other person for the costs, charges and expenses of a proceeding referred to in subsection (1). They shall repay the amounts if they do not fulfil the conditions set out in subsection (3). 
  
  ### No indemnification
  
  (3) A company may not indemnify a person under subsection (1) unless 
  (a) the person acted honestly and in good faith with a view to the best interests of, as the case may be, the company or the other entity for which they acted at the company’s request as a director or officer or in a similar capacity; and 
  (b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the person had reasonable grounds for believing that their conduct was lawful. 
  
  ### Indemnification — derivative actions
  
  (4) A company may with the approval of a court indemnify a person referred to in subsection (1) or advance amounts to them under subsection (2) — in respect of an action by or on behalf of the company or other entity to procure a judgment in its favour to which the person is made a party because of the association referred to in subsection (1) with the company or other entity — against all costs, charges and expenses reasonably incurred by them in connection with that action if they fulfil the conditions set out in subsection (3). 
  
  ### Right to indemnity
  
  (5) Despite subsection (1), a person referred to in that subsection is entitled to be indemnified by the company in respect of all costs, charges and expenses reasonably incurred by them in connection with the defence of any civil, criminal, administrative, investigative or other proceeding to which the person is subject because of the association referred to in subsection (1) with the company or other entity described in that subsection if the person 
  (a) was not judged by the court or other competent authority to have committed any fault or omitted to do anything that they ought to have done; and 
  (b) fulfils the conditions set out in subsection (3). 
  
  ### Heirs and personal representatives
  
  (6) A company may, to the extent referred to in subsections (1) to (5) in respect of the person, indemnify the heirs or personal representatives of any person whom the company may indemnify under those subsections. 
  
  ### Directors’ and officers’ insurance
  
  218 A company may purchase and maintain insurance for the benefit of any person referred to in section 217 against any liability incurred by the person 
  (a) in the capacity of a director or an officer of the company, except where the liability relates to a failure to act honestly and in good faith with a view to the best interests of the company; or 
  (b) in the capacity of a director or officer of another entity or while acting in a similar capacity for another entity, if they act or acted in that capacity at the company’s request, except if the liability relates to a failure to act honestly and in good faith with a view to the best interests of the entity. 
  
  ### Application to court for indemnification
  
  219 (1) A company or a person referred to in section 217 may apply to a court for an order approving an indemnity under that section and the court may so order and make any further order it thinks fit. 
  
  ### Notice to Superintendent
  
  (2) An applicant under subsection (1) shall give the Superintendent written notice of the application and the Superintendent is entitled to appear and to be heard at the hearing of the application in person or by counsel. 
  
  ### Other notice
  
  (3) On an application under subsection (1), the court may order notice to be given to any interested person and that person is entitled to appear and to be heard in person or by counsel at the hearing of the application. 
  
  ## Fundamental Changes 
  
  ## Amendments 
  
  ### Incorporating instrument
  
  220 On the application of a company duly authorized by special resolution, the Minister may approve a proposal to add, change or remove any provision that is permitted by this Act to be set out in the incorporating instrument of the company. 
  
  ### Letters patent to amend
  
  221 (1) On receipt of an application referred to in section 220, the Minister may issue letters patent to effect the proposal. 
  
  ### Effect of letters patent
  
  (2) Letters patent issued pursuant to subsection (1) become effective on the day stated in the letters patent. 
  
  ### By-laws
  
  222 (1) The directors of a company may make, amend or repeal any by-laws, in the manner set out in subsections (2) and (3) and sections 223 to 227, to 
  (a) change the maximum number, if any, of shares of any class that the company is authorized to issue; 
  (b) create new classes of shares; 
  (c) change the designation of any or all of the company’s shares, and add, change or remove any rights, privileges, restrictions and conditions, including rights to accrued dividends, in respect of any or all of the company’s shares, whether issued or unissued; 
  (d) change the shares of any class or series, whether issued or unissued, into a different number of shares of the same class or series or into the same or a different number of shares of other classes or series; 
  (e) divide a class of shares, whether issued or unissued, into series and fix the maximum number of shares, if any, in each series and the rights, privileges, restrictions and conditions attached thereto; 
  (f) authorize the directors to divide any class of unissued shares into series and fix the maximum number of shares, if any, in each series and the rights, privileges, restrictions and conditions attached thereto; 
  (g) authorize the directors to change the rights, privileges, restrictions and conditions attached to unissued shares of any series; 
  (h) revoke, diminish or enlarge any authority conferred under paragraphs (f) and (g); 
  (i) increase or decrease the number of directors or the minimum or maximum number of directors, subject to subsection 163(1) and section 172; 
  (i.1) change the name of the company; or 
  (j) change the province in which the head office of the company is situated. 
  
  ### Shareholder approval
  
  (2) The directors shall submit a by-law, or an amendment to or a repeal of a by-law, that is made under subsection (1) to the shareholders, and the shareholders may, by special resolution, confirm, amend or reject the by-law, amendment or repeal. 
  
  ### Effective date of by-law
  
  (3) A by-law, or an amendment to or a repeal of a by-law, made under subsection (1) is not effective until it is confirmed or confirmed as amended by the shareholders under subsection (2) and, in the case of by-laws respecting a change to the name of the company, approved by the Superintendent. 
  
  ### Letters patent
  
  (4) If the name of a company or the province in Canada in which the head office of the company is situated is changed under this section, the Superintendent may issue letters patent to amend the company’s incorporating instrument accordingly. 
  
  ### Effect of letters patent
  
  (5) Letters patent issued under subsection (4) become effective on the day stated in the letters patent. 
  
  ### Class vote
  
  223 (1) The holders of shares of a class or, subject to subsection (2), of a series are, unless the by-laws otherwise provide in the case of an amendment to the by-laws referred to in paragraph (a), (b) or (e), entitled to vote separately as a class or series on a proposal to amend the by-laws to 
  (a) increase or decrease any maximum number of authorized shares of that class, or increase any maximum number of authorized shares of a class having rights or privileges equal or superior to the shares of that class; 
  (b) effect an exchange, reclassification or cancellation of all or part of the shares of that class; 
  (c) add, change or remove the rights, privileges, restrictions or conditions attached to the shares of that class and, without limiting the generality of the foregoing, 
  (i) remove or change prejudicially rights to accrued dividends or rights to cumulative dividends, 
  (ii) add, remove or change prejudicially redemption rights, 
  (iii) reduce or remove a dividend preference or a liquidation preference, or 
  (iv) add, remove or change prejudicially conversion privileges, options, voting, transfer or pre-emptive rights, or rights to acquire securities of the company, or sinking fund provisions; 
  (d) increase the rights or privileges of any class of shares having rights or privileges equal or superior to the shares of that class; 
  (e) create a new class of shares equal or superior to the shares of that class; 
  (f) make any class of shares having rights or privileges inferior to the shares of that class equal or superior to the shares of that class; or 
  (g) effect an exchange or create a right of exchange of all or part of the shares of another class into the shares of that class. 
  
  ### Right limited
  
  (2) The holders of a series of shares of a class are entitled to vote separately as a series under subsection (1) if that series is affected by an addition or amendment to the by-laws in a manner different from other shares of the same class. 
  
  ### Right to vote
  
  (3) Subsections (1) and (2) apply whether or not the shares of a class otherwise carry the right to vote. 
  
  ### Separate resolutions
  
  224 A proposed addition or amendment to the by-laws referred to in subsection 223(1) is adopted when the holders of the shares of each class or series entitled to vote separately thereon as a class or series have approved the addition or amendment by a special resolution. 
  
  ### Revoking resolution
  
  225 Where a special resolution referred to in subsection 222(2) so states, the directors may, without further approval of the shareholders, revoke the special resolution. 
  
  ### Proposal to amend
  
  226 (1) Subject to subsection (2), a director or a shareholder who is entitled to vote at an annual meeting of shareholders of a company may, in accordance with sections 146 and 147, make a proposal to make an application referred to in section 220 or to make, amend or repeal the by-laws referred to in subsection 222(1) of the company. 
  
  ### Notice of amendment
  
  (2) Notice of a meeting of shareholders at which a proposal to amend the incorporating instrument or to make, amend or repeal the by-laws of a company is to be considered must set out the proposal. 
  
  ### Rights preserved
  
  227 No amendment to the incorporating instrument or by-laws of a company affects an existing cause of action or claim or liability to prosecution in favour of or against the company or its directors or officers, or any civil, criminal or administrative action or proceeding to which the company or any of its directors or officers are a party. 
  
  ## Amalgamation 
  
  ### Application to amalgamate
  
  228 On the joint application of 
  (a) two or more companies, 
  (b) one or more companies and one or more bodies corporate that are incorporated by or under an Act of Parliament, other than a federal credit union, or 
  (c) two or more bodies corporate incorporated by or under an Act of Parliament, other than a federal credit union, the Minister may issue letters patent amalgamating and continuing the applicants as one company. 
  
  ### Amalgamation agreement
  
  229 (1) Each applicant proposing to amalgamate shall enter into an amalgamation agreement. 
  
  ### Contents of agreement
  
  (2) Every amalgamation agreement shall set out the terms and means of effecting the amalgamation and, in particular, 
  (a) the name of the amalgamated company and the province in which its head office is to be situated; 
  (b) the name and place of ordinary residence of each proposed director of the amalgamated company; 
  (c) the manner in which the shares of each applicant are to be converted into shares or other securities of the amalgamated company; 
  (d) if any shares of an applicant are not to be converted into shares or other securities of the amalgamated company, the amount of money or securities that the holders of those shares are to receive in addition to or in lieu of shares or other securities of the amalgamated company; 
  (e) the manner of payment of money in lieu of the issue of fractional shares of the amalgamated company or of any other body corporate that are to be issued in the amalgamation; 
  (f) the proposed by-laws of the amalgamated company; 
  (g) details of any other matter necessary to perfect the amalgamation and to provide for the subsequent management and operation of the amalgamated company; and 
  (h) the proposed effective date of the amalgamation. 
  
  ### Cross ownership of shares
  
  (3) If shares of one of the applicants are held by or on behalf of another of the applicants, other than shares held in the capacity of a personal representative or by way of security, the amalgamation agreement must provide for the cancellation of those shares when the amalgamation becomes effective without any repayment of capital in respect thereof, and no provision shall be made in the agreement for the conversion of those shares into shares of the amalgamated company. 
  
  ### Approval of agreement by Superintendent
  
  230 An amalgamation agreement must be submitted to the Superintendent for approval and any approval of the agreement under subsection 231(4) by the holders of any class or series of shares of an applicant is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing. 
  
  ### Shareholder approval
  
  231 (1) The directors of each applicant shall submit an amalgamation agreement for approval to a meeting of the holders of shares of the applicant company or body corporate of which they are directors and, subject to subsection (3), to the holders of each class or series of such shares. 
  
  ### Right to vote
  
  (2) Each share of an applicant carries the right to vote in respect of an amalgamation agreement whether or not it otherwise carries the right to vote. 
  
  ### Separate vote for class or series
  
  (3) The holders of shares of a class or series of shares of each applicant are entitled to vote separately as a class or series in respect of an amalgamation agreement if the agreement contains a provision that, if it were contained in a proposed amendment to the by-laws or incorporating instrument of the applicant, would entitle those holders to vote separately as a class or series. 
  
  ### Special resolution
  
  (4) Subject to subsection (3), an amalgamation agreement is approved when the shareholders of each applicant company or body corporate have approved the amalgamation by special resolution. 
  
  ### Termination
  
  (5) An amalgamation agreement may provide that, at any time before the issue of letters patent of amalgamation, the agreement may be terminated by the directors of an applicant notwithstanding that the agreement has been approved by the shareholders of all or any of the applicant companies or bodies corporate. 
  
  ### Vertical short-form amalgamation
  
  232 (1) A company may, without complying with sections 229 to 231, amalgamate with one or more bodies corporate that are incorporated by or under an Act of Parliament if the body or bodies corporate, as the case may be, are wholly-owned subsidiaries of the company and 
  (a) the amalgamation is approved by a resolution of the directors of the company and of each amalgamating subsidiary; and 
  (b) the resolutions provide that 
  (i) the shares of each amalgamating subsidiary will be cancelled without any repayment of capital in respect thereof, 
  (ii) the letters patent of amalgamation and the by-laws of the amalgamated company will be the same as the incorporating instrument and the by-laws of the amalgamating company that is the holding body corporate, and 
  (iii) no securities will be issued by the amalgamated company in connection with the amalgamation. 
  
  ### Horizontal short-form amalgamation
  
  (2) Two or more bodies corporate incorporated by or under an Act of Parliament may amalgamate and continue as one company without complying with sections 229 to 231 if 
  (a) at least one of the applicants is a company; 
  (b) the applicants are all wholly-owned subsidiaries of the same holding body corporate; 
  (c) the amalgamation is approved by a resolution of the directors of each of the applicants; and 
  (d) the resolutions provide that 
  (i) the shares of all applicants, except those of one of the applicants that is a company, will be cancelled without any repayment of capital in respect thereof, 
  (ii) the letters patent of amalgamation and the by-laws of the amalgamated company will be the same as the incorporating instrument and the by-laws of the amalgamating company whose shares are not cancelled, and 
  (iii) the stated capital of the amalgamating companies and bodies corporate whose shares are cancelled will be added to the stated capital of the amalgamating company whose shares are not cancelled. 
  
  ### Joint application to Minister
  
  233 (1) Subject to subsection (2), unless an amalgamation agreement is terminated in accordance with subsection 231(5), the applicants shall, within three months after the approval of the agreement in accordance with subsection 231(4) or the approval of the directors in accordance with subsection 232(1) or (2), jointly apply to the Minister for letters patent of amalgamation continuing the applicants as one company. 
  
  ### Conditions precedent to application
  
  (2) No application for the issue of letters patent under subsection (1) may be made unless 
  (a) notice of intention to make such an application has been published at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of each applicant is situated; and  
  (b) the application is supported by satisfactory evidence that the applicants have complied with the requirements of this Part relating to amalgamations. 
  
  ### Application of sections 22 to 25
  
  (3) If two or more bodies corporate, none of which is a company, apply for letters patent under subsection (1), sections 22 to 25 apply in respect of the application with any modifications that the circumstances require. 
  
  ### Matters for consideration
  
  (4) Before issuing letters patent of amalgamation continuing the applicants as one company, the Minister shall take into account all matters that the Minister considers relevant to the application, including 
  (a) the sources of continuing financial support for the amalgamated company; 
  (b) the soundness and feasibility of the plans of the applicants for the future conduct and development of the business of the amalgamated company; 
  (c) the business record and experience of the applicants; 
  (d) the reputation of the applicants for being operated in a manner that is consistent with the standards of good character and integrity; 
  (e) whether the amalgamated company will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution; 
  (f) the impact of any integration of the operations and businesses of the applicants on the conduct of those operations and businesses; and 
  (g) the best interests of the financial system in Canada. 
  
  ### Issue of letters patent
  
  234 (1) Where an application has been made to the Minister in accordance with section 233, the Minister may issue letters patent of amalgamation continuing the applicants as one company. 
  
  ### Letters patent
  
  (2) Where letters patent are issued pursuant to this section, section 27 applies with such modifications as the circumstances require in respect of the issue of the letters patent. 
  
  ### Publication of notice
  
  (3) The Superintendent shall cause to be published in the Canada Gazette notice of the issuance of letters patent pursuant to subsection (1).  
  
  ### Court enforcement
  
  234.1 (1) If a company or any director, officer, employee or agent of a company is contravening or has failed to comply with any term or condition made in respect of the issuance of letters patent of amalgamation, the Minister may, in addition to any other action that may be taken under this Act, apply to a court for an order directing the company or the director, officer, employee or agent to comply with the term or condition, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit. 
  
  ### Appeal
  
  (2) An appeal from an order of a court under this section lies in the same manner as, and to the same court to which, an appeal may be taken from any other order of the court. 
  
  ### Effect of letters patent
  
  235 (1) On the day provided for in the letters patent issued under section 234 
  (a) the amalgamation of the applicants and their continuance as one company becomes effective; 
  (b) the property of each applicant continues to be the property of the amalgamated company; 
  (c) the amalgamated company continues to be liable for the obligations of each applicant; 
  (d) any existing cause of action, claim or liability to prosecution is unaffected; 
  (e) any civil, criminal or administrative action or proceeding pending by or against an applicant may be continued to be prosecuted by or against the amalgamated company; 
  (f) any conviction against, or ruling, order or judgment in favour of or against, an applicant may be enforced by or against the amalgamated company; 
  (g) if any director or officer of an applicant continues as a director or officer of the amalgamated company, any disclosure by that director or officer of a material interest in any contract made to the applicant shall be deemed to be disclosure to the amalgamated company; and 
  (h) the letters patent of amalgamation are the incorporating instrument of the amalgamated company. 
  
  ### Minutes
  
  (2) Any deemed disclosure under paragraph (1)(g) shall be recorded in the minutes of the first meeting of directors of the amalgamated company. 
  
  ### Transitional
  
  236 (1) Notwithstanding any other provision of this Act or the regulations, the Minister may, by order, on the recommendation of the Superintendent, grant to a company in respect of which letters patent were issued under subsection 234(1) permission to 
  (a) engage in a business activity specified in the order that a company is not otherwise permitted by this Act to engage in and that one or more of the amalgamating bodies corporate was engaging in at the time application for the letters patent was made; 
  (b) continue to have issued and outstanding debt obligations the issue of which is not authorized by this Act if the debt obligations were outstanding at the time the application for the letters patent was made; 
  (c)  [Repealed, 1994, c. 47, s. 204]  
  (d) hold assets that a company is not otherwise permitted by this Act to hold if the assets were held by one or more of the amalgamating bodies corporate at the time the application for the letters patent was made; 
  (e) acquire and hold assets that a company is not otherwise permitted by this Act to acquire or hold if one or more of the amalgamating bodies corporate were obliged, at the time the application for the letters patent was made, to acquire those assets; 
  (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada; and 
  (g) where one or more of the applicants that applied for the letters patent was a trust company pursuant to subsection 57(2) and the amalgamated company is not a trust company pursuant to subsection 57(2), hold guaranteed trust money that was held by the trust company or companies immediately prior to the amalgamation on condition that the amalgamated company 
  (i) repay, or transfer to deposit accounts with the amalgamated company, each deposit of guaranteed trust money that is payable on demand or after notice within such period after the amalgamation as may be specified in the order of the Governor in Council, and 
  (ii) not renew or extend the term of any guaranteed investment certificate for which the amalgamated company has assumed liability under this section. 
  
  ### Duration of exceptions
  
  (2) The permission granted under any of paragraphs (1)(a) to (f) shall be expressed to be granted for a period specified in the order not exceeding 
  (a) with respect to any matter described in paragraph (1)(a), thirty days after the date of issue of the letters patent or, where the activity is conducted pursuant to an agreement existing on the date of issue of the letters patent, the expiration of the agreement; 
  (b) with respect to any matter described in paragraph (1)(b), ten years; and 
  (c) with respect to any matter described in any of paragraphs (1)(d) to (f), two years. 
  
  ### Renewal
  
  (3) Subject to subsection (4), the Minister may, by order, on the recommendation of the Superintendent, renew a permission granted by order under subsection (1) with respect to any matter described in any of paragraphs (1)(b) to (e) for any further period or periods that the Minister considers necessary. 
  
  ### Limitation
  
  (4) The Minister shall not grant to a company any permission 
  (a) with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the date of the approval for the company to commence and carry on business, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the company that the company will not be able at law to redeem at the end of the ten years the outstanding debt obligations to which the permission relates; and 
  (b) with respect to matters described in paragraphs (1)(d) and (e), that purports to be effective more than ten years after the date of issue of the letters patent. 
  
  ## Transfer of Business 
  
  ### Sale by company
  
  237 (1) A company may sell all or substantially all of its assets to a financial institution incorporated by or under an Act of Parliament or to an authorized foreign bank in respect of its business in Canada if the purchasing financial institution or authorized foreign bank assumes all or substantially all of the liabilities of the company. 
  
  ### Sale agreement
  
  (2) An agreement of purchase and sale (in subsection (3), section 238, subsections 239(1) and (4) and section 241 referred to as a “sale agreement”) shall set out the terms of, and means of effecting, the sale of assets referred to in subsection (1). 
  
  ### Consideration
  
  (3) Notwithstanding anything in this Act, the consideration for a sale referred to in subsection (1) may be cash or fully paid securities of the purchasing financial institution or authorized foreign bank or in part cash and in part fully paid securities of the purchasing financial institution or authorized foreign bank or any other consideration that is provided for in the sale agreement. 
  
  ### Meaning of 
  *authorized foreign bank* 
  
  (4) In this section, 
  *authorized foreign bank* has the meaning assigned to that expression by section 2 of the Bank Act.  
  
  ### Agreement to Superintendent
  
  238 A sale agreement must be submitted to the Superintendent before it is sent to shareholders of the selling company under subsection 239(1). 
  
  ### Shareholder approval
  
  239 (1) The directors of a selling company shall submit a sale agreement for approval to a meeting of the holders of shares of the company and, subject to subsection (3), to the holders of each class or series of shares of the company. 
  
  ### Right to vote
  
  (2) Each share of a selling company carries the right to vote in respect of a sale referred to in subsection 237(1) whether or not the share otherwise carries the right to vote. 
  
  ### Class vote
  
  (3) The holders of shares of a class or series of shares of a selling company are entitled to vote separately as a class or series in respect of a sale referred to in subsection 237(1) only if the shares of the class or series are affected by the sale in a manner different from the shares of another class or series. 
  
  ### Special resolution
  
  (4) A sale agreement is approved when the shareholders, and the holders of each class or series of shares entitled to vote separately as a class or series pursuant to subsection (3), of the selling company have approved the sale by special resolution. 
  
  ### Abandoning sale
  
  240 Where a special resolution approving a sale under subsection 239(4) so states, the directors of a selling company may, subject to the rights of third parties, abandon the sale without further approval of the shareholders. 
  
  ### Application to Minister
  
  241 (1) Subject to subsection (2), unless a sale agreement is abandoned in accordance with section 240, the selling company shall, within three months after the approval of the sale agreement in accordance with subsection 239(4), apply to the Minister for approval of the sale agreement. 
  
  ### Conditions precedent to application
  
  (2) No application for approval under subsection (1) may be made unless 
  (a) notice of intention to make such an application has been published at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the selling company is situated;  
  (b) the application is supported by satisfactory evidence that the selling company has complied with the requirements of sections 237 to 240 and this section; and 
  (c) where the selling company is a trust company pursuant to subsection 57(2), the application is supported by satisfactory evidence that the selling company has made such arrangements as may be necessary to transfer to another company that is a trust company pursuant to subsection 57(2) money or other assets held in trust by the selling company, other than assets held in respect of guaranteed trust money. 
  
  ### Approval by Minister
  
  (3) A sale agreement has no force or effect until it has been approved by the Minister. 
  
  ### Idem
  
  (4) Where an application has been made to the Minister in accordance with subsections (1) and (2), the Minister may approve the sale agreement to which the application relates. 
  
  ### Idem
  
  (5) Where a selling company is a trust company pursuant to subsection 57(2), the Minister shall not approve the sale agreement until the Minister is satisfied that the selling company has made satisfactory arrangements for the protection of persons in relation to whom the selling company was acting in a fiduciary capacity. 
  
  ## Corporate Records 
  
  ## Head Office and Corporate Records 
  
  ### Head office
  
  242 (1) A company shall at all times have a head office in the province specified in its incorporating instrument or by-laws. 
  
  ### Change of head office
  
  (2) The directors of a company may change the address of the head office within the province specified in the incorporating instrument or by-laws. 
  
  ### Notice of change of address
  
  (3) A company shall send to the Superintendent, within fifteen days after any change of address of its head office, a notice of the change of address. 
  
  ### Company records
  
  243 (1) A company shall prepare and maintain records containing 
  (a) its incorporating instrument and the by-laws of the company and all amendments thereto; 
  (b) minutes of meetings and resolutions of shareholders; 
  (c) the information referred to in paragraphs 499(1)(a), (c) and (e) to (h) contained in all returns provided to the Superintendent pursuant to section 499; 
  (d) particulars of any authorizations, designations, conditions and limitations established by the Superintendent under subsection 57(1), (3) or (4) or 58(1) that are from time to time applicable to the company; and 
  (e) particulars of exceptions granted under section 37 or 236 that are from time to time applicable to the company. 
  
  ### Additional records
  
  (2) In addition to the records described in subsection (1), a company shall prepare and maintain adequate 
  (a) corporate accounting records; 
  (b) records containing minutes of meetings and resolutions of the directors and any committee thereof; 
  (c) records relating to fiduciary activities of the company; and 
  (d) records showing, for each customer of the company, on a daily basis, particulars of the transactions between the company and that customer and the balance owing to or by the company in respect of that customer. 
  
  ### Former-Act and continued companies
  
  (3) For the purposes of paragraph (1)(b) and subsection (2), 
  (a) in the case of a body corporate continued as a company under this Act, “records” includes similar records required by law to be maintained by the body corporate before it was so continued; 
  (b) in the case of a body corporate amalgamated and continued as a company under this Act, “records” includes similar records required by law to be maintained by the body corporate before it was so amalgamated; and 
  (c) in the case of a former-Act company, “records” includes similar records required by law to be maintained by the company before the coming into force of this section. 
  
  ### Place of records
  
  244 (1) The records described in section 243 shall be kept at the head office of the company or at such other place in Canada as the directors think fit. 
  
  ### Notice of place of records
  
  (2) Where any of the records described in section 243 are not kept at the head office of a company, the company shall notify the Superintendent of the place where the records are kept. 
  
  ### Exception
  
  (3) Subsection (1) does not apply in respect of records of a branch of the company outside Canada or in respect of customers of such a branch. 
  
  ### Exception
  
  (3.1) Subject to subsection 250(1.1), subsection (1) does not apply to a company that is a subsidiary of a regulated foreign entity. 
  
  ### Inspection
  
  (4) The records described in section 243, other than those described in paragraph 243(2)(d), shall at all reasonable times be open to inspection by the directors. 
  
  ### Access to company records
  
  (5) Shareholders and creditors of a company and their personal representatives may examine the records referred to in subsection 243(1) during the usual business hours of the company and may take extracts from them free of charge or have copies of them made on payment of a reasonable fee. If the company is a distributing company, any other person may on payment of a reasonable fee examine those records during the usual business hours of the company and take extracts from them or have copies of them made. 
  
  ### Electronic access
  
  (5.1) A company may make the information contained in records referred to in subsection 243(1) available to persons by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing the records in intelligible written form within a reasonable time. 
  
  ### Copies of by-laws
  
  (6) Every shareholder of a company is entitled, on request made not more frequently than once in each calendar year, to receive, free of charge, one copy of the by-laws of the company. 
  
  ### Shareholder lists
  
  245 (1) A person who is entitled to a basic list of shareholders of a company (in this section referred to as the “applicant”) may request the company to furnish the applicant with a basic list within ten days after receipt by the company of the affidavit referred to in subsection (2) and, on payment of a reasonable fee by the applicant, the company shall comply with the request. 
  
  ### Affidavit and contents
  
  (2) A request under subsection (1) must be accompanied by an affidavit containing 
  (a) the name and address of the applicant, 
  (b) the name and address for service of the entity, if the applicant is an entity, and 
  (c) an undertaking that the basic list and any supplemental lists obtained pursuant to subsections (5) and (6) will not be used except as permitted under section 247, and, if the applicant is an entity, the affidavit shall be made by a director or an officer of the entity, or any person acting in a similar capacity. 
  
  ### Entitlement
  
  (3) A shareholder or creditor of a company or their personal representative — or if the company is a distributing company, any person — is entitled to a basic list of shareholders of the company. 
  
  ### Basic list
  
  (4) A basic list of shareholders of a company consists of a list of shareholders that is made up to a date not more than ten days before the receipt of the affidavit referred to in subsection (2) and that sets out 
  (a) the names of the shareholders of the company; 
  (b) the number of shares owned by each shareholder; and 
  (c) the address of each shareholder as shown in the records of the company. 
  
  ### Supplemental lists
  
  (5) A person requiring a company to supply a basic list of shareholders may, if the person states in the accompanying affidavit that supplemental lists are required, request the company or its agent, on payment of a reasonable fee, to provide supplemental lists of shareholders setting out any changes from the basic list in the names and addresses of the shareholders and the number of shares owned by each shareholder for each business day following the date to which the basic list is made up. 
  
  ### When supplemental lists to be furnished
  
  (6) A company or its agent shall provide a supplemental list of shareholders required under subsection (5) 
  (a) within ten days following the date the basic list is provided, where the information relates to changes that took place prior to that date; and 
  (b) within ten days following the day to which the supplemental list relates, where the information relates to changes that took place on or after the date the basic list was provided. 
  
  ### Option holders
  
  246 A person requiring a company to supply a basic list or a supplemental list of shareholders may also require the company to include in that list the name and address of any known holder of an option or right to acquire shares of the company. 
  
  ### Use of shareholder list
  
  247 A list of shareholders obtained under section 245 shall not be used by any person except in connection with 
  (a) an effort to influence the voting of shareholders of the company; 
  (b) an offer to acquire shares of the company; or 
  (c) any other matter relating to the affairs of the company. 
  
  ### Form of records
  
  248 (1) A register or other record required or authorized by this Act to be prepared and maintained by a company 
  (a) may be in a bound or loose-leaf form or in a photographic film form; or 
  (b) may be entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time. 
  
  ### Conversion of records
  
  (2) Registers and records maintained in one form may be converted to any other form. 
  
  ### Destruction of converted records
  
  (3) Notwithstanding section 251, a company may destroy any register or other record referred to in subsection (1) at any time after the register or other record has been converted to another form. 
  
  ### Protection of records
  
  249 A company and its agents shall take reasonable precautions to 
  (a) prevent loss or destruction of, 
  (b) prevent falsification of entries in, 
  (c) facilitate detection and correction of inaccuracies in, and 
  (d) ensure that unauthorized persons do not have access to or use of information in the registers and records required or authorized by this Act to be prepared and maintained. 
  
  ### Requirement to maintain copies and process information in Canada
  
  250 (1) If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for a company to maintain, in another country, copies of records referred to in section 243 or of its central securities register or for a company to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for a company to do any of those activities in another country — the Superintendent shall direct the company to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada. 
  
  ### Direction — immediate, direct, complete and ongoing access
  
  (1.1) Where a company referred to in subsection 244(3.1) or 256(3) maintains records referred to in section 243 or the central securities register at a place outside Canada, the Superintendent may, in the case referred to in paragraph (a), and shall, in the case referred to in paragraph (b), by order, direct the company to maintain a copy of those records or register at any place in Canada as the directors think fit 
  (a) if the Superintendent is of the opinion that he or she does not have immediate, direct, complete and ongoing access to those records or register; or 
  (b) if the Superintendent is advised by the Minister that the Minister is of the opinion that it is not in the national interest for the company not to maintain a copy of those records or register at any place in Canada. 
  
  ### Company to comply
  
  (2) A company shall without delay comply with any order issued under subsection (1) or (1.1). 
  
  ### Retention of records
  
  251 (1) A company shall retain 
  (a) the records of the company referred to in subsection 243(1); 
  (b) any record of the company referred to in paragraph 243(2)(a) or (b); and 
  (c) the central securities register referred to in subsection 253(1). 
  
  ### Idem
  
  (2) A company shall retain all signature cards and signing authorities or copies thereof relating to any deposit or instrument in respect of which the company has paid an amount to the Bank of Canada pursuant to section 424 until the Bank of Canada notifies the company that they need no longer be retained. 
  
  ### Evidence
  
  (3) Copies of the signature cards and signing authorities referred to in subsection (2) may be kept in any manner or form referred to in paragraphs 248(1)(a) and (b) and any such copies, or prints therefrom, are admissible in evidence in the same manner and to the same extent as the original signature cards and signing authorities. 
  
  ### Relief
  
  (4) Nothing in this section affects the operation of any statute of limitation or prescription or relieves the company from any obligation to the Bank of Canada in respect of any deposit or instrument in respect of which section 424 applies. 
  
  ### Regulations
  
  252 The Governor in Council may make regulations respecting the records, papers and documents to be retained by a company, including the length of time those records, papers and documents are to be retained, and what constitutes immediate, direct, complete and ongoing access, for the purpose of paragraph 250(1.1)(a). 
  
  ## Securities Registers 
  
  ### Central securities register
  
  253 (1) A company shall maintain a central securities register in which it shall record the securities, within the meaning of section 84, issued by it in registered form, showing in respect of each class or series of securities 
  (a) the names, alphabetically arranged, and latest known addresses of the persons who are security holders, and the names and latest known addresses of the persons who have been security holders; 
  (b) the number of securities held by each security holder; and 
  (c) the date and particulars of the issue and transfer of each security. 
  
  ### Former-Act and continued companies
  
  (2) For the purposes of subsection (1), “central securities register” includes similar registers required by law to be maintained by a former-Act company or by a body corporate continued, or amalgamated and continued, as a company under this Act before the continuance, amalgamation or coming into force of this section, as the case may be. 
  
  ### Access to central securities register
  
  (3) Shareholders and creditors of a company and their personal representatives may examine the central securities register during the usual business hours of the company and may take extracts from it free of charge or have copies of it made on payment of a reasonable fee. If the company is a distributing company, any other person may on payment of a reasonable fee examine the central securities register during the usual business hours of the company and take extracts from it or have copies of it made. 
  
  ### Electronic access
  
  (4) The company may make the information contained in the central securities register available by any mechanical or electronic data processing system or other information storage device that is capable of reproducing it in intelligible written form within a reasonable time. 
  
  ### Affidavit and undertaking
  
  (5) A person who wishes to examine the central securities register, take extracts from it or have copies of it made shall provide the company with an affidavit containing their name and address — or if they are an entity, the name and address for service of the entity — and with an undertaking that the information contained in the register will not be used except in the same way as a list of shareholders may be used under section 247. In the case of an entity, the affidavit is to be sworn by a director or officer of the entity or a person acting in a similar capacity. 
  
  ### Supplementary information
  
  (6) A person who wishes to examine a central securities register, take extracts from it or have copies of it made may on payment of a reasonable fee, if they state in the accompanying affidavit that supplementary information is required, request the company or its agent to provide supplementary information setting out any changes made to the register. 
  
  ### When supplementary information to be provided
  
  (7) A company or its agent shall provide the supplementary information within 
  (a) 10 days after the day on which the central securities register is examined if the changes take place before that day; and 
  (b) 10 days after the day to which the supplementary information relates if the changes take place on or after the day on which the central securities register is examined. 
  
  ### Branch registers
  
  254 A company may establish as many branch securities registers as it considers necessary. 
  
  ### Agents
  
  255 A company may appoint an agent to maintain its central securities register and each of its branch securities registers. 
  
  ### Location of central securities register
  
  256 (1) The central securities register of a company shall be maintained by the company at its head office or at any other place in Canada designated by the directors of the company. 
  
  ### Location of branch securities register
  
  (2) A branch securities register of a company may be kept at any place in or outside Canada designated by the directors of the company. 
  
  ### Exception
  
  (3) Subject to subsection 250(1.1), subsection (1) does not apply to a company that is a subsidiary of a regulated foreign entity. 
  
  ### Effect of registration
  
  257 Registration of the issue or transfer of a security in the central securities register or in a branch securities register is complete and valid registration for all purposes. 
  
  ### Particulars in branch register
  
  258 (1) A branch securities register shall only contain particulars of the securities issued or transferred at the branch for which that register is established. 
  
  ### Particulars in central register
  
  (2) Particulars of each issue or transfer of a security registered in a branch securities register of a company shall also be kept in the central securities register of the company. 
  
  ### Destruction of certificates
  
  259 A company, its agent or a trustee within the meaning of section 299 is not required to produce 
  (a) a cancelled security certificate in registered form or an instrument referred to in subsection 72(1) that is cancelled or a like cancelled instrument in registered form after six years from the date of its cancellation; 
  (b) a cancelled security certificate in bearer form or an instrument referred to in subsection 72(1) that is cancelled or a like cancelled instrument in bearer form after the date of its cancellation; or 
  (c) an instrument referred to in subsection 72(1) or a like instrument, irrespective of its form, after the date of its expiration. 
  
  ## Corporate Name and Seal 
  
  ### Publication of name
  
  260 A company shall set out its name in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights or obligations with respect to other parties that are issued or made by or on behalf of the company. 
  
  ### Corporate seal
  
  261 (1) A company may adopt a corporate seal and change one that it adopted. 
  
  ### Validity of unsealed documents
  
  (2) A document executed on behalf of a company is not invalid merely because a corporate seal is not affixed to it. 
  262 to 269  [Repealed, 1997, c. 15, s. 366]  
  
  ## Insiders 
  
  ### Definitions
  
  270 (1) In this section and sections 271 to 277,  
  *affiliate* means a body corporate that is affiliated with another body corporate within the meaning of subsection 6(2); (groupe)   
  *business combination* means an acquisition of all or substantially all of the assets of one body corporate by another, an amalgamation of two or more bodies corporate or any similar reorganization between two or more bodies corporate; (regroupement d’entreprises)   
  *call* means an option, transferable by delivery, to demand delivery of a specified number or amount of shares at a fixed price within a specified time but does not include an option or right to acquire shares of the body corporate that granted the option or right to acquire; (option d’achat)   
  *distributing company* [Repealed, 2005, c. 54, s. 420]   
  *insider* [Repealed, 2005, c. 54, s. 420]   
  *officer*, in relation to a company, means  
  (a) an officer as defined in paragraph (a) of the definition “officer” in section 2, or 
  (b) any natural person who performs functions for the company similar to those performed by a person referred to in paragraph (a) of the definition “officer” in section 2; ( dirigeant d’une société)   
  *put* means an option, transferable by delivery, to deliver a specified number or amount of shares at a fixed price within a specified time; (option de vente)   
  *share* means a voting share and includes  
  (a) a security currently convertible into a voting share, and 
  (b) a currently exercisable option or a right to acquire a voting share or a security referred to in paragraph (a). ( action)  
  
  ### Control
  
  (2) For the purposes of this section and sections 271 to 277, a person controls a body corporate when the person controls the body corporate within the meaning of section 3, determined without regard to paragraph 3(1)(d). 
  (3) and (4)  [Repealed, 2005, c. 54, s. 420]  
  
  ## Insider Reporting 
  
  ### Insider report
  
  271 An insider shall submit an insider report in accordance with the regulations. 
  
  ### Exemption by Superintendent
  
  272 On application by an insider, the Superintendent may in writing and on any terms that the Superintendent thinks fit exempt the insider from any of the requirements of section 271. The exemption may be given retroactive effect and the Superintendent shall publish the partic­ulars of the exemption and the reasons for it in a periodical available to the public. 
  272.1  [Repealed, 2005, c. 54, s. 421]  
  
  ### Regulations
  
  273 The Governor in Council may make regulations for carrying out the purposes of sections 271 and 272, including 
  (a) defining “insider” for the purposes of sections 271 and section 272; 
  (b) respecting the form and content of an insider report; and 
  (c) respecting the submission or publication of an insider report. 
  274  [Repealed, 2005, c. 54, s. 421]  
  
  ## Insider Trading 
  
  ### Meaning of 
  *insider* 
  
  275 (1) In this section, 
  *insider* means with respect to a distributing company  
  (a) a director or officer of the company; 
  (b) a director or officer of a subsidiary of the company; 
  (c) a director or officer of a body corporate that enters into a business combination with the company; or 
  (d) a person employed or retained by the company. 
  
  ### Prohibition — short sale
  
  (2) No insider may knowingly sell, directly or indirectly, a security of a distributing company or of any of the distributing company’s affiliates if the insider does not own or has not fully paid for the security. 
  
  ### Exception
  
  (3) Despite subsection (2), an insider may sell a security that they do not own if they own another security that is convertible into the security that was sold or they own an option or right to acquire the security that was sold, and if within 10 days after the sale they 
  (a) exercise the conversion privilege, option or right and deliver the security so acquired to the purchaser; or 
  (b) transfer the convertible security, option or right to the purchaser. 
  
  ### Prohibition — calls and puts
  
  (4) No insider may knowingly, directly or indirectly, buy or sell a call or put in respect of a security of a company or of any of the company’s affiliates. 
  
  ## Civil Remedies 
  
  ### Extended meaning of 
  *insider* 
  
  276 (1) In this section and sections 276.1 and 277, 
  *insider* with respect to a company means  
  (a) the company; 
  (b) an affiliate of the company; 
  (c) a director or officer of the company or of any person described in paragraph (b), (d) or (f); 
  (d) a person who beneficially owns directly or indirectly, or who exercises control or direction over or has a combination of ownership, control and direction in respect of, shares of the company carrying more than the prescribed percentage of the voting rights attached to all of the company’s outstanding shares not including shares held by the person as underwriter while those shares are in the course of a distribution to the public; 
  (e) a person, other than a person described in paragraph (f), who is employed or retained by the company or by a person described in paragraph (f); 
  (f) a person who engages in or proposes to engage in any business or professional activity with or on behalf of the company; 
  (g) a person who received material confidential information concerning the company while they were a person described in any of paragraphs (a) to (f); 
  (h) a person who receives material confidential information from a person who is and who they know or ought reasonably to have known is a person described in this subsection, including in this paragraph, or subsection (3) or (4); or 
  (i) a prescribed person. 
  
  ### Extended meaning of 
  *security* 
  
  (2) For the purposes of this section, each of the following is deemed to be a security of a company: 
  (a) a put, call, option or other right or obligation to purchase or sell a security of the company; and 
  (b) a security of another entity, the market price of which varies materially with the market price of the securities of the company. 
  
  ### Deemed insider — take-over bid or business combination
  
  (3) For the purposes of this section and subsection 276.1(1), a person who proposes to make a take-over bid as defined in the regulations for securities of a company or to enter into a business combination with a company is an insider of the company with respect to material confidential information obtained from the company. 
  
  ### Deemed insider — affiliate or associate
  
  (4) An insider of a person referred to in subsection (3), or the person’s affiliate or associate, is an insider of the company referred to in that subsection. Paragraphs (1)(b) to (i) apply in making this determination except that references to “company” are to be read as references to “person described in subsection (3)”. 
  
  ### Meaning of 
  *associate* 
  
  (5) In subsection (4), 
  *associate* means with respect to a person  
  (a) a body corporate that the person directly or indirectly controls, determined without regard to paragraph 3(1)(d), or of which they beneficially own shares or securities currently convertible into shares carrying more than 10% of the voting rights under all circumstances or by reason of the occurrence of an event that has occurred and is continuing or a currently exercisable option or right to purchase the shares or convertible securities; 
  (b) a partner of the person acting on behalf of the partnership of which they are partners; 
  (c) a trust or estate in which the person has a substantial beneficial interest or in respect of which they serve as a trustee or a liquidator of the succession or in a similar capacity; 
  (d) a spouse or common-law partner of the person; 
  (e) a child of the person or of their spouse or common-law partner; or 
  (f) if that relative has the same residence as the person, a relative of the person or of their spouse or common-law partner. 
  
  ### Insider trading — compensation to sellers and purchasers
  
  (6) An insider of a company who purchases or sells a security of the company with knowledge of confidential information that if it were generally known might reasonably be expected to materially affect the value of any of the securities of the company is liable to compensate the seller or purchaser of the security, as the case may be, for any loss suffered by them as a result of the purchase or sale unless the insider establishes that 
  (a) the insider reasonably believed that the information had been generally disclosed; 
  (b) the information was known or ought reasonably to have been known by the seller or purchaser; or 
  (c) the purchase or sale of the security took place in the prescribed circumstances. 
  
  ### Insider trading — compensation to company
  
  (7) The insider is accountable to the company for any benefit or advantage received or receivable by the insider as a result of a purchase or sale described in subsection (6) unless they establish the circumstances described in paragraph (6)(a). 
  
  ### Tipping — compensation to sellers and purchasers
  
  276.1 (1) An insider of a company who discloses confidential information with respect to the company that has not been generally disclosed and that if it were generally known might reasonably be expected to materially affect the value of any of the securities of the company is liable to compensate any person who subsequently sells securities of the company to or purchases them from any person who received the information unless the insider establishes that 
  (a) the insider reasonably believed that the information had been generally disclosed; 
  (b) the information was known or ought reasonably to have been known by the person who alleges that they suffered the loss; 
  (c) if the insider is not a person described in subsection 276(3) or (4), the disclosure of the information was necessary in the course of their business; or 
  (d) if the insider is a person described in subsection 276(3) or (4), the disclosure of the information was necessary to effect the take-over bid or business combination. 
  
  ### Tipping — compensation to company
  
  (2) The insider is accountable to the company for any benefit or advantage received or receivable by them as a result of a disclosure of information as described in subsection (1) unless they establish the circumstances described in paragraph (1)(a), (c) or (d). 
  
  ### Measure of damages
  
  277 (1) The court may assess damages under subsection 276(6) or 276.1(1) in accord­ance with any measure of damages that it considers relevant in the circumstances. However, in assessing damages in respect of a security of a distributing company, the court shall consider the following: 
  (a) if the plaintiff is a purchaser, the price that they paid for the security less the average market price of the security over the 20 trading days immediately following general disclosure of the information; and 
  (b) if the plaintiff is a seller, the average market price of the security over the 20 trading days immediately following general disclosure of the information, less the price that they received for the security. 
  
  ### Liability — more than one insider
  
  (2) If more than one insider is liable under subsection 276(6) or 276.1(1) with respect to the same transaction or series of transactions, their liability is joint and several, or solidary. 
  
  ### Limitation
  
  (3) An action to enforce a right created by subsection 276(6) or (7) or section 276.1 may be commenced only within two years after discovery of the facts that gave rise to the cause of action. 
  
  ## Prospectus 
  
  ### Distribution
  
  278 (1) No person including a company shall distribute securities of a company except in accordance with the regulations made under subsection (2). 
  
  ### Regulations
  
  (2) The Governor in Council may make regulations respecting the distribution of securities of a company, including 
  (a) respecting the information that is to be disclosed by a company before the distribution of any of its securities, including the information that is to be included in a prospectus; 
  (b) respecting the manner of disclosure and the form of the information that is to be disclosed; and 
  (c) exempting any class of distribution of securities from the application of subsection (1). 
  
  ### Order of exemption
  
  279 (1) On application by a company or any person proposing to make a distribution, the Superintendent may, by order, exempt that distribution from the application of any regulations made under subsection 278(2) if the Superintendent is satisfied that the company has disclosed or is about to disclose, in compliance with the laws of the relevant jurisdiction, information relating to the distribution that in form and content substantially complies with the requirements of those regulations. 
  
  ### Conditions
  
  (2) An order under subsection (1) may contain any conditions or limitations that the Superintendent deems appropriate. 
  
  ## Going-private Transactions and Squeeze-out Transactions 
  
  ### Going-private transactions
  
  280 A company may carry out a going-private transaction if it complies with any applicable provincial securities laws. 
  
  ### Squeeze-out transactions
  
  281 No company may carry out a squeeze-out transaction unless, in addition to any approval by holders of shares required by or under this Act or the company’s by-laws, the transaction is approved by ordinary resolution of the holders of each class of shares affected by the transaction, voting separately, whether or not the shares otherwise carry the right to vote. However, the following do not have the right to vote on the resolution: 
  (a) affiliates of the company; and 
  (b) holders of shares that following the squeeze-out transaction would be entitled to consideration of greater value or to superior rights or privileges than those available to other holders of shares of the same class. 
  
  ### Right to dissent
  
  282 (1) A holder of shares of a company may dissent if the company resolves to carry out a going-private transaction or squeeze-out transaction that affects those shares. 
  
  ### Payment for shares
  
  (2) In addition to any other right that the shareholder may have, but subject to subsection (25), a shareholder who complies with this section is, when the action approved by the resolution from which the shareholder dissents becomes effective, entitled to be paid by the company the fair value of the shares in respect of which the shareholder dissents, determined as of the close of business on the day before the resolution was adopted by the shareholders. 
  
  ### No partial dissent
  
  (3) A dissenting shareholder may claim under this section only with respect to all of the shares of a class held on behalf of any one beneficial owner and registered in the name of the dissenting shareholder. 
  
  ### Objection
  
  (4) A dissenting shareholder shall send to the company, at or before any meeting of shareholders at which a resolution referred to in subsection (2) is to be voted on by the shareholders, a written objection to the resolution unless the company did not give notice to the shareholder of the purpose of the meeting and their right to dissent. 
  
  ### Notice that resolution was adopted
  
  (5) The company shall within 10 days after the day on which the shareholders adopt the resolution send to each shareholder who sent an objection under subsection (4) notice that the resolution was adopted. If it is necessary for the Minister or Superintendent to approve the transaction within the meaning of subsection 527.2(1) before it becomes effective, the company shall send notice within 10 days after the approval. Notice is not required to be sent to a shareholder who voted for the resolution or one who has withdrawn their objection. 
  
  ### Demand for payment
  
  (6) A dissenting shareholder shall within 20 days after receiving the notice referred to in subsection (5) — or, if they do not receive it, within 20 days after learning that the resolution was adopted by the shareholders — send to the company a written notice containing 
  (a) their name and address; 
  (b) the number and class of shares in respect of which they dissent; and 
  (c) a demand for payment of the fair value of those shares. 
  
  ### Share certificates
  
  (7) A dissenting shareholder shall within 30 days after sending a notice under subsection (6) send the certificates representing the shares in respect of which they dissent to the company or its transfer agent. 
  
  ### Forfeiture
  
  (8) A dissenting shareholder who fails to comply with subsection (7) has no right to make a claim under this section. 
  
  ### Endorsing certificate
  
  (9) A company or its transfer agent shall endorse on any share certificate received in accordance with subsection (7) a notice that the holder is a dissenting shareholder under this section and shall without delay return the share certificates to the dissenting shareholder. 
  
  ### Suspension of rights
  
  (10) On sending a notice under subsection (6), a dissenting shareholder ceases to have any rights as a shareholder other than to be paid the fair value of their shares as determined under this section. However, the shareholder’s rights are reinstated as of the date the notice was sent if 
  (a) the shareholder withdraws the notice before the company makes an offer under subsection (11); 
  (b) the company fails to make an offer in accordance with subsection (11) and the shareholder withdraws the notice; or 
  (c) the directors revoke under section 225 the special resolution that was made in respect of the going-private transaction or squeeze-out transaction. 
  
  ### Offer to pay
  
  (11) A company shall, no later than seven days after the later of the day on which the action approved by the resolution from which the shareholder dissents becomes effective and the day on which the company received the notice referred to in subsection (6), send to each dissenting shareholder who sent a notice 
  (a) a written offer to pay for their shares in an amount considered by the directors of the company to be the fair value, accompanied by a statement showing how the fair value was determined; or 
  (b) if subsection (25) applies, a notice that it is unable to lawfully pay dissenting shareholders for their shares. 
  
  ### Same terms
  
  (12) Every offer made under subsection (11) for shares of the same class or series is to be on the same terms. 
  
  ### Payment
  
  (13) Subject to subsection (25), a company shall pay for the shares of a dissenting shareholder within 10 days after the day on which an offer made under subsection (11) is accepted, but the offer lapses if the company does not receive an acceptance within 30 days after the day on which the offer is made. 
  
  ### Court may fix fair value
  
  (14) If a company fails to make an offer under subsection (11) or if a dissenting shareholder fails to accept an offer, the company may, within 50 days after the day on which the action approved by the resolution from which the shareholder dissents becomes effective or within any further period that a court may allow, apply to the court to fix a fair value for the shares of any dissenting shareholder. 
  
  ### Shareholder application
  
  (15) If a company fails to apply to a court under subsection (14), a dissenting shareholder may apply to a court for the same purpose within a further period of 20 days or within any further period that the court may allow. 
  
  ### Venue
  
  (16) An application under subsection (14) or (15) is to be made to a court having jurisdiction where the company’s head office is situated or, if the company carries on business in the province in which the dissenting shareholder resides, in that province. 
  
  ### No security for costs
  
  (17) A dissenting shareholder is not required to give security for costs in an application made under subsection (14) or (15). 
  
  ### Parties
  
  (18) On an application to a court under subsection (14) or (15), 
  (a) all dissenting shareholders whose shares have not been purchased by the company are to be joined as parties and are bound by the decision of the court; 
  (b) the company shall notify each of them of the date, place and consequences of the application and their right to appear and be heard in person or by counsel; and 
  (c) the company shall notify the Superintend­ent of the date and place of the application and the Superintendent may appear and be heard in person or by counsel. 
  
  ### Powers of court
  
  (19) On an application to a court under subsection (14) or (15), the court may determine whether any other person is a dissenting shareholder and is to be joined as a party and the court shall then fix a fair value for the shares of all dissenting shareholders. 
  
  ### Appraisers
  
  (20) The court may appoint one or more appraisers to assist the court to fix a fair value for the shares of the dissenting shareholders. 
  
  ### Final order
  
  (21) The final order of the court is to be rendered against the company in favour of each dissenting shareholder for the value of the shares as fixed by the court. 
  
  ### Interest
  
  (22) The court may allow a reasonable rate of interest on the amount payable to each dissenting shareholder from the date the action approved by the resolution from which the shareholder dissents becomes effective until the date of payment. 
  
  ### Notice that s. (25) applies
  
  (23) If subsection (25) applies, the company shall within 10 days after an order is made under subsection (21) notify each dissenting shareholder that it is unable to lawfully pay dissenting shareholders for their shares. 
  
  ### Effect of s. (25)
  
  (24) If subsection (25) applies, a dissenting shareholder may by written notice delivered to the company within 30 days after receiving notice under subsection (23) 
  (a) withdraw their notice of dissent, in which case the company is deemed to consent to the withdrawal and the shareholder is reinstated to their full rights as a shareholder; or 
  (b) retain their status as a claimant against the company, to be paid as soon as the company is able to lawfully pay them or, in a liquidation, to be ranked subordinate to the rights of the company’s creditors but in priority to its shareholders. 
  
  ### Limitation
  
  (25) A company may not make a payment to a dissenting shareholder under this section if there are reasonable grounds for believing that the company is or the payment would cause the company to be in contravention of a regulation referred to in subsection 473(1) or (2) or of an order made under subsection 473(3). 
  283  [Repealed, 2005, c. 54, s. 422]  
  284  [Repealed, 2005, c. 54, s. 422]  
  285  [Repealed, 2005, c. 54, s. 422]  
  286  [Repealed, 2005, c. 54, s. 422]  
  287  [Repealed, 2005, c. 54, s. 422]  
  
  ## Compulsory Acquisitions 
  
  ### Definitions
  
  288 (1) In this section and sections 289 to 298,  
  *affiliate* means a body corporate that is affiliated with another body corporate within the meaning of subsection 6(2); (groupe)   
  *associate of the offeror* means  
  (a) a body corporate that an offeror, directly or indirectly, controls, determined without regard to paragraph 3(1)(d), or of which an offeror beneficially owns shares or securities currently convertible into shares carrying more than 10 per cent of the voting rights under all circumstances or by reason of the occurrence of an event that has occurred and is continuing, or a currently exercisable option or right to purchase the shares or the convertible securities, 
  (b) a partner of the offeror acting on behalf of the partnership of which they are partners, 
  (c) a trust or estate in which the offeror has a substantial beneficial interest or in respect of which they serve as a trustee or a liquidator of the succession or in a similar capacity, 
  (d) a spouse or common-law partner of the offeror, 
  (e) a child of the offeror or of the offeror’s spouse or common-law partner, or 
  (f) a relative of the offeror or of the offeror’s spouse or common-law partner, if that relative has the same residence as the offeror; ( associé du pollicitant)   
  *dissenting offeree* means a holder of a share who does not accept a take-over bid or a subsequent holder of the share who acquires it from the first-mentioned holder; (pollicité opposant)   
  *exempt offer* [Repealed, 2005, c. 54, s. 423]   
  *offeree* means a person to whom a take-over bid is made; (pollicité)   
  *offeree company* means a company the shares of which are the object of a take-over bid; (société pollicitée)   
  *offeror* means a person, other than an agent, who makes a take-over bid, and includes two or more persons who, directly or indirectly,  
  (a) make take-over bids jointly or in concert, or 
  (b) intend to exercise jointly or in concert voting rights attached to shares for which a take-over bid is made; ( pollicitant)   
  *share* means a share with or without voting rights and includes  
  (a) a security that is currently convertible into a share, and 
  (b) a currently exercisable option or right to acquire a share or a security referred to in paragraph (a); ( action)   
  *take-over bid* means an offer made by an offeror at approximately the same time to all of the shareholders of a distributing company to acquire all of the shares of a class of issued shares, and includes an offer by a distributing company to repurchase all of the shares of a class. (offre d’achat visant à la mainmise)  
  
  ### Control
  
  (2) For the purposes of this section and sections 289 to 298, a person controls a body corporate when the person controls the body corporate within the meaning of section 3, determined without regard to paragraph 3(1)(d). 
  
  ### Date of bid
  
  (3) A take-over bid is deemed to be dated as of the date on which it is sent. 
  
  ### Right to acquire shares
  
  289 If, within one hundred and twenty days after the date of a take-over bid, the bid is accepted by the holders of not less than 90 per cent of the shares of any class of shares to which the take-over bid relates, other than shares held at the date of the take-over bid by or on behalf of the offeror or an affiliate or associate of the offeror, the offeror is entitled, on complying with sections 290 to 295, subsections 296(1) and (2) and section 297, to acquire the shares held by the dissenting offerees. 
  
  ### Offeror’s notice to dissenters
  
  290 (1) An offeror may acquire shares held by a dissenting offeree by sending by registered mail within sixty days after the date of termination of the take-over bid and in any event within one hundred and eighty days after the date of the take-over bid, an offeror’s notice to each dissenting offeree and to the Superintendent stating that 
  (a) offerees holding not less than 90 per cent of the shares of any class of shares to which the take-over bid relates, other than shares held at the date of the take-over bid by or on behalf of the offeror or an affiliate or associate of the offeror, have accepted the take-over bid; 
  (b) the offeror is bound to take up and pay for or has taken up and paid for the shares of the offerees who accepted the take-over bid; 
  (c) a dissenting offeree is required to elect 
  (i) to transfer the dissenting offeree’s shares to the offeror on the same terms on which the offeror acquired the shares from the offerees who accepted the take-over bid, or 
  (ii) to demand payment of the fair value of the dissenting offeree’s shares in accordance with sections 294 to 297 by notifying the offeror within twenty days after receipt of the offeror’s notice; 
  (d) a dissenting offeree who does not notify the offeror in accordance with paragraph 291(b) is deemed to have elected to transfer the shares to the offeror on the same terms on which the offeror acquired the shares from the offerees who accepted the take-over bid; and 
  (e) a dissenting offeree must send the dissenting offeree’s shares to which the take-over bid relates to the offeree company within twenty days after the dissenting offeree receives the offeror’s notice. 
  
  ### Notice of adverse claim
  
  (2) Concurrently with sending the offeror’s notice under subsection (1), the offeror shall send to the offeree company a notice of adverse claim in accordance with subsection 132(1) with respect to each share held by a dissenting offeree. 
  
  ### Share certificates and election
  
  291 A dissenting offeree to whom a notice is sent under subsection 290(1) shall within 20 days after receiving the notice 
  (a) send to the offeree company the share certificates representing the shares to which the take-over bid relates; and 
  (b) elect to transfer the shares to the offeror on the same terms as those on which the offeror acquired shares from the offerees who accepted the take-over bid or to demand payment of the fair value of the shares in accordance with sections 294 to 297 by notifying the offeror. 
  
  ### Deemed election
  
  291.1 A dissenting offeree who does not notify the offeror in accordance with paragraph 291(b) is deemed to have elected to transfer the shares to the offeror on the same terms as those on which the offeror acquired shares from the offerees who accepted the take-over bid. 
  
  ### Payment to offeree company
  
  292 (1) Within 20 days after the offeror sends a notice under subsection 290(1), the offeror shall pay the money, or transfer the other consideration, to the offeree company that the offeror would have had to pay or transfer to a dissenting offeree if the dissenting offeree had elected to transfer their shares in accordance with paragraph 291(b). 
  
  ### Consideration in trust
  
  (2) An offeree company is deemed to hold in a fiduciary capacity for the dissenting offerees the money or other consideration it receives under subsection (1). 
  
  ### Deposit or custody
  
  (3) An offeree company shall deposit the money received under subsection (1) in a separate account in another deposit-taking financial institution in Canada and the offeree company shall place any other consideration in the custody of another deposit-taking financial institution in Canada. 
  
  ### Fiduciary capacity of company
  
  292.1 A company that is making a take-over bid to repurchase all of the shares of a class is deemed to hold in a fiduciary capacity for the dissenting shareholders the money that it would have had to pay, and the other consideration that it would have had to transfer, to a dissenting offeree if the dissenting offeree had elected to transfer their shares in accordance with paragraph 291(b). The company shall within 20 days after a notice is sent under subsection 290(1) deposit the money in a separate account in another deposit-taking financial institution in Canada and place any other consideration in the custody of another deposit-taking financial institution in Canada. 
  
  ### Duty of offeree company
  
  293 Within thirty days after an offeror sends an offeror’s notice under subsection 290(1), the offeree company shall 
  (a) if the payment or transfer required by subsection 292(1) is made, issue to the offeror a share certificate in respect of the shares that were held by the dissenting offerees; 
  (b) give to each dissenting offeree who elects to transfer shares under paragraph 291(b) and who sends the share certificates as required under paragraph 291(a) the money or other consideration to which they are entitled, disregarding fractional shares, which may be paid for in money; and 
  (c) if the payment or transfer required by subsection 292(1) is made and the money or other consideration is deposited as required by subsections 292(2) and (3) or section 292.1, send to each dissenting offeree who has not sent share certificates as required under paragraph 291(a) a notice stating that 
  (i) their shares have been cancelled, 
  (ii) the offeree company or its designated person holds in a fiduciary capacity for that offeree the money or other consideration to which they are entitled as payment for or in exchange for the shares, and 
  (iii) the offeree company will, subject to sections 294 to 297, send that money or other consideration to that offeree without delay after receiving the share certificates. 
  
  ### Court may fix fair value
  
  294 (1) If a dissenting offeree has elected to demand payment of the fair value of their shares under paragraph 291(b), the offeror may, within 20 days after it has paid the money or transferred the other consideration under subsection 292(1), apply to a court to fix the fair value of the shares of that dissenting offeree. 
  
  ### Idem
  
  (2) If an offeror fails to apply to a court under subsection (1), a dissenting offeree may apply to a court for the same purpose within a further period of twenty days. 
  
  ### Venue
  
  (3) An application under subsection (1) or (2) shall be made to a court having jurisdiction in the place at which the head office of the company is situated or in the province in which the dissenting offeree resides if the company carries on business in that province. 
  
  ### No security for costs
  
  (4) A dissenting offeree is not required to give security for costs in an application made under subsection (1) or (2). 
  
  ### Parties and notice
  
  295 On an application under subsection 294(1) or (2), 
  (a) all dissenting offerees who have made elections to demand payment under paragraph 291(b) and whose shares have not been acquired by the offeror shall be joined as parties and are bound by the decision of the court; and 
  (b) the offeror shall notify each affected dissenting offeree of the date, place and consequences of the application and of the dissenting offeree’s right to appear and be heard in person or by counsel at the hearing of the application. 
  
  ### Powers of court
  
  296 (1) On an application to a court under subsection 294(1) or (2), the court may determine whether any other person is a dissenting offeree who should be joined as a party, and the court shall then fix a fair value for the shares of all dissenting offerees. 
  
  ### Appraisers
  
  (2) A court may in its discretion appoint one or more appraisers to assist the court in fixing a fair value for the shares of a dissenting offeree. 
  
  ### Final order
  
  (3) The final order of a court shall be made against the offeror in favour of each dissenting offeree and for the amount for each dissenting offeree’s shares as fixed by the court. 
  
  ### Additional powers of court
  
  (4) In connection with proceedings under subsection 294(1) or (2), a court may make any order it thinks fit and, without limiting the generality of the foregoing, may 
  (a) fix the amount of money or other consideration that is deemed to be held in a fiduciary capacity under subsection 292(2) or section 292.1; 
  (b) order that the money or other consideration is to be held in trust by a person other than the offeree company; 
  (c) allow a reasonable rate of interest on the amount payable to each dissenting offeree from the date the dissenting offeree sends the share certificates required under section 291 until the date of payment; or 
  (d) order that any money payable to a shareholder who cannot be found is to be paid to the Minister. 
  
  ### Status of dissenter
  
  297 Where no application is made to a court under subsection 294(2) within the period set out in that subsection, a dissenting offeree is deemed to have elected to transfer the dissenting offeree’s shares to the offeror on the same terms on which the offeror acquired the shares from the offerees who accepted the take-over bid. 
  
  ### Payment of unclaimed money
  
  298 The Minister shall pay to the Bank of Canada any amounts paid to the Minister under subsection 296(4), and section 372 applies in respect thereof as if the amounts paid under subsection 296(4) had been paid under subsection 371(3). 
  
  ### Obligation to acquire shares
  
  298.1 (1) If a shareholder who holds shares of an offeree company does not receive the notice referred to in subsection 290(1), the shareholder may require the offeror to acquire the shares 
  (a) within 90 days after the date of termination of the take-over bid; or 
  (b) if the shareholder did not receive an offer under the take-over bid, within 90 days after the later of 
  (i) the date of termination of the take-over bid, and 
  (ii) the day on which the shareholder learned of the take-over bid. 
  
  ### Acquisition on same terms
  
  (2) If the shareholder requires the offeror to acquire shares, the offeror shall acquire them on the same terms as those on which the offeror acquires shares from offerees who accept the take-over bid. 
  
  ## Trust Indentures 
  
  ### Definitions
  
  299 In this section and sections 300 to 311,  
  *event of default* means, in relation to a trust indenture, an event specified in the trust indenture on the occurrence of which the principal, interest and other moneys payable thereunder become or may be declared to be payable before maturity, but the event is not an event of default until all the conditions set out in the trust indenture in connection with the giving of notice of the event have been satisfied or the period of time for giving the notice has elapsed; (cas de défaut)   
  *issuer* means a company that has issued, is about to issue or is in the process of issuing subordinated indebtedness; (émetteur)   
  *trustee* means any person appointed as trustee under the terms of a trust indenture to which a company is a party, and includes any successor trustee; (fiduciaire)   
  *trust indenture* means any deed, indenture or other instrument, including any supplement or amendment thereto, made by a company under which the company issues subordinated indebtedness and in which a person is appointed as trustee for the holders of the subordinated indebtedness issued thereunder. (acte de fiducie)  
  
  ### Application
  
  300 Sections 301 to 311 apply in respect of a trust indenture if the subordinated indebtedness issued or to be issued under the trust indenture is part of a distribution to the public. 
  
  ### Exemption
  
  301 The Superintendent may, in writing, exempt a trust indenture from the application of sections 302 to 311 if, in the Superintendent’s opinion, the trust indenture and the subordinated indebtedness are subject to a law of a province or other jurisdiction, other than Canada, that is substantially equivalent to the provisions of this Act relating to trust indentures. 
  
  ### Conflict of interest
  
  302 (1) No person shall be appointed as trustee if at the time of the appointment there is a material conflict of interest between the person’s role as trustee and any other role of the person. 
  
  ### Eliminating conflict of interest
  
  (2) A trustee shall, within ninety days after the trustee becomes aware that a material conflict of interest exists, 
  (a) eliminate the conflict of interest; or 
  (b) resign from office. 
  
  ### Validity despite conflict
  
  303 A trust indenture and any subordinated indebtedness issued thereunder are valid notwithstanding a material conflict of interest of the trustee. 
  
  ### Removal of trustee
  
  304 If a trustee is appointed in contravention of subsection 302(1) or if a trustee contravenes subsection 302(2), any interested person may apply to a court for an order that the trustee be replaced, and the court may make an order on such terms as it thinks fit. 
  
  ### Trustee qualifications
  
  305 A trustee, or at least one of the trustees if more than one is appointed, must be 
  (a) a company that is a trust company pursuant to subsection 57(2); or 
  (b) a body corporate that is incorporated by or under an Act of the legislature of a province and authorized to carry on business as a trustee. 
  
  ### List of security holders
  
  306 (1) A holder of subordinated indebtedness issued under a trust indenture may, on payment to the trustee of a reasonable fee and on delivery of a statutory declaration to the trustee, require the trustee to provide, within fifteen days after the delivery to the trustee of the statutory declaration, a list setting out 
  (a) the names and addresses of the registered holders of the outstanding subordinated indebtedness, 
  (b) the principal amount of outstanding subordinated indebtedness owned by each such holder, and 
  (c) the aggregate principal amount of subordinated indebtedness outstanding as shown on the records maintained by the trustee on the day the statutory declaration is delivered to that trustee. 
  
  ### Duty of issuer
  
  (2) On the demand of a trustee, the issuer of subordinated indebtedness shall provide the trustee with the information required to enable the trustee to comply with subsection (1). 
  
  ### Where applicant is entity
  
  (3) Where the person requiring the trustee to provide a list under subsection (1) is an entity, the statutory declaration required under that subsection shall be made by a director or an officer of the entity or a person acting in a similar capacity. 
  
  ### Contents of statutory declaration
  
  (4) The statutory declaration required under subsection (1) must state 
  (a) the name and address of the person requiring the trustee to provide the list and, if the person is an entity, the address for service thereof; and 
  (b) that the list will not be used except as permitted by subsection (5). 
  
  ### Use of list
  
  (5) No person shall use a list obtained under this section except in connection with 
  (a) an effort to influence the voting of the holders of subordinated indebtedness; 
  (b) an offer to acquire subordinated indebtedness; or 
  (c) any other matter relating to the subordinated indebtedness or the affairs of the issuer or guarantor thereof. 
  
  ### Compliance with trust indentures
  
  307 (1) An issuer or a guarantor of subordinated indebtedness issued or to be issued under a trust indenture shall, before undertaking 
  (a) the issue, certification and delivery of subordinated indebtedness under the trust indenture, or 
  (b) the satisfaction and discharge of the trust indenture, provide the trustee with evidence of compliance with the conditions in the trust indenture in respect thereof. 
  
  ### Compliance by issuer or guarantor
  
  (2) On the demand of a trustee, the issuer or guarantor of subordinated indebtedness issued or to be issued under a trust indenture shall provide the trustee with evidence of compliance with the conditions in the trust indenture by the issuer or guarantor in respect of any act to be done by the trustee at the request of the issuer or guarantor. 
  
  ### Evidence of compliance
  
  (3) The following documents constitute evidence of compliance for the purposes of subsections (1) and (2): 
  (a) a statutory declaration or certificate made by a director or an officer of the issuer or guarantor stating that the conditions referred to in subsections (1) and (2) have been complied with; 
  (b) an opinion of legal counsel that the conditions of the trust indenture requiring review by legal counsel have been complied with, if the trust indenture requires compliance with conditions that are subject to review by legal counsel; and 
  (c) an opinion or report of the auditors of the issuer or guarantor, or such other accountant as the trustee selects, that the conditions of the trust indenture have been complied with, if the trust indenture requires compliance with conditions that are subject to review by auditors. 
  
  ### Further evidence of compliance
  
  (4) The evidence of compliance referred to in subsection (3) shall include a statement by the person giving the evidence 
  (a) declaring that the person has read and understands the conditions of the trust indenture referred to in subsections (1) and (2); 
  (b) describing the nature and scope of the examination or investigation on which the person based the certificate, statement or opinion; and 
  (c) declaring that the person has made such examination or investigation as the person believes necessary to enable the statements to be made or the opinions contained or expressed therein to be given. 
  
  ### Trustee may require evidence
  
  308 (1) On the request of a trustee, the issuer or guarantor of subordinated indebtedness issued under a trust indenture shall provide the trustee with evidence in such form as the trustee requires of compliance with any condition thereof relating to any action required or permitted to be taken by the issuer or guarantor under the trust indenture. 
  
  ### Certificate of compliance
  
  (2) At least once in each twelve month period beginning on the date of the trust indenture and at any other time on the demand of a trustee, the issuer or guarantor of subordinated indebtedness issued under a trust indenture shall provide the trustee with a certificate stating that the issuer or guarantor has complied with all requirements contained in the trust indenture that, if not complied with, would, with the giving of notice, lapse of time or otherwise, constitute an event of default, or, if there has been failure to so comply, giving particulars thereof. 
  
  ### Notice of default
  
  309 A trustee shall, within thirty days after the trustee becomes aware of the occurrence thereof, give to the holders of subordinated indebtedness issued under a trust indenture notice of every event of default arising under the trust indenture and continuing at the time the notice is given, unless the trustee believes on reasonable grounds that it is in the best interests of the holders of the subordinated indebtedness to withhold the notice and so informs the issuer and guarantor in writing. 
  
  ### Duty of care
  
  310 (1) In exercising a trustee’s powers and discharging a trustee’s duties, the trustee shall 
  (a) act honestly and in good faith with a view to the best interests of the holders of the subordinated indebtedness issued under the trust indenture; and 
  (b) exercise the care, diligence and skill of a reasonably prudent trustee. 
  
  ### Reliance on statements
  
  (2) Notwithstanding subsection (1), a trustee is not liable if the trustee relies in good faith on statements contained in a statutory declaration, certificate, opinion or report that complies with this Act or the trust indenture. 
  
  ### No exculpation
  
  311 No term of a trust indenture or of any agreement between a trustee and the holders of subordinated indebtedness issued thereunder or between the trustee and the issuer or guarantor operates to relieve a trustee from the duties imposed on the trustee by sections 302, 306 and 309 and subsection 310(1). 
  
  ## Financial Statements and Auditors 
  
  ## Annual Financial Statement 
  
  ### Financial year
  
  312 (1) The financial year of a company ends, at the election of the company in its by-laws, on the expiration of the thirty-first day of October or the thirty-first day of December in each year. 
  
  ### First financial year
  
  (2) Where a company has, after the first day of July in any year, obtained an order approving the commencement and carrying on of business, the first financial year of the company ends, at the election of the company in its by-laws, on the expiration of the thirty-first day of October or the thirty-first day of December in the next calendar year. 
  
  ### Annual financial statement
  
  313 (1) The directors of a company shall place before the shareholders at every annual meeting 
  (a) a comparative annual financial statement (in this Act referred to as an “annual statement”) relating separately to 
  (i) the financial year immediately preceding the meeting, and 
  (ii) the financial year, if any, immediately preceding the financial year referred to in subparagraph (i); 
  (b) the report of the auditor of the company; and 
  (c) any further information respecting the financial position of the company and the results of its operations required by the by-laws of the company to be placed before the shareholders at the annual meeting. 
  
  ### Annual statement — contents
  
  (2) With respect to each of the financial years to which it relates, the annual statement of a company must contain the prescribed statements and any information that is in the opinion of the directors necessary to present fairly, in accord­ance with the accounting principles referred to in subsection (4), the financial position of the company as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the company for that financial year. 
  
  ### Additional information
  
  (3) A company shall include with its annual statement 
  (a) a list of the subsidiaries of the company, other than subsidiaries that are not required to be listed by the regulations and subsidiaries acquired pursuant to section 457 or pursuant to a realization of security in accordance with section 458 and which the company would not otherwise be permitted to hold, showing, with respect to each subsidiary, 
  (i) its name and the address of its head or principal office, 
  (ii) the book value of the aggregate of any shares of the subsidiary beneficially owned by the company and by other subsidiaries of the company, and 
  (iii) the percentage of the voting rights attached to all the outstanding voting shares of the subsidiary that is carried by the aggregate of any voting shares of the subsidiary beneficially owned by the company and by other subsidiaries of the company; and 
  (b) such other information as the Governor in Council may, by order, require in such form as may be prescribed. 
  
  ### Accounting principles
  
  (4) The financial statements referred to in subsection (1), paragraph (3)(b) and subsection 315(1) shall, except as otherwise specified by the Superintendent, be prepared in accordance with generally accepted accounting principles, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada. A reference in any provision of this Act to the accounting principles referred to in this subsection shall be construed as a reference to those generally accepted accounting principles with any specifications so made. 
  
  ### Regulations
  
  (5) The Governor in Council may make regulations respecting subsidiaries that are not required to be listed for the purposes of paragraph (3)(a). 
  
  ### Annual statement — approval
  
  314 (1) The directors of a company shall approve the annual statement and their approval shall be evidenced by the signature or a printed or otherwise mechanically reproduced facsimile of the signature of 
  (a) the chief executive officer or, in the event of that officer’s absence or inability to act, any other officer of the company authorized by the directors to sign in the stead of the chief executive officer; and 
  (b) one director, if the signature required by paragraph (a) is that of a director, or two directors if the signature required by that paragraph is that of an officer who is not a director. 
  
  ### Condition precedent to publication
  
  (2) A company shall not publish copies of an annual statement unless it is approved and signed in accordance with subsection (1). 
  
  ### Statements: subsidiaries
  
  315 (1) A company shall keep at its head office a copy of the current financial statements of each subsidiary of the company. 
  
  ### Examination
  
  (2) Subject to this section, the shareholders of a company and their personal representatives may, on request therefor, examine the statements referred to in subsection (1) during the usual business hours of the company and may take extracts therefrom free of charge. 
  
  ### Barring examination
  
  (3) A company may refuse to permit an examination under subsection (2) by any person. 
  
  ### Application for order
  
  (4) Within fifteen days after a refusal under subsection (3), the company shall apply to a court for an order barring the right of the person concerned to make an examination under subsection (2) and the court shall either order the company to permit the examination or, if it is satisfied that the examination would be detrimental to the company or to any other body corporate the financial statements of which would be subject to examination, bar the right and make any further order it thinks fit. 
  
  ### Notice to Superintendent
  
  (5) A company shall give the Superintendent and the person seeking to examine the statements referred to in subsection (1) notice of an application to a court under subsection (4), and the Superintendent and the person may appear and be heard in person or by counsel at the hearing of the application. 
  
  ### Annual statement — distribution
  
  316 (1) A company shall, no later than 21 days before the date of each annual meeting or before the signing of a resolution under paragraph 155(1)(b) in lieu of the annual meeting, send to each shareholder a copy of the documents referred to in subsections 313(1) and (3) unless that time period is waived by the shareholder. 
  
  ### Exception
  
  (2) A company is not required to comply with subsection (1) with respect to a shareholder who has informed the company, in writing, that the shareholder does not wish to receive the annual statement. 
  
  ### Effect of default
  
  (3) Where a company is required to comply with subsection (1) and the company does not comply with that subsection, the annual meeting at which the documents referred to in that subsection are to be considered shall be adjourned until that subsection has been complied with. 
  
  ### Copy to Superintendent
  
  317 (1) Subject to subsection (2), a company shall send to the Superintendent a copy of the documents referred to in subsections 313(1) and (3) not later than twenty-one days before the date of each annual meeting of shareholders of the company. 
  
  ### Later filing
  
  (2) If a company’s shareholders sign a resolution under paragraph 155(1)(b) in lieu of an annual meeting, the company shall send a copy of the documents referred to in subsections 313(1) and (3) to the Superintendent not later than thirty days after the signing of the resolution. 
  
  ## Auditor 
  
  ### Definitions
  
  318 For the purposes of this section and sections 319 to 338,  
  *firm of accountants* means a partnership, the members of which are accountants engaged in the practice of accounting, or a body corporate that is incorporated by or under an Act of the legislature of a province and engaged in the practice of accounting; (cabinet de comptables)   
  *member*, in relation to a firm of accountants, means  
  (a) an accountant who is a partner in a partnership, the members of which are accountants engaged in the practice of accounting, or 
  (b) an accountant who is an employee of a firm of accountants. ( membre)  
  
  ### Appointment of auditor
  
  319 (1) The shareholders of a company shall, by ordinary resolution at the first meeting of shareholders and at each succeeding annual meeting, appoint an auditor to hold office until the close of the next annual meeting. 
  
  ### Remuneration of auditor
  
  (2) The remuneration of an auditor may be fixed by ordinary resolution of the shareholders but, if not so fixed, shall be fixed by the directors. 
  
  ### Qualification of auditor
  
  320 (1) A natural person or firm of accountants is qualified to be an auditor of a company if 
  (a) in the case of a natural person, the person is an accountant who 
  (i) is a member in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province, 
  (ii) has at least five years experience at a senior level in performing audits of a financial institution, 
  (iii) is ordinarily resident in Canada, and 
  (iv) is independent of the company; and 
  (b) in the case of a firm of accountants, the member of the firm jointly designated by the firm and the company to conduct the audit of the company on behalf of the firm is qualified in accordance with paragraph (a). 
  
  ### Independence
  
  (2) For the purposes of subsection (1), 
  (a) independence is a question of fact; and 
  (b) a person is deemed not to be independent of a company if that person, a business partner of that person or a firm of accountants of which that person is a member 
  (i) is a business partner, director, officer or employee of the company or of any affiliate of the company or is a business partner of any director, officer or employee of the company or of any affiliate of the company, 
  (ii) beneficially owns or controls, directly or indirectly, a material interest in the shares of the company or of any affiliate of the company, or 
  (iii) has been a liquidator, trustee in bankruptcy, receiver or receiver and manager of any affiliate of the company within the two years immediately preceding the person’s proposed appointment as auditor of the company, other than an affiliate that is a subsidiary of the company acquired pursuant to section 457 or through a realization of security pursuant to section 458. 
  
  ### Business partners
  
  (2.1) For the purposes of subsection (2), 
  (a) in the case of the appointment of a natural person as the auditor of a company, a business partner of the person includes a shareholder of the business partner; and 
  (b) in the case of the appointment of a firm of accountants as the auditor of a company, a business partner of a member of the firm includes another member of the firm and a shareholder of the firm or of a business partner of the member. 
  
  ### Notice of designation
  
  (3) Within fifteen days after the appointment of a firm of accountants as auditor of a company, the company and the firm of accountants shall jointly designate a member of the firm who meets the qualifications described in subsection (1) to conduct the audit of the company on behalf of the firm and the company shall forthwith notify the Superintendent in writing of the designation. 
  
  ### New designation
  
  (4) Where for any reason a member of a firm of accountants designated pursuant to subsection (3) ceases to conduct the audit of the company, the company and the firm of accountants may jointly designate another member of the same firm of accountants who meets the qualifications described in subsection (1) to conduct the audit of the company and the company shall forthwith notify the Superintendent in writing of the designation. 
  
  ### Deemed vacancy
  
  (5) In any case where subsection (4) applies and a designation is not made pursuant to that subsection within thirty days after the designated member ceases to conduct the audit of the company, there shall be deemed to be a vacancy in the office of auditor of the company. 
  
  ### Duty to resign
  
  321 (1) An auditor who ceases to be qualified under section 320 shall resign forthwith after the auditor, where the auditor is a natural person, or any member of the firm of accountants, where the auditor is a firm of accountants, becomes aware that the auditor or the firm has ceased to be so qualified. 
  
  ### Disqualification order
  
  (2) Any interested person may apply to a court for an order declaring that an auditor of a company has ceased to be qualified under section 320 and declaring the office of auditor to be vacant. 
  
  ### Revocation of appointment
  
  322 (1) The shareholders of a company may, by ordinary resolution at a special meeting, revoke the appointment of an auditor. 
  
  ### Idem
  
  (2) The Superintendent may at any time revoke the appointment of an auditor made under subsection (3) or 319(1) or section 324 by notice in writing signed by the Superintendent and sent by registered mail to the auditor and to the company addressed to the usual place of business of the auditor and the company. 
  
  ### Filling vacancy
  
  (3) A vacancy created by the revocation of the appointment of an auditor under subsection (1) may be filled at the meeting at which the appointment was revoked and, if not so filled, shall be filled by the directors under section 324. 
  
  ### Ceasing to hold office
  
  323 (1) An auditor of a company ceases to hold office when 
  (a) the auditor resigns; 
  (b) the auditor, where the auditor is a natural person, dies; or 
  (c) the appointment of the auditor is revoked by the shareholders or the Superintendent. 
  
  ### Effective date of resignation
  
  (2) The resignation of an auditor becomes effective at the time a written resignation is sent to the company or at the time specified in the resignation, whichever is later. 
  
  ### Filling vacancy
  
  324 (1) Subject to subsection 322(3), where a vacancy occurs in the office of auditor of a company, the directors shall forthwith fill the vacancy, and the auditor so appointed holds office for the unexpired term of office of the predecessor of that auditor. 
  
  ### Where Superintendent may fill vacancy
  
  (2) Where the directors fail to fill a vacancy in accordance with subsection (1), the Superintendent may fill the vacancy and the auditor so appointed holds office for the unexpired term of office of the predecessor of that auditor. 
  
  ### Designation of member of firm
  
  (3) Where the Superintendent has, pursuant to subsection (2), appointed a firm of accountants to fill a vacancy, the Superintendent shall designate the member of the firm who is to conduct the audit of the company on behalf of the firm. 
  
  ### Right to attend meetings
  
  325 (1) The auditor of a company is entitled to receive notice of every meeting of shareholders and, at the expense of the company, to attend and be heard thereat on matters relating to the duties of the auditor. 
  
  ### Duty to attend meeting
  
  (2) If a director or shareholder of a company, whether or not the shareholder is entitled to vote at the meeting, gives written notice, not less than ten days before a meeting of shareholders, to an auditor or former auditor of the company that the director or shareholder wishes the auditor’s attendance at the meeting, the auditor or former auditor shall attend the meeting at the expense of the company and answer questions relating to the auditor’s or former auditor’s duties as auditor. 
  
  ### Notice to company
  
  (3) A director or shareholder who gives notice under subsection (2) shall send concurrently a copy of the notice to the company and the company shall forthwith send a copy thereof to the Superintendent. 
  
  ### Superintendent may attend
  
  (4) The Superintendent may attend and be heard at any meeting referred to in subsection (2). 
  
  ### Statement of auditor
  
  326 (1) An auditor of a company who 
  (a) resigns, 
  (b) receives a notice or otherwise learns of a meeting of shareholders called for the purpose of revoking the appointment of the auditor, or 
  (c) receives a notice or otherwise learns of a meeting of directors or shareholders at which another person is to be appointed in the auditor’s stead, whether because of the auditor’s resignation or revocation of appointment or because the auditor’s term of office has expired or is about to expire, shall submit to the company and the Superintendent a written statement giving the reasons for the resignation or the reasons why the auditor opposes any proposed action. 
  
  ### Other statements
  
  (1.1) In the case of a proposed replacement of an auditor whether because of removal or the expiry of their term, the company shall make a statement of the reasons for the proposed replacement and the proposed replacement auditor may make a statement in which they comment on those reasons. 
  
  ### Statements to be sent
  
  (2) The company shall send a copy of the statements referred to in subsections (1) and (1.1) without delay to every shareholder entitled to vote at the annual meeting of shareholders and to the Superintendent. 
  
  ### Duty of replacement auditor
  
  327 (1) Where an auditor of a company has resigned or the appointment of an auditor has been revoked, no person or firm shall accept an appointment as auditor of the company or consent to be the auditor of the company until the person or firm has requested and received from the other auditor a written statement of the circumstances and reasons why the other auditor resigned or why, in the other auditor’s opinion, the other auditor’s appointment was revoked. 
  
  ### Exception
  
  (2) Notwithstanding subsection (1), a person or firm may accept an appointment or consent to be appointed as auditor of a company if, within fifteen days after a request under that subsection is made, no reply from the other auditor is received. 
  
  ### Effect of non-compliance
  
  (3) Unless subsection (2) applies, an appointment as auditor of a company is void if subsection (1) has not been complied with. 
  
  ### Auditor’s examination
  
  328 (1) The auditor of a company shall make such examination as the auditor considers necessary to enable the auditor to report on the annual statement and on other financial statements required by this Act to be placed before the shareholders, except such annual statements or parts thereof as relate to the period referred to in subparagraph 313(1)(a)(ii). 
  
  ### Auditing standards
  
  (2) The auditor’s examination referred to in subsection (1) shall, except as otherwise specified by the Superintendent, be conducted in accordance with generally accepted auditing standards, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada. 
  
  ### Right to information
  
  329 (1) On the request of the auditor of a company, the present or former directors, officers, employees or agents of the company shall, to the extent that such persons are reasonably able to do so, 
  (a) permit access to such records, assets and security held by the company or any entity in which the company has a substantial investment, and 
  (b) provide such information and explanations as are, in the opinion of the auditor, necessary to enable the auditor to perform the duties of auditor of the company. 
  
  ### Directors to provide information
  
  (2) On the request of the auditor of a company, the directors of the company shall, to the extent that they are reasonably able to do so, 
  (a) obtain from the present or former directors, officers, employees and agents of any entity in which the company has a substantial investment the information and explanations that such persons are reasonably able to provide and that are, in the opinion of the auditor, necessary to enable the auditor to perform the duties of auditor of the company; and 
  (b) provide the auditor with the information and explanations so obtained. 
  
  ### No civil liability
  
  (3) A person who in good faith makes an oral or written communication under subsection (1) or (2) shall not be liable in any civil action arising from having made the communication. 
  
  ### Auditor’s report and extended examination
  
  330 (1) The Superintendent may, in writing, require that the auditor of a company report to the Superintendent on the extent of the auditor’s procedures in the examination of the annual statement and may, in writing, require that the auditor enlarge or extend the scope of that examination or direct that any other particular procedure be performed in any particular case, and the auditor shall comply with any such requirement of the Superintendent and report to the Superintendent thereon. 
  
  ### Special examination
  
  (2) The Superintendent may, in writing, require that the auditor of a company make a particular examination relating to the adequacy of the procedures adopted by the company for the safety of its creditors and shareholders, or any other examination as, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent thereon. 
  
  ### Idem
  
  (3) The Superintendent may direct that a special audit of a company be made if, in the opinion of the Superintendent, it is so required and may appoint for that purpose an accountant or a firm of accountants qualified pursuant to subsection 320(1) to be an auditor of the company. 
  
  ### Expenses payable by company
  
  (4) The expenses entailed by any examination or audit referred to in any of subsections (1) to (3) are payable by the company on being approved in writing by the Superintendent. 
  
  ### Auditor’s report
  
  331 (1) The auditor shall, not less than twenty-one days before the date of the annual meeting of the shareholders of the company, make a report in writing to the shareholders on the annual statement referred to in subsection 313(1). 
  
  ### Audit for shareholders
  
  (2) In each report required under subsection (1), the auditor shall state whether, in the auditor’s opinion, the annual statement presents fairly, in accordance with the accounting principles referred to in subsection 313(4), the financial position of the company as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the company for that financial year. 
  
  ### Auditor’s remarks
  
  (3) In each report referred to in subsection (2), the auditor shall include such remarks as the auditor considers necessary when 
  (a) the examination has not been made in accordance with the auditing standards referred to in subsection 328(2); 
  (b) the annual statement has not been prepared on a basis consistent with that of the preceding financial year; or 
  (c) the annual statement does not present fairly, in accordance with the accounting principles referred to in subsection 313(4), the financial position of the company as at the end of the financial year to which it relates or the results of the operations or changes in the financial position of the company for that financial year. 
  
  ### Report on directors’ statement
  
  332 (1) The auditor of a company shall, if required by the shareholders, audit and report to the shareholders on any financial statement submitted by the directors to the shareholders, and the report shall state whether, in the auditor’s opinion, the financial statement presents fairly the information required by the shareholders. 
  
  ### Making of report
  
  (2) A report of the auditor made under subsection (1) shall be attached to the financial statement to which it relates and a copy of the statement and report shall be sent by the directors to every shareholder and to the Superintendent. 
  
  ### Report to officers
  
  333 (1) It is the duty of the auditor of a company to report in writing to the chief executive officer and chief financial officer of the company any transactions or conditions that have come to the auditor’s attention affecting the well-being of the company that in the auditor’s opinion are not satisfactory and require rectification and, without restricting the generality of the foregoing, the auditor shall, as occasion requires, make a report to those officers in respect of 
  (a) transactions of the company that have come to the auditor’s attention and that in the auditor’s opinion have not been within the powers of the company, and 
  (b) loans owing to the company by any person the aggregate amount of which exceeds one half of one per cent of the regulatory capital of the company and in respect of which, in the auditor’s opinion, loss to the company is likely to occur, but when a report required under paragraph (b) has been made in respect of loans to any person, it is not necessary to report again in respect of loans to that person unless, in the opinion of the auditor, the amount of the loss likely to occur has increased. 
  
  ### Transmission of report
  
  (2) Where the auditor of a company makes a report under subsection (1), 
  (a) the auditor shall transmit the report, in writing, to the chief executive officer and chief financial officer of the company; 
  (b) the report shall be presented to the first meeting of the directors following its receipt; 
  (c) the report shall be incorporated in the minutes of that meeting; and 
  (d) the auditor shall, at the time of transmitting the report to the chief executive officer and chief financial officer, provide the audit committee of the company and the Superintendent with a copy. 
  
  ### Auditor of subsidiaries
  
  334 (1) A company shall take all necessary steps to ensure that its auditor is duly appointed as the auditor of each of its subsidiaries. 
  
  ### Subsidiary outside Canada
  
  (2) Subsection (1) applies in the case of a subsidiary that carries on its operations in a country other than Canada unless the laws of that country do not permit the appointment of the auditor of the company as the auditor of that subsidiary. 
  
  ### Exception
  
  (3) Subsection (1) does not apply in respect of any particular subsidiary where the company, after having consulted its auditor, is of the opinion that the total assets of the subsidiary are not a material part of the total assets of the company. 
  
  ### Auditor’s attendance
  
  335 (1) The auditor of a company is entitled to receive notice of every meeting of the audit committee and the conduct review committee of the company and, at the expense of the company, to attend and be heard at that meeting. 
  
  ### Attendance
  
  (2) If so requested by a member of the audit committee, the auditor shall attend every meeting of the audit committee held during the member’s term of office. 
  
  ### Calling meeting
  
  336 (1) The auditor of a company or a member of the audit committee may call a meeting of the audit committee. 
  
  ### Right to interview
  
  (2) The chief internal auditor of a company or any officer or employee of the company acting in a similar capacity shall, at the request of the auditor of the company and on receipt of reasonable notice, meet with the auditor. 
  
  ### Notice of errors
  
  337 (1) A director or an officer of a company shall forthwith notify the audit committee and the auditor of the company of any error or misstatement of which the director or officer becomes aware in an annual statement or other financial statement on which the auditor or any former auditor has reported. 
  
  ### Error noted by auditor
  
  (2) If the auditor or a former auditor of a company is notified or becomes aware of an error or misstatement in an annual statement or other financial statement on which the auditor reported and in the auditor’s opinion the error or misstatement is material, the auditor or former auditor shall inform each director of the company accordingly. 
  
  ### Duty of directors
  
  (3) When under subsection (2) the auditor or a former auditor of a company informs the directors of an error or misstatement in an annual statement or other financial statement, the directors shall 
  (a) prepare and issue a revised annual statement or financial statement; or 
  (b) otherwise inform the shareholders and the Superintendent of the error or misstatement. 
  
  ### Qualified privilege for statements
  
  338 Any oral or written statement or report made under this Act by the auditor or a former auditor of a company has qualified privilege. 
  
  ## Remedial Actions 
  
  ### Derivative action
  
  339 (1) Subject to subsection (2), a complainant or the Superintendent may apply to a court for leave to bring an action under this Act in the name and on behalf of a company or any of its subsidiaries, or to intervene in an action under this Act to which the company or a subsidiary of the company is a party, for the purpose of prosecuting, defending or discontinuing the action on behalf of the company or the subsidiary. 
  
  ### Conditions precedent
  
  (2) No action may be brought and no intervention in an action may be made under subsection (1) by a complainant unless the court is satisfied that 
  (a) the complainant has, not less than 14 days before bringing the application or as otherwise ordered by the court, given notice to the directors of the company or the company’s subsidiary of the complainant’s intention to apply to the court under subsection (1) if the directors of the company or the company’s subsidiary do not bring, diligently prosecute or defend or discontinue the action; 
  (b) the complainant is acting in good faith; and 
  (c) it appears to be in the interests of the company or the subsidiary that the action be brought, prosecuted, defended or discontinued. 
  
  ### Notice to Superintendent
  
  (3) A complainant under subsection (1) shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application. 
  
  ### Powers of court
  
  340 (1) In connection with an action brought or intervened in under subsection 339(1), the court may at any time make any order it thinks fit including, without limiting the generality of the foregoing, 
  (a) an order authorizing the Superintendent, the complainant or any other person to control the conduct of the action; 
  (b) an order giving directions for the conduct of the action; 
  (c) an order directing that any amount adjudged payable by a defendant in the action be paid, in whole or in part, directly to former and present security holders of the company or of the subsidiary instead of to the company or to the subsidiary; and 
  (d) an order requiring the company or the subsidiary to pay reasonable legal fees incurred by the Superintendent or the complainant in connection with the action. 
  
  ### Jurisdiction
  
  (2) Notwithstanding subsection (1), the court may not make any order in relation to any matter that would, under this Act, require the approval of the Minister or the Superintendent. 
  
  ### Status of shareholder approval
  
  341 (1) An application made or an action brought or intervened in under subsection 339(1) or section 343 need not be stayed or dismissed by reason only that it is shown that an alleged breach of a right or duty owed to the company or its subsidiary has been or might be approved by the shareholders of the company or subsidiary or both, but evidence of approval by the shareholders may be taken into account by the court in making an order under section 340. 
  
  ### Court approval to discontinue
  
  (2) An application made or an action brought or intervened in under subsection 339(1) or section 343 shall not be stayed, discontinued, settled or dismissed for want of prosecution without the approval of the court given on such terms as the court thinks fit and, if the court determines that the interests of any complainant might be substantially affected by any stay, discontinuance, settlement or dismissal, the court may order any party to the application or action to give notice to the complainant. 
  
  ### No security for costs
  
  342 (1) A complainant is not required to give security for costs in any application made or any action brought or intervened in under subsection 339(1) or section 343. 
  
  ### Interim costs
  
  (2) In an application made or an action brought or intervened in under subsection 339(1) or section 343, the court may at any time order the company or its subsidiary to pay to the complainant interim costs, including legal fees and disbursements, but the complainant may be held accountable by the court for those interim costs on final disposition of the application or action. 
  
  ### Application to rectify records
  
  343 (1) If the name of a person is alleged to be or to have been wrongly entered or retained in, or wrongly deleted or omitted from, the securities register or any other record of a company, the company, a security holder of the company or any aggrieved person may apply to a court for an order that the securities register or record be rectified. 
  
  ### Notice to Superintendent
  
  (2) An applicant under this section shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application. 
  
  ### Powers of court
  
  (3) In connection with an application under this section, the court may make any order it thinks fit including, without limiting the generality of the foregoing, 
  (a) an order requiring the securities register or other record of the company to be rectified; 
  (b) an order restraining a company from calling or holding a meeting of shareholders or paying a dividend before the rectification; 
  (c) an order determining the right of a party to the proceedings to have the party’s name entered or retained in, or deleted or omitted from, the securities register or records of the company, whether the issue arises between two or more security holders or alleged security holders, or between the company and any security holder or alleged security holder; and 
  (d) an order compensating a party who has incurred a loss. 
  
  ## Liquidation and Dissolution 
  
  ### Definition of “court”
  
  344 For the purposes of subsections 351(1) and 352(1) and (2), sections 353 to 357, subsection 358(1), sections 360 and 362 to 364, subsections 368(3) and (4) and section 373, 
  *court* means a court having jurisdiction in the place where the company has its head office.  
  
  ### Application of subsection (2) and sections 346 to 373
  
  345 (1) Subsection (2) and sections 346 to 373 do not apply to a company that is insolvent within the meaning of the Winding-up and Restructuring Act.  
  
  ### Staying proceedings on insolvency
  
  (2) Any proceedings taken under this Part to dissolve or to liquidate and dissolve a company shall be stayed if the company is at any time found to be insolvent within the meaning of the Winding-up and Restructuring Act.  
  
  ### Returns to Superintendent
  
  346 A liquidator appointed under this Part to wind up the business of a company shall provide the Superintendent with such information relating to the business and affairs of the company in such form as the Superintendent requires. 
  
  ## Simple Liquidation 
  
  ### No property and no liabilities
  
  347 (1) A company that has no property and no liabilities may, if authorized by a special resolution of the shareholders or, if there are no shareholders, by a resolution of all the directors, apply to the Minister for letters patent dissolving the company. 
  
  ### Dissolution by letters patent
  
  (2) Where the Minister has received an application under subsection (1) and is satisfied that all the circumstances so warrant, the Minister may issue letters patent dissolving the company. 
  
  ### Effect of letters patent
  
  (3) A company in respect of which letters patent are issued under subsection (2) ceases to exist on the day stated in the letters patent. 
  
  ### Proposing liquidation
  
  348 (1) The voluntary liquidation and dissolution of a company, other than a company referred to in subsection 347(1), 
  (a) may be proposed by its directors; or 
  (b) may be initiated by way of a proposal made by a shareholder who is entitled to vote at an annual meeting of shareholders in accordance with sections 146 and 147. 
  
  ### Terms must be set out
  
  (2) A notice of any meeting of shareholders at which the voluntary liquidation and dissolution of a company is to be proposed shall set out the terms of the proposal. 
  
  ### Shareholders’ resolution
  
  349 Where the voluntary liquidation and dissolution of a company is proposed, the company may apply to the Minister for letters patent dissolving the company if authorized by a special resolution of the shareholders or, where the company has issued more than one class of shares, by special resolution of each class of shareholders whether or not those shareholders are otherwise entitled to vote. 
  
  ### Approval of Minister required
  
  350 (1) No action directed toward the voluntary liquidation and dissolution of a company shall be taken by a company, other than as provided in sections 348 and 349, until an application made by the company pursuant to section 349 has been approved by the Minister. 
  
  ### Conditional approval
  
  (2) Where the Minister is satisfied on the basis of an application made pursuant to section 349 that the circumstances warrant the voluntary liquidation and dissolution of a company, the Minister may, by order, approve the application. 
  
  ### Effect of approval
  
  (3) Where the Minister has approved an application made pursuant to section 349 with respect to a company, the company shall not carry on business except to the extent necessary to complete its voluntary liquidation. 
  
  ### Liquidation process
  
  (4) Where the Minister has approved an application made pursuant to section 349 with respect to a company, the company shall 
  (a) cause notice of the approval to be sent to each known claimant against and creditor of the company; 
  (b) publish notice of the approval once a week for four consecutive weeks in the Canada Gazette and once a week for two consecutive weeks in one or more newspapers in general circulation in each province in which the company transacted any business within the preceding twelve months;  
  (c) proceed to collect its property, dispose of property that is not to be distributed in kind to its shareholders, discharge all its obligations and do all other acts required to liquidate its business; 
  (d) where the company is a trust company pursuant to subsection 57(2), make such arrangements as are necessary to transfer to another company that is a trust company pursuant to subsection 57(2) money or other assets held in trust by the company, other than assets held in respect of guaranteed trust money; and 
  (e) after giving the notice required under paragraphs (a) and (b) and adequately providing for the payment or discharge of all its obligations, distribute its remaining property, either in money or in kind, among its shareholders according to their respective rights. 
  
  ### Dissolution instrument
  
  351 (1) Unless a court has made an order in accordance with subsection 352(1), the Minister may, if satisfied that the company has complied with subsection 350(4) and that all the circumstances so warrant, issue letters patent dissolving the company. 
  
  ### Company dissolved
  
  (2) A company in respect of which letters patent are issued under subsection (1) is dissolved and ceases to exist on the day stated in the letters patent. 
  
  ## Court-supervised Liquidation 
  
  ### Application for court supervision
  
  352 (1) The Superintendent or any interested person may, at any time during the liquidation of a company, apply to a court for an order for the continuance of the voluntary liquidation under the supervision of the court in accordance with this section and sections 353 to 365 and on such application the court may so order and make any further order it thinks fit. 
  
  ### Idem
  
  (2) An application under subsection (1) to a court to supervise a voluntary liquidation shall state the reasons, verified by an affidavit of the applicant, why the court should supervise the liquidation. 
  
  ### Notice to Superintendent
  
  (3) Where a person, other than the Superintendent, makes an application under subsection (1), the person shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application. 
  
  ### Court supervision thereafter
  
  353 (1) When a court makes an order under subsection 352(1), the liquidation of the company shall continue under the supervision of the court. 
  
  ### Commencement of liquidation
  
  (2) The supervision of the liquidation of a company by the court pursuant to an order made under subsection 352(1) commences on the day the order is made. 
  
  ### Powers of court
  
  354 In connection with the liquidation and dissolution of a company, the court may, where it is satisfied 
  (a) that the company is able to pay or adequately provide for the discharge of all its obligations, and 
  (b) in the case of a company that is a trust company pursuant to subsection 57(2), that the company is able to make satisfactory arrangements for the protection of persons in relation to whom the company is acting in a fiduciary capacity, make any order it thinks fit including, without limiting the generality of the foregoing, 
  (c) an order to liquidate, 
  (d) an order appointing a liquidator, with or without security, fixing a liquidator’s remuneration and replacing a liquidator, 
  (e) an order appointing inspectors or referees, specifying their powers, fixing their remuneration and replacing inspectors or referees, 
  (f) an order determining the notice to be given to any interested person, or dispensing with notice to any person, 
  (g) an order determining the validity of any claims made against the company, 
  (h) an order, at any stage of the proceedings, restraining the directors and officers of the company from 
  (i) exercising any of their powers, or 
  (ii) collecting or receiving any debt or other property of the company, and from paying out or transferring any property of the company, except as permitted by the court, 
  (i) an order determining and enforcing the duty or liability of any present or former director, officer or shareholder 
  (i) to the company, or 
  (ii) for an obligation of the company, 
  (j) an order approving the payment, satisfaction or compromise of claims against the company and the retention of assets for that purpose, and determining the adequacy of provisions for the payment, discharge or transfer of any trust obligation or other obligation of the company, whether liquidated, unliquidated, future or contingent, 
  (k) with the concurrence of the Superintendent, an order providing for the disposal or destruction of the documents, records or registers of the company, 
  (l) on the application of a creditor, an inspector or the liquidator, an order giving directions on any matter arising in the liquidation, 
  (m) after notice has been given to all interested parties, an order relieving the liquidator from any omission or default on such terms as the court thinks fit and confirming any act of the liquidator, 
  (n) subject to sections 361 to 363, an order approving any proposed, interim or final distribution to shareholders, if any, or incorporators, in money or in property, 
  (o) an order disposing of any property belonging to creditors, shareholders and incorporators who cannot be found, 
  (p) on the application of any director, officer, shareholder, incorporator, creditor or the liquidator, 
  (i) an order staying the liquidation proceedings on such terms and conditions as the court thinks fit, 
  (ii) an order continuing or discontinuing the liquidation proceedings, or 
  (iii) an order to the liquidator to restore to the company all of its remaining property, and 
  (q) after the liquidator has rendered the liquidator’s final account to the court, an order directing the company to apply to the Minister for letters patent dissolving the company. 
  
  ### Cessation of business and powers
  
  355 (1) Where a court makes an order for the liquidation of a company, 
  (a) the company continues in existence but shall cease to carry on business, except the business that is, in the opinion of the liquidator, required for an orderly liquidation; and 
  (b) the powers of the directors and shareholders, if any, are vested in the liquidator and cease to be vested in the directors or shareholders, except as specifically authorized by the court. 
  
  ### Delegation by liquidator
  
  (2) A liquidator may delegate any of the powers vested by paragraph (1)(b) to the directors or shareholders, if any. 
  
  ### Appointment of liquidator
  
  356 When making an order for the liquidation of a company or at any time thereafter, the court may appoint any person, including a director, an officer or a shareholder of the company or any other company, as liquidator of the company. 
  
  ### Vacancy in liquidator’s office
  
  357 Where an order for the liquidation of a company has been made and the office of liquidator is or becomes vacant, the property of the company is under the control of the court until the office of liquidator is filled. 
  
  ### Duties of liquidator
  
  358 (1) A liquidator shall 
  (a) forthwith after appointment give notice thereof to the Superintendent and to each claimant and creditor of the company known to the liquidator; 
  (b) forthwith after appointment publish notice thereof once a week for four consecutive weeks in the Canada Gazette and once a week for two consecutive weeks in one or more newspapers in general circulation in each province in which the company has transacted any business within the preceding twelve months, requiring  
  (i) any person indebted to the company to render an account and pay to the liquidator at the time and place specified in the notice any amount owing, 
  (ii) any person possessing property of the company to deliver it to the liquidator at the time and place specified in the notice, and 
  (iii) any person having a claim against the company, whether liquidated, unliquidated, future or contingent, to present particulars thereof in writing to the liquidator not later than sixty days after the first publication of the notice; 
  (c) take into custody and control the property of the company; 
  (d) if the company is a trust company pursuant to subsection 57(2), make such arrangements as are necessary to transfer to another company that is a trust company pursuant to subsection 57(2) money or other assets held in trust by the company, other than assets held in respect of guaranteed trust money; 
  (e) open and maintain a trust account for the moneys received by the liquidator in the course of the liquidation of the company; 
  (f) keep accounts of the moneys received and paid out by the liquidator in the course of the liquidation of the company; 
  (g) maintain separate lists of each class of creditors, shareholders and other persons having claims against the company; 
  (h) if at any time the liquidator determines that the company is unable to pay or adequately provide for the discharge of its obligations, apply to the court for directions; 
  (i) deliver to the court and to the Superintendent, at least once in every twelve month period after the liquidator’s appointment or more often as the court requires, the annual statement of the company prepared in accordance with subsection 313(1) or prepared in such manner as the liquidator thinks proper or as the court requires; and 
  (j) after the final accounts are approved by the court, distribute any remaining property of the company among the shareholders, if any, or incorporators, according to their respective rights. 
  
  ### Powers of liquidator
  
  (2) A liquidator may 
  (a) retain lawyers, notaries, accountants, appraisers and other professional advisers; 
  (b) bring, defend or take part in any civil, criminal or administrative action or proceeding in the name and on behalf of the company; 
  (c) carry on the business of the company as required for an orderly liquidation; 
  (d) sell by public auction or private sale any property of the company; 
  (e) if the company is a trust company pursuant to subsection 57(2), make such arrangements as are necessary to transfer to another company that is a trust company pursuant to subsection 57(2) money or other assets held in trust by the company, other than assets held in respect of guaranteed trust money; 
  (f) do all acts and execute documents in the name and on behalf of the company; 
  (g) borrow money on the security of the property of the company; 
  (h) settle or compromise any claims by or against the company; and 
  (i) do all other things necessary for the liquidation of the company and distribution of its property. 
  
  ### Due diligence
  
  359 A liquidator is not liable if they exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on 
  (a) financial statements of the company represented to the liquidator by an officer of the company or in a written report of the auditor of the company fairly to reflect the financial condition of the company; or 
  (b) a report of a person whose profession lends credibility to a statement made by them. 
  
  ### Examination of others
  
  360 (1) Where a liquidator has reason to believe that any property of the company is in the possession or under the control of a person or that a person has concealed, withheld or misappropriated any such property, the liquidator may apply to the court for an order requiring that person to appear before the court at the time and place designated in the order and to be examined. 
  
  ### Restoration and compensation
  
  (2) Where an examination conducted pursuant to subsection (1) discloses that a person has concealed, withheld or misappropriated any property of the company, the court may order that person to restore the property or pay compensation to the liquidator. 
  
  ### Costs of liquidation
  
  361 A liquidator shall pay the costs of liquidation out of the property of the company and shall pay or make adequate provision for all claims against the company. 
  
  ### Final accounts
  
  362 (1) Within one year after the appointment of a liquidator and after paying or making adequate provision for all claims against the company, the liquidator shall apply to the court 
  (a) for approval of the final accounts of the liquidator and for an order permitting the distribution, in money or in kind, of the remaining property of the company to its shareholders, if any, or to the incorporators, according to their respective rights; or 
  (b) for an extension of time, setting out the reasons therefor. 
  
  ### Shareholder application
  
  (2) If a liquidator fails to make the application required by subsection (1), a shareholder of the company or, if there are no shareholders of the company, an incorporator may apply to the court for an order for the liquidator to show cause why a final accounting and distribution should not be made. 
  
  ### Notification of final accounts
  
  (3) A liquidator shall give notice of the liquidator’s intention to make an application under subsection (1) to the Superintendent, to each inspector appointed under section 354, to each shareholder of the company or, if there are no shareholders, to each incorporator and to any person who provided a security or fidelity bond for the liquidation. 
  
  ### Publication
  
  (4) The liquidator shall publish the notice required under subsection (3) in the Canada Gazette and once a week for two consecutive weeks in one or more newspapers in general circulation in each province in which the company has transacted any business within the preceding twelve months or as otherwise directed by the court.  
  
  ### Final order
  
  363 (1) If the court approves the final accounts rendered by a liquidator, the court shall make an order 
  (a) directing the company to apply to the Minister for letters patent dissolving the company; 
  (b) directing the custody or disposal of the documents, records and registers of the company; and 
  (c) discharging the liquidator except in respect of the duty of a liquidator under subsection (2). 
  
  ### Delivery of order
  
  (2) The liquidator shall forthwith send a certified copy of the order referred to in subsection (1) to the Superintendent. 
  
  ### Right to distribution of money
  
  364 (1) If in the course of the liquidation of a company the shareholders resolve to, or the liquidator proposes to, 
  (a) exchange all or substantially all of the remaining property of the company for securities of another entity that are to be distributed to the shareholders or to the incorporators, or 
  (b) distribute all or part of the remaining property of the company to the shareholders or to the incorporators in kind, a shareholder or incorporator may apply to the court for an order requiring the distribution of the remaining property of the company to be in money. 
  
  ### Powers of court
  
  (2) On an application under subsection (1), the court may order 
  (a) all of the remaining property of the company to be converted into and distributed in money; or 
  (b) the claim of any shareholder or incorporator applying under this section to be satisfied by a distribution in money. 
  
  ### Order by court
  
  (3) Where an order is made by a court under paragraph (2)(b), the court 
  (a) shall fix a fair value on the share of the property of the company attributable to the shareholder or incorporator; 
  (b) may in its discretion appoint one or more appraisers to assist the court in fixing a fair value in accordance with paragraph (a); and 
  (c) shall render a final order against the company in favour of the shareholder or incorporator for the amount of the share of the property of the company attributable to the shareholder or incorporator. 
  
  ### Dissolution by letters patent
  
  365 (1) On an application made pursuant to an order under paragraph 363(1)(a), the Minister may issue letters patent dissolving the company. 
  
  ### Company dissolved
  
  (2) A company in respect of which letters patent are issued under subsection (1) is dissolved and ceases to exist on the date of the issuance of the letters patent. 
  
  ## General 
  
  ### Definition of 
  *shareholder* and 
  *incorporator* 
  
  366 In sections 368 and 369, 
  *shareholder* and 
  *incorporator* include the heirs and personal representatives of a shareholder or incorporator.  
  
  ### Continuation of actions
  
  367 (1) Notwithstanding the dissolution of a company under this Part, 
  (a) a civil, criminal or administrative action or proceeding commenced by or against the company before its dissolution may be continued as if the company had not been dissolved; 
  (b) a civil, criminal or administrative action or proceeding may be brought against the company within two years after its dissolution as if the company had not been dissolved; and 
  (c) any property that would have been available to satisfy any judgment or order if the company had not been dissolved remains available for that purpose. 
  
  ### Service on company
  
  (2) Service of a document on a company after its dissolution may be effected by serving the document on a person shown as a director in the incorporating instrument of the company or, if applicable, in the latest return sent to the Superintendent under section 499. 
  
  ### Limitations on liability
  
  368 (1) Notwithstanding the dissolution of a company, a shareholder or incorporator to whom any of its property has been distributed is liable to any person claiming under subsection 367(1) to the extent of the amount received by that shareholder or incorporator on the distribution. 
  
  ### Limitation
  
  (2) An action to enforce liability under subsection (1) may not be commenced except within two years after the date of the dissolution of the company. 
  
  ### Action against class
  
  (3) A court may order an action referred to in subsections (1) and (2) to be brought against the persons who were shareholders or incorporators as a class, subject to such conditions as the court thinks fit. 
  
  ### Reference
  
  (4) If the plaintiff establishes a claim in an action under subsection (3), the court may refer the proceedings to a referee or other officer of the court who may 
  (a) add as a party to the proceedings each person found by the plaintiff to have been a shareholder or incorporator; 
  (b) determine, subject to subsection (1), the amount that each person who was a shareholder or incorporator must contribute towards satisfaction of the plaintiff’s claim; and 
  (c) direct payment of the amounts so determined. 
  
  ### Where creditor cannot be found
  
  369 Where a creditor, shareholder or incorporator to whom property is to be distributed on the dissolution of a company cannot be found, the portion of the property to be distributed to that creditor, shareholder or incorporator shall be converted into money and paid in accordance with section 371. 
  
  ### Vesting in Crown
  
  370 Subject to subsection 367(1) and sections 371 and 372, property of a company that has not been disposed of at the date of the dissolution of the company vests in Her Majesty in right of Canada. 
  
  ### Unclaimed money on winding-up
  
  371 (1) Notwithstanding the Winding-up and Restructuring Act, where the business of a company is being wound up, the liquidator or the company shall pay to the Minister on demand and in any event before the final winding-up of that business any amount that is payable by the liquidator or the company to a creditor, shareholder or incorporator of the company to whom payment thereof has not, for any reason, been made.  
  
  ### Records
  
  (2) Where a liquidator or a company makes a payment to the Minister under subsection (1) with respect to a creditor, shareholder or incorporator, the liquidator or company shall concurrently forward to the Minister all documents, records and registers in the possession of the liquidator or company that relate to the entitlement of the creditor, shareholder or incorporator. 
  
  ### Payment to Bank of Canada
  
  (3) The Minister shall pay to the Bank of Canada all amounts paid to the Minister under subsection (1) and shall provide the Bank of Canada with any document, record or register received by the Minister under subsection (2). 
  
  ### Liquidator and company discharged
  
  (4) Payment by a liquidator or a company to the Minister under subsection (1) discharges the liquidator and the company in respect of which the payment is made from all liability for the amount so paid, and payment by the Minister to the Bank of Canada under subsection (3) discharges the Minister from all liability for the amount so paid. 
  
  ### Liability of Bank of Canada
  
  372 (1) Subject to section 22 of the Bank of Canada Act, where payment has been made to the Bank of Canada of an amount under subsection 371(3), the Bank of Canada, if payment is demanded by a person who, but for subsection 371(4), would be entitled to receive payment of that amount from the liquidator, the company or the Minister, is liable to pay to that person at its head office an amount equal to the amount so paid to it, with interest thereon for the period, not exceeding ten years, from the day on which the payment was received by the Bank of Canada until the date of payment to the person, at such rate and computed in such manner as the Minister determines.  
  
  ### Enforcing liability
  
  (2) The liability of the Bank of Canada under subsection (1) may be enforced by action against the Bank of Canada in the court in the province in which the debt or instrument was payable. 
  
  ### Custody of records after dissolution
  
  373 A person who has been granted custody of the documents, records and registers of a dissolved company shall keep them available for production for six years following the date of the dissolution of the company or until the expiration of such shorter period as may be ordered by the court when it orders the dissolution. 
  
  ### Insolvency
  
  374 (1) In the case of the insolvency of a company, 
  (a) the payment of any amount due to Her Majesty in right of Canada, in trust or otherwise, except indebtedness evidenced by subordinated indebtedness, shall be a first charge on the assets of the company; 
  (b) the payment of any amount due to Her Majesty in right of a province, in trust or otherwise, except indebtedness evidenced by subordinated indebtedness, shall be a second charge on the assets of the company; 
  (c) the payment of the deposit liabilities of the company and all other liabilities of the company, except the liabilities referred to in paragraphs (d) and (e), shall be a third charge on the assets of the company; 
  (d) subordinated indebtedness of the company and all other liabilities that by their terms rank equally with or subordinate to such subordinated indebtedness shall be a fourth charge on the assets of the company; and 
  (e) the payment of any fines and penalties for which the company is liable shall be a last charge on the assets of the company. 
  
  ### Priority not affected
  
  (2) Nothing in subsection (1) prejudices or affects the priority of any holder of any security interest in any property of a company. 
  
  ### Priorities
  
  (3) Priorities within each of paragraphs (1)(a) to (e) shall be determined in accordance with the laws governing priorities and, where applicable, by the terms of the indebtedness and liabilities referred to therein. 
  
  # PART VII 
  
  ## Ownership 
  
  # DIVISION I 
  
  ## Interpretation 
  
  ### Definitions
  
  374.1 The following definitions apply in this Part.  
  *agent* means  
  (a) in relation to Her Majesty in right of Canada or of a province, any agent of Her Majesty in either of those rights, and includes a municipal or public body empowered to perform a function of government in Canada or any entity empowered to perform a function or duty on behalf of Her Majesty in either of those rights, but does not include 
  (i) an official or entity performing a function or duty in connection with the administration or management of the estate or property of a natural person, 
  (ii) an official or entity performing a function or duty in connection with the administration, management or investment of a fund established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons, or moneys derived from such a fund, or 
  (iii) the trustee of any trust for the administration of a fund to which Her Majesty in either of those rights contributes and of which an official or entity that is an agent of Her Majesty in either of those rights is a trustee; and 
  (b) in relation to the government of a foreign country or any political subdivision thereof, a person empowered to perform a function or duty on behalf of the government of the foreign country or political subdivision, other than a function or duty in connection with the administration or management of the estate or property of a natural person. ( mandataire)   
  *eligible agent* means an agent or agency of Her Majesty in right of Canada or of a province or an agent or agency of a government of a foreign country or any political subdivision of a foreign country  
  (a) whose mandate is publicly available; 
  (b) that controls the assets of an investment fund in a manner intended to maximize long-term risk-adjusted returns and that fund is 
  (i) one to which, as the case may be, Her Majesty in right of Canada or of a province or the government of a foreign country or political subdivision contributes, or 
  (ii) established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons; and 
  (c) whose decisions with respect to the assets of the fund referred to in paragraph (b) are not influenced in any significant way by, as the case may be, Her Majesty in right of Canada or of the province or the government of the foreign country or the political subdivision. ( mandataire admissible)  
  
  ### Associates
  
  374.2 (1) For the purpose of determining ownership of a company by an eligible agent, where two persons, at least one of whom is an eligible agent, are associated with each other, those persons are deemed to be a single eligible agent who beneficially owns the aggregate number of shares of the company beneficially owned by them. 
  
  ### Associates
  
  (2) For the purposes of subsection (1), a person is associated with another person if 
  (a) each person is an agent or agency of Her Majesty in right of Canada; 
  (b) each person is an agent or agency of Her Majesty in right of the same province; 
  (c) each person is an agent or agency of a government of the same foreign country or a political subdivision of the same foreign country; 
  (d) one person is Her Majesty in right of Canada and the other person is an agent or agency of Her Majesty in that right; 
  (e) one person is Her Majesty in right of a province and the other person is an agent or agency of Her Majesty in right of that province; or 
  (f) one person is a government of a foreign country or any political subdivision of a foreign country and the other person is its agent or agency. 
  
  # DIVISION II 
  
  ## Constraints on Ownership 
  
  ### Constraining acquisition
  
  375 (1) No person, or entity controlled by a person, shall, without the approval of the Minister, purchase or otherwise acquire any share of a company or purchase or otherwise acquire control of any entity that holds any share of a company if 
  (a) the acquisition would cause the person to have a significant interest in any class of shares of the company; or 
  (b) where the person has a significant interest in a class of shares of the company, the acquisition would increase the significant interest of the person in that class of shares. 
  
  ### Amalgamation, etc., constitutes acquisition
  
  (2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares of a company, the entity is deemed to be acquiring a significant interest in that class of shares of the company through an acquisition for which the approval of the Minister is required under subsection (1). 
  
  ### Exemption
  
  (3) On application by a company, the Superintendent may exempt from the application of this section and section 376 any class of non-voting shares of the company if the aggregate book value of the shares of the class is not more than 30 per cent of the aggregate book value of all the outstanding shares of the company. 
  (4) and (5)  [Repealed, 2001, c. 9, s. 518]  
  
  ### No acquisition of control without approval
  
  375.1 (1) No person shall acquire control, within the meaning of paragraph 3(1)(d), of a company without the approval of the Minister. 
  
  ### Amalgamation, etc., constitutes acquisition
  
  (2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), a company, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the company through an acquisition for which the approval of the Minister is required under subsection (1). 
  
  ### Constraining registration
  
  376 No company shall, unless the acquisition of the share has been approved by the Minister, record in its securities register a transfer or issue of any share of the company to any person or to any entity controlled by a person if 
  (a) the transfer or issue of the share would cause the person to have a significant interest in any class of shares of the company; or 
  (b) where the person has a significant interest in a class of shares of the company, the transfer or issue of the share would increase the significant interest of the person in that class of shares of the company. 
  
  ### Exception — small holdings
  
  376.1 Despite section 376, if, as a result of a transfer or issue of shares of a class of shares of a company to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the company in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class, the company is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares of the company as a result of that issue or transfer of shares. 
  
  ### Where approval not required
  
  377 (1) Notwithstanding subsections 375(1) and (2) and section 376, approval of the Minister is not required where a person with a significant interest in a class of shares of a company or an entity controlled by a person with a significant interest in a class of shares of a company 
  (a) purchases or otherwise acquires shares of that class, or 
  (b) acquires control of any entity that holds any share of that class, and the number of shares of that class purchased or otherwise acquired, or the acquisition of control of the entity, as the case may be, would not increase the significant interest of the person in that class of shares of the company to a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever is applicable. 
  
  ### Percentage
  
  (2) Subject to subsection (3), for the purposes of subsection (1), the percentage is 5 percentage points in excess of the significant interest of the person in that class of shares of the company on the later of the day this Part comes into force and the day of the most recent purchase or other acquisition by 
  (a) the person, or 
  (b) any entity controlled by the person, other than the entity referred to in paragraph (1)(b), of shares of that class of shares of the company, or of control of an entity that held shares of that class of shares of the company, for which approval was given by the Minister. 
  
  ### Idem
  
  (3) Where a person has a significant interest in a class of shares of a company and the person’s percentage of that class has decreased after the date of the most recent purchase or other acquisition by 
  (a) the person, or 
  (b) any entity controlled by the person, other than the entity referred to in paragraph (1)(b), of shares of that class of shares of the company, or of control of an entity that held shares of that class of shares of the company, for which approval was given by the Minister, the percentage for the purposes of subsection (1) is the percentage that is the lesser of 
  (c) 5 percentage points in excess of the significant interest of the person in that class of shares of the company on the later of the day this Part comes into force and the day of the most recent purchase or other acquisition by 
  (i) the person, or 
  (ii) any entity controlled by the person, other than the entity referred to in paragraph (1)(b), of shares of that class of shares of the company, or of control of an entity that held shares of that class of shares of the company, for which approval was given by the Minister, and 
  (d) 10 percentage points in excess of the lowest significant interest of the person in that class of shares of the company at any time after the later of the day this Part comes into force and the day of the most recent purchase or other acquisition by 
  (i) the person, or 
  (ii) any entity controlled by the person, other than the entity referred to in paragraph (1)(b), of shares of that class of shares of the company, or of control of an entity that held shares of that class of shares of the company, for which approval was given by the Minister. 
  
  ### Exception — eligible agent
  
  (3.1) If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3). 
  
  ### Exception
  
  (4) Subsection (1) does not apply if the purchase or other acquisition of shares or the acquisition of control referred to in that subsection would 
  (a) result in the acquisition of control of the company by the person referred to in that subsection; 
  (b) where the person controls the company but the voting rights attached to the aggregate of any voting shares of the company beneficially owned by the person and by entities controlled by the person do not exceed 50 per cent of the voting rights attached to all of the outstanding voting shares of the company, cause the voting rights attached to that aggregate to exceed 50 per cent of the voting rights attached to all of the outstanding voting shares of the company; 
  (c) result in the acquisition of a significant interest in a class of shares of the company by an entity controlled by the person and the acquisition of that investment is not exempted by the regulations; or 
  (d) result in an increase in a significant interest in a class of shares of the company by an entity controlled by the person by a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever applies, and the increase is not exempted by the regulations. 
  
  ### Regulations
  
  (5) The Governor in Council may make regulations 
  (a) exempting from the application of paragraph (4)(c) the acquisition of a significant interest in a class of shares of the company by an entity controlled by the person; and 
  (b) exempting from the application of paragraph (4)(d) an increase in a significant interest in a class of shares of the company by an entity controlled by the person by a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever applies. 
  
  ### Where approval not required
  
  378 (1) Despite sections 375 and 376, the approval of the Minister is not required if 
  (a) the Superintendent has, by order, directed the company to increase its capital and shares of the company are issued and acquired in accordance with such terms and conditions as may be specified in the order; or 
  (b) a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the company acquires additional shares of the company. 
  
  ### Pre-approval
  
  (2) For the purposes of subsections 375(1) and (2) and section 376, the Minister may approve 
  (a) the purchase or other acquisition of such number or percentage of shares of a company as may be required in a particular transaction or series of transactions; or 
  (b) the purchase or other acquisition of up to a specified number or percentage of shares of a company within a specified period. 
  
  ### Public holding requirement
  
  379 (1) Every company shall, from and after the day determined under this section in respect of that company, have, and continue to have, voting shares that carry at least 35 per cent of the voting rights attached to all of the outstanding voting shares of the company and that are 
  (a) shares of one or more classes of shares that are listed and posted for trading on a recognized stock exchange in Canada; and 
  (b) shares none of which is beneficially owned by a person who is a major shareholder of the company in respect of the voting shares of the company or by any entity that is controlled by a person who is a major shareholder of the company in respect of such shares. 
  
  ### Determination of day
  
  (2) If the company has equity of two billion dollars or more on the day it comes into existence, the day referred to in subsection (1) is the day that is three years after that day and, in the case of any other company, the day referred to in subsection (1) is the day that is three years after the day of the first annual meeting of the shareholders of the company held after the equity of the company first reaches two billion dollars. 
  
  ### Extension
  
  (3) If general market conditions so warrant and the Minister is satisfied that a company has used its best efforts to be in compliance with this section on the day determined under subsection (2), the Minister may specify a later day as the day from and after which the company must comply with subsection (1). 
  
  ### Limit on assets
  
  380 (1) Unless an exemption order with respect to the company is granted under section 382, if a company fails to comply with section 379 in any month, the Minister may, by order, require the company not to have, until it complies with that section, average total assets in any three month period ending on the last day of a subsequent month exceeding the company’s average total assets in the three month period ending on the last day of the month immediately before the month specified in the order. 
  
  ### Average total assets
  
  (2) For the purposes of subsection (1), the average total assets of a company in a three month period shall be computed by adding the total assets of the company as calculated for the month end of each of the three months in the period and by dividing the sum by three. 
  
  ### Definition of 
  *total assets* 
  
  (3) For the purposes of subsections (1) and (2), 
  *total assets*, in respect of a company, has the meaning given that expression by the regulations.  
  
  ### Increase of capital
  
  381 Where the Superintendent has, by order, directed a company to increase its capital and shares of the company are issued and acquired in accordance with such terms and conditions as may be specified in the order, section 379 shall not apply in respect of the company until such time as the Superintendent may, by order, specify. 
  
  ### Exemption by Minister
  
  382 (1) On application by a company and subject to any terms that the Minister considers appropriate, the Minister may by order exempt the company from the requirements of section 379 if the Minister considers it appropriate to do so. 
  
  ### Compliance with s. 379
  
  (2) The company shall comply with section 379 as of the day on which the exemption order expires. 
  
  ### Limit on assets
  
  (3) If a company fails to comply with section 379 on the day referred to in subsection (2), it shall not, until it complies with that section, have average total assets in any three month period ending on the last day of a subsequent month exceeding its average total assets in the three month period ending on the last day of the month immediately preceding the day referred to in subsection (2) or on any later day that the Minister may specify by order. 
  
  ### Application of ss. 380(2) and (3)
  
  (4) Subsections 380(2) and (3) apply for the purposes of subsection (3). 
  
  ### Continuation of exemption
  
  382.1 (1) Despite subsection 382(2), if an exemption order that was granted in respect of a company under subsection 382(3) as it read before the day on which this section comes into force provides that it expires if the holding body corporate ceases to comply with section 379, the company is not required to comply with that section until six months after the day on which the holding body corporate ceased to comply with that section if the failure to comply is as a result of 
  (a) a distribution to the public of voting shares of the holding body corporate; 
  (b) a redemption or purchase of voting shares of the holding body corporate; 
  (c) the exercise of any option to acquire voting shares of the holding body corporate; or 
  (d) the conversion of any convertible securities into voting shares of the holding body corporate. 
  
  ### Shares acquiring voting rights
  
  (2) Despite subsection 382(2), if as a result of an event that has occurred and is continuing shares of a holding body corporate referred to in subsection (1) acquire voting rights in such number as to cause the holding body corporate to no longer be in compliance with section 379, the company is not required to comply with that section until six months after the day on which the holding body corporate ceased to comply with that section or any later day that the Minister may by order specify. 
  
  ### Exception
  
  383 (1) Where a company fails to comply with section 379 as the result of 
  (a) a distribution to the public of voting shares of the company, 
  (b) a redemption or purchase of voting shares of the company, 
  (c) the exercise of any option to acquire voting shares of the company, or 
  (d) the conversion of any convertible securities into voting shares of the company, section 380 shall not apply in respect of that company until the expiration of six months after the day the company failed to comply with section 379. 
  
  ### Shares acquiring voting rights
  
  (2) Where, as the result of an event that has occurred and is continuing, shares of a company acquire voting rights in such number as to cause the company to no longer be in compliance with section 379, section 380 shall not apply in respect of that company until the expiration of six months after the day the company ceased to be in compliance with section 379 or such later day as the Minister may, by order, specify. 
  (3) and (4)  [Repealed, 2005, c. 54, s. 445]  
  
  ### Acquisition of control permitted
  
  384 (1) Subject to subsection (2) and sections 376 and 385, section 379 does not apply in respect of the company if a person acquires control of a company with equity of two billion dollars or more through the purchase or other acquisition of all or any number of the shares of the company by the person or by any entity controlled by the person. 
  
  ### Undertaking required
  
  (2) Subsection (1) applies only if the person provides the Minister with an undertaking satisfactory to the Minister to do all things necessary so that, within three years after the acquisition, or any other period that the Minister may specify, the company has voting shares that carry at least 35 per cent of the voting rights attached to all of the outstanding voting shares of the company and that are 
  (a) shares of one or more classes of shares that are listed and posted for trading on a recognized stock exchange in Canada; and 
  (b) shares none of which is beneficially owned by a person who is a major shareholder of the company in respect of the voting shares of the company or by any entity that is controlled by a person who is a major shareholder of the company in respect of such shares. 
  
  ### Application of section 379
  
  385 At the expiration of the period for compliance with an undertaking referred to in subsection 384(2), section 379 shall apply in respect of the company to which the undertaking relates. 
  
  ### Restriction on voting rights
  
  386 (1) If, with respect to any company, a particular person contravenes section 375 or 375.1 or fails to comply with an undertaking referred to in subsection 384(2) or with any term or condition imposed under section 389, no person, and no entity controlled by the particular person, shall, in person or by proxy, exercise any voting rights 
  (a) that are attached to shares of the company beneficially owned by the particular person or any entity controlled by the particular person; or 
  (b) that are subject to an agreement entered into by the particular person, or any entity controlled by the particular person, pertaining to the exercise of the voting rights. 
  
  ### Subsection (1) ceases to apply
  
  (2) Subsection (1) ceases to apply in respect of a person when, as the case may be, 
  (a) the shares to which the contravention relates have been disposed of; 
  (b) the person ceases to control the company within the meaning of paragraph 3(1)(d); 
  (c) if the person failed to comply with an undertaking referred to in subsection 384(2), the company complies with section 379; or 
  (d) if the person failed to comply with a term or condition imposed under section 389, the person complies with the term or condition. 
  
  ## Approval Process 
  
  ### Application for approval
  
  387 (1) An application for an approval of the Minister required under this Part must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require. 
  
  ### Applicant
  
  (2) If, with respect to any particular transaction, this Part applies to more than one person, any one of those persons may make the application to the Minister for approval on behalf of all of those persons. 
  
  ### Matters for consideration
  
  388 (1) Subject to subsection (2), if an application for an approval under section 375 is made, the Minister, in determining whether or not to approve the transaction, shall take into account all matters that the Minister considers relevant to the application, including 
  (a) the nature and sufficiency of the financial resources of the applicant or applicants as a source of continuing financial support for the company; 
  (b) the soundness and feasibility of the plans of the applicant or applicants for the future conduct and development of the business of the company; 
  (c) the business record and experience of the applicant or applicants; 
  (d) the character and integrity of the applicant or applicants or, if the applicant or any of the applicants is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good character and integrity; 
  (e) whether the company will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution; 
  (f) the impact of any integration of the businesses and operations of the applicant or applicants with those of the company on the conduct of those businesses and operations; and 
  (g) the best interests of the financial system in Canada. 
  
  ### National treatment
  
  (2) Where a transaction in respect of which subsection 375(1) or (2) applies would cause a company to become a subsidiary of a foreign institution that is engaged in the trust and loan business, that does not have any other company as its subsidiary and that is a non-WTO Member foreign institution, the Minister shall not approve the transaction unless the Minister is satisfied that treatment as favourable for companies to which this Act applies exists or will be provided in the jurisdiction in which the foreign institution principally carries on business, either directly or through a subsidiary. 
  
  ### Part XII of the Bank Act 
  
  (3) Nothing in subsection (1) or (2) affects the operation of Part XII of the Bank Act.  
  
  ### Terms and conditions
  
  389 The Minister may impose any terms and conditions in respect of an approval given under this Part that the Minister considers necessary to ensure compliance with any provision of this Act. 
  
  ### Certifying receipt of application
  
  390 (1) If, in the opinion of the Superintendent, an application filed under this Part contains all the required information, the Superintendent shall without delay refer the application to the Minister and send a receipt to the applicant certifying the date on which the completed application was received by the Superintendent. 
  
  ### Incomplete application
  
  (2) If, in the opinion of the Superintendent, an application filed under this Part is incomplete, the Superintendent shall send a notice to the applicant specifying the information required by the Superintendent to complete the application. 
  
  ### Notice of decision to applicant
  
  391 (1) Subject to subsections (2) and (3) and 392(1), the Minister shall, within a period of thirty days after the certified date referred to in subsection 390(1), send to the applicant 
  (a) a notice approving the transaction to which the application relates; or 
  (b) where the Minister is not satisfied that the transaction to which the application relates should be approved, a notice to that effect, advising the applicant of the right to make representations to the Minister in respect of the matter. 
  
  ### Notice of decision
  
  (2) Subject to subsections (4) and 392(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 390(1) in the following cases: 
  (a) the application involves the acquisition of control of a company; 
  (b) the application is made by an eligible agent or an entity controlled by an eligible agent; or 
  (c) an application is made for the approval referred to in subsection 396(3). 
  
  ### Extension of period for notice
  
  (3) Where the Minister is unable to complete the consideration of an application within the period referred to in subsection (1), the Minister shall, 
  (a) within that period, send a notice to that effect to the applicant; and 
  (b) within a further period of thirty days after the date of the sending of the notice referred to in paragraph (a) or within such other further period as may be agreed on by the applicant and the Minister, send a notice referred to in paragraph (1)(a) or (b) to the applicant. 
  
  ### Idem
  
  (4) Where the Minister considers it appropriate to do so, the Minister may extend the period referred to in subsection (2) for one or more periods of forty-five days. 
  
  ### Reasonable opportunity to make representations
  
  392 (1) Where, after receipt of the notice referred to in paragraph 391(1)(b), the applicant advises the Minister that the applicant wishes to make representations, the Minister shall provide the applicant with a reasonable opportunity within a period of thirty days after the date of the notice, or within such further period as may be agreed on by the applicant and the Minister, to make representations in respect of the matter. 
  
  ### Reasonable opportunity to make representations
  
  (2) If, after receipt of the notice sent in accordance with subsection 391(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister shall provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter. 
  
  ### Notice of decision
  
  393 (1) Within a period of thirty days after the expiration of the period for making representations referred to in subsection 392(1), the Minister shall, in the light of any such representations and having regard to the matters to be taken into account, send a notice to the applicant indicating whether or not the Minister approves the share transaction to which the application relates. 
  
  ### Idem
  
  (2) Within a period of forty-five days after the expiration of the period for making representations referred to in subsection 392(2), the Minister shall, in the light of any such representations and having regard to the matters to be taken into account, send a notice to the applicant indicating whether or not the Minister approves the share transaction to which the application relates. 
  
  ### Deemed approval
  
  394 Where the Minister does not send a notice under subsection 391(1) or (3) or 393(1) within the period provided for in those subsections, the Minister is deemed to have approved the share transaction to which the application relates. 
  394.1 and 395  [Repealed, 1994, c. 47, s. 207]  
  
  ### Constraining registration: Crown and foreign governments
  
  396 (1) No company shall record in its securities register a transfer or issue of any share of the company to 
  (a) Her Majesty in right of Canada or of a province or any agent or agency of Her Majesty in either of those rights; or 
  (b) the government of a foreign country or any political subdivision thereof, or any agent or agency thereof. 
  
  ### Exception
  
  (2) Despite subsection (1), a company may record in its securities register a transfer or issue of any share of the company to a foreign institution that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share that is transferred or issued is beneficially owned by the foreign institution or by an entity controlled by the foreign institution. 
  
  ### Exception
  
  (3) Despite subsection (1), a company may, with the Minister’s approval, record in its securities register the issue of any share of the company to an eligible agent. 
  
  ### Application made jointly
  
  (4) The application for the approval referred to in subsection (3) must be made jointly by the company and the eligible agent. 
  
  ### Matters for consideration
  
  (5) The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 388(1)(a) to (g). 
  
  ### Consequence of revocation of approval
  
  (6) If an approval referred to in subsection (3) is revoked, the company shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent. 
  
  ### Disposition of shareholdings
  
  (7) If a company or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the company beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order. 
  
  ### Representations
  
  (8) No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction. 
  
  ### Appeal
  
  (9) Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 530. 
  397 and 398  [Repealed, 1994, c. 47, s. 208]  
  399 (1)  [Repealed, 1994, c. 47, s. 209]  
  
  ### Suspension of voting rights held by governments
  
  (2) Notwithstanding section 151, where any voting shares of a company are beneficially owned by 
  (a) Her Majesty in right of Canada or of a province or any agency of Her Majesty in either of those rights, or 
  (b) the government of a foreign country or any political subdivision thereof, or any agency thereof, no person shall, in person or by proxy, exercise the voting rights attached to those shares. 
  
  ### Exception
  
  (2.1) Subsection (2) does not apply to a foreign institution that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the shares referred to in subsection (1) are beneficially owned by the foreign institution or by an entity controlled by the foreign institution. 
  
  ### Transitional
  
  (3) Subsection (2) does not apply in respect of a government or agency referred to in that subsection that, on September 27, 1990, beneficially owned shares of a former-Act company where the exercise of the voting rights attached to those shares was not prohibited under subsection 41(2) of the Trust Companies Act or subsection 48(2) of the Loan Companies Act, as those subsections read immediately prior to June 1, 1992.  
  
  ### Transitional
  
  (4) Subsection (3) ceases to apply where a government or agency referred to in that subsection acquires beneficial ownership of any additional voting shares of the former-Act company in such number that the percentage of the voting rights attached to all of the voting shares of the former-Act company beneficially owned by the government or agency is greater than the percentage of the voting rights attached to all of the voting shares of the former-Act company that were beneficially owned by the government or agency on September 27, 1990. 
  
  ### Exception — eligible agent
  
  (5) Subsection (2) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 396(3). 
  
  ### Consequence of suspension of approval
  
  (6) If an approval referred to in subsection 396(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the company that is beneficially owned by the eligible agent. 
  400 and 400.1  [Repealed, 1994, c. 47, s. 210]  
  
  # DIVISION III 
  
  ## Directions 
  
  ### Disposition of shareholdings
  
  401 (1) If, with respect to any company, a person contravenes section 375 or 375.1 or fails to comply with an undertaking referred to in subsection 384(2) or with any terms and conditions imposed under section 389, the Minister may, if the Minister deems it in the public interest to do so, by order, direct that person and any person controlled by that person to dispose of any number of shares of the company beneficially owned by any of those persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by that person that is specified in the order. 
  
  ### Representations
  
  (2) No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction. 
  
  ### Appeal
  
  (3) Any person with respect to whom a direction has been made under subsection (1) may, within thirty days after the date of the direction, appeal the matter in accordance with section 530. 
  (4)  [Repealed, 2001, c. 9, s. 529]  
  
  ### Disposition — threat to integrity or security
  
  401.1 (1) If the Minister is of the opinion that a person’s holding or beneficial ownership of shares of a company poses a threat to the integrity or security of the company or the financial system in Canada or a threat to national security, the Minister may, by order, direct that person and any person controlled by that person to dispose of any number of shares of the company held or beneficially owned by any of the persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by the person that is specified in the order. 
  
  ### Suspension of rights
  
  (2) A direction made under subsection (1) may also suspend any of the rights under Part VI attached to the shares referred to in that subsection until the shares are disposed of in accordance with the direction. 
  
  ### Representations
  
  (3) No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the company concerned with a reasonable opportunity to make representations. 
  
  ### Temporary direction
  
  (4) If, in the Minister’s opinion, the length of time required for representations to be made under subsection (3) might be prejudicial to the public interest, the Minister may make a temporary direction to suspend any of the rights under Part VI attached to any of the shares referred to in subsection (1). 
  
  ### Cessation of effect
  
  (5) A temporary direction ceases to have effect on the earlier of 
  (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified in the temporary direction, and 
  (b) if a direction is made under subsection (1) in respect of the shares, the day on which that direction takes effect. 
  
  ### Appeal
  
  (6) Any person with respect to whom a direction has been made under subsection (1) may, within 30 days after the day on which the direction was made, appeal the matter in accordance with section 530. 
  
  ### Notice — Committee and Review Agency
  
  (7) If a direction has been made under subsection (1) or (4) for reasons related to national security, the Minister shall, within 30 days after the day on which the direction was made, notify 
  (a) the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act ; and  
  (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.  
  
  ### Application to court
  
  402 (1) If a person fails to comply with a direction made under subsection 396(7), 401(1) or 401.1(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction. 
  
  ### Court order
  
  (2) A court may, on an application under subsection (1), make such order as the circumstances require to give effect to the terms of the direction and may, without limiting the generality of the foregoing, require the company concerned to sell the shares that are the subject-matter of the direction. 
  
  ### Appeal
  
  (3) An appeal from an order of a court under this section lies in the same manner as, and to the same court to which, an appeal may be taken from any other order of the court. 
  
  ## General Provisions 
  
  ### Interest of securities underwriter
  
  403 This Part does not apply to a securities underwriter in respect of shares of a body corporate or ownership interests in an unincorporated entity that are acquired by the underwriter in the course of a distribution to the public of those shares or ownership interests and that are held by the underwriter for a period of not more than six months. 
  
  ### Arrangements to effect compliance
  
  404 (1) The directors of a company may make such arrangements as they deem necessary to carry out the intent of this Part and, in particular, but without limiting the generality of the foregoing, may 
  (a) require any person in whose name a share of the company is held to submit a declaration setting out 
  (i) the beneficial ownership of the share, and 
  (ii) such other information as the directors deem relevant for the purposes of this Part; 
  (b) require any person who wishes to have a transfer of a share registered in the name of, or to have a share issued to, that person to submit a declaration referred to in paragraph (a) as though the person were the holder of that share; and 
  (c) determine the circumstances in which a declaration referred to in paragraph (a) is to be required, the form of the declaration and the times at which it is to be submitted. 
  
  ### Order of Superintendent
  
  (2) The Superintendent may, by order, direct a company to obtain from any person in whose name a share of the company is held a declaration setting out the name of every entity controlled by that person and containing information concerning 
  (a) the ownership or beneficial ownership of the share; and 
  (b) such other related matters as are specified by the Superintendent. 
  
  ### Compliance required
  
  (3) As soon as possible after receipt by a company of a direction under subsection (2), 
  (a) the company shall comply with the direction; and 
  (b) every person who is requested by the company to provide a declaration containing information referred to in subsection (1) or (2) shall comply with the request. 
  
  ### Outstanding declaration: effect
  
  (4) Where, pursuant to this section, a declaration is required to be submitted by a shareholder or other person in respect of the issue or transfer of any share, a company may refuse to issue the share or register the transfer unless the required declaration is submitted. 
  
  ### Reliance on information
  
  405 A company and any person who is a director or an officer, employee or agent of the company may rely on any information contained in a declaration required by the directors pursuant to section 404 or on any information otherwise acquired in respect of any matter that might be the subject of such a declaration, and no action lies against the company or any such person for anything done or omitted to be done in good faith in reliance on any such information. 
  406  [Repealed, 1994, c. 47, s. 211]  
  
  ### Exemption regulations
  
  407 The Governor in Council may, by regulation, exempt from any of the provisions of this Part any share transaction or any class of share transactions involving the transfer of shares on the death of the beneficial owner thereof, or any arrangement made in contemplation of the death of the beneficial owner, to one or more members of the beneficial owner’s family, or to one or more trustees on their behalf. 
  
  ###  Competition Act 
  
  408 Nothing in, or done under the authority of, this Act affects the operation of the Competition Act.  
  
  # PART VIII 
  
  ## Business and Powers 
  
  ## General Business 
  
  ### Main business
  
  409 (1) Subject to this Act, a company shall not engage in or carry on any business other than such business generally as appertains to the business of providing financial services. 
  
  ### Idem
  
  (2) For greater certainty, a company may 
  (a) subject to section 412, act as a trustee; 
  (b) act as a financial agent, receiver, liquidator or sequestrator; 
  (c) provide investment counselling services and portfolio management services; and 
  (d) issue payment, credit or charge cards and, in cooperation with others including other financial institutions, operate a payment, credit or charge card plan. 
  
  ### Additional activities
  
  410 (1) In addition, a company may 
  (a) act as an agent for vendors, purchasers, mortgagors, mortgagees, lessors or lessees of real property and provide consulting or appraisal services in respect of real property; 
  (b) hold, manage and otherwise deal with real property; 
  (c) outside Canada, or with the prior written approval of the Minister, in Canada, engage in any of the following activities, namely, 
  (i) collecting, manipulating and transmitting 
  (A) information that is primarily financial or economic in nature, 
  (B) information that relates to the business of a permitted entity, as defined in subsection 449(1), or 
  (C) any other information that the Minister may, by order, specify, 
  (ii) providing advisory or other services in the design, development or implementation of information management systems, 
  (iii) designing, developing or marketing computer software, and 
  (iv) designing, developing, manufacturing or selling, as an ancillary activity to any activity referred to in any of subparagraphs (i) to (iii) that the company is engaging in, computer equipment integral to the provision of information services related to the business of financial institutions or to the provision of financial services; 
  (c.1) with the prior written approval of the Minister, develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used 
  (i) to provide information that is primarily financial or economic in nature, 
  (ii) to provide information that relates to the business of a permitted entity, as defined in subsection 449(1), or 
  (iii) for a prescribed purpose or in prescribed circumstances; 
  (d) in Canada, engage in such activities referred to in paragraph (c) that the company was engaged in prior to June 1, 1992; 
  (d.1) engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services; 
  (e) promote merchandise and services to the holders of any payment, credit or charge card issued by the company; 
  (f) engage in the sale of 
  (i) tickets, including lottery tickets, on a non-profit public service basis in connection with special, temporary and infrequent non-commercial celebrations or projects that are of local, municipal, provincial or national interest, 
  (ii) urban transit tickets, and 
  (iii) tickets in respect of a lottery sponsored by the federal government or a provincial or municipal government or an agency of any such government or governments; 
  (g) act as a custodian of property; and 
  (h) provide identification, authentication or verification services. 
  
  ### Restriction
  
  (2) Except as authorized by or under this Act, a company shall not deal in goods, wares or merchandise or engage in any trade or other business. 
  
  ### Regulations
  
  (3) The Governor in Council may make regulations 
  (a) respecting what a company may or may not do with respect to the carrying on of the activities referred to in paragraphs (1)(c), (c.1) and (d.1); 
  (b) imposing terms and conditions in respect of the provision of the services referred to in paragraphs (1)(a) and 409(2)(c) and the carrying on of the activities referred to in paragraphs (1)(c), (c.1) and (d.1); and 
  (c) respecting the circumstances in which companies may be exempted from the requirement to obtain the approval of the Minister before carrying on a particular activity referred to in paragraph (1)(c) or (c.1). 
  
  ### Networking
  
  411 Subject to section 416, a company may 
  (a) act as agent for any person in respect of the provision of any service that is provided by a financial institution, a permitted entity as defined in subsection 449(1) or a prescribed entity and may enter into an arrangement with any person in respect of the provision of that service; or 
  (b) refer any person to any such financial institution or entity. 
  
  ### Restriction on fiduciary activities
  
  412 No company, other than a company that is a trust company pursuant to subsection 57(2), shall act in Canada as 
  (a) an executor, administrator or official guardian or a guardian, tutor, curator, judicial adviser or committee of a mentally incompetent person; or 
  (b) a trustee for a trust. 
  
  ### Restriction on deposit taking
  
  413 (1) A company shall not accept deposits in Canada unless 
  (a) it is a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act ;  
  (b) it has been authorized under subsection 26.03(1) of that Act to accept deposits without being a member institution, as defined in section 2 of that Act; or 
  (c) the order approving the commencement and carrying on of business in Canada by the company authorizes it to accept deposits solely in accordance with subsection (2). 
  
  ### Deposits that fall below $150,000
  
  (2) A company referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after the company receives the authorization referred to in that paragraph, is the sum of all amounts each of which is the sum of all the deposits held by the company at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and is the sum of all amounts each of which is the sum of all deposits held by the company at the end of a day in those preceding 30 days and payable in Canada. 
  
  ### Exchange rate
  
  (3) For the purpose of subsection (2), the rate of exchange to be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada is to be determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act.  
  
  ### Definition of 
  *deposit* 
  
  (4) For the purpose of subsection (2), 
  *deposit* has the meaning that would be given to that term by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits.  
  
  ### Regulations
  
  (5) The Governor in Council may make regulations 
  (a) prescribing the deposits referred to in subsection (4); and 
  (b) prescribing terms and conditions with respect to the acceptance of those deposits. 
  
  ### Notice before opening account or providing prescribed product
  
  413.1 (1) Before a company referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the company shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product 
  (a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and 
  (b) any other information that may be prescribed. 
  
  ### Other notice
  
  (2) A company referred to in paragraph 413(1)(b) or (c) shall, in accordance with any regulations that may be made, 
  (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the company are not insured by the Canada Deposit Insurance Corporation; and 
  (b) include in its advertisements notices to inform the public that deposits with the company are not insured by the Canada Deposit Insurance Corporation. 
  
  ### Regulations
  
  (3) The Governor in Council may make regulations 
  (a) prescribing the manner in which notices referred to in subsection (1) are to be given and the additional information to be contained in the notices; and 
  (b) respecting notices for the purpose of subsection (2). 
  
  ### Deposits less than $150,000
  
  413.2 (1) Subject to the regulations, a company referred to in paragraph 413(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. 
  
  ### Definition of 
  *deposit* 
  
  (2) In this section, 
  *deposit* has the meaning assigned by subsection 413(4).  
  
  ### Regulations
  
  (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a company referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada. 
  
  ### Shared premises
  
  413.3 (1) Subject to the regulations, no company referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the company.  
  
  ### Limitation
  
  (2) Subsection (1) only applies in respect of premises or any portion of premises on which both the company and the member institution carry on business with the public and to which the public has access. 
  
  ### Adjacent premises
  
  (3) Subject to the regulations, no company referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the company, unless the company clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.  
  
  ### Regulations
  
  (4) The Governor in Council may make regulations 
  (a) respecting the circumstances in which, and the conditions under which, a company referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and 
  (b) respecting the circumstances in which, and the conditions under which, a company referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3). 
  
  ### Restriction on guarantees
  
  414 (1) A company shall not guarantee on behalf of any person the payment or repayment of any sum of money unless 
  (a) the sum of money is a fixed sum of money with or without interest thereon; and 
  (b) the person on whose behalf the company has undertaken to guarantee the payment or repayment has an unqualified obligation to reimburse the company for the full amount of the payment or repayment to be guaranteed. 
  
  ### Exception
  
  (2) Paragraph (1)(a) does not apply where the person on whose behalf the company has undertaken to guarantee a payment or repayment is a subsidiary of the company. 
  
  ### Idem
  
  (3) Notwithstanding subsection (1), a company may guarantee repayment of the principal or payment of the interest, or both, of any moneys entrusted to the company for investment, on such terms and conditions as are agreed on. 
  
  ### Regulations
  
  (4) The Governor in Council may make regulations imposing terms and conditions in respect of guarantees permitted by this section. 
  
  ### Restriction on securities activities
  
  415 A company shall not deal in Canada in securities to the extent prohibited or restricted by such regulations as the Governor in Council may make for the purposes of this section. 
  
  ### Prohibition
  
  415.1 (1) It is prohibited for a company to issue a debt obligation in relation to which the amounts of principal and interest owing are guaranteed to be paid from loans or other assets held by an entity that is created and organized for the principal purpose of holding those loans or other assets and with the intention of legally isolating those loans or other assets from the company, unless 
  (a) the debt obligation is a covered bond as defined in section 21.5 of the National Housing Act ;  
  (b) the company is a registered issuer as defined in section 21.5 of that Act other than one whose right to issue covered bonds has been suspended; and 
  (c) the debt obligation is issued under a registered program as defined in section 21.5 of that Act. 
  
  ### Exception
  
  (2) The Governor in Council may make regulations exempting any type of debt obligation from the application of subsection (1). 
  
  ### Restriction on insurance business
  
  416 (1) A company shall not undertake the business of insurance except to the extent permitted by this Act or the regulations. 
  
  ### Restriction on acting as agent
  
  (2) A company shall not act in Canada as agent for any person in the placing of insurance and shall not lease or provide space in any branch in Canada of the company to any person engaged in the placing of insurance. 
  
  ### Regulations
  
  (3) The Governor in Council may make regulations respecting the matters referred to in subsection (1) and regulations respecting relations between companies and 
  (a) entities that undertake the business of insurance; or 
  (b) insurance agents or insurance brokers. 
  
  ### Saving
  
  (4) Nothing in this section precludes a company from 
  (a) requiring insurance to be placed by a borrower for the security of the company; or 
  (b) obtaining group insurance for its employees or the employees of any bodies corporate in which it has a substantial investment pursuant to section 453. 
  
  ### No pressure
  
  (5) No company shall exercise pressure on a borrower to place insurance for the security of the company in any particular insurance company, but a company may require that an insurance company chosen by a borrower meet with its approval, which shall not be unreasonably withheld. 
  
  ### Definition of 
  *business of insurance* 
  
  (6) In this section, 
  *business of insurance* includes  
  (a) the issuance of any annuity if the liability in respect of the annuity is contingent on the death of a person; and 
  (b) the issuance of any debt obligation, any of whose terms and conditions are established on the basis of mortality considerations, under which the issuer is obliged to make periodic payments. 
  
  ### Restriction on leasing
  
  417 A company shall not engage in Canada in any personal property leasing activity in which a financial leasing entity, within the meaning of subsection 449(1), is not permitted to engage. 
  
  ### Restriction on residential mortgages
  
  418 (1) A company shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan. 
  
  ### Exception
  
  (2) Subsection (1) does not apply in respect of 
  (a) a loan made or guaranteed under the National Housing Act or any other Act of Parliament by or pursuant to which a different limit on the value of property on the security of which the company may make a loan is established;  
  (b) a loan if repayment of the amount of the loan that exceeds the maximum amount set out in subsection (1) is guaranteed or insured by a government agency or a private insurer approved by the Superintendent; 
  (c) the acquisition by the company from an entity of securities issued or guaranteed by the entity that are secured on any residential property, whether in favour of a trustee or otherwise, or the making of a loan by the company to the entity against the issue of such securities; or 
  (d) a loan secured by a mortgage where 
  (i) the mortgage is taken back by the company on a property disposed of by the company, including where the disposition is by way of a realization of a security interest, and 
  (ii) the mortgage secures payment of an amount payable to the company for the property. 
  
  ### Restriction on charges to borrowers
  
  418.1 (1) Subject to any regulations made under subsection (2), a company that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the company of the insurance or guarantee. 
  
  ### Regulations
  
  (2) The Governor in Council may make regulations 
  (a) respecting the determination of the actual cost to a company for the purposes of subsection (1); 
  (b) respecting the circumstances in which a company is exempt from the application of subsection (1); 
  (c) respecting, in relation to insurance or a guarantee against default on a loan made by a company in Canada on the security of residential property, 
  (i) the arrangements into which the company, its representatives and its employees may or may not enter, and 
  (ii) the payments or benefits that the company, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and 
  (d) respecting any other matters necessary to carry out the purposes of subsection (1). 
  
  ### Regulations — disclosure
  
  (3) The Governor in Council may make regulations respecting the disclosure by a company of information relating to insurance or a guarantee against default on a loan made by the company in Canada on the security of residential property, including regulations respecting 
  (a) the information that must be disclosed, including information relating to 
  (i) the person who benefits from the insurance or guarantee, 
  (ii) the arrangements between the company, its representatives or its employees and the insurer or the insurer’s affiliates, and 
  (iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates; 
  (b) the time and place at which, the form and manner in which and the persons to whom information is to be disclosed; and 
  (c) the circumstances under which a company is not required to disclose information. 
  
  ### Policies re security interests
  
  419 (1) The directors of a company shall establish and the company shall adhere to policies regarding the creation of security interests in property of the company to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests. 
  
  ### Order to amend policies
  
  (2) The Superintendent may, by order, direct a company to amend its policies as specified in the order. 
  
  ### Compliance
  
  (3) A company shall comply with an order made under subsection (2) within the time specified in the order. 
  
  ### Regulations and guidelines
  
  419.1 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by a company of security interests in its property to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests. 
  
  ### Exception
  
  419.2 Sections 419 and 419.1 do not apply in respect of a security interest created by a company to secure an obligation of the company to the Bank of Canada or the Canada Deposit Insurance Corporation. 
  
  ### Restriction on receivers
  
  420 A company shall not grant to a person the right to appoint a receiver or a receiver and manager of the property or business of the company. 
  
  ### Restriction on partnerships
  
  421 (1) Except with the approval of the Superintendent, a company may not be a general partner in a limited partnership or a partner in a general partnership. 
  
  ### Meaning of general partnership 
  
  (2) For the purposes of subsection (1), 
  *general partnership* means any partnership other than a limited partnership.  
  
  ## Fiduciary Activities 
  
  ### Separate and distinct
  
  422 (1) A company shall keep money and other assets acquired or held in trust by the company separate and distinct from its own assets and shall keep a separate account for each trust. 
  
  ### Common trust fund
  
  (2) Unless the instrument creating a trust otherwise provides, a company may invest money it holds in trust in one or more common trust funds. 
  
  ## Deposit Acceptance 
  
  ### Deposit acceptance
  
  423 (1) A company may, without the intervention of any other person, 
  (a) accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and 
  (b) pay all or part of the principal of the deposit and all or part of the interest thereon to or to the order of that person. 
  
  ### Exception
  
  (2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the company pursuant to paragraph (1)(a) is claimed by some other person 
  (a) in any action or proceeding to which the company is a party and in respect of which service of a writ or other process originating that action or proceeding has been made on the company, or 
  (b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the company not to make payment of that money or make payment thereof to some person other than the depositor has been served on the company, and, in the case of any such claim so made, the money so deposited may be paid to the depositor with the consent of the claimant or to the claimant with the consent of the depositor. 
  
  ### Guaranteed trust money
  
  (3) A company that is a trust company pursuant to subsection 57(2) shall accept deposits only as guaranteed trust money. 
  
  ### Profit
  
  (4) Notwithstanding subsection (3), a company that is a trust company pursuant to subsection 57(2) that accepts deposits may retain the interest and profit resulting from the investment thereof in excess of the amount of interest payable to its depositors in respect thereof. 
  
  ### Assets to be identified
  
  (5) Where a company that is a trust company pursuant to subsection 57(2) accepts deposits, the company shall identify on its books assets to be held in respect thereof equal to the aggregate amount of the deposits. 
  
  ### Execution of trust
  
  (6) A company is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject, other than a trust of which the company is a trustee. 
  
  ### Payment when company has notice of trust
  
  (7) Subsection (6) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the company has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made. 
  
  ## Unclaimed Balances 
  
  ### Unclaimed balances
  
  424 (1) Where 
  (a) a deposit has been made in Canada that is payable in Canada and in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during a period of 10 years 
  (i) in the case of a deposit made for a fixed period, from the day on which the fixed period terminated, and 
  (ii) in the case of any other deposit, from the day on which the last transaction took place or a statement of account was last requested or acknowledged by the creditor, whichever is later, or 
  (b) a cheque, draft or bill of exchange (including any of those instruments drawn by one branch of a company on another of its branches but not including an instrument issued in payment of a dividend on the capital of a company) payable in Canada has been issued, certified or accepted by a company in Canada and no payment has been made in respect of it for a period of 10 years after the date of issue, certification, acceptance or maturity, whichever is later, the company shall pay to the Bank of Canada not later than December 31 in each year an amount equal to the principal amount of the deposit or instrument, plus interest, if any, calculated in accordance with the terms of the deposit or instrument, and payment accordingly discharges the company from all liability in respect of the deposit or instrument. 
  
  ### Exchange rate
  
  (1.1) If a deposit referred to in paragraph (1)(a) or an instrument referred to in paragraph (1)(b) is not in Canadian currency, then, before paying to the Bank of Canada the amount required by subsection (1), the company shall convert the amount of the deposit or instrument to Canadian currency at a rate of exchange determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act.  
  
  ### Provision of information
  
  (2) A company shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the company: 
  (a) in the case of a deposit, 
  (i) the name of the depositor in whose name the deposit is held, as well as their date of birth and Social Insurance Number, if they are a natural person, 
  (ii) the recorded address of the depositor, 
  (iii) the outstanding amount of the deposit, and 
  (iv) the branch of the company at which the last transaction took place in respect of the deposit, and the date of that last transaction; and 
  (b) in the case of an instrument, 
  (i) the name of the person to whom or at whose request the instrument was issued, certified or accepted, as well as their date of birth and Social Insurance Number, if they are a natural person, 
  (ii) the recorded address of that person, 
  (iii) the name of the payee of the instrument, 
  (iv) the amount and date of the instrument, 
  (v) the name of the place where the instrument was payable, and 
  (vi) the branch of the company at which the instrument was issued, certified or accepted. 
  
  ### Copies of signature cards and signing authorities
  
  (2.1) A company shall provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada. 
  
  ### Payment to claimant
  
  (3) Subject to section 22 of the Bank of Canada Act, where payment has been made to the Bank of Canada under subsection (1) in respect of any deposit or instrument, and if payment is demanded or the instrument is presented at the Bank of Canada by the person who, but for that section, would be entitled to receive payment of the deposit or instrument, the Bank of Canada is liable to pay, at its agency in the province in which the deposit or instrument was payable, an amount equal to the amount so paid to it together with interest, if interest was payable under the terms of the deposit or instrument,  
  (a) for a period not exceeding ten years from the day on which the payment was received by the Bank of Canada until the date of payment to the claimant; and 
  (b) at such rate and computed in such manner as the Minister determines. 
  
  ### Enforcing liability
  
  (4) The liability of the Bank of Canada under subsection (3) may be enforced by action against the Bank of Canada in the court in the province in which the deposit or instrument was payable. 
  
  ### Application of subsection (1)
  
  (5) Subsection (1) applies only in respect of deposits made, and cheques, drafts and bills of exchange issued, certified or accepted after May 31, 1990. 
  
  ### Application
  
  (6) This section shall not apply until the day that is eight years after the day on which this section comes into force. 
  
  ### Notice of unpaid amount
  
  425 (1) A company shall send, by mail and by electronic means, to each person to whom a deposit referred to in paragraph 424(1)(a) is payable, or to each person to whom or at whose request an instrument referred to in paragraph 424(1)(b) was issued, certified or accepted, at their recorded address and electronic address in so far as they are known to the company, a notice stating that the deposit or instrument remains unpaid. 
  
  ### When notice to be given
  
  (2) A notice required by subsection (1) shall be given during the month of January next following the end of the first two year period, and also during the month of January next following the end of the first five year period, 
  (a) in the case of a deposit made for a fixed period, after the fixed period has terminated; 
  (b) in the case of any other deposit, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and 
  (c) in the case of a cheque, draft or bill of exchange, in respect of which the instrument has remained unpaid. 
  
  ### When notice to be sent
  
  (3) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period 
  (a)  [Repealed before coming into force, 2008, c. 20, s. 3]  
  (b) in the case of any other deposit, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and 
  (c)  [Repealed before coming into force, 2008, c. 20, s. 3]  
  
  ## Accounts 
  
  ### Definitions
  
  425.1 The following definitions apply in this section and in sections 431 to 434, 444.1 and 444.3.  
  *member company* means a company that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act. (société membre)   
  *personal deposit account* means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business. (compte de dépôt personnel)   
  *retail deposit account* means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed. (compte de dépôt de détail)  
  
  ### Account charges
  
  426 A company shall not, directly or indirectly, charge or receive any sum for the keeping of an account unless the charge is made by express agreement between the company and a customer or by order of a court. 
  
  ### Disclosure on opening account
  
  427 (1) A company shall not, after the day that is six months after the coming into force of this Part, open or maintain an interest-bearing deposit account in Canada in the name of any natural person unless the company discloses, in accordance with the regulations, to the person who requests the company to open the account, the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated. 
  
  ### Exception
  
  (2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that may be prescribed. 
  
  ### Disclosure in advertisements
  
  428 No person shall authorize the publication, issue or appearance of any advertisement in Canada that indicates the rate of interest offered by a company on an interest-bearing deposit or a debt obligation unless the advertisement discloses, in accordance with the regulations, how the amount of interest is to be calculated. 
  
  ### Disclosure regulations
  
  429 The Governor in Council may make regulations respecting 
  (a) the time and place at which and the form and manner in which disclosure is to be made by a company of 
  (i) interest rates applicable to debts of the company and deposits with the company, and 
  (ii) the manner in which the amount of interest paid is to be calculated; 
  (b) the manner in which any charges for the keeping of an account are to be disclosed by a company to its customers and when the disclosure is to be made; and 
  (c) such other matters or things as may be necessary to carry out the requirements of sections 426 to 428. 
  430  [Repealed, 2001, c. 9, s. 540]  
  
  ### Disclosure required on opening a deposit account
  
  431 (1) Subject to subsections (2) to (4), a company shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, the company provides in writing to the individual who requests the opening of the account 
  (a) a copy of the account agreement with the company; 
  (b) information about all charges applicable to the account; 
  (c) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the account; 
  (d) information about the company’s procedures relating to complaints about the application of any charge applicable to the account; and 
  (e) such other information as may be prescribed. 
  
  ### Exception
  
  (2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the company shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge. 
  
  ### Exception
  
  (3) If a company has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the company has not complied with subsection (1) in respect of the opening of that other account, the company shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened. 
  
  ### Disclosure in writing
  
  (4) If a company opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1). 
  
  ### Right to close account
  
  (5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open. 
  
  ### Regulations
  
  (6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer. 
  
  ### Disclosure of charges
  
  432 A company shall disclose to its customers and to the public, at the prescribed time and place and in the prescribed form and manner, the charges applicable to deposit accounts with the company and the usual amount, if any, charged by the company for services normally provided by the company to its customers and to the public. 
  
  ### No increase or new charges without disclosure
  
  433 (1) A company shall not increase any charge applicable to a personal deposit account with the company or introduce any new charge applicable to a personal deposit account with the company unless the company discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept. 
  
  ### Mandatory disclosure
  
  (2) With respect to prescribed services in relation to deposit accounts, other than personal deposit accounts, a company shall not increase any charge for any such service in relation to a deposit account with the company or introduce any new charge for any such service in relation to a deposit account with the company unless the company discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept. 
  
  ### Application
  
  434 Sections 431 to 433 apply only in respect of charges applicable to deposit accounts with the company in Canada and services provided by the company in Canada. 
  
  ## Registered Products 
  
  ### Disclosure required concerning registered products
  
  434.1 (1) Subject to subsection (2), a company shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the company provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service 
  (a) information about all charges applicable to the registered product; 
  (b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product; 
  (c) information about the company’s procedures relating to complaints about the application of any charge applicable to the registered product; and 
  (d) any other information that may be prescribed. 
  
  ### Regulations
  
  (2) The Governor in Council may make regulations specifying the circumstances under which a company need not provide the information. 
  
  ### Definition of 
  *registered product* 
  
  (3) In this section, 
  *registered product* means a product that is defined to be a registered product by the regulations.  
  
  ## Borrowing Costs 
  
  ### Definition of 
  *cost of borrowing* 
  
  435 For the purposes of this section and sections 435.1 to 442, 
  *cost of borrowing* means, in respect of a loan made by a company,  
  (a) the interest or discount applicable to the loan; 
  (b) any amount charged in connection with the loan that is payable by the borrower to the company; and 
  (c) any charge prescribed to be included in the cost of borrowing. For those purposes, however, 
  *cost of borrowing* does not include any charge prescribed to be excluded from the cost of borrowing.  
  
  ### Rebate of borrowing costs
  
  435.1 (1) Where a company makes a loan in respect of which the disclosure requirements of section 436 apply and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the company shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan. 
  
  ### Exception
  
  (2) The charges to be rebated do not include the interest or discount applicable to the loan. 
  
  ### Regulations
  
  (3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations. 
  
  ### Disclosing borrowing costs
  
  436 (1) A company shall not make a loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 437, and other prescribed information have been disclosed by the company to the borrower at the prescribed time and place and in the prescribed form and manner. 
  
  ### Non-application
  
  (2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans. 
  
  ### Calculating borrowing costs
  
  437 The cost of borrowing shall be calculated, in the prescribed manner, on the basis that all obligations of the borrower are duly fulfilled and shall be expressed as a rate per annum and, in prescribed circumstances, as an amount in dollars and cents. 
  
  ### Additional disclosure
  
  438 (1) Where a company makes a loan in respect of which the disclosure requirements of section 436 are applicable and the loan is required to be repaid either on a fixed future date or by instalments, the company shall disclose to the borrower, in accordance with the regulations, 
  (a) whether the borrower has the right to repay the amount borrowed before the maturity of the loan and, if applicable, 
  (i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and 
  (ii) whether, in the event that the borrower exercises the right, any portion of the cost of borrowing is to be rebated, the manner in which any such rebate is to be calculated or, if a charge or penalty will be imposed on the borrower, the manner in which the charge or penalty is to be calculated; 
  (b) in the event that an amount borrowed is not repaid at maturity or, if applicable, an instalment is not paid on the day the instalment is due to be paid, particulars of the charges or penalties to be paid by the borrower because of the failure to repay or pay in accordance with the contract governing the loan; 
  (c) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing or the loan agreement; 
  (d) particulars of any other rights and obligations of the borrower; and 
  (e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner. 
  
  ### Disclosure in credit card applications
  
  (1.1) A company shall, in accordance with the regulations, at the prescribed time and place and in the prescribed form and manner, provide prescribed information in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards and provide prescribed information to any person applying to it for a credit, payment or charge card. 
  
  ### Disclosure re credit cards
  
  (2) Where a company issues or has issued a credit, payment or charge card to a natural person, the company shall, in addition to disclosing the costs of borrowing in respect of any loan obtained through the use of the card, disclose to the person, in accordance with the regulations, 
  (a) any charges or penalties described in paragraph (1)(b); 
  (b) particulars of the person’s rights and obligations; 
  (c) any charges for which the person becomes responsible by accepting or using the card; 
  (d) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing or the loan agreement; and 
  (e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner. 
  
  ### Additional disclosure re other loans
  
  (3) Where a company enters into or has entered into an arrangement, including a line of credit, for the making of a loan in respect of which the disclosure requirements of section 436 apply and the loan is not a loan in respect of which subsection (1) or (2) applies, the company shall, in addition to disclosing the costs of borrowing, disclose to the person to whom the loan is made, in accordance with the regulations, 
  (a) any charges or penalties described in paragraph (1)(b); 
  (b) particulars of the person’s rights and obligations; 
  (c) any charges for which the person is responsible under the arrangement; 
  (d) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing under the arrangement; and 
  (e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner. 
  
  ### Renewal statement
  
  438.1 If a company makes a loan in respect of which the disclosure requirements of section 436 apply and the loan is secured by a mortgage on real property, the company shall disclose to the borrower, at the prescribed time and place and in the prescribed form and manner, any information that is prescribed respecting the renewal of the loan. 
  
  ### Disclosure in advertising
  
  439 No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to arrangements referred to in subsection 438(3), loans, credit cards, payment cards or charge cards, offered to natural persons by a company, and purporting to disclose prescribed information about the cost of borrowing or about any other matter unless the advertisement discloses prescribed information at the prescribed time and place and in the prescribed form and manner. 
  
  ### Regulations re borrowing costs
  
  440 The Governor in Council may make regulations 
  (a) respecting the time and place at which, and the form and manner in which, a company is to disclose to a borrower 
  (i) the cost of borrowing, 
  (ii) any rebate of the cost of borrowing, and 
  (iii) any other information relating to a loan, arrangement, credit card, payment card or charge card referred to in section 438; 
  (b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by a company to a borrower; 
  (c) respecting the manner of calculating the cost of borrowing; 
  (d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents; 
  (e) specifying any class of loans that are not to be subject to section 435.1, subsection 436(1) or 438(1) or (3) or section 438.1 or 439 or the regulations or any specified provisions of the regulations; 
  (f) respecting the time and place at which, and the form and manner in which, any rights, obligations, charges or penalties referred to in sections 435.1 to 439 are to be disclosed; 
  (g) prohibiting the imposition of any charge or penalty referred to in section 438 or providing that the charge or penalty, if imposed, will not exceed a prescribed amount; 
  (h) respecting the nature or amount of any charge or penalty referred to in paragraph 438(1)(b), (2)(a) or (3)(a) and the costs of the company that may be included or excluded in the determination of the charge or penalty; 
  (i) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 438(1)(a)(ii); 
  (j) respecting advertisements made by a company regarding arrangements referred to in subsection 438(3), loans, credit cards, payment cards or charge cards; 
  (k) respecting the renewal of loans; and 
  (l) respecting such other matters or things as are necessary to carry out the purposes of sections 435.1 to 439. 
  
  ## Complaints 
  
  ### Procedures for dealing with complaints
  
  441 (1) A company shall 
  (a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from the company; 
  (b) designate an officer or employee of the company to be responsible for implementing those procedures; and 
  (c) designate one or more officers or employees of the company to receive and deal with those complaints. 
  
  ### Procedures to be filed with Commissioner
  
  (2) A company shall file with the Commissioner a copy of its procedures established under paragraph (1)(a). 
  
  ### How procedures to be made available
  
  (3) A company shall make its procedures established under paragraph (1)(a) available 
  (a) in the form of a brochure, at its branches where products or services are offered in Canada; 
  (b) on its websites through which products or services are offered in Canada; and 
  (c) in written format to be sent to any person who requests them. 
  
  ### Information on contacting Agency
  
  (4) A company shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3). 
  
  ### Obligation to be member of complaints body
  
  441.1 In any province, if there is no law of the province that makes a company subject to the jurisdiction of an organization that deals with complaints made by persons having requested or received products or services in the province from a company, the company shall be a member of an organization that is not controlled by it and that deals with those complaints that have not been resolved to the satisfaction of the persons under procedures established by companies under paragraph 441(1)(a). 
  
  ### Information on contacting Agency
  
  442 (1) A company shall, in accordance with the regulations, at the prescribed time and place and in the prescribed form and manner, provide a person requesting or receiving a product or service from it with prescribed information on how to contact the Agency if the person has a complaint about a deposit account, an arrangement referred to in subsection 438(3), a payment, credit or charge card, the disclosure of or manner of calculating the cost of borrowing in respect of a loan or about any other obligation of the company under a consumer provision. 
  
  ### Report
  
  (2) The Commissioner shall prepare a report, to be included in the report referred to in section 34 of the Financial Consumer Agency of Canada Act, respecting  
  (a) procedures for dealing with complaints established by companies pursuant to paragraph 441(1)(a); and 
  (b) the number and nature of complaints that have been brought to the attention of the Agency by persons who have requested or received a product or service from a company. 
  
  ## Miscellaneous 
  
  ### Charges for prescribed products or services
  
  442.1 A company shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court. 
  
  ### Prepayment protected
  
  443 (1) A company shall not make a loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment thereon before its due date. 
  
  ### Minimum balance
  
  (2) Except by express agreement between the company and the borrower, the making in Canada of a loan or advance by a company to a borrower shall not be subject to a condition that the borrower maintain a minimum credit balance with the company. 
  
  ### Non-application of subsection (1)
  
  (3) Subsection (1) does not apply in respect of a loan 
  (a) that is secured by a mortgage on real property; or 
  (b) that is made for business purposes and the principal amount of which is more than $100,000 or such other amount as may be prescribed. 
  
  ### Government cheques
  
  (4) A company shall not make a charge 
  (a) for cashing a cheque or other instrument drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada, in a company or in any other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament; 
  (b) for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or 
  (c) in respect of any cheque or other instrument that is 
  (i) drawn in favour of the Receiver General, the Government of Canada or any department thereof or any public officer acting in the capacity of a public officer, and 
  (ii) tendered for deposit to the credit of the Receiver General. 
  
  ### Deposits of Government of Canada
  
  (5) Nothing in subsection (4) precludes any arrangement between the Government of Canada and a company concerning 
  (a) compensation for services performed by the company for the Government of Canada; or 
  (b) interest to be paid on any or all deposits of the Government of Canada with the company. 
  
  ### Regulations respecting the holding of funds
  
  443.1 The Governor in Council may make regulations respecting the maximum period during which a company may hold funds in respect of specified classes of cheques or other instruments that are deposited into an account at a branch or prescribed point of service in Canada before permitting the customer in whose name the account is kept to access the funds. 
  
  ### Regulations — activities
  
  443.2 The Governor in Council may make regulations respecting any matters involving a company’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including 
  (a) what a company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and 
  (b) the time and place at which and the form and manner in which any of those activities are to be carried out or any of those services are to be provided. 
  
  ### Regulations re customer information
  
  444 The Governor in Council may make regulations 
  (a) requiring a company to establish procedures regarding the collection, retention, use and disclosure of any information about its customers or any class of customers; 
  (b) requiring a company to establish procedures for dealing with complaints made by a customer about the collection, retention, use or disclosure of information about the customer; 
  (c) respecting the disclosure by a company of information relating to the procedures referred to in paragraphs (a) and (b); 
  (d) requiring a company to designate the officers and employees of the company who are responsible for 
  (i) implementing the procedures referred to in paragraph (b), and 
  (ii) receiving and dealing with complaints made by a customer of the company about the collection, retention, use or disclosure of information about the customer; 
  (e) requiring a company to report information relating to 
  (i) complaints made by customers of the company about the collection, retention, use or disclosure of information, and 
  (ii) the actions taken by the company to deal with the complaints; and 
  (f) defining “information”, “collection” and “retention” for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs. 
  
  ### Notice of branch closure
  
  444.1 (1) Subject to regulations made under subsection (5), a member company with a branch in Canada at which it, through a natural person, opens retail deposit accounts and disburses cash to customers, shall give notice in accordance with those regulations before closing that branch or having it cease to carry on either of those activities. 
  
  ### Pre-closure meeting
  
  (2) After notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner shall, in prescribed situations, require the company to convene and hold a meeting between representatives of the company, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities, including, but not limited to, alternative service delivery by the company and measures to help the branch’s customers adjust to the closing or cessation of activities. 
  
  ### Meeting details
  
  (3) The Commissioner may establish rules for convening a meeting referred to in subsection (2) and for its conduct. 
  
  ### Not statutory instruments
  
  (4) The Statutory Instruments Act does not apply in respect of rules established under subsection (3).  
  
  ### Regulations
  
  (5) The Governor in Council may make regulations prescribing 
  (a) the time and place at which and the form and manner in which notice shall be given under subsection (1), the persons to whom it shall be given and the information to be included, the time, place, form and manner being permitted to vary according to circumstances specified in the regulations; 
  (b) circumstances in which a member company is not required to give notice under subsection (1), circumstances in which the Commissioner may exempt a member company from the requirement to give notice under that subsection, and circumstances in which the Commissioner may vary the time and place at which and the form and manner in which notice is required to be given under any regulation made under paragraph (a); and 
  (c) circumstances in which a meeting may be convened under subsection (2). 
  
  ### Public accountability statements
  
  444.2 (1) A company with equity of $1 billion or more shall, in accordance with regulations made under subsection (4), annually publish a statement describing the contribution of the company and its prescribed affiliates to the Canadian economy and society. 
  
  ### Filing
  
  (2) A company shall, at the prescribed time and place and in the prescribed form and manner, file a copy of the statement with the Commissioner. 
  
  ### Provision of statement to public
  
  (3) A company shall, at the prescribed time and place and in the prescribed form and manner, disclose the statement to its customers and to the public. 
  
  ### Regulations
  
  (4) The Governor in Council may make regulations prescribing 
  (a) the name, contents and form of a statement referred to in subsection (1) and the time within which, the place at which and the manner in which it must be prepared; 
  (b) affiliates of a company referred to in subsection (1); 
  (c) the time and place at which and the form and manner in which a statement must be filed under subsection (2); and 
  (d) the time and place at which and the form and manner in which a statement mentioned in subsection (3) is to be disclosed, respectively, to a company’s customers and to the public. 
  
  ### Regulations re disclosure
  
  444.3 The Governor in Council may, subject to any other provisions of this Act relating to the disclosure of information, make regulations respecting the disclosure of information by companies or any prescribed class of companies, including regulations respecting 
  (a) the information that must be disclosed, including information relating to 
  (i) any product or service or prescribed class of products or services offered by them, 
  (ii) any of their policies, procedures or practices relating to the offer by them of any product or service or prescribed class of products or services, 
  (iii) anything they are required to do or to refrain from doing under a consumer provision, and 
  (iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public; 
  (b) the time and place at which, the form and manner in which and the persons to whom information is to be disclosed; and 
  (c) the content and form of any advertisement by companies or any prescribed class of companies relating to any matter referred to in paragraph (a). 
  
  ###  Bank Act security 
  
  445 A bank that is continued as a company under this Act that, immediately before that continuance, held any outstanding security pursuant to section 426 or 427 of the Bank Act may continue to hold the security for the life of the loan to which the security relates and all the provisions of the Bank Act relating to the security and its enforcement continue to apply to the company as though it were a bank.  
  
  ### Transmission in case of death
  
  446 (1) Where the transmission of a debt owing by a company by reason of a deposit, of property held by a company as security or for safe-keeping or of rights with respect to a safety deposit box and property deposited therein takes place because of the death of a person, the delivery to the company of 
  (a) an affidavit or declaration in writing in form satisfactory to the company signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission, and 
  (b) one of the following documents, namely, 
  (i) when the claim is based on a will or other testamentary instrument or on a grant of probate thereof or on such a grant and letters testamentary or other document of like import or on a grant of letters of administration or other document of like import, purporting to be issued by any court of authority in Canada or elsewhere, an authenticated copy or certificate thereof under the seal of the court or authority without proof of the authenticity of the seal or other proof, or 
  (ii) when the claim is based on a notarial will, an authenticated copy thereof, is sufficient justification and authority for giving effect to the transmission in accordance with the claim. 
  
  ### Idem
  
  (2) Nothing in subsection (1) shall be construed to prevent a company from refusing to give effect to a transmission until there has been delivered to the company such documentary or other evidence of or in connection with the transmission as it may deem requisite. 
  
  ### Branch of account with respect to deposits
  
  447 (1) For the purposes of this Act, the branch of account with respect to a deposit account is 
  (a) the branch the address or name of which appears on the specimen signature card or other signing authority signed by a depositor with respect to the deposit account or that is designated by agreement between the company and the depositor at the time of opening of the deposit account; or 
  (b) if no branch has been identified or agreed on as provided in paragraph (a), the branch that is designated as the branch of account with respect thereto by the company by notice in writing to the depositor. 
  
  ### Where debt payable
  
  (2) The amount of any debt owing by a company by reason of a deposit in a deposit account in the company is payable to the person entitled thereto only at the branch of account and the person entitled thereto is not entitled to demand payment or to be paid at any other branch of the company. 
  
  ### Idem
  
  (3) Notwithstanding subsection (2), a company may permit, either occasionally or as a regular practice, the person to whom the company is indebted by reason of a deposit in a deposit account in the company to withdraw moneys owing by reason of that deposit at a branch of the company other than the branch of account or to draw cheques or other orders for the payment of such moneys at a branch other than the branch of account. 
  
  ### Situs of indebtedness
  
  (4) The indebtedness of a company by reason of a deposit in a deposit account in the company shall be deemed for all purposes to be situated at the place where the branch of account is situated. 
  
  ### Effect of writ, etc.
  
  448 (1) Subject to subsections (3) and (4), the following documents are binding on property belonging to a person and in the possession of a company, or on money owing to a person by reason of a deposit account in a company, only if the document or a notice of it is served at the branch of the company that has possession of the property or that is the branch of account in respect of the deposit account, as the case may be: 
  (a) a writ or process originating a legal proceeding or issued in or pursuant to a legal proceeding; 
  (b) an order or injunction made by a court; 
  (c) an instrument purporting to assign, perfect or otherwise dispose of an interest in the property or the deposit account; or 
  (d) an enforcement notice in respect of a support order or support provision. 
  
  ### Notices
  
  (2) Any notification sent to a company with respect to a customer of the company, other than a document referred to in subsection (1) or (3), constitutes notice to the company and fixes the company with knowledge of its contents only if sent to and received at the branch of the company that is the branch of account of an account held in the name of that customer. 
  
  ### Notices: Minister of National Revenue
  
  (2.1) Despite subsections (1) and (2), a notice, demand, order or other document issued with respect to a customer of a company constitutes notice to the company and fixes the company with knowledge of its contents and, where applicable, is binding on property belonging to the customer and in the possession of the company or on money owing to the customer by reason of an account in the company, if it is sent to the branch of the company referred to in subsection (1) or (2), an office of the company referred to in paragraph (3)(a) or any other office agreed to by the company and the Minister of National Revenue and it relates to 
  (a) the administration of an Act of Parliament by the Minister of National Revenue; or 
  (b) the administration of an Act of the legislature of a province or legislation made by an aboriginal government, where the Minister or the Minister of National Revenue has entered into a tax collection agreement under an Act of Parliament with the government of the province or the aboriginal government. 
  
  ### Exception
  
  (3) Subsections (1) and (2) do not apply in respect of an enforcement notice in respect of a support order or support provision if 
  (a) the enforcement notice, accompanied by a written statement containing the information required by the regulations, is served at an office of a company designated in accordance with the regulations in respect of a province; and 
  (b) the order or provision can be enforced under the laws of that province. 
  
  ### Time of application
  
  (4) Subsection (3) does not apply in respect of an enforcement notice in respect of a support order or support provision until the second business day following the day of service referred to in that subsection. 
  
  ### Regulations
  
  (5) The Governor in Council may make regulations 
  (a) respecting the designation by a company of a place, for the purpose of subsection (3), in any province for the service of enforcement notices in respect of support orders and support provisions; 
  (b) prescribing the manner in which a company shall publicize the locations of designated offices of the company; and 
  (c) respecting the information that must accompany enforcement notices in respect of support orders and support provisions. 
  
  ### Definitions
  
  (6) The following definitions apply in this section.  
  *designated office* means a place designated in accordance with regulations made for the purpose of subsection (3). (bureau désigné)   
  *enforcement notice*, in respect of a support order or support provision, means a garnishee summons or other instrument issued under the laws of a province for the enforcement of the support order or support provision. (avis d’exécution)   
  *support order* means an order or judgment or interim order or judgment for family financial support. (ordonnance alimentaire)   
  *support provision* means a provision of an agreement relating to the payment of maintenance or family financial support. (disposition alimentaire)  
  
  # PART IX 
  
  ## Investments 
  
  ## Definitions and Application 
  
  ### Definitions
  
  449 (1) The following definitions apply in this Part.  
  *business growth fund* means Canadian Business Growth Fund (GP) Inc., a corporation incorporated under the Canada Business Corporations Act. (fonds de croissance des entreprises)   
  *closed-end fund* means an entity whose activities are limited to investing the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities, and whose securities are  
  (a) fixed in number and distributed to the public in an offering under a preliminary prospectus, prospectus, short-form prospectus or similar document in accordance with the laws of a province or a foreign jurisdiction; 
  (b) traded on an exchange or an over-the-counter market; and 
  (c) liquidated on a fixed future termination date, the proceeds of which are allocated to the holders of the securities on a proportional basis. ( fonds d’investissement à capital fixe)   
  *commercial loan* means  
  (a) any loan made or acquired by a company, other than 
  (i) a loan to a natural person in an amount of two hundred and fifty thousand dollars or less, 
  (ii) a loan to the Government of Canada, the government of a province, a municipality, or to any agency thereof, or to the government of a foreign country or any political subdivision thereof, or any agency thereof, or to a prescribed international agency, 
  (iii) a loan that is guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in subparagraph (ii), 
  (iv) a loan that is secured by a mortgage on real property, if 
  (A) the mortgage is on residential property and the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, does not exceed 80% of the value of the property at the time the loan is made or acquired, or 
  (B) the mortgage is on real property other than residential property and 
  (I) the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, does not exceed 80% of the value of the property at the time the loan is made or acquired, and 
  (II) at the time the loan is made or acquired, the property provides an annual income sufficient to pay all annual expenses related to the property, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the property, 
  (v) a loan that is secured by a mortgage on real property, if 
  (A) the mortgage is on residential property and 
  (I) the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, exceeds 80% of the value of the property at the time the loan is made or acquired, and 
  (II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintendent, 
  (B) the mortgage is on real property other than residential property and 
  (I) the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, exceeds 80% of the value of the property at the time the loan is made or acquired, 
  (II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintendent, and 
  (III) at the time the loan is made or acquired, the property provides an annual income sufficient to pay all annual expenses related to the property, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the property, or 
  (C) the loan is one referred to in paragraph 418(2)(d), 
  (vi) a loan that 
  (A) consists of a deposit made by the company with another financial institution, 
  (B) is fully secured by a deposit with any financial institution, including the company, 
  (C) is fully secured by debt obligations guaranteed by any financial institution other than the company, or 
  (D) is fully secured by a guarantee of a financial institution other than the company, or 
  (vii) a loan to an entity controlled by the company; 
  (b) an investment in debt obligations, other than 
  (i) debt obligations that are 
  (A) guaranteed by any financial institution other than the company, 
  (B) fully secured by deposits with any financial institution, including the company, or 
  (C) fully secured by debt obligations that are guaranteed by any financial institution other than the company, 
  (ii) debt obligations issued by the Government of Canada, the government of a province, a municipality, or by any agency thereof, or by the government of a foreign country or any political subdivision thereof, or by any agency thereof, or by a prescribed international agency, 
  (iii) debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in subparagraph (ii), 
  (iv) debt obligations that are widely distributed, as that expression is defined by the regulations, or 
  (v) debt obligations of an entity controlled by the company; and 
  (c) an investment in shares of a body corporate or ownership interests in an unincorporated entity, other than 
  (i) shares or ownership interests that are widely distributed, as that expression is defined by the regulations, 
  (ii) shares or ownership interests of an entity controlled by the company, or 
  (iii) participating shares. ( prêt commercial)   
  *factoring entity* means a factoring entity as defined in the regulations. (entité s’occupant d’affacturage)   
  *finance entity* means a finance entity as defined in the regulations. (entité s’occupant de financement)   
  *financial leasing entity* means an entity  
  (a) the activities of which are limited to the financial leasing of personal property and such related activities as are prescribed and whose activities conform to such restrictions and limitations thereon as are prescribed; and 
  (b) that, in conducting the activities referred to in paragraph (a) in Canada, does not 
  (i) direct its customers or potential customers to particular dealers in the leased property or the property to be leased, 
  (ii) enter into lease agreements with persons in respect of any motor vehicle having a gross vehicle weight, as that expression is defined by the regulations, of less than twenty-one tonnes, or 
  (iii) enter into lease agreements with natural persons in respect of personal household property, as that expression is defined by the regulations. ( entité s’occupant de crédit-bail)   
  *loan* includes an acceptance, endorsement or other guarantee, a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit but does not include investments in securities. (prêt ou emprunt)   
  *motor vehicle* means a motorized vehicle designed to be used primarily on a public highway for the transportation of persons or things, but does not include  
  (a) a fire-engine, bus, ambulance or utility truck; or 
  (b) any other special purpose motorized vehicle that contains significant special features that make it suitable for a specific purpose. ( véhicule à moteur)   
  *mutual fund distribution entity* means an entity whose principal activity is acting as a selling agent of units, shares or other interests in a mutual fund and acting as a collecting agent in the collection of payments for any such interests if  
  (a) the proceeds of the sales of any such interests, less any sales commissions and service fees, are paid to the mutual fund; and 
  (b) the existence of a sales commission and service fee in respect of the sale of any such interest is disclosed to the purchaser of the interest before the purchase of the interest. ( courtier de fonds mutuels)   
  *mutual fund entity* means an entity  
  (a) whose activities are limited to the investing of the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities; and 
  (b) whose securities entitle their holders to receive, on demand, or within a specified period after demand, an amount computed by reference to the value of a proportionate interest in the whole or in a part of its net assets, including a separate fund or trust account of the entity. ( entité s’occupant de fonds mutuels)   
  *participating share* means a share of a body corporate that carries the right to participate in the earnings of the body corporate to an unlimited degree and to participate in a distribution of the remaining property of the body corporate on dissolution. (action participante)   
  *permitted entity* means an entity in which a company is permitted to acquire a substantial investment under section 453. (entité admissible)   
  *prescribed subsidiary* means a subsidiary that is one of a prescribed class of subsidiaries. (filiale réglementaire)   
  *specialized financing entity* means a specialized financing entity as defined in the regulations. (entité s’occupant de financement spécial)  
  
  ### Members of a company’s group
  
  (2) For the purpose of this Part, a member of a company’s group is any of the following: 
  (a) an entity referred to in any of paragraphs 453(1)(a) to (f) that controls the company; 
  (b) a subsidiary of the company or of an entity referred to in any of paragraphs 453(1)(a) to (f) that controls the company; 
  (c) an entity in which the company, or an entity referred to in any of paragraphs 453(1)(a) to (f) that controls the company, has a substantial investment; or 
  (d) a prescribed entity in relation to the company. 
  
  ### Non-application of Part
  
  (3) This Part does not apply in respect of 
  (a) money or other assets held in trust by a company, other than guaranteed trust money and assets held in respect thereof; 
  (b) the holding of a security interest in real property, unless the security interest is prescribed pursuant to paragraph 467(a) to be an interest in real property; or 
  (c) the holding of a security interest in securities of an entity. 
  
  ## General Constraints on Investments 
  
  ### Investment standards
  
  450 The directors of a company shall establish and the company shall adhere to investment and lending policies, standards and procedures that a reasonable and prudent person would apply in respect of a portfolio of investments and loans to avoid undue risk of loss and obtain a reasonable return. 
  
  ### Limit — business growth fund
  
  450.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a company and its subsidiaries hold must not exceed $200,000,000. 
  
  ### Application
  
  (2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance. 
  
  ### Restriction on control and substantial investments
  
  451 (1) Subject to subsections (2) to (4.4), no company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity. 
  
  ### Exception: indirect investments
  
  (2) A company may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity other than a permitted entity by way of 
  (a) an acquisition of control of an entity referred to in any of paragraphs 453(1)(a) to (j), or of a prescribed entity, that controls or has a substantial investment in the entity; or 
  (b) an acquisition of shares or ownership interests in the entity by 
  (i) an entity referred to in any of paragraphs 453(1)(a) to (j), or a prescribed entity, that is controlled by the company, or 
  (ii) an entity controlled by an entity referred to in any of paragraphs 453(1)(a) to (j), or a prescribed entity, that is controlled by the company. 
  
  ### Exception: temporary investments, realizations and loan workouts
  
  (3) A company may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity by way of 
  (a) a temporary investment permitted by section 456; 
  (b) an acquisition of shares of a body corporate or of ownership interests in an unincorporated entity permitted by section 457; or 
  (c) a realization of security permitted by section 458. 
  
  ### Exception: specialized financing regulations
  
  (4) A company may, subject to Part XI, acquire control of, or hold, acquire or increase a substantial investment in, an entity other than a permitted entity if it does so in accordance with regulations made under paragraph 452(d) concerning specialized financing. 
  
  ### Business growth fund
  
  (4.1) Subject to section 450.1, subsections (4.2) to (4.4) and Part XI, a company may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls. 
  
  ### For greater certainty
  
  (4.2) For greater certainty, a company is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls. 
  
  ### Prohibition — entity
  
  (4.3) A company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities: 
  (a) an entity referred to in any of paragraphs 453(1)(a) to (j); 
  (b) an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle; 
  (c) an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property; 
  (d) an entity that acts as an insurance broker or agent in Canada; or 
  (e) an entity that is engaged in any prescribed activity. 
  
  ### Prohibition — capital and loans
  
  (4.4) A company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000: 
  (a) all ownership interests that are held by the company, the company’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and 
  (b) the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls. 
  
  ### Exception: uncontrolled event
  
  (5) A company is deemed not to contravene subsection (1) if the company acquires control of, or acquires or increases a substantial investment in, an entity solely as the result of an event not within the control of the company. 
  
  ### Non-application of subsection (2)
  
  (5.1) No company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 453(1)(j). 
  
  ### Holding
  
  (5.2) If a company holds a substantial investment in an entity referred to in paragraph 453(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the company may continue to hold that substantial investment. 
  
  ### Application of other provision
  
  (6) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a company may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met. 
  
  ### Timing of deemed acquisition
  
  (7) If a company decides to exercise its right under subsection (6), the company is deemed to be acquiring the control or the substantial investment under the other provision. 
  
  ### Regulations
  
  452 The Governor in Council may make regulations 
  (a) respecting the determination of the amount or value of loans, investments and interests for the purposes of this Part; 
  (b) respecting the loans and investments, and the maximum aggregate amount of all loans and investments, that may be made or acquired by a company and its prescribed subsidiaries to or in a person and any persons connected with that person; 
  (c) specifying the classes of persons who are connected with any person for the purposes of paragraph (b); and 
  (d) concerning specialized financing for the purposes of subsection 451(4). 
  
  ## Subsidiaries and Equity Investments 
  
  ### Permitted investments
  
  453 (1) Subject to subsections (4) to (6) and Part XI, a company may acquire control of, or acquire or increase a substantial investment in 
  (a) a company; 
  (b) a bank; 
  (c) a bank holding company; 
  (d) an association to which the Cooperative Credit Associations Act applies;  
  (e) an insurance company or a fraternal benefit society incorporated or formed under the Insurance Companies Act ;  
  (f) an insurance holding company; 
  (g) a trust, loan or insurance corporation incorporated or formed by or under an Act of the legislature of a province; 
  (h) a cooperative credit society incorporated or formed, and regulated, by or under an Act of the legislature of a province; 
  (i) an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province and that is primarily engaged in dealing in securities; or 
  (j) an entity that is incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province and that is primarily engaged outside Canada in a business that, if carried on in Canada, would be the business of banking, the business of a cooperative credit society, the business of insurance, the business of providing fiduciary services or the business of dealing in securities. 
  
  ### Permitted investments
  
  (2) Subject to subsections (3) to (6) and Part XI, a company may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (j), whose business is limited to one or more of the following: 
  (a) engaging in any financial service activity or in any other activity that a company is permitted to engage in under any of paragraphs 409(2)(b) to (d) or section 410 or 411; 
  (b) acquiring or holding shares of, or ownership interests in, entities in which a company is permitted under this Part to hold or acquire; 
  (c) engaging in the provision of any services exclusively to any or all of the following, so long as the entity is providing those services to the company or any member of the company’s group: 
  (i) the company, 
  (ii) any member of the company’s group, 
  (iii) any entity that is primarily engaged in the business of providing financial services, 
  (iv) any permitted entity in which an entity referred to in subparagraph (iii) has a substantial investment, or 
  (v) any prescribed person, if it is doing so under prescribed terms and conditions, if any are prescribed; 
  (d) engaging in any activity that a company is permitted to engage in, other than an activity referred to in paragraph (a) or (e), that relates to 
  (i) the promotion, sale, delivery or distribution of a financial product or financial service that is provided by the company or any member of the company’s group, or 
  (ii) if a significant portion of the business of the entity involves an activity referred to in subparagraph (i), the promotion, sale, delivery or distribution of a financial product or financial service that is provided by any other entity that is primarily engaged in the business of providing financial services; 
  (e) engaging in the activities referred to in the definition 
  *closed-end fund*, 
  *mutual fund distribution entity* or 
  *mutual fund entity* in subsection 449(1); and  
  (f) engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed. 
  
  ### Restriction
  
  (3) A company may not acquire control of, or acquire or increase a substantial investment in, an entity whose business includes any activity referred to in any of paragraphs (2)(a) to (e) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include 
  (a) activities that a company is not permitted to engage in under any of sections 417 and 418; 
  (b) dealing in securities, except as may be permitted under paragraph (2)(e) or as may be permitted to a company under paragraph 409(2)(c); 
  (c) acting as an executor, administrator or official guardian or as a guardian, tutor, curator, judicial adviser or committee of a mentally incompetent person; 
  (d) being a trustee for a trust; 
  (e) activities that a company is not permitted to engage in under any regulation made under section 416 if the entity engages in the activities of a finance entity or of any other entity as may be prescribed; 
  (f) acquiring control of or acquiring or holding a substantial investment in another entity unless 
  (i) in the case of an entity that is controlled by the company, the company itself would be permitted under this Part to acquire a substantial investment in the other entity, or 
  (ii) in the case of an entity that is not controlled by the company, the company itself would be permitted to acquire a substantial investment in the other entity under subsection (1) or (2) or 451(2), paragraph 451(3)(b) or (c) or subsection 451(4); or 
  (g) any prescribed activity. 
  
  ### Exception
  
  (3.1) Despite paragraph (3)(d), a company may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee for a trust if the entity has been permitted under the laws of a province to act as a trustee for a trust and the following conditions are satisfied: 
  (a) the entity acts as a trustee only with respect to a closed-end fund or mutual fund entity; and 
  (b) if the entity engages in other business, that business is limited to engaging in one or more of the following: 
  (i) the activities of a mutual fund distribution entity, 
  (ii) any activity that a company is permitted to engage in under paragraph 410(1)(d.1), and 
  (iii) the provision of investment counselling services and portfolio management services. 
  
  ### Control
  
  (4) Subject to subsection (8) and the regulations, a company may not acquire control of, or acquire or increase a substantial investment in, 
  (a) an entity referred to in any of paragraphs (1)(a) to (j), unless 
  (i) the company controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, or 
  (ii) the company is permitted by regulations made under paragraph 459(a) to acquire or increase the substantial investment; 
  (b) an entity whose business includes one or more of the activities referred to in paragraph (2)(a) and that engages, as part of its business, in any financial intermediary activity that exposes the entity to material market or credit risk, including a finance entity, a factoring entity and a financial leasing entity, unless 
  (i) the company controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, or 
  (ii) the company is permitted by regulations made under paragraph 459(a) to acquire or increase the substantial investment; or 
  (c) an entity whose business includes an activity referred to in paragraph (2)(b), including a specialized financing entity, unless 
  (i) the company controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, 
  (ii) the company is permitted by regulations made under paragraph 459(a) to acquire or increase the substantial investment, or 
  (iii) subject to prescribed terms and conditions, if any are prescribed, the activities of the entity do not include the acquisition or holding of control of, or the acquisition or holding of shares or other ownership interests in, an entity referred to in paragraph (a) or (b) or an entity that is not a permitted entity. 
  
  ### Minister’s approval
  
  (5) Subject to the regulations, a company may not, without the prior written approval of the Minister, 
  (a) acquire control of an entity referred to in paragraphs (1)(g) to (i) from a person who is not a member of the company’s group; 
  (b) acquire control of an entity referred to in paragraph (1)(j) or (4)(b), other than an entity whose activities are limited to the activities of one or more of the following entities, if the control is acquired from an entity referred to in any of paragraphs (1)(a) to (f) that is not a member of the company’s group: 
  (i) a factoring entity, or 
  (ii) a financial leasing entity; 
  (b.1) acquire control of an entity referred to in paragraph (1)(j) if the company is a company with equity of two billion dollars or more and is the value of the entity’s consolidated assets, as it would have been reported in the entity’s annual financial statements if those statements had been prepared immediately before the acquisition, is the aggregate of the values of the consolidated assets of all other entities referred to in paragraph (1)(j) that the company has acquired control of within the preceding 12 months, as the value for each entity would have been reported in its annual financial statements if those statements had been prepared immediately before the acquisition of control of that entity, and is 10% of the value of the company’s consolidated assets, as shown in the company’s last annual statement that was prepared before its first acquisition of control of an entity referred to in paragraph (1)(j) within the preceding 12 months; 
  (c) acquire control of, or acquire or increase a substantial investment in, an entity whose business includes one or more of the activities referred to in paragraph (2)(d); 
  (d) acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 410(1)(c); 
  (d.1) acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 410(1)(c.1); or 
  (e) acquire control of, or acquire or increase a substantial investment in, an entity engaging in an activity prescribed for the purposes of paragraph (2)(f). 
  
  ### Matters for consideration
  
  (5.1) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval under paragraph (5)(b.1), take into account all matters that he or she considers relevant in the circumstances, including 
  (a) the stability of the financial system in Canada; and 
  (b) the best interests of the financial system in Canada. 
  
  ### Superintendent’s approval
  
  (6) Subject to subsection (7) and the regulations, a company may not acquire control of, or acquire or increase a substantial investment in, an entity referred to in any of paragraphs (1)(g) to (j) and (4)(b) and (c) unless the company obtains the approval of the Superintendent. 
  
  ### Exception
  
  (7) Subsection (6) does not apply in respect of a particular transaction if 
  (a) the company is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b); 
  (b) the company is acquiring control of an entity whose activities are limited to the activities of a factoring entity or a financial leasing entity; 
  (c) the Minister has approved the transaction under subsection (5) or is deemed to have approved it under subsection 454(1); 
  (d) subject to subsection (7.1), the company is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (4)(b) or (c) and is the aggregate of the values, as they would have been reported in the company’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of 
  (i) the target entity’s consolidated assets, 
  (ii) the assets of the company and of any subsidiary of the company that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and 
  (iii) the consolidated assets of any entity referred to in paragraph (4)(b) or (c) the control of which is acquired by the company at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c), is the value of the company’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and is 
  (i) 0.01, in the case of a company with equity of 12 billion dollars or more, or 
  (ii) 0.02, in the case of any other company; or 
  (e) the company is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and is the aggregate of the values, as they would have been reported in the company’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of 
  (i) the shares of, or other ownership interests in, the target entity that the company or a subsidiary of the company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, 
  (ii) the shares of, or other ownership interests in, the target entity that are held by the company or a subsidiary of the company and that were acquired by the company or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and 
  (iii) the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the company the control of which was acquired by the company within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii), is the value of the company’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and is 
  (i) 0.005, in the case of a company with equity of 12 billion dollars or more, or 
  (ii) 0.01, in the case of any other company. 
  
  ### No exception for deemed acquisition
  
  (7.1) The exception in paragraph (7)(d) does not apply with respect to a deemed acquisition of control under subsection 451(7). 
  
  ### Control not required
  
  (8) A company need not control an entity referred to in paragraph (1)(j), or an entity that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province, if the laws or customary business practices of the country under the laws of which the entity was incorporated or formed do not permit the company to control the entity. 
  
  ### Prohibition on giving up control in fact
  
  (9) A company that, under subsection (4), controls an entity may not, without the prior written approval of the Minister, give up control, within the meaning of paragraph 3(1)(d), of the entity while it continues to control the entity. 
  
  ### Giving up control
  
  (10) A company that, under subsection (4), controls an entity may, with the prior written approval of the Superintendent, give up control of the entity while keeping a substantial investment in the entity if 
  (a) the company is permitted to do so by regulations made under paragraph 459(c); or 
  (b) the entity meets the conditions referred to in subparagraph (4)(c)(iii). 
  
  ### Subsections do not apply
  
  (11) If a company controls, within the meaning of paragraph 3(1)(a), (b) or (c), an entity, subsections (5) and (6) do not apply in respect of any subsequent increases by the company of its substantial investment in the entity so long as the company continues to control the entity. 
  
  ### Approval for indirect investments
  
  454 (1) If a company obtains the approval of the Minister under subsection 453(5) to acquire control of, or to acquire or increase a substantial investment in, an entity and, through that acquisition or increase, the company indirectly acquires control of, or acquires or increases a substantial investment in, another entity that would require the approval of the Minister under subsection 453(5) or the Superintendent under subsection 453(6) and that indirect acquisition or increase is disclosed to the Minister in writing before the approval is obtained, the company is deemed to have obtained the approval of the Minister or the Superintendent for that indirect acquisition or increase. 
  
  ### Approval for indirect investments
  
  (2) If a company obtains the approval of the Superintendent under subsection 453(6) to acquire control of, or to acquire or increase a substantial investment in, an entity and, through that acquisition or increase the company indirectly acquires control of, or acquires or increases a substantial investment in, another entity that would require the approval of the Superintendent under that subsection and that indirect acquisition or increase is disclosed to the Superintendent in writing before the approval is obtained, the company is deemed to have obtained the approval of the Superintendent for that indirect acquisition or increase. 
  
  ### Undertakings
  
  455 (1) If a company controls a permitted entity, other than an entity referred to in any of paragraphs 453(1)(a) to (f), the company shall provide the Superintendent with any undertakings that the Superintendent may require regarding 
  (a) the activities of the entity; and 
  (b) access to information about the entity. 
  
  ### Undertakings
  
  (2) If a company acquires control of an entity referred to in any of paragraphs 453(1)(g) to (j), the company shall provide the Superintendent with any undertakings concerning the entity that the Superintendent may require. 
  
  ### Agreements with other jurisdictions
  
  (3) The Superintendent may enter into an agreement with the appropriate official or public body responsible for the supervision of an entity referred to in any of paragraphs 453(1)(g) to (j) in each province or in any other jurisdiction concerning any matters referred to in paragraphs (1)(a) and (b) or any other matter the Superintendent considers appropriate. 
  
  ### Access to records
  
  (4) Despite any other provision of this Part, a company shall not control a permitted entity, other than an entity referred to in any of paragraphs 453(1)(a) to (f), unless, in the course of the acquisition of control or within a reasonable time after the control is acquired, the company obtains from the permitted entity an undertaking to provide the Superintendent with reasonable access to the records of the permitted entity. 
  
  ## Exceptions and Exclusions 
  
  ### Temporary investments in entity
  
  456 (1) Subject to subsection (4), a company may, by way of a temporary investment, acquire control of, or acquire or increase a substantial investment in, an entity but, within two years, or any other period that may be specified or approved by the Superintendent, after acquiring control or after acquiring or increasing the substantial investment, as the case may be, it shall do all things necessary to ensure that it no longer controls the entity or has a substantial investment in the entity. 
  
  ### Transitional
  
  (2) Despite subsection (1), if a company that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the company subsequently increases that substantial investment by way of a temporary investment, the company shall, within two years, or any other period that is specified or approved by the Superintendent, after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990. 
  
  ### Extension
  
  (3) The Superintendent may, in the case of any particular company that makes an application under this subsection, extend the period of two years, or the other period specified or approved by the Superintendent, that is referred to in subsection (1) or (2) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. 
  
  ### Temporary investment
  
  (4) If a company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 453(5) if the company had acquired the control, or acquired or increased the substantial investment, under section 453, the company must, within 90 days after acquiring control or after acquiring or increasing the substantial investment, 
  (a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or 
  (b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity. 
  
  ### Indeterminate extension
  
  (5) If a company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Superintendent would have been required under subsection 453(6) if the company had acquired the control, or acquired or increased the substantial investment, under section 453, the Superintendent may, on application, permit the company to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate. 
  
  ### Loan workouts
  
  457 (1) Despite anything in this Part, if a company or any of its subsidiaries has made a loan to an entity and, under the terms of the agreement between the company, or any of its subsidiaries, and the entity with respect to the loan and any other documents governing the terms of the loan, a default has occurred, the company may acquire 
  (a) if the entity is a body corporate, all or any of the shares of the body corporate; 
  (b) if the entity is an unincorporated entity, all or any of the ownership interests in the entity; 
  (c) all or any of the shares or all or any of the ownership interests in any entity that is an affiliate of the entity; 
  (d) all or any of the shares of a body corporate that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity or any of its affiliates; or 
  (e) all or any of the ownership interests in any entity that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity or any of its affiliates. 
  
  ### Obligation of company
  
  (2) If a company acquires shares or ownership interests in an entity under subsection (1), the company shall, within five years after acquiring them do all things necessary to ensure that the company does not control the entity or have a substantial investment in the entity. 
  
  ### Transitional
  
  (3) Despite subsection (1), if a company that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the company later increases that substantial investment by way of an investment made under subsection (1), the company shall, within five years after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990. 
  
  ### Extension
  
  (4) The Superintendent may, in the case of any particular company that makes an application under this subsection, extend the period of five years referred to in subsection (2) or (3) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. 
  
  ### Exception — entities controlled by foreign governments
  
  (5) Despite anything in this Part, if a company has made a loan to, or holds a debt obligation of, the government of a foreign country or an entity controlled by the government of a foreign country and, under the terms of the agreement between the company and that government or the entity, as the case may be, and any other documents governing the terms of the loan or debt obligation, a default has occurred, the company may acquire all or any of the shares of, or ownership interests in, that entity or in any other entity designated by that government, if the acquisition is part of a debt restructuring program of that government. 
  
  ### Time for holding shares
  
  (6) If a company acquires any shares or ownership interests under subsection (5), the company may, on any terms and conditions that the Superintendent considers appropriate, hold those shares or ownership interests for an indeterminate period or for any other period that the Superintendent may specify. 
  
  ### Exception
  
  (7) If, under subsection (1), a company acquires control of, or acquires or increases a substantial investment in, an entity that it would otherwise be permitted to acquire or increase under section 453, the company may retain control of the entity or continue to hold the substantial investment for an indeterminate period if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (2) or (3), including any extension of it granted under subsection (4). 
  
  ### Realizations
  
  458 (1) Despite anything in this Act, a company may acquire 
  (a) an investment in a body corporate, 
  (b) an interest in an unincorporated entity, or 
  (c) an interest in real property, if the investment or interest is acquired through the realization of a security interest held by the company or any of its subsidiaries. 
  
  ### Disposition
  
  (2) Subject to subsection 76(2), if a company acquires control of, or acquires a substantial investment in, an entity by way of the realization of a security interest held by the company or any of its subsidiaries, the company shall, within five years after the day on which control or the substantial investment is acquired, do all things necessary, or cause its subsidiary to do all things necessary, as the case may be, to ensure that the company no longer controls the entity or has a substantial investment in the entity. 
  
  ### Transitional
  
  (3) Despite subsection (2), if a company that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the company later increases that substantial investment by way of a realization of a security interest under subsection (1), the company shall, within five years after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990. 
  
  ### Extension
  
  (4) The Superintendent may, in the case of any particular company that makes an application under this subsection, extend the period of five years referred to in subsection (2) or (3) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. 
  
  ### Exception
  
  (5) If, under subsection (1), a company acquires control of, or acquires or increases a substantial investment in, an entity that it would otherwise be permitted to acquire or increase under section 453, the company may retain control of the entity or continue to hold the substantial investment for an indeterminate period if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (2) or (3), including any extension of it granted under subsection (4). 
  
  ### Regulations restricting ownership
  
  459 The Governor in Council may make regulations 
  (a) for the purposes of subsection 453(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the companies or other entities in respect of which that subsection does not apply, including prescribing companies or other entities on the basis of the activities they engage in; 
  (b) for the purposes of subsection 453(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the companies or other entities in respect of which either of those subsections does not apply, including prescribing companies or other entities on the basis of the activities they engage in; 
  (c) for the purposes of subsection 453(10), permitting a company to give up control of an entity; and 
  (d) restricting the ownership by a company of shares of a body corporate or of ownership interests in an unincorporated entity under sections 453 to 458 and imposing terms and conditions applicable to companies that own such shares or interests. 
  
  ## Portfolio Limits 
  
  ### Exclusion from portfolio limits
  
  460 (1) Subject to subsection (3), the value of all loans, investments and interests acquired by a company and any of its prescribed subsidiaries under section 457 or as a result of a realization of a security interest is not to be included in calculating the value of loans, investments and interests of the company and its prescribed subsidiaries under sections 461 to 466 
  (a) for a period of twelve years following the day on which the interest was acquired, in the case of an interest in real property; and 
  (b) for a period of five years after the day on which the loan, investment or interest was acquired, in the case of a loan, investment or interest, other than an interest in real property. 
  
  ### Extension
  
  (2) The Superintendent may, in the case of any particular company, extend any period referred to in subsection (1) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. 
  
  ### Exception
  
  (3) Subsection (1) does not apply to an investment or interest described in that subsection if the investment or interest is defined by a regulation made under section 467 to be an interest in real property and 
  (a) the company or the subsidiary acquired the investment or interest as a result of the realization of a security interest securing a loan that was defined by a regulation made under section 467 to be an interest in real property; or 
  (b) the company or the subsidiary acquired the investment or interest under section 457 as a result of a default referred to in that section in respect of a loan that was defined by a regulation made under section 467 to be an interest in real property. 
  
  ## Commercial Loans 
  
  ### Lending limit: companies with regulatory capital of $25 million or less
  
  461 Subject to section 462, a company that has twenty-five million dollars or less of regulatory capital shall not, and shall not permit its prescribed subsidiaries to, make or acquire a commercial loan or acquire control of a permitted entity that holds commercial loans if the aggregate value of all commercial loans held by the company and its prescribed subsidiaries exceeds, or the making or acquisition of the commercial loan or acquisition of control of the entity would cause the aggregate value of all commercial loans held by the company and its prescribed subsidiaries to exceed, 5 per cent of the total assets of the company. 
  
  ### Lending limit: regulatory capital over $25 million
  
  462 A company that has twenty-five million dollars or less of regulatory capital that is controlled by a financial institution that has the equivalent of more than twenty-five million dollars of regulatory capital or a company that has more than twenty-five million dollars of regulatory capital may make or acquire commercial loans or acquire control of a permitted entity that holds commercial loans if the aggregate value of all commercial loans held by the company and its prescribed subsidiaries would thereby exceed the limit set out in section 461 only with the prior approval in writing of the Superintendent and in accordance with any terms and conditions that the Superintendent may specify. 
  
  ### Meaning of 
  *total assets* 
  
  463 For the purposes of sections 461 and 462, 
  *total assets*, in respect of a company, has the meaning given to that expression by the regulations.  
  
  ## Real Property 
  
  ### Limit on total property interest
  
  464 A company shall not, and shall not permit its prescribed subsidiaries to, purchase or otherwise acquire an interest in real property or make an improvement to any real property in which the company or any of its prescribed subsidiaries has an interest if the aggregate value of all interests of the company in real property exceeds, or the acquisition of the interest or the making of the improvement would cause that aggregate value to exceed the prescribed percentage of the regulatory capital of the company. 
  
  ## Equities 
  
  ### Limits on equity acquisitions
  
  465 A company shall not, and shall not permit its prescribed subsidiaries to, 
  (a) purchase or otherwise acquire any participating shares of any body corporate or any ownership interests in any unincorporated entity, other than those of a permitted entity in which the company has, or by virtue of the acquisition would have, a substantial investment, or 
  (b) acquire control of an entity that holds shares or ownership interests referred to in paragraph (a), if the aggregate value of 
  (c) all participating shares, excluding participating shares of permitted entities in which the company has a substantial investment, and 
  (d) all ownership interests in unincorporated entities, other than ownership interests in permitted entities in which the company has a substantial investment, beneficially owned by the company and its prescribed subsidiaries exceeds, or the purchase or acquisition would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the company. 
  
  ## Aggregate Limit 
  
  ### Aggregate limit
  
  466 A company shall not, and shall not permit its prescribed subsidiaries to, 
  (a) purchase or otherwise acquire 
  (i) participating shares of a body corporate, other than those of a permitted entity in which the company has, or by virtue of the acquisition would have, a substantial investment, 
  (ii) ownership interests in an unincorporated entity, other than ownership interests in a permitted entity in which the company has, or by virtue of the acquisition would have, a substantial investment, or 
  (iii) interests in real property, or 
  (b) make an improvement to real property in which the company or any of its prescribed subsidiaries has an interest if the aggregate value of 
  (c) all participating shares and ownership interests referred to in subparagraphs (a)(i) and (ii) that are beneficially owned by the company and its prescribed subsidiaries, and 
  (d) all interests of the company in real property referred to in subparagraph (a)(iii) exceeds, or the acquisition or the making of the improvement would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the company. 
  
  ## Miscellaneous 
  
  ### Regulations
  
  467 For the purposes of this Part, the Governor in Council may make regulations 
  (a) defining the interests of a company in real property; 
  (b) determining the method of valuing those interests; or 
  (c) exempting classes of companies from the application of sections 464, 465 and 466. 
  
  ### Divestment order
  
  468 (1) The Superintendent may, by order, direct a company to dispose of, within any period that the Superintendent considers reasonable, any loan, investment or interest made or acquired in contravention of this Part. 
  
  ### Divestment order
  
  (2) If, in the opinion of the Superintendent, 
  (a) an investment by a company or any entity it controls in shares of a body corporate or in ownership interests in an unincorporated entity enables the company to control the body corporate or the unincorporated entity, or 
  (b) the company or any entity it controls has entered into an arrangement whereby it or its nominee may veto any proposal put before 
  (i) the board of directors of a body corporate, or 
  (ii) a similar group or committee of an unincorporated entity, or whereby no proposal may be approved except with the consent of the company, the entity it controls or the nominee, the Superintendent may, by order, require the company, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the company no longer controls the body corporate or unincorporated entity or has the ability to veto or otherwise defeat any proposal referred to in paragraph (b). 
  
  ### Divestment order
  
  (3) If 
  (a) a company 
  (i) fails to provide or obtain within a reasonable time the undertakings referred to in subsection 455(1), (2) or (4), or 
  (ii) is in default of an undertaking referred to in subsection 455(1) or (2) and the default is not remedied within ninety days after the day of receipt by the company of a notice from the Superintendent of the default, or 
  (b) a permitted entity referred to in subsection 455(4) is in default of an undertaking referred to in that subsection and the default is not remedied within ninety days after the day of receipt by the company of a notice from the Superintendent of the default, the Superintendent may, by order, require the company, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the company no longer has a substantial investment in the entity to which the undertaking relates. 
  
  ### Exception
  
  (4) Subsection (2) does not apply in respect of an entity in which a company has a substantial investment permitted by this Part. 
  
  ### Deemed temporary investment
  
  469 If a company controls or has a substantial investment in an entity as permitted by this Part and the company becomes aware of a change in the business or affairs of the entity that, if the change had taken place before the acquisition of control or of the substantial investment, would have caused the entity not to be a permitted entity or would have been such that approval for the acquisition would have been required under subsection 453(5) or (6), the company is deemed to have acquired, on the day the company becomes aware of the change, a temporary investment in respect of which section 456 applies. 
  
  ### Asset transactions
  
  470 (1) A company shall not, and shall not permit its subsidiaries to, without the approval of the Superintendent, acquire assets from a person or transfer assets to a person if is the value of the assets; is the total value of all assets that the company and its subsidiaries acquired from or transferred to that person in the twelve months ending immediately before the acquisition or transfer; and is ten per cent of the total value of the assets of the company, as shown in the last annual statement of the company prepared before the acquisition or transfer. 
  
  ### Approval of series of transactions
  
  (1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not. 
  
  ### Exceptions
  
  (2) Subsection (1) does not apply in respect of 
  (a) an asset that is a debt obligation referred to in subparagraphs (b)(i) to (v) of the definition 
  *commercial loan* in subsection 449(1);  
  (b) assets acquired or transferred under a transaction or series of transactions by the company with another financial institution as a result of the company’s participation in one or more syndicated loans with that financial institution; 
  (c) assets purchased or sold under a sale agreement that is approved by the Minister under section 241; 
  (d) shares of, or ownership interests in, an entity for which the approval of the Minister under Part VII or subsection 453(5) is required or the approval of the Superintendent under subsection 453(6) is required; 
  (e) assets that are acquired or transferred under a transaction that has been approved by the Minister under subsection 678(1) of the Bank Act or subsection 715(1) of the Insurance Companies Act ;  
  (f) assets, other than real property, acquired or disposed of under an arrangement that has been approved by the Superintendent under subsection 482(3); or 
  (g) assets acquired or disposed of with the approval of the Superintendent under subsection 482(4). 
  (3)  [Repealed, 2007, c. 6, s. 374]  
  
  ### Value of assets
  
  (4) For the purposes of “A” in subsection (1), the value of the assets is 
  (a) in the case of assets that are acquired, the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which will be included in the annual statement of the company after the acquisition, the fair market value of the assets; and 
  (b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the company prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 313(4), immediately before the transfer. 
  
  ### Total value of all assets
  
  (5) For the purposes of subsection (1), the total value of all assets that the company or any of its subsidiaries has acquired during the period of twelve months referred to in subsection (1) is the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which immediately after the acquisition were included in the annual statement of the company, the fair market value of the assets of the entity at the date of the acquisition. 
  
  ### Total value of all assets
  
  (6) For the purposes of subsection (1), the total value of all assets that the company or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the company prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 313(4), immediately before the transfer of the asset. 
  
  ### Transitional
  
  471 Nothing in this Part requires 
  (a) the termination of a loan made before February 7, 2001; 
  (b) the termination of a loan made after that date as a result of a commitment made before that date; 
  (c) the disposal of an investment made before that date; or 
  (d) the disposal of an investment made after that date as a result of a commitment made before that date. But if the loan or investment would be precluded or limited by this Part, the amount of the loan or investment may not, except as provided in subsections 456(2), 457(3) and 458(3), be increased after that date. 
  
  ### Saving
  
  472 A loan or investment referred to in section 471 is deemed not to be prohibited by the provisions of this Part. 
  
  # PART X 
  
  ## Adequacy of Capital and Liquidity 
  
  ### Adequacy of capital and liquidity
  
  473 (1) A company shall, in relation to its operations, maintain 
  (a) adequate capital, and 
  (b) adequate and appropriate forms of liquidity, and shall comply with any regulations in relation thereto. 
  
  ### Regulations and guidelines
  
  (2) The Governor in Council may make regulations and the Superintendent may make guidelines respecting the maintenance by companies of adequate capital and adequate and appropriate forms of liquidity. 
  
  ### Directives
  
  (3) Notwithstanding that a company is complying with regulations or guidelines made under subsection (2), the Superintendent may, by order, direct the company 
  (a) to increase its capital; or 
  (b) to provide additional liquidity in such forms and amounts as the Superintendent may require. 
  
  ### Compliance
  
  (4) A company shall comply with an order made under subsection (3) within such time as the Superintendent specifies therein. 
  
  ### Notice of value
  
  (5) Where an appraisal of any asset held by a company or any of its subsidiaries has been made by the Superintendent and the value determined by the Superintendent to be the appropriate value of the asset varies materially from the value placed by the company or subsidiary on the asset, the Superintendent shall send to the company, the auditor of the company and the audit committee of the company a written notice of the appropriate value of the asset as determined by the Superintendent. 
  
  # PART XI 
  
  ## Self-dealing 
  
  ## Interpretation and Application 
  
  ### Definition of 
  *senior officer* 
  
  473.1 For the purposes of this Part, a 
  *senior officer* of a body corporate is a person who is  
  (a) a director of the body corporate who is a full-time employee of the body corporate; 
  (b) the chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary of the body corporate; 
  (c) a natural person who performs functions for the body corporate similar to those performed by a person referred to in paragraph (b); 
  (d) the head of the strategic planning unit of the body corporate; 
  (e) the head of the unit of the body corporate that provides legal services or human resources services to the body corporate; or 
  (f) any other officer reporting directly to the body corporate’s board of directors, chief executive officer or chief operating officer. 
  
  ### Related party of company
  
  474 (1) For the purposes of this Part, a person is a related party of a company where the person 
  (a) is a person who has a significant interest in a class of shares of the company; 
  (b) is a director or senior officer of the company or of a body corporate that controls the company or is acting in a similar capacity in respect of an unincorporated entity that controls the company; 
  (c) is the spouse or common-law partner, or a child who is less than eighteen years of age, of a person described in paragraph (a) or (b); 
  (d) is an entity that is controlled by a person referred to in any of paragraphs (a) to (c); 
  (e) is an entity in which a person who controls the company has a substantial investment; 
  (f) is an entity in which the spouse or common-law partner, or a child who is less than eighteen years of age, of a person who controls the company has a substantial investment; or 
  (g) is a person, or a member of a class of persons, designated under subsection (3) or (4) as, or deemed under subsection (5) to be, a related party of the company. 
  (h)  [Repealed, 1997, c. 15, s. 398]  
  
  ### Exception — subsidiaries and substantial investments of companies
  
  (2) If an entity in which a company has a substantial investment would, but for this subsection, be a related party of the company only because a person who controls the company controls the entity or has a substantial investment in the entity, and the person does not control the entity or have a substantial investment in the entity otherwise than through the person’s controlling interest in the company, the entity is not a related party of the company. 
  
  ### Designated related party
  
  (3) For the purposes of this Part, the Superintendent may, with respect to a particular company, designate as a related party of the company 
  (a) any person or class of persons whose direct or indirect interest in or relationship with the company or a related party of the company might reasonably be expected to affect the exercise of the best judgment of the company in respect of a transaction; or 
  (b) any person who is a party to any agreement, commitment or understanding referred to in section 9 if the company referred to in that section is the particular company. 
  
  ### Idem
  
  (4) Where a person is designated as a related party of a company pursuant to subsection (3), the Superintendent may also designate any entity in which the person has a substantial investment and any entity controlled by such an entity to be a related party of the company. 
  
  ### Deemed related party
  
  (5) Where, in contemplation of a person becoming a related party of a company, the company enters into a transaction with the person, the person is deemed for the purposes of this Part to be a related party of the company in respect of that transaction. 
  
  ### Holders of exempted shares
  
  (6) The Superintendent may, by order, designate a class of non-voting shares of a company for the purpose of this subsection. If a class of non-voting shares of a company is so designated, a person is deemed, notwithstanding paragraph (1)(a), not to be a related party of the company if the person would otherwise be a related party of the company only because the person has a significant interest in that class. 
  
  ### Determination of substantial investment
  
  (7) For the purpose of determining whether an entity or a person has a substantial investment for the purposes of paragraph (1)(e) or (f), the references to “control” and “controlled” in section 10 shall be construed as references to “control, within the meaning of section 3, determined without regard to paragraph 3(1)(d)” and “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(d)”, respectively. 
  
  ### Determination of control
  
  (8) For the purposes of paragraph (1)(d), “controlled” means “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(d)”. 
  
  ### Non-application of Part
  
  475 (1) This Part does not apply in respect of any transaction entered into prior to the coming into force of this Part but, after the coming into force of this Part, any modification of, addition to, or renewal or extension of a prior transaction is subject to this Part. 
  
  ### Idem
  
  (2) This Part does not apply in respect of 
  (a) money or other assets held in trust, other than guaranteed trust money and assets held in respect thereof; 
  (b) the issue of shares of any class of shares of a company when fully paid for in money or when issued 
  (i) in accordance with any provisions for the conversion of other issued and outstanding securities of the company into shares of that class of shares, 
  (ii) as a share dividend, 
  (iii) in exchange for shares of a body corporate that has been continued as a company under Part III, 
  (iv) in accordance with the terms of an amalgamation under Part VI, 
  (v) by way of consideration in accordance with the terms of a sale agreement under Part VI, or 
  (vi) with the approval in writing of the Superintendent, in exchange for shares of another body corporate; 
  (c) the payment of dividends by a company; 
  (d) transactions that consist of the payment or provision by a company to persons who are related parties of the company of salaries, fees, stock options, pension benefits, incentive benefits or other benefits or remuneration in their capacity as directors, officers or employees of the company; 
  (e) transactions approved by the Minister under subsection 678(1) of the Bank Act or subsection 715(1) of the Insurance Companies Act ; or  
  (f) if a company is controlled by a widely held bank holding company or a widely held insurance holding company, transactions approved by the Superintendent that are entered as part of, or in the course of, a restructuring of the holding company or of any entity controlled by it. 
  
  ### Exception
  
  (3) Nothing in paragraph (2)(d) exempts from the application of this Part the payment by a company of fees or other remuneration to a person for 
  (a) the provision of services referred to in paragraph 483(1)(a); or 
  (b) duties outside the ordinary course of business of the company. 
  
  ### Exception for holding body corporate
  
  (4) A holding body corporate of a company is not a related party of a company if the holding body corporate is a Canadian financial institution that is referred to in any of paragraphs (a) to (d) of the definition “financial institution” in section 2. 
  
  ### Substantial investment — related party exception
  
  (5) Where a holding body corporate of a company is, because of subsection (4), not a related party of the company, any entity in which the holding body corporate has a substantial investment is not a related party of the company if no related party of the company has a substantial investment in the entity otherwise than through the control of the holding body corporate. 
  
  ### Meaning of “transaction”
  
  476 (1) For the purposes of this Part, entering into a transaction with a related party of a company includes 
  (a) making a guarantee on behalf of the related party; 
  (b) making an investment in any securities of the related party; 
  (c) taking an assignment of or otherwise acquiring a loan made by a third party to the related party; and 
  (d) taking a security interest in the securities of the related party. 
  
  ### Interpretation
  
  (2) For the purposes of this Part, the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit, is part of the transaction, and not a separate transaction. 
  
  ### Meaning of loan 
  
  (3) For the purposes of this Part, 
  *loan* includes a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit, but does not include investments in securities or the making of an acceptance, endorsement or other guarantee.  
  
  ### Security of a related party
  
  (4) For the purposes of this Part, 
  *security* of a related party includes an option, transferable by delivery, to demand delivery of a specified number or amount of shares of the related party at a fixed price within a specified time.  
  
  ## Prohibited Related Party Transactions 
  
  ### Prohibited transactions
  
  477 (1) Except as provided in this Part, a company shall not, directly or indirectly, enter into any transaction with a related party of the company. 
  
  ### Transaction of entity
  
  (2) Without limiting the generality of subsection (1), a company is deemed to have indirectly entered into a transaction in respect of which this Part applies where the transaction is entered into by an entity that is controlled by the company. 
  
  ### Exception
  
  (3) Subsection (2) does not apply where an entity that is controlled by a company is a financial institution incorporated or formed under the laws of a province and is subject to regulation and supervision, satisfactory to the Minister, regarding transactions with related parties of the company. 
  
  ### Idem
  
  (4) Subsection (2) does not apply in respect of transactions entered into by an entity that is controlled by a company if the transaction is a prescribed transaction or is one of a class of prescribed transactions. 
  
  ## Permitted Related Party Transactions 
  
  ### Nominal value transactions
  
  478 Notwithstanding anything in this Part, a company may enter into a transaction with a related party of the company if the value of the transaction is nominal or immaterial to the company when measured by criteria that have been established by the conduct review committee of the company and approved in writing by the Superintendent. 
  
  ### Secured loans
  
  479 A company may make a loan to or a guarantee on behalf of a related party of the company or take an assignment of or otherwise acquire a loan to a related party of the company if 
  (a) the loan or guarantee is fully secured by securities of or guaranteed by the Government of Canada or the government of a province; or 
  (b) the loan is a loan permitted by section 418 made to a related party who is a natural person on the security of a mortgage of the principal residence of that related party. 
  
  ### Deposits
  
  480 A company may enter into a transaction with a related party of the company if the transaction consists of a deposit by the company with a financial institution that is a direct clearer or a member of a clearing group under the by-laws of the Canadian Payments Association and the deposit is made for clearing purposes. 
  
  ### Borrowing, etc., from related party
  
  481 A company may borrow money from, take deposits from, or issue debt obligations to, a related party of the company. 
  
  ### Acquisition of assets
  
  482 (1) A company may purchase or otherwise acquire from a related party of the company 
  (a) securities of, or securities guaranteed by, the Government of Canada or the government of a province; 
  (b) assets fully secured by securities of, or securities guaranteed by, the Government of Canada or the government of a province; or 
  (c) goods for use in the ordinary course of business. 
  
  ### Sale of assets
  
  (2) Subject to section 470, a company may sell any assets of the company to a related party of the company if 
  (a) the consideration for the assets is fully paid in money; and 
  (b) there is an active market for those assets. 
  
  ### Asset transactions with financial institutions
  
  (3) Notwithstanding any of the provisions of subsections (1) and (2), a company may, in the normal course of business and pursuant to arrangements that have been approved by the Superintendent in writing, acquire or dispose of any assets, other than real property, from or to a related party of the company that is a financial institution. 
  
  ### Asset transactions in restructuring
  
  (4) Notwithstanding any of the provisions of subsections (1) and (2), a company may acquire any assets from, or dispose of any assets to, a related party of the company as part of, or in the course of, a restructuring, if the acquisition or disposition has been approved in writing by the Superintendent. 
  
  ### Goods or space for use in business
  
  (5) A company may lease assets 
  (a) from a related party of the company for use in the ordinary course of business of the company, or 
  (b) to a related party of the company, if the lease payments are made in money. 
  
  ### Approval under section 241
  
  (6) A company may acquire any assets from, or dispose of any assets to, a related party of the company under a sale agreement that is approved by the Minister under section 241. 
  
  ### Services
  
  483 (1) A company may enter into a transaction with a related party of the company if the transaction 
  (a) subject to subsection (2), consists of a written contract for the purchase by the company of services used in the ordinary course of business; 
  (b) subject to subsection (4), involves the provision by the company of services, other than loans or guarantees, normally offered to the public by the company in the ordinary course of business; 
  (c) consists of a written contract with a financial institution or an entity in which the company is permitted to have a substantial investment pursuant to section 453 that is a related party of the company 
  (i) for the networking of any services provided by the company or the financial institution or entity, or 
  (ii) for the referral of any person by the company to the financial institution or entity, or for the referral of any person by the financial institution or entity to the company; 
  (d) consists of a written contract for such pension or benefit plans or their management or administration as are incidental to directorships or to the employment of officers or employees of the company or its subsidiaries; or 
  (e) involves the provision by the company of management, advisory, accounting, information processing or other services in relation to any business of the related party. 
  
  ### Order concerning management by employees
  
  (2) Where a company has entered into a contract pursuant to paragraph (1)(a) and the contract, when taken together with all other such contracts entered into by the company, results in all or substantially all of the management functions of the company being exercised by persons who are not employees of the company, the Superintendent may, by order, if the Superintendent considers that result to be inappropriate, require the company, within such time as may be specified in the order, to take all steps necessary to ensure that management functions that are integral to the carrying on of business by the company are exercised by employees of the company to the extent specified in the order. 
  
  ### Exception
  
  (3) Despite subsection 477(2), a company is deemed not to have indirectly entered into a transaction in respect of which this Part applies if the transaction is entered into by an entity that is controlled by the company and the business of which is limited to the activity referred to in 453(2)(c) and the transaction is on terms and conditions at least as favourable to the company as market terms and conditions, as defined in subsection 489(2). 
  
  ### Loans or guarantees not included
  
  (4) The provision of services, for the purposes of paragraph (1)(b), does not include the making of loans or guarantees. 
  
  ### Transactions with holding companies
  
  483.1 (1) Subject to subsection (2) and sections 483.2 and 483.3, if a widely held insurance holding company or a widely held bank holding company has a significant interest in any class of shares of a company, the company may enter into any transaction with the holding company or with any other related party of the company that is an entity in which the holding company has a substantial investment. 
  
  ### Policies and procedures
  
  (2) The company shall adhere to policies and procedures established under subsection 199(3) when entering into the transaction. 
  
  ### Restriction
  
  483.2 (1) If a company enters into a transaction with a related party of the company with whom the company may enter into transactions under subsection 483.1(1) and that is not a federal financial institution, the company shall not directly or indirectly make, take an assignment of or otherwise acquire a loan to the related party, make an acceptance, endorsement or other guarantee on behalf of the related party or make an investment in the securities of the related party if, immediately following the transaction, the aggregate financial exposure, as that expression is defined by the regulations, of the company would exceed 
  (a) in respect of all transactions of the company with the related party, the prescribed percentage of the company’s regulatory capital or, if no percentage is prescribed, five per cent of the company’s regulatory capital; or 
  (b) in respect of all transactions of the company with such related parties of the company, the prescribed percentage of the company’s regulatory capital or, if no percentage is prescribed, ten per cent of the company’s regulatory capital. 
  
  ### Order
  
  (2) If the Superintendent is of the opinion that it is necessary for the protection of the interests of the depositors and creditors of a company, the Superintendent may, by order, 
  (a) reduce the limit in paragraph (1)(a) or (b) that would otherwise apply to the company; and 
  (b) impose limits on transactions by the company with related parties with whom the company may enter into transactions under subsection 483.1(1) that are federal financial institutions. 
  
  ### Order
  
  (3) The Superintendent may, by order, increase the limit in paragraph (1)(a) or (b) that would otherwise apply to a company on transactions by the company with related parties that are financial institutions that are regulated in a manner acceptable to the Superintendent. 
  
  ### Assets transactions
  
  483.3 (1) Despite subsection 482(3), a company shall not, without the approval of the Superintendent and its conduct review committee, directly or indirectly acquire assets from a related party of the company with whom the company may enter into transactions under subsection 483.1(1) that is not a federal financial institution, or directly or indirectly transfer assets to such a related party if is the value of the assets; is the total value of all assets that the company directly or indirectly acquired from, or directly or indirectly transferred to, that related party in the 12 months ending immediately before the acquisition or transfer, other than assets acquired by or transferred to the company under transactions permitted by section 478; and is five per cent, or the percentage that may be prescribed, of the total value of the assets of the company, as shown in the last annual statement of the company prepared before the acquisition or transfer. 
  
  ### Exception
  
  (2) The prohibition in subsection (1) does not apply in respect of assets purchased or otherwise acquired under subsection 482(1), assets sold under subsection 482(2) or any other assets as may be prescribed. 
  
  ### Exception
  
  (3) The approval of the Superintendent is not required if 
  (a) the company purchases or sells assets under a sale agreement that is approved by the Minister under section 241; or 
  (b) the company or its subsidiary acquires shares of, or ownership interests in, an entity for which the approval of the Minister under Part VII or subsection 453(5) is required or the approval of the Superintendent under subsection 453(6) is required. 
  
  ### Value of assets
  
  (4) For the purposes of “A” in subsection (1), the value of the assets is 
  (a) in the case of assets that are acquired, the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which will be included in the annual statement of the company after the acquisition, the fair market value of the assets; and 
  (b) in the case of assets that are transferred, the book value of the assets as stated in the last annual statement of the company prepared before the transfer or, if the assets are shares of, or ownership interests in, an entity the assets of which were included in the last annual statement of the company before the transfer, the value of the assets as stated in the annual statement. 
  
  ### Total value of all assets
  
  (5) For the purposes of subsection (1), the total value of all assets that the company or any of its subsidiaries has acquired during the period of twelve months referred to in subsection (1) is the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which immediately after the acquisition were included in the annual statement of the company, the fair market value of the assets of the entity at the date of the acquisition. 
  
  ### Total value of all assets
  
  (6) For the purposes of subsection (1), the total value of all assets that the company or any of its subsidiaries has transferred during the period of twelve months referred to in subsection (1) is the book value of the assets as stated in the last annual statement of the company prepared before the transfer or, if the assets are shares of, or ownership interests in, an entity the assets of which were included in the last annual statement of the company before the transfer, the value of the assets of the entity as stated in the annual statement. 
  
  ### Directors and officers and their interests
  
  484 (1) Subject to subsection (2) and sections 485 and 486, a company may enter into any transaction with a related party of the company if the related party is 
  (a) a natural person who is a related party of the company only because the person is 
  (i) a director or senior officer of the company or of an entity that controls the company, or 
  (ii) the spouse or common-law partner, or a child who is less than eighteen years of age, of a director or senior officer of the company or of an entity that controls the company; or 
  (b) an entity that is a related party of the company only because the entity is controlled by 
  (i) a director or senior officer of the company or of an entity that controls the company, or 
  (ii) the spouse or common-law partner, or a child who is less than eighteen years of age, of a director or senior officer referred to in subparagraph (i). 
  
  ### Loans to full-time senior officers
  
  (2) A company may, with respect to a related party of the company referred to in subsection (1) who is a full-time senior officer of the company, make, take an assignment of or otherwise acquire a loan to the related party only if the aggregate principal amount of all outstanding loans to the related party that are held by the company and its subsidiaries, together with the principal amount of the proposed loan, does not exceed the greater of twice the annual salary of the related party and $100,000. 
  
  ### Exception
  
  (3) Subsection (2) does not apply in respect of 
  (a) loans referred to in paragraph 479(b), and 
  (b) margin loans referred to in section 486, and the amount of any such loans to a related party of a company shall not be included in determining, for the purposes of subsection (2), the aggregate principal amount of all outstanding loans made by the company to the related party. 
  
  ### Preferred terms — loan to senior officer
  
  (4) Notwithstanding section 489, a company may make a loan, other than a margin loan, to a senior officer of the company on terms and conditions more favourable to the officer than those offered to the public by the company if those terms and conditions have been approved by the conduct review committee of the company. 
  
  ### Preferred terms — loan to spouse or common-law partner
  
  (5) Notwithstanding section 489, a company may make a loan referred to in paragraph 479(b) to the spouse or common-law partner of a senior officer of the company on terms and conditions more favourable than those offered to the public by the company if those terms and conditions have been approved by the conduct review committee of the company. 
  
  ### Preferred terms — other financial services
  
  (6) Notwithstanding section 489, a company may offer financial services, other than loans or guarantees, to a senior officer of the company, or to the spouse or common-law partner, or a child who is less than eighteen years of age, of a senior officer of the company, on terms and conditions more favourable than those offered to the public by the company if 
  (a) the financial services are offered by the company to employees of the company on those favourable terms and conditions; and 
  (b) the conduct review committee of the company has approved the practice of making those financial services available on those favourable terms and conditions to senior officers of the company or to the spouses or common-law partners, or the children under eighteen years of age, of senior officers of the company. 
  
  ### Board approval required
  
  485 (1) Except with the concurrence of at least two thirds of the directors present at a meeting of the board of directors of the company, a company shall not, with respect to a related party of the company referred to in subsection 484(1), 
  (a) make, take an assignment of or otherwise acquire a loan to the related party, including a margin loan referred to in section 486, 
  (b) make a guarantee on behalf of the related party, or 
  (c) make an investment in the securities of the related party if, immediately following the transaction, the aggregate of 
  (d) the principal amount of all outstanding loans to the related party that are held by the company and its subsidiaries, other than 
  (i) loans referred to in paragraph 479(b), and 
  (ii) if the related party is a full-time senior officer of the company, loans to the related party that are permitted by subsection 484(2), 
  (e) the sum of all outstanding amounts guaranteed by the company and its subsidiaries on behalf of the related party, and 
  (f) where the related party is an entity, the book value of all investments by the company and its subsidiaries in the securities of the entity would exceed 2 per cent of the regulatory capital of the company. 
  
  ### Limit on transactions with directors, officers and their interests
  
  (2) A company shall not, with respect to a related party of the company referred to in subsection 484(1), 
  (a) make, take an assignment of or otherwise acquire a loan to the related party, including a margin loan referred to in section 486, 
  (b) make a guarantee on behalf of the related party, or 
  (c) make an investment in the securities of the related party if, immediately following the transaction, the aggregate of 
  (d) the principal amount of all outstanding loans to all related parties of the company referred to in subsection 484(1) that are held by the company and its subsidiaries, other than 
  (i) loans referred to in section 479, and 
  (ii) loans permitted by subsection 484(2), 
  (e) the sum of all outstanding amounts guaranteed by the company and its subsidiaries on behalf of all related parties of the company referred to in subsection 484(1), and 
  (f) the book value of all investments by the company and its subsidiaries in the securities of all entities that are related parties of the company referred to in subsection 484(1) would exceed 50 per cent of the regulatory capital of the company. 
  
  ### Exclusion of de minimis transactions 
  
  (3) Loans, guarantees and investments that are referred to in section 478 shall not be included in calculating the aggregate of loans, guarantees and investments referred to in subsections (1) and (2). 
  
  ### Margin loans
  
  486 The Superintendent may establish terms and conditions with respect to the making by a company of margin loans to a director or senior officer of the company. 
  
  ### Exemption by order
  
  487 (1) A company may enter into a transaction with a related party of the company if the Superintendent, by order, has exempted the transaction from the provisions of section 477. 
  
  ### Conditions for order
  
  (2) The Superintendent shall not make an order referred to in subsection (1) unless the Superintendent is satisfied that the decision of the company to enter into the transaction has not been and is not likely to be influenced in any significant way by a related party of the company and does not involve in any significant way the interests of a related party of the company. 
  
  ### Prescribed transactions
  
  488 A company may enter into a transaction with a related party of the company if the transaction is a prescribed transaction or one of a class of prescribed transactions. 
  
  ## Restrictions on Permitted Transactions 
  
  ### Market terms and conditions
  
  489 (1) Except as provided in subsections 484(4) to (6), any transaction entered into with a related party of the company shall be on terms and conditions that are at least as favourable to the company as market terms and conditions. 
  
  ### Meaning of 
  *market terms and conditions* 
  
  (2) For the purposes of subsection (1), 
  *market terms and conditions* means  
  (a) in respect of a service or a loan facility or a deposit facility offered to the public by the company in the ordinary course of business, terms and conditions that are no more or less favourable than those offered to the public by the company in the ordinary course of business; and 
  (b) in respect of any other transaction, 
  (i) terms and conditions, including those relating to price, rent or interest rate, that might reasonably be expected to apply in a similar transaction in an open market under conditions requisite to a fair transaction between parties who are at arm’s length and who are acting prudently, knowledgeably and willingly, or 
  (ii) if the transaction is one that would not reasonably be expected to occur in an open market between parties who are at arm’s length, terms and conditions, including those relating to price, rent or interest rate, that would reasonably be expected to provide the company with fair value, having regard to all the circumstances of the transaction, and that would be consistent with the parties to the transaction acting prudently, knowledgeably and willingly. 
  490 and 491  [Repealed, 1997, c. 15, s. 404]  
  
  ## Disclosure 
  
  ### Company obligation
  
  492 (1) Where, in respect of any proposed transaction permitted by this Part, other than those referred to in section 478, a company has reason to believe that the other party to the transaction is a related party of the company, the company shall take all reasonable steps to obtain from the other party full disclosure, in writing, of any interest or relationship, direct or indirect, that would make the other party a related party of the company. 
  
  ### Reliance on information
  
  (2) A company and any person who is a director or an officer, employee or agent of the company may rely on any information contained in any disclosure received by the company pursuant to subsection (1) or any information otherwise acquired in respect of any matter that might be the subject of such a disclosure and no action lies against the company or any such person for anything done or omitted in good faith in reliance on any such information. 
  
  ### Notice to Superintendent
  
  493 Where a company has entered into a transaction that the company is prohibited by this Part from entering into, or where a company has entered into a transaction for which approval is required under subsection 485(1) without having obtained the approval, the company shall, on becoming aware of that fact, notify the Superintendent without delay. 
  
  ## Remedial Actions 
  
  ### Order to void contract or to grant other remedy
  
  494 (1) If a company enters into a transaction that it is prohibited from entering into by this Part, the company or the Superintendent may apply to a court for an order setting aside the transaction or for any other appropriate remedy, including an order directing that the related party of the company involved in the transaction account to the company for any profit or gain realized or that any director or senior officer of the company who authorized the transaction compensate the company for any loss or damage incurred by the company. 
  
  ### Time limit
  
  (2) An application under subsection (1) in respect of a particular transaction may only be made within the period of three months following the day the notice referred to in section 493 in respect of the transaction is given to the Superintendent or, if no such notice is given, the day the Superintendent becomes aware of the transaction. 
  
  ### Certificate
  
  (3) For the purposes of subsection (2), a document purporting to have been issued by the Superintendent, certifying the day on which the Superintendent became aware of the transaction, shall, in the absence of evidence to the contrary, be received in evidence as conclusive proof of that fact without proof of the signature or of the official character of the person appearing to have signed the document and without further proof. 
  
  # PART XII 
  
  ## Regulation of Companies — Superintendent 
  
  ## Supervision 
  
  ## Returns 
  
  ### Required information
  
  495 A company shall provide the Superintendent with such information, at such times and in such form as the Superintendent may require. 
  496  [Repealed, 2007, c. 6, s. 379]  
  497  [Repealed, 2007, c. 6, s. 379]  
  498  [Repealed, 2007, c. 6, s. 379]  
  
  ### Names of directors and auditors
  
  499 (1) A company shall, within thirty days after each annual meeting of the company, provide the Superintendent with a return showing 
  (a) the name, residence and citizenship of each director holding office immediately following the meeting; 
  (b) the mailing address of each director holding office immediately following the meeting; 
  (c) the bodies corporate of which each director referred to in paragraph (a) is an officer or director and the firms of which each director is a member; 
  (d) the affiliation, within the meaning of section 166, with the company of each director referred to in paragraph (a); 
  (e) the names of the directors referred to in paragraph (a) who are officers or employees of the company or any affiliate of the company, and the positions they occupy; 
  (f) the name of each committee of the company on which each director referred to in paragraph (a) serves; 
  (g) the date of expiration of the term of each director referred to in paragraph (a); and 
  (h) the name, address and date of appointment of the auditor of the company. 
  
  ### Changes
  
  (2) Where 
  (a) any information relating to a director or auditor of a company shown in the latest return made to the Superintendent under subsection (1), other than information referred to in paragraph (1)(c) or (d), becomes inaccurate or incomplete, 
  (b) a vacancy in the position of auditor of the company occurs or is filled by another person, or 
  (c) a vacancy on the board of directors of the company occurs or is filled, the company shall forthwith provide the Superintendent with such information as is required to maintain the return in a complete and accurate form. 
  
  ### Copy of by-laws
  
  500 A company shall send to the Superintendent, within thirty days after the coming into effect of a by-law or an amendment to a by-law, a copy of the by-law or amendment. 
  
  ### Register of companies
  
  501 (1) The Superintendent shall, in respect of each company for which an order approving the commencement and carrying on of business has been made, cause a register to be maintained containing a copy of 
  (a) the incorporating instrument of the company; and 
  (b) the information referred to in paragraphs 499(1)(a), (c) and (e) to (h) contained in the latest return sent to the Superintendent under section 499. 
  
  ### Form
  
  (2) The register may be maintained in 
  (a) a bound or loose-leaf form or in a photographic film form; or 
  (b) a system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time. 
  
  ### Access
  
  (3) Persons are entitled to reasonable access to the register and may make copies of or take extracts from the information in it. 
  
  ### Evidence
  
  (4) A statement containing information in the register and purporting to be certified by the Superintendent is admissible in evidence in all courts as proof, in the absence of evidence to the contrary, of the facts stated in the statement without proof of the appointment or signature of the Superintendent. 
  
  ### Production of information and documents
  
  502 (1) The Superintendent may, by order, direct a person who controls a company or any entity that is affiliated with a company to provide the Superintendent with any information or documents that may be specified in the order if the Superintendent believes that the production of the information or documents is necessary in order to be satisfied that 
  (a) the provisions of this Act are being duly observed and that the company is in a sound financial condition; or 
  (b) the company has adequate policies and procedures to protect itself against threats to its integrity or security. 
  
  ### Time
  
  (2) Any person to whom a direction has been issued under subsection (1) shall provide the information or documents specified in the order within the time specified in the order and, where the order does not specify a time, the person shall provide the information or documents within a reasonable time. 
  
  ### Exemption
  
  (3) Subsection (1) does not apply in respect of an entity that controls a company or is affiliated with a company where that entity is a financial institution regulated 
  (a) by or under an Act of Parliament; or 
  (b) by or under an Act of the legislature of a province where the Superintendent has entered into an agreement with the appropriate official or public body responsible for the supervision of financial institutions in that province concerning the sharing of information on such financial institutions. 
  
  ### Confidential information
  
  503 (1) Subject to section 504.1, all information regarding the business or affairs of a company, or regarding a person dealing with a company, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly. 
  
  ### Disclosure permitted
  
  (2) Nothing in subsection (1) prevents the Superintendent from disclosing any information 
  (a) to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision, 
  (a.01) to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision, 
  (a.1) to the Canada Deposit Insurance Corporation for purposes related to its operation; and 
  (b) to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions, if the Superintendent is satisfied that the information will be treated as confidential by the agency, body or person to whom it is disclosed. 
  
  ### Regulations
  
  503.1 The Governor in Council may make regulations prohibiting, limiting or restricting the disclosure by companies of prescribed supervisory information. 
  
  ### Evidentiary privilege
  
  504 (1) Prescribed supervisory information shall not be used as evidence in any civil proceedings and is privileged for that purpose. 
  
  ### No testimony or production
  
  (2) No person shall by an order of any court, tribunal or other body be required in any civil proceedings to give oral testimony or to produce any document relating to any prescribed supervisory information. 
  
  ### Exceptions to subsection (1)
  
  (3) Despite subsection (1), 
  (a) the Minister, the Superintendent or the Attorney General of Canada may, in accordance with the regulations, if any, use prescribed supervisory information as evidence in any proceedings; and 
  (b) a company may, in accordance with the regulations, if any, use prescribed supervisory information as evidence in any proceedings in relation to the administration or enforcement of this Act or the Winding-up and Restructuring Act that are commenced by the company, the Minister, the Superintendent or the Attorney General of Canada.  
  
  ### Exceptions to subsections (1) and (2)
  
  (4) Despite subsections (1) and (2) and section 39.1 of the Office of the Superintendent of Financial Institutions Act, a court, tribunal or other body may, by order, require the Minister, the Superintendent or a company to give oral testimony or to produce any document relating to any prescribed supervisory information in any civil proceedings in relation to the administration or enforcement of this Act that are commenced by the Minister, the Superintendent, the Attorney General of Canada or the company.  
  
  ### No waiver
  
  (5) The disclosure of any prescribed supervisory information, other than under subsection (3) or (4), does not constitute a waiver of the privilege referred to in subsection (1). 
  
  ### Regulations
  
  (6) The Governor in Council may, for the purposes of subsection (3), make regulations respecting the circumstances in which prescribed supervisory information may be used as evidence. 
  
  ### No waiver
  
  504.01 (1) For greater certainty, the disclosure by a company — or by a person who controls a company or by an entity that is affiliated with a company — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy. 
  
  ### No disclosure
  
  (2) The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include 
  (a) the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or 
  (b) the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a). 
  
  ### Disclosure by Superintendent
  
  504.1 (1) The Superintendent shall disclose at such times and in such manner as the Minister may determine, such information obtained by the Superintendent under this Act as the Minister considers ought to be disclosed for the purposes of the analysis of the financial condition of a company and that 
  (a) is contained in returns filed pursuant to the Superintendent’s financial regulatory reporting requirements in respect of companies; or 
  (b) has been obtained as a result of an industry-wide or sectoral survey conducted by the Superintendent in relation to an issue or circumstances that could have an impact on the financial condition of companies. 
  
  ### Prior consultation required
  
  (2) The Minister shall consult with the Superintendent before making any determination under subsection (1). 
  
  ### Disclosure by a company
  
  504.2 (1) A company shall make available to the public such information concerning 
  (a) the compensation of its executives, as that expression is defined by the regulations, and 
  (b) its business and affairs for the purpose of the analysis of its financial condition, in such form and manner and at such times as may be required by or pursuant to such regulations as the Governor in Council may make for the purpose. 
  
  ### Exemption by regulation
  
  (2) Paragraph (1)(a) does not apply to a company that is within such class or classes of companies as may be prescribed. 
  
  ### Exceptions to disclosure
  
  504.3 Subject to any regulations made under section 444, no information obtained by a company regarding any of its customers shall be disclosed or made available under subsection 504.1(1) or section 504.2. 
  
  ### Report respecting disclosure
  
  504.4 The Superintendent shall prepare a report, to be included in the report referred to in section 40 of the Office of the Superintendent of Financial Institutions Act, respecting the disclosure of information by companies and describing the state of progress made in enhancing the disclosure of information in the financial services industry.  
  
  ## Inspection of Companies 
  
  ### Examination of companies
  
  505 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each company that the Superintendent considers to be necessary or expedient to determine whether the company is complying with the provisions of this Act, whether the company is in a sound financial condition and whether the company has adequate policies and procedures to protect itself against threats to its integrity or security. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister. 
  (1.1)  [Repealed, 2023, c. 26, s. 523]  
  
  ### Access to records of company
  
  (2) The Superintendent or a person acting under the Superintendent’s direction 
  (a) has a right of access to any records, cash, assets and security held by or on behalf of a company; and 
  (b) may require the directors, officers and auditor of a company to provide information and explanations, to the extent that they are reasonably able to do so, in respect of the condition and affairs of the company or any entity in which the company has a substantial investment. 
  
  ### Power of Superintendent on inquiry
  
  506 The Superintendent has all the powers of a person appointed as a commissioner under Part II of the Inquiries Act for the purpose of obtaining evidence under oath, and may delegate those powers to any person acting under the Superintendent’s direction.  
  
  ## Remedial Powers 
  
  ## Prudential Agreements 
  
  ### Prudential agreement
  
  506.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with a company for the purposes of implementing any measure designed to maintain or improve its safety and soundness or establishing adequate policies and procedures to protect it against threats to its integrity or security. 
  
  ## Directions of Compliance 
  
  ### Superintendent’s directions to company
  
  507 (1) Where, in the opinion of the Superintendent, a company, or a person with respect to a company, is committing, or is about to commit, an act that is an unsafe or unsound practice in conducting the business of the company, or is pursuing or is about to pursue any course of conduct that is an unsafe or unsound practice in conducting the business of the company, the Superintendent may direct the company or person to 
  (a) cease or refrain from committing the act or pursuing the course of conduct; and 
  (b) perform such acts as in the opinion of the Superintendent are necessary to remedy the situation. 
  
  ### Directions — policies and procedures
  
  (1.1) If, in the opinion of the Superintendent, a company does not have adequate policies and procedures to protect itself against threats to its integrity or security, the Superintendent may direct the company to take any measures that in the opinion of the Superintendent are necessary to remedy the situation. 
  
  ### Opportunity for representations
  
  (2) Subject to subsection (3), no direction shall be issued to a company or person under subsection (1) or (1.1) unless the company or person is provided with a reasonable opportunity to make representations in respect of the matter. 
  
  ### Temporary direction
  
  (3) If, in the opinion of the Superintendent, the length of time required for representations to be made under subsection (2) might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days. 
  
  ### Idem
  
  (4) Subject to section 508, a temporary direction under subsection (3) continues to have effect after the expiration of the fifteen day period referred to in that subsection if no representations are made to the Superintendent within that period or, if representations have been made, the Superintendent notifies the company or person that the Superintendent is not satisfied that there are sufficient grounds for revoking the direction. 
  508  [Repealed, 1996, c. 6, s. 125]  
  
  ### Court enforcement
  
  509 (1) Where a company or person 
  (a) is contravening or has failed to comply with a prudential agreement entered into under section 506.1 or a direction of the Superintendent issued to the company or person under subsection 507(1), (1.1) or (3), 
  (b) is contravening this Act, or 
  (c) has omitted to do any thing under this Act that is required to be done by or on the part of the company or person, the Superintendent may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the company or person to comply with the prudential agreement or direction, cease the contravention or do any thing that is required to be done, and on such application the court may so order and make any other order it thinks fit. 
  
  ### Appeal
  
  (2) An appeal from a decision of a court under subsection (1) lies in the same manner, and to the same court, as an appeal from any other order of the court. 
  
  ## Disqualification and Removal of Directors or Senior Officers 
  
  ### Meaning of 
  *senior officer* 
  
  509.01 In sections 509.1 and 509.2, 
  *senior officer* means the chief executive officer, secretary, treasurer or controller of a company or any other officer reporting directly to the company’s board of directors or chief executive officer.  
  
  ### Application
  
  509.1 (1) This section applies only in respect of a company 
  (a) that has been notified by the Superintendent that this section applies to it where the company is subject to measures designed to maintain or improve its safety and soundness, which measures 
  (i) have been specified by the Superintendent by way of conditions or limitations in respect of the order approving the commencement and carrying on of the company’s business, or 
  (ii) are contained in a prudential agreement entered into under section 506.1 or an undertaking given by the company to the Superintendent; or 
  (b) that is the subject of a direction made under section 507 or an order made under subsection 473(3). 
  
  ### Information to be provided
  
  (2) A company shall provide the Superintendent with the name of 
  (a) each person who has been nominated for election or appointment as a member of its board of directors, 
  (b) each person who has been selected by the company for appointment as a senior officer, and 
  (c) each person who is newly elected as a director of the company at a meeting of shareholders and who was not proposed for election by anyone involved in the management of the company, together with such other information about the background, business record and experience of the person as the Superintendent may require. 
  
  ### When information to be provided
  
  (3) The information required by subsection (2) shall be provided to the Superintendent 
  (a) at least thirty days prior to the date or proposed date of the election or appointment or within such shorter period as the Superintendent may allow; or 
  (b) in the case of a person referred to in paragraph (2)(c), within fifteen days after the date of the election of the person. 
  
  ### Disqualification or removal
  
  (4) If the Superintendent is of the opinion that, on the basis of the competence, business record, experience, conduct or character of a person, he or she is not suitable to hold that position, the Superintendent may, by order 
  (a) in the case of a person referred to in paragraph (2)(a) or (b), disqualify the person from being elected or appointed as a director of a company or from being appointed as a senior officer; or 
  (b) in the case of a person referred to in paragraph (2)(c), remove the person from office as a director of the company. 
  
  ### Risk of prejudice
  
  (4.1) In forming an opinion under subsection (4), the Superintendent must consider whether the interests of the depositors and creditors of the company would likely be prejudiced if the person were to take office or continue to hold office, as the case may be. 
  
  ### Representations may be made
  
  (5) The Superintendent must in writing notify the person concerned and the company of any action that the Superintendent proposes to take under subsection (4) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter. 
  
  ### Prohibition
  
  (6) Where an order has been made under subsection (4) 
  (a) disqualifying a person from being elected or appointed to a position, the person shall not be, and the company shall not permit the person to be, elected or appointed to the position; or 
  (b) removing a director from office, the person shall not continue to hold, and the company shall not permit the person to continue to hold, office as a director. 
  
  ### Removal of directors or senior officers
  
  509.2 (1) The Superintendent may, by order, remove a person from office as a director or senior officer of a company if the Superintendent is of the opinion that the person is not suitable to hold that office 
  (a) on the basis of the competence, business record, experience, conduct or character of the person; or 
  (b) because the person has contravened or, by action or negligence, has contributed to the contravention of 
  (i) this Act or the regulations made under it, 
  (ii) a direction made under section 507, 
  (iii) an order made under subsection 473(3), 
  (iv) a condition or limitation in respect of the order approving the commencement and carrying on the company’s business, or 
  (v) a prudential agreement entered into under section 506.1 or an undertaking given by the company to the Superintendent. 
  
  ### Risk of prejudice
  
  (2) In forming an opinion under subsection (1), the Superintendent must consider whether the interests of the depositors and creditors of the company have been or are likely to be prejudiced by the person’s holding office as a director or senior officer. 
  
  ### Representations may be made
  
  (3) The Superintendent must in writing notify the person concerned and the company of any removal order that the Superintendent proposes to make under subsection (1) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter. 
  
  ### Suspension
  
  (4) If the Superintendent is of the opinion that the public interest may be prejudiced by the director or senior officer continuing to exercise the powers or carry out the duties and functions of that office during the period for making representations, the Superintendent may make an order suspending the director or senior officer. The suspension may not extend beyond 10 days after the expiration of that period. 
  
  ### Notice of order
  
  (5) The Superintendent shall, without delay, notify the director or senior officer, as the case may be, and the company of a removal order or suspension order. 
  
  ### Consequences of removal order
  
  (6) The director or senior officer, as the case may be, ceases to hold that office as of the date the removal order is made or any later date specified in the order. 
  
  ### Appeal
  
  (7) The director or senior officer, as the case may be, or the company may, within 30 days after the date of receipt of notice of the removal order under subsection (5), or within any longer period that the Court allows, appeal the matter to the Federal Court. 
  
  ### Powers of Federal Court
  
  (8) The Federal Court, in the case of an appeal, may dismiss the appeal or set aside the removal order. 
  
  ### Order not stayed by appeal
  
  (9) A removal order is not stayed by an appeal. 
  
  ## Supervisory Intervention 
  
  ### Superintendent may take control
  
  510 (1) Subject to this Act, where any of the circumstances described in subsection (1.1) exist in respect of a company, the Superintendent may 
  (a) take control, for a period not exceeding sixteen days, of the assets of the company and the assets held in trust by or under the administration of the company; or 
  (b) unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so, 
  (i) take control, for a period exceeding sixteen days, of the assets of the company and the assets held in trust by or under the administration of the company, 
  (ii) where control of assets has been taken under paragraph (a), continue the control beyond the sixteen days referred to in that paragraph, or 
  (iii) take control of the company. 
  
  ### Circumstances for taking control
  
  (1.1) Control by the Superintendent under subsection (1) may be taken in respect of a company where 
  (a) the company has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable; 
  (b)  [Repealed, 2001, c. 9, s. 565]  
  (c) the assets of the company are not, in the opinion of the Superintendent, sufficient to give adequate protection to the company’s depositors and creditors; 
  (d) any asset appearing on the books or records of the company or held in trust by or under the administration of the company is not, in the opinion of the Superintendent, satisfactorily accounted for; 
  (e) the regulatory capital of the company has, in the opinion of the Superintendent, reached a level or is eroding in a manner that may detrimentally affect the company’s depositors or creditors; 
  (f) the company has failed to comply with an order of the Superintendent under paragraph 473(3)(a); 
  (g) the company’s deposit insurance has been terminated by the Canada Deposit Insurance Corporation; 
  (g.1) in the opinion of the Superintendent, the company’s depositors and creditors may be detrimentally affected because all of the common shares of the company must be disposed of under a direction made by the Minister or because there is a prohibition under this Act in respect of the exercise of the right to vote attached to all of the common shares of the company; 
  (h) in the opinion of the Superintendent, any other state of affairs exists in respect of the company that may be materially prejudicial to the interests of the company’s depositors or creditors or the beneficiaries of any trust under the company’s administration, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the holding body corporate of the company; 
  (i) in the opinion of the Superintendent, the continued operation of the company by the directors of the company or by the officers of the company responsible for its management would be materially prejudicial to its integrity or security; or 
  (j) in the opinion of the Superintendent, the continued operation of the company by the directors of the company or by the officers of the company responsible for its management would pose a risk to national security. 
  
  ### Minister’s powers
  
  (1.11) Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to 
  (a) take control, for a period not exceeding 16 days, of the assets of the company and the assets held in trust by or under the administration of the company; 
  (b) take control, for a period exceeding 16 days, of the assets of the company and the assets held in trust by or under the administration of the company; 
  (c) if control of assets has been taken under paragraph (a), continue the control beyond the 16 days referred to in that paragraph; or 
  (d) take control of the company. 
  
  ### Notice of proposed action
  
  (1.2) The Superintendent must notify a company of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the Superintendent within the time specified in the notice not exceeding ten days after it receives the notice. 
  
  ### Notice — up to 16 days
  
  (1.3) If the Superintendent takes control of the assets of a company under paragraph (1.11)(a), the Superintendent shall notify the company that control has been taken at the direction of the Minister. 
  
  ### Notice — more than 16 days
  
  (1.4) If the Minister is considering whether to exercise the powers under any of paragraphs (1.11)(b) to (d), the Superintendent shall notify the company of the action that is being considered and of its right to make written representations to the Minister within the time specified in the notice, not exceeding 10 days after it receives the notice. 
  
  ### Notice — Committee and Review Agency
  
  (1.5) Within 30 days after exercising any of the powers under subsection (1.11), the Minister shall notify 
  (a) the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act ; and  
  (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.  
  
  ### Objectives of Superintendent
  
  (2) If the Superintendent has control under subsection (1) or (1.11) of the assets of a company referred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the depositors and creditors of the company or the beneficiaries of any trust under the administration of the company. 
  
  ### Powers of Superintendent
  
  (3) If the Superintendent has control under subsection (1) or (1.11) of the assets of a company referred to in that subsection, 
  (a) the company shall not make, acquire or transfer any loan or make any purchase, sale or exchange of securities or any disbursement or transfer of cash of any kind without the prior approval of the Superintendent or a representative designated by the Superintendent; and 
  (b) no director, officer or employee of the company shall have access to any cash or securities held by or under the administration of the company unless 
  (i) a representative of the Superintendent accompanies the director, officer or employee, or 
  (ii) the access is previously authorized by the Superintendent or the Superintendent’s representative. 
  511 to 513  [Repealed, 1996, c. 6, s. 128]  
  
  ### Powers of directors and officers suspended
  
  514 (1) If the Superintendent takes control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the powers, duties, functions, rights and privileges of the directors of the company and of the officers of the company responsible for its management are suspended. 
  
  ### Superintendent to manage company
  
  (2) If the Superintendent takes control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the Superintendent shall manage the business and affairs of the company and in so doing the Superintendent 
  (a) may perform any of the duties and functions that the persons referred to in subsection (1) were performing prior to the taking of control; and 
  (b) has and may exercise any power, right or privilege that any such person had or could have exercised prior to the taking of control. 
  
  ### Persons to assist
  
  (3) If the Superintendent takes control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d), the Superintendent may appoint one or more persons to assist in the management of the company. 
  
  ### Expiration of control
  
  515 (1) Control by the Superintendent under subsection 510(1) of a company or of the assets of a company and the assets held in trust by or under the administration of the company expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the company stating that the Superintendent is of the opinion that the circumstances leading to the taking of control by the Superintendent have been substantially rectified and that the company can resume control of its business and affairs. 
  
  ### Expiration of control — Minister’s direction
  
  (2) Control by the Superintendent under subsection 510(1.11) of a company or of the assets of a company and the assets held in trust by or under the administration of the company expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the company stating that the Minister is of the opinion, on the recommendation of the Superintendant, that corrective measures have been taken in response to the reasons related to national security and that the company can resume control of its business and affairs. 
  
  ### Superintendent may request winding-up
  
  515.1 The Superintendent may, at any time before the receipt of a request under section 516 to relinquish control of a company or of the assets of a company and the assets held in trust by or under the administration of the company, request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the company where  
  (a) the assets of the company and the assets held in trust by or under the administration of the company are under the control of the Superintendent under subparagraph 510(1)(b)(i) or (ii) or paragraph 510(1.11)(b) or (c); or 
  (b) the company is under the control of the Superintendent under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d). 
  
  ### Requirement to relinquish control
  
  516 If no action has been taken by the Superintendent under section 515.1 and, after 30 days following the taking of control by the Superintendent under subsection 510(1) or (1.11) of a company or of the assets of a company and the assets held in trust by or under the administration of the company, the Superintendent receives from its board of directors a notice in writing requesting the Superintendent to relinquish control, the Superintendent shall, not later than 12 days after receipt of the notice, 
  (a) comply with the request; or 
  (b) request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the company.  
  
  ### Advisory committee
  
  517 The Superintendent may, from among the companies that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of a company under subsection 510(1) or (1.11), appoint a committee of not more than six members to advise the Superintendent in respect of assets, management and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the company.  
  
  ### Expenses payable by company
  
  518 (1) If the Superintendent has taken control of a company under subparagraph 510(1)(b)(iii) or paragraph 510(1.11)(d) and the control expires or is relinquished under section 515 or paragraph 516(a), the Superintendent may direct that the company be liable for repayment of all or part of the expenses resulting from the taking of control of the company and assessed against and paid by other companies under section 23 of the Office of the Superintendent of Financial Institutions Act, together with any interest in respect of the expenses at any rate that is specified by the Superintendent.  
  
  ### Debt due to Her Majesty
  
  (2) Where any direction is made under subsection (1), the amount for which the company is liable is a debt due to Her Majesty in right of Canada payable on demand and is recoverable in the Federal Court or any other court of competent jurisdiction. 
  
  ### Priority of claim in liquidation
  
  519 In the case of the winding-up of a company, the expenses resulting from the taking of control of the company under subsection 510(1) or (1.11) and assessed against and paid by other companies under section 23 of the Office of the Superintendent of Financial Institutions Act, and interest in respect of the expenses at any rate that is specified by the Superintendent, constitute a claim of His Majesty in right of Canada against the assets of the company that ranks after all other claims but prior to any claim in respect of the shares of the company.  
  
  ### Application of assessment
  
  520 Any amount recovered pursuant to section 518 or 519 shall be applied to reduce the total amount of expenses incurred for or in connection with the administration of this Act. 
  
  # PART XII.1 
  
  ## Regulation of Companies — Commissioner 
  
  ### Required information
  
  520.1 A company shall provide the Commissioner with the information at the times and in the form that the Commissioner may require for the purposes of the administration of the Financial Consumer Agency of Canada Act and the consumer provisions.  
  
  ### Confidential information
  
  520.2 (1) Subject to subsection (2), information regarding the business or affairs of a company or regarding persons dealing with one that is obtained by the Commissioner or by any person acting under the direction of the Commissioner, in the course of the exercise or performance of powers, duties and functions referred to in subsection 5(1) of the Financial Consumer Agency of Canada Act, and any information prepared from that information, is confidential and shall be treated accordingly.  
  
  ### Disclosure permitted
  
  (2) If the Commissioner is satisfied that the information will be treated as confidential by the agency, body or person to whom it is disclosed, subsection (1) does not prevent the Commissioner from disclosing it 
  (a) to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision; 
  (b) to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision; 
  (c) to the Canada Deposit Insurance Corporation for purposes related to its operation; and 
  (d) to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions. 
  
  ### Examination
  
  520.3 (1) The Commissioner, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry that the Commissioner considers necessary for the purposes of satisfying the Commissioner that the applicable consumer provisions are being complied with and, after the conclusion of each examination and inquiry, shall report on it to the Minister. 
  
  ### Access to records of company
  
  (2) The Commissioner or a person acting under the Commissioner’s direction in carrying out his or her duties under subsection (1) 
  (a) has a right of access to any records, including electronic records, of a company; and 
  (b) may require the directors or officers of a company to provide information and explanations, to the extent that they are reasonably able to do so, in respect of any matter subject to examination or inquiry under subsection (1). 
  
  ### Power of Commissioner on inquiry
  
  520.4 The Commissioner, in carrying out his or her duties in relation to consumer provisions, has all the powers of a person appointed as a commissioner under Part II of the Inquiries Act for the purpose of obtaining evidence under oath, and may delegate those powers to any person acting under the Commissioner’s direction.  
  
  ### Compliance agreement
  
  520.5 The Commissioner may enter into an agreement, called a “compliance agreement”, with a company for the purposes of implementing any measure designed to further compliance by it with the consumer provisions. 
  
  # PART XIII 
  
  ## Administration 
  
  ## Notices and Other Documents 
  
  ### Execution of documents
  
  520.6 Any by-law, notice, resolution, requisition, statement or other document required or permitted to be executed or signed by more than one person for the purposes of this Act may be executed or signed in several documents of like form, each of which is executed or signed by one or more of the persons. The documents if duly executed or signed by all persons required or permitted to sign them are deemed to constitute one document for the purposes of this Act. 
  
  ### Notice to directors and shareholders
  
  521 A notice or document required by this Act or the regulations or by the incorporating instrument or by-laws of a company to be sent to a shareholder or director of a company may be sent by prepaid mail addressed to, or may be delivered personally to, 
  (a) the shareholder at the shareholder’s latest address as shown in the records of the company or its transfer agent; and 
  (b) the director at the director’s latest address as shown in the records of the company or in the latest return made under section 499. 
  
  ### Presumption from return
  
  522 A director named in the latest return sent by a company to the Superintendent under section 499 is presumed for the purposes of this Act to be a director of the company referred to in the return. 
  
  ### Presumption of receipt
  
  523 (1) A notice or document sent by mail in accordance with section 521 to a shareholder or director is deemed to be received by the shareholder or director at the time it would be delivered in the ordinary course of mail unless there are reasonable grounds for believing that the shareholder or director did not receive the notice or document at that time or at all. 
  
  ### Undelivered notices
  
  (2) If a company sends a notice or document to a shareholder in accordance with section 521 and it is returned on two consecutive occasions because the shareholder cannot be found, the company is not required to send any further notices or documents to the shareholder until it is informed in writing of their new address. 
  
  ### Service on a company
  
  524 A notice or document required by this Act to be sent to or served on a company may be sent by registered mail to the head office of the company and, if so sent, is deemed to be received or served at the time it would be delivered in the ordinary course of mail unless there are reasonable grounds for believing that the company did not receive the notice or document at that time or at all. 
  
  ### Certificate of company
  
  525 (1) A certificate issued on behalf of a company stating any fact that is set out in the incorporating instrument, the by-laws, the minutes of the meetings of the directors, a committee of directors or the shareholders, or in a contract to which the company is a party, may be signed by a director or an officer of the company. 
  
  ### Proof of certain cases
  
  (2) When introduced as evidence in any civil, criminal or administrative action or proceeding, 
  (a) a fact stated in a certificate referred to in subsection (1), 
  (b) a certified extract from a securities register of a company, or 
  (c) a certified copy of, or an extract from, minutes of a meeting of shareholders, directors or a committee of directors of a company is, in the absence of evidence to the contrary, proof of the facts so certified without proof of the signature or official character of the person appearing to have signed the certificate. 
  
  ### Entry in securities register
  
  526 An entry in the securities register of, or on a security certificate issued by, a company is evidence that the person in whose name the security is registered is the owner of the securities described in the register or in the certificate. 
  
  ### Verification of documents or fact
  
  527 (1) The Superintendent may require that a document or a fact stated in a document that is required by or under this Act to be sent to the Superintendent or to the Minister be verified in accordance with subsection (2). 
  
  ### Form of proof
  
  (2) A document or fact required by this Act or by the Superintendent to be verified may be verified by affidavit made under oath or by statutory declaration under the Canada Evidence Act before any commissioner for oaths or for taking affidavits.  
  
  ### Alternative means of publication
  
  527.1 (1) Anything that is required by a provision of this Act to be published in the Canada Gazette or to be published in any other way may, instead of being published in that way, be published in any manner that may be prescribed for the purpose of that provision.  
  
  ### Alternative means of publishing summaries
  
  (2) Anything that is required by a provision of this Act to be summarized in a publication may instead be summarized and published in any manner that may be prescribed for the purpose of that provision. 
  
  ### Publication conditions
  
  (3) Any condition under a provision of this Act that something be published in the Canada Gazette or in any other way is satisfied if that thing is published instead in any manner that may be prescribed for the purpose of that provision.  
  
  ### Other consequences
  
  (4) Where a provision of this Act provides for consequences to follow the publication of something in the Canada Gazette or in any other manner, the same consequences follow the publication of that thing in any other manner that may be prescribed for the purpose of that provision.  
  
  ## Approvals 
  
  ### Definition of 
  *approval* 
  
  527.2 In sections 527.3 to 527.8, 
  *approval* includes any consent, designation, order, exemption, extension or other permission granted by the Minister or the Superintendent under this Act, and includes the issuance of letters patent.  
  
  ### Matters to take into account — Minister
  
  527.3 (1) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval, take into account all matters that he or she considers relevant in the circumstances, including 
  (a) national security; and 
  (b) Canada’s international relations and its international legal obligations. 
  
  ### Matters to take into account — Superintendent
  
  (2) In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval and to any prudential considerations that the Superintendent considers relevant in the circumstances, the Superintendent may, in considering whether to grant the approval, take into account 
  (a) national security; and 
  (b) Canada’s international relations and its international legal obligations. 
  
  ### Minister — terms, conditions and undertakings
  
  527.4 (1) In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it or to ensure that such a financial institution has adequate policies and procedures to protect itself against threats to its integrity or security. 
  
  ### Commissioner — supervision of terms, conditions and undertakings
  
  (1.1) If the Minister specifies that the Commissioner is to supervise a company to determine if it is complying with any terms and conditions that are imposed, or undertakings that are required, by the Minister for the protection of the company’s customers, the Commissioner may take the same measures that the Commissioner could take if the terms and conditions or undertaking were a consumer provision. 
  
  ### Superintendent — terms, conditions and undertakings
  
  (2) In addition to any other action that may be taken under this Act, the Superintendent may, in granting an approval, impose any terms and conditions or require any undertaking that the Superintendent considers appropriate. 
  
  ### Revocation, suspension or amendment of approval — Minister
  
  527.5 (1) The Minister may revoke, suspend or amend any approval granted by the Minister if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Minister may take into account all matters that he or she considers relevant in the circumstances, including 
  (a) national security; and 
  (b) Canada’s international relations and its international legal obligations. 
  
  ### Revocation, suspension or amendment of approval — Superintendent
  
  (2) The Superintendent may revoke, suspend or amend any approval granted by the Superintendent if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Superintendent may take into account any prudential considerations that he or she considers relevant in the circumstances and 
  (a) national security; and 
  (b) Canada’s international relations and its international legal obligations. 
  
  ### Representations
  
  (3) Before taking any action under subsection (1) or (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. 
  
  ### Temporary suspension or amendment
  
  (4) If, in the Minister’s opinion, the length of time required for representations to be made under subsection (3) might be prejudicial to the public interest, the Minister may temporarily suspend or amend any approval granted by the Minister. 
  
  ### Cessation of effect
  
  (5) A temporary suspension or amendment of an approval ceases to have effect on the earlier of 
  (a) the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified by the Minister, and 
  (b) if the approval is revoked, suspended or amended under subsection (1), the day on which the revocation, suspension or amendment takes effect. 
  
  ### Confidential undertaking
  
  527.51 (1) If, in the Minister’s opinion, the disclosure of information about an undertaking required under subsection 527.4(1) or 527.5(1) or (4), or information that could reveal the existence of the undertaking, could pose a threat to the integrity or security of the financial institution to which the undertaking relates or could be injurious to national security, the Minister may specify that the information is confidential and shall be treated accordingly. 
  
  ### Prohibition
  
  (2) Despite anything in this Act but subject to subsection (3), it is prohibited to disclose any confidential information referred to in subsection (1) except in accordance with any terms or conditions that the Minister may specify in the undertaking. 
  
  ### Notice — Committee and Review Agency
  
  (3) If the Minister specifies under subsection (1) that information referred to in that subsection is confidential for reasons related to national security, the Minister shall, within 30 days after the day on which the undertaking in question is required, notify 
  (a) the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act ; and  
  (b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.  
  
  ### Effect of non-compliance on approval
  
  527.6 (1) Unless otherwise expressly provided in this Act, a failure to comply with a term, condition or undertaking imposed or required under any provision of this Act does not invalidate the approval to which the term, condition or undertaking relates. 
  
  ### Non-compliance
  
  (2) In addition to any other action that may be taken under this Act, in the case of non-compliance by a person with a term, condition or undertaking imposed or required under any provision of this Act, the Minister or the Superintendent, as the case may be, may 
  (a) revoke, suspend or amend the approval to which the term, condition or undertaking relates; or 
  (b) apply to a court for an order directing the person to comply with the term, condition or undertaking, and on such an application the court may make the order and any other order that it thinks fit. 
  
  ### Representations
  
  (3) Before taking any action under subsection (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations. 
  
  ### Revocation, suspension or amendment
  
  (4) At the request of the person concerned, the Minister or the Superintendent, as the case may be, may revoke, suspend or amend any terms or conditions imposed by him or her and may revoke or suspend an undertaking given to him or her or approve its amendment. 
  
  ### Multiple approval — other approvals
  
  527.7 The Minister or the Superintendent may grant more than one approval, other than letters patent, in a single instrument if he or she considers it appropriate to do so, and if the Minister or Superintendent does so, he or she may specify different effective dates for each of the approvals. 
  
  ### Exemption in relation to notices of intention
  
  527.8 The Superintendent may, on application, exempt an applicant or applicants from the provisions of this Act respecting the publication of a notice of intention in respect of applications for approvals and impose any terms and conditions respecting the publication of the notice of intention that he or she considers appropriate. 
  
  ## Exceptions to Generally Accepted Accounting Principles 
  
  ### Calculations — generally accepted accounting principles
  
  527.81 (1) If, as a result of a change to the accounting principles referred to in subsection 313(4) — whether the change is made before or after this section comes into force — the Superintendent considers, given any prudential considerations that he or she considers relevant, that any amount, calculation or valuation under this Act or the regulations is not appropriate, the Superintendent may specify the amount that is to be used or the calculation or valuation that is to be performed instead. 
  
  ###  Canada Gazette 
  
  (2) The Superintendent shall cause a notice of the specification to be published in the Canada Gazette within 60 days after the day on which the specification has effect.  
  
  ### Five-year limit
  
  (3) The specification ceases to have effect on the day indicated in the notice, which may be no later than five years after the day on which the specification is made. 
  
  ## Orders to Exempt or Adapt 
  
  ### Order
  
  527.9 (1) On the recommendation of the Minister, the Governor in Council may, by order, 
  (a) provide that any provision of this Act or the regulations shall not apply to a company, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and 
  (b) provide that any provision of this Act or the regulations applies to a company, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application. 
  
  ### Minister’s recommendation
  
  (2) The Minister may make a recommendation under subsection (1) only if the Minister 
  (a) is of the opinion that the order would relate to 
  (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a company by, or the transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or 
  (ii) the management of the business and affairs or the regulation and supervision of a company during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the company, or during the time that shares of the company are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and 
  (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chief Executive Officer of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada. 
  
  ### Terms and conditions
  
  (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a company by, or transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency. 
  
  ### Repeal of order under subsection (1)
  
  (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2). 
  
  ### Terms, conditions and undertakings
  
  (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a company to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the company that the Minister considers appropriate, including any terms and conditions or undertakings relating to 
  (a) the remuneration of the company’s senior officers, as defined in section 509.01, and directors; 
  (b) the appointment or removal of the company’s senior officers, as defined in section 509.01, and directors; 
  (c) the payment of dividends by the company; and 
  (d) the company’s lending policies and practices. 
  
  ### Acquisition
  
  (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a company on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the company may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty.  
  
  ### Payment out of C.R.F.
  
  (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares. 
  
  ### Registration of shares
  
  (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the company’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty. 
  
  ### Disposition by Minister
  
  (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.  
  
  ### Disposition by agent or agency
  
  (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.  
  
  ### Consideration by Minister
  
  (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a company on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada. 
  
  ### Mandatory disposition
  
  (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.  
  
  ### Not a Crown corporation
  
  (13) Even if the acquisition of a company’s shares under subsection (6) would otherwise cause the company to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the company is not a Crown corporation for the purposes of that Act.  
  
  ###  Statutory Instruments Act 
  
  (14) The Statutory Instruments Act does not apply to an order made under this section.  
  
  ### Definition of 
  *shares* 
  
  (15) For the purposes of this section, 
  *shares* includes any conversion or exchange privilege, option or right to acquire shares.  
  
  ## Orders and Directives 
  
  ### Not statutory instruments
  
  528 An instrument issued or made under this Act and directed to a single company or person, other than an order referred to in section 487, is not a statutory instrument for the purposes of the Statutory Instruments Act.  
  
  ### Form
  
  529 The Superintendent may, by order, establish the form of any application to be made to the Minister or the Superintendent under this Act. 
  
  ## Applications to Superintendent 
  
  ### Content of applications
  
  529.1 (1) The following applications to the Superintendent must contain the information, material and evidence that the Superintendent may require: 
  (a) applications for approval under subsection 68(1), 75(2), 78(4), 82(5), 83(1), 174(1), 222(3), 421(1), 453(6) or (10), 456(1) or (2) or 470(1), subparagraph 475(2)(b)(vi), section 478 or subsection 482(3) or (4) or 483.3(1); 
  (b) applications for consent under subsection 74(1); 
  (c) applications for exemptions under subsection 160.05(3); and 
  (d) applications for extensions of time under subsection 456(3) or (5), 457(4) or 458(4). 
  
  ### Receipt
  
  (2) Without delay after receiving the application, the Superintendent shall send a receipt to the applicant certifying the date on which it was received. 
  
  ### Notice of decision to applicant
  
  (3) Subject to subsection (4), the Superintendent shall, within a period of thirty days after the receipt of the application, send to the applicant 
  (a) a notice approving the application, subject to any terms and conditions that the Superintendent considers appropriate; or 
  (b) if the Superintendent is not satisfied that it should be approved, a notice to that effect. 
  
  ### Extension of period
  
  (4) If the Superintendent is unable to complete the consideration of the application within the period referred to in subsection (3), the Superintendent shall, within that period, send a notice to the applicant informing the applicant that the Superintendent has extended the period for a further period set out in the notice. 
  
  ### Deemed approval
  
  (5) If the applicant does not receive the notice required by subsection (3) and, where applicable, subsection (4), within the required period, the Superintendent is deemed to have approved the application and granted the approval, consent, extension or exemption to which the application relates, regardless of whether the approval, consent, extension or exemption is to be in writing or not. 
  
  ## Applications for Certain Approvals 
  
  ### Application for certain approvals
  
  529.2 (1) An application for the prior written approval of the Minister in respect of paragraph 410(1)(c) or (c.1) or 453(5)(b.1), (c), (d) or (d.1) must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require. 
  
  ### Certification of receipt of application
  
  (2) If, in the opinion of the Superintendent, the application contains all the required information, the Superintendent must refer it to the Minister, together with his or her analysis in relation to the application, and send a receipt to the applicant certifying the date on which the application was referred to the Minister. 
  
  ### Incomplete application
  
  (3) If, in the opinion of the Superintendent, the application is incomplete, the Superintendent must send a notice to the applicant specifying the information required by the Superintendent to complete it. 
  
  ### Notice of decision
  
  (4) Subject to subsection (5), the Minister must, within 30 days after the certified date referred to in subsection (2), send to the applicant 
  (a) a notice approving the application; or 
  (b) if the Minister is not satisfied that the application should be approved, a notice to that effect. 
  
  ### Extension of period
  
  (5) If the Minister is unable to complete the consideration of an application within the 30-day period, the Minister must, within that period, send a notice to the applicant informing the applicant that the Minister has extended the period for a further period set out in the notice. 
  
  ### Deemed approval
  
  (6) If the Minister does not send the notice referred to in subsection (4) or, where applicable, subsection (5), within the required period, the Minister is deemed to have approved the application. 
  
  ## Appeals 
  
  ### Appeal to Federal Court
  
  530 (1) An appeal lies to the Federal Court from any direction of the Minister made under subsection 396(7), 401(1) or 401.1(1). 
  
  ### Powers
  
  (2) The Federal Court may, in an appeal under subsection (1), 
  (a) dismiss the appeal; 
  (b) set aside the direction or decision; or 
  (c) set aside the direction or decision and refer the matter back for re-determination. 
  
  ### Certificate
  
  (3) For the purposes of an appeal under subsection (1), the Minister shall, at the request of the company or person making the appeal, provide the company or person with a certificate in writing setting out the direction or decision appealed from and the reasons why the direction or decision was made. 
  
  ## Regulations 
  
  ### Power to make regulations
  
  531 (1) The Governor in Council may make regulations 
  (a) prescribing anything that is required or authorized by this Act to be prescribed; 
  (a.1) prescribing the way in which anything that is required or authorized by this Act to be prescribed shall be determined; 
  (b) defining words and expressions to be defined for the purposes of this Act; 
  (c) requiring the payment of a fee in respect of the filing, examining or issuing of any document or in respect of any action that the Superintendent is required or authorized to take under this Act, and fixing the amount thereof or the manner of determining the amount thereof; 
  (d) respecting the regulatory capital and total assets of a company; 
  (e) respecting the retention, in Canada, of assets of a company; 
  (f) respecting the value of assets of a company to be held in Canada and the manner in which those assets are to be held; 
  (f.1) respecting, for any purpose of any provision of the Act, the determination of the equity of a company; 
  (g) respecting the protection and maintenance of assets of a company and assets held in trust by a company, including regulations respecting the bonding of directors, officers and employees of a company; 
  (h) respecting the holding of shares and ownership interests for the purposes of sections 73 and 77; 
  (i) respecting information, in addition to the information required by section 501, to be maintained in the register referred to in that section; and 
  (j) generally for carrying out the purposes and provisions of this Act. 
  
  ### Incorporation by reference
  
  (2) The regulations may incorporate any material by reference regardless of its source and either as it exists on a particular date or as amended from time to time. 
  
  ### Incorporated material is not a regulation
  
  (3) Material does not become a regulation for the purposes of the Statutory Instruments Act because it is incorporated by reference.  
  
  ## Delegation 
  
  ### Delegation
  
  532 The Minister may delegate any of the Minister’s powers, duties and functions under this Act to any Minister of State appointed pursuant to the Ministries and Ministers of State Act to assist the Minister.  
  
  # PART XIV 
  
  ## Sanctions 
  
  ### Offence
  
  533 (1) Every person who, without reasonable cause, contravenes any provision of this Act or the regulations is guilty of an offence. 
  
  ### False or misleading information
  
  (1.1) Every person who knowingly provides false or misleading information in relation to any matter under this Act or the regulations is guilty of an offence. 
  
  ### Undue preference to creditor
  
  (2) Every director, officer or employee of a company who wilfully gives or concurs in giving to any creditor of the company any fraudulent, undue or unfair preference over other creditors, by giving security to the creditor, by changing the nature of the creditor’s claim or otherwise, is guilty of an offence. 
  
  ### Failure to provide information
  
  (3) Every person who, without reasonable cause, refuses or fails to comply with a requirement made under paragraph 505(2)(b) is guilty of an offence. 
  
  ### Use of name
  
  (4) Except to the extent permitted by the regulations, every person who uses the name of a company in a prospectus, offering memorandum, takeover bid circular, advertisement for a transaction related to securities or in any other document in connection with a transaction related to securities is guilty of an offence. 
  
  ### Punishment
  
  534 (1) Every person who is guilty of an offence under any of subsections 533(1) to (4) is 
  (a) in the case of a natural person, liable 
  (i) on summary conviction, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding twelve months, or to both, or 
  (ii) on conviction on indictment, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding five years, or to both; and 
  (b) in the case of an entity, liable 
  (i) on summary conviction, to a fine not exceeding $500,000, or 
  (ii) on conviction on indictment, to a fine not exceeding $5,000,000. 
  
  ### Order to comply
  
  (2) Where a person has been convicted of an offence under this Act, the court may, in addition to any punishment it may otherwise impose, order the person to comply with the provisions of this Act or the regulations in respect of which the person was convicted. 
  
  ### Additional fine
  
  (3) If a person has been convicted of an offence under this Act, the court may, if it is satisfied that as a result of the commission of the offence the convicted person acquired any monetary benefits or that monetary benefits accrued to the convicted person or their spouse, common-law partner or other dependant, order the convicted person to pay, despite the maximum amount of any fine that may otherwise be imposed under this Act, an additional fine in an amount equal to three times the court’s estimation of the amount of those monetary benefits. 
  
  ### Liability of officers, directors, etc.
  
  535 Where an entity commits an offence under this Act, any officer, director or agent of the entity who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on summary conviction or on conviction on indictment to the punishment provided under paragraph 534(1)(a) for the offence whether or not the entity has been prosecuted or convicted. 
  
  ### Limitation period
  
  535.1 (1) Proceedings by way of summary conviction in respect of an offence under a provision of this Act may be commenced at any time within, but not later than, two years after the day on which the subject-matter of the proceedings became known, in the case of an offence under a consumer provision, to the Commissioner and, in any other case, to the Superintendent. 
  
  ### Certificate of Superintendent or Commissioner
  
  (2) A document appearing to have been issued by the Superintendent or Commissioner, as the case may be, certifying the day on which the subject-matter of any proceedings became known to the Superintendent or Commissioner is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it. 
  
  ### Effect of offence on contracts
  
  536 Unless otherwise expressly provided in this Act, a contravention of any provision of this Act or the regulations does not invalidate any contract entered into in contravention of the provision. 
  
  ### Restraining or compliance order
  
  537 (1) If a company or any director, officer, employee or agent of a company does not comply with any provision of this Act or the regulations other than a consumer provision, or of the incorporating instrument or any by-law of the company, the Superintendent, any complainant or any creditor of the company may, in addition to any other right that person has, apply to a court for an order directing the company, director, officer, employee or agent to comply with — or restraining the company, director, officer, employee or agent from acting in breach of — the provision and, on the application, the court may so order and make any further order it thinks fit. 
  
  ### Compliance or restraining order — consumer provisions
  
  (2) If a company or any director, officer, employee or agent of a company does not comply with any applicable consumer provision, the Commissioner or any complainant may, in addition to any other right that person has, apply to a court for an order directing the company, director, officer, employee or agent to comply with — or restraining the company, director, officer, employee or agent from acting in breach of — the consumer provision and, on the application, the court may so order and make any further order it thinks fit. 
  
  ### Appeal of final order
  
  538 (1) An appeal lies to the court of appeal of a province from any final order made by a court of that province under this Act. 
  
  ### Appeal with leave
  
  (2) An appeal lies to the court of appeal of a province from any order, other than a final order made by a court of that province, only with leave of the court of appeal in accordance with the rules applicable to that court. 
  
  ### Recovery and application of fines
  
  539 All fines payable under this Act are recoverable and enforceable, with costs, at the suit of Her Majesty in right of Canada, instituted by the Attorney General of Canada, and, when recovered, belong to Her Majesty in right of Canada. 
  
  # PART XIV.1 
  
  ## Documents in Electronic or Other Form 
  
  ### Definitions
  
  539.01 The following definitions apply in this Part.  
  *electronic document* means, except in section 539.1, any form of representation of information or concepts that is fixed in any medium in or by electronic, optical or other similar means and that can be read or perceived by a person or by any means. (document électronique)   
  *information system* means a system used to generate, send, receive, store or otherwise process an electronic document. (système de traitement de l’information)  
  
  ### Application
  
  539.02 This Part other than sections 539.13 and 539.14 does not apply in respect of any notice, document or other information that under this Act or the regulations is sent to or issued by the Minister, the Superintendent, the Commissioner or the Bank of Canada or any prescribed notice, document or information. 
  
  ### Use not mandatory
  
  539.03 Nothing in this Act or the regulations requires a person to create or provide an electronic document. 
  
  ### Consent and other requirements
  
  539.04 (1) Despite anything in this Part, a requirement under this Act or the regulations to provide a notice, document or other information is not satisfied by providing an electronic document unless 
  (a) the addressee consents and designates an information system for the receipt of the electronic document; 
  (b) the electronic document is, unless otherwise prescribed, provided to the designated information system; and 
  (c) the prescribed requirements are complied with. 
  
  ### Consent and notice in electronic form
  
  (1.1) Despite subsection (1), the requirements referred to in paragraph (1)(c) may provide that the consent referred to in paragraph (1)(a) and any notice related to that consent may be provided in electronic form. 
  
  ### Regulations — revocation of consent
  
  (2) The Governor in Council may make regulations respecting the revocation of the consent referred to in paragraph (1)(a). 
  
  ### Creation or provision of information
  
  539.05 A requirement under this Act or the regulations to create or provide a notice, document or other information is satisfied by creating or providing an electronic document if 
  (a) the incorporating instrument or by-laws of the company do not provide otherwise; and 
  (b) the prescribed requirements are complied with. 
  
  ### Creation of information in writing
  
  539.06 A requirement under this Act or the regulations to create a notice, document or other information in writing is satisfied by creating an electronic document if in addition to the conditions set out in section 539.05 
  (a) the information in the electronic document is accessible so as to be usable for subsequent reference; and 
  (b) the prescribed requirements are complied with. 
  
  ### Provision of information in writing
  
  539.07 A requirement under this Act or the regulations to provide a notice, document or other information in writing is satisfied by providing an electronic document if in addition to the conditions set out in section 539.05 
  (a) the information in the electronic document is accessible by the addressee and capable of being retained by them so as to be usable for subsequent reference; and 
  (b) the prescribed requirements are complied with. 
  
  ### Multiple copies
  
  539.08 A requirement under this Act or the regulations to provide two or more copies of a document at the same time to one addressee is satisfied by providing one copy of the electronic document. 
  
  ### Registered mail
  
  539.09 A requirement under this Act or the regulations to provide a document by registered mail is not satisfied by providing an electronic document except in the prescribed circumstances. 
  
  ### Statutory declarations and affidavits
  
  539.1 (1) A statutory declaration or affidavit required under this Act or the regulations may be created or provided in an electronic document if 
  (a) the person who makes the statutory declaration or affidavit signs it with their secure electronic signature; 
  (b) the authorized person before whom the statutory declaration or affidavit is made signs it with their secure electronic signature; and 
  (c) the requirements of sections 539.03 to 539.09 are complied with. 
  
  ### Definitions
  
  (2) For the purposes of this section, 
  *electronic document* and 
  *secure electronic signature* have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act.  
  
  ### References to “electronic document”
  
  (3) For the purpose of complying with paragraph (1)(c), references to “electronic document” in sections 539.03 to 539.09 are to be read as references to “electronic document within the meaning of subsection 31(1) of the Personal Information Protection and Electronic Documents Act ”.  
  
  ### Signatures
  
  539.11 A requirement under this Act or the regulations for a signature or for a document to be executed, except in respect of a statutory declaration or affidavit, is satisfied in respect of an electronic document if the prescribed requirements are complied with and the signature results from the application by the person of a technology or process that permits the following to be proved: 
  (a) the signature resulting from the use by the person of the technology or process is unique to the person; 
  (b) the technology or process is used by the person to incorporate their signature into, attach it to or associate it with the electronic document; and 
  (c) the technology or process can be used to identify the person using the technology or process. 
  
  ### Regulations — provision and receipt of documents
  
  539.12 The Governor in Council may make regulations respecting the time and place at which and the circumstances under which an electronic document is considered to be provided or received. 
  
  ### Content and form of notices and documents
  
  539.13 The Minister, Superintendent, Commissioner or Bank of Canada may establish the requirements for the content and fix the form, including electronic and other forms, of notices and documents sent to or issued by each of them under this Act or the regulations, including 
  (a) the notices and documents that may be sent in electronic or other form; 
  (b) the persons or classes of persons who may send notices and documents; 
  (c) their signature in electronic or other form or their execution, adoption or authorization in a manner that is to have the same effect for the purposes of this Act as their signature; 
  (d) the time and place at which and the circumstances under which electronic documents are considered to be sent or received; and 
  (e) any matter necessary for the purposes of the application of this section. 
  
  ### Exemption
  
  539.14 In the prescribed circumstances, the Minister, the Superintendent, the Commissioner or the Bank of Canada may, on any conditions that they consider appropriate, exempt from the application of any provision of this Act requiring a notice or document to be sent to them any notice or document, or class of notice or document, containing information similar to that contained in a notice or document required to be made public under any other Act of Parliament or any Act of the legislature of a province. 
  
  # PART XV 
  
  ## General 
  
  ## Transitional 
  540 [Amendments] 
  
  ## Consequential Amendments 
  541 to 560 [Amendments] 
  
  ## Repeals 
  561 and 562 [Repeals] 
  
  ## Coming into Force 
  
  ### Coming into force
  
   * 563  (1) Subject to subsection (2), this Act or any provision thereof shall come into force on a day or days to be fixed by order of the Governor in Council. 
  * [Note: Act, except subsections 250(1) and (2), in force June 1, 1992, see SI/92-89.]  
  
  ### Idem
  
  (2) Subsections 250(1) and (2) shall come into force on the day that is six months after the coming into force of subsections 243(1) and (2). 
  
  