Canada Not-for-profit Corporations Act (S.C. 2009, c. 23)

Assented to 2009-06-23

Marginal note:Vertical short-form amalgamation
  •  (1) A holding corporation and one or more of its subsidiary corporations may amalgamate and continue as one corporation without complying with sections 205 and 206 if

    • (a) the amalgamation is approved by a resolution of the directors of each amalgamating corporation;

    • (b) all memberships in each amalgamating subsidiary corporation are held by one or more of the other amalgamating corporations; and

    • (c) the resolutions provide that

      • (i) the memberships in each amalgamating subsidiary corporation shall be cancelled without any repayment of capital in respect of those memberships, and

      • (ii) except as may be prescribed, the articles of amalgamation shall be the same as the articles of the amalgamating holding corporation.

  • Marginal note:Horizontal short-form amalgamation

    (2) Two or more wholly-owned subsidiary corporations of the same holding body corporate may amalgamate and continue as one corporation without complying with sections 205 and 206 if

    • (a) the amalgamation is approved by a resolution of the directors of each amalgamating corporation; and

    • (b) the resolutions provide that

      • (i) the memberships in all but one of the amalgamating subsidiary corporations shall be cancelled without any repayment of capital in respect of those memberships, and

      • (ii) except as may be prescribed, the articles of amalgamation shall be the same as the articles of the amalgamating subsidiary corporation whose memberships are not cancelled.

Marginal note:Sending of articles
  •  (1) Subject to subsection 206(6), after an amalgamation has been adopted under section 206 or approved under section 207, articles of amalgamation in the form that the Director fixes shall be sent to the Director together with the documents required by sections 20 and 128.

  • Marginal note:Attached declarations

    (2) The articles of amalgamation shall have attached to them a statutory declaration of a director or an officer of each amalgamating corporation that establishes to the satisfaction of the Director that

    • (a) there are reasonable grounds for believing that

      • (i) each amalgamating corporation is, and the amalgamated corporation will be, able to pay its liabilities as they become due, and

      • (ii) the realizable value of the amalgamated corporation’s assets will not be less than the aggregate of its liabilities; and

    • (b) there are reasonable grounds for believing that

      • (i) no creditor will be prejudiced by the amalgamation, or

      • (ii) adequate notice has been given to all known creditors of the amalgamating corporations and no creditor objects to the amalgamation otherwise than on grounds that are frivolous or vexatious.

  • Marginal note:Adequate notice

    (3) For the purposes of subsection (2), adequate notice is given if

    • (a) a notice in writing is sent to each known creditor having a claim against the corporation that exceeds the prescribed amount;

    • (b) a notice is published once in a newspaper published or distributed in the place where the corporation has its registered office and reasonable notice is given in each province where the corporation carries on activities; and

    • (c) each notice states that the corporation intends to amalgamate with one or more specified corporations in accordance with this Act and that a creditor of the corporation may object to the amalgamation within the prescribed period.

  • Marginal note:Certificate of amalgamation

    (4) On receipt of articles of amalgamation, the Director shall issue a certificate of amalgamation in accordance with section 276.

Marginal note:Rights preserved

 On the date shown in a certificate of amalgamation, the amalgamation of the amalgamating corporations and their continuance as one corporation become effective and from that date

  • (a) the property of each amalgamating corporation continues to be the property of the amalgamated corporation;

  • (a.1) for the purposes of determining whether the amalgamated corporation is a soliciting corporation or whether paragraph 235(1)(c) applies to the amalgamated corporation, the income received prior to that date by any of the amalgamating corporations is deemed to have been received by the amalgamated corporation;

  • (b) the amalgamated corporation continues to be liable for the obligations of each amalgamating corporation;

  • (c) an existing cause of action, claim or liability to prosecution is unaffected;

  • (d) a civil, criminal or administrative action or proceeding pending by or against an amalgamating corporation may be continued by or against the amalgamated corporation;

  • (e) a conviction against, or ruling, order or judgment in favour of or against, an amalgamating corporation may be enforced by or against the amalgamated corporation; and

  • (f) the articles of amalgamation are deemed to be the articles of incorporation of the amalgamated corporation and the certificate of amalgamation is deemed to be the certificate of incorporation of the amalgamated corporation.

Marginal note:Amalgamation under other federal Acts
  •  (1) Subject to subsection (2), a corporation may not amalgamate with one or more bodies corporate under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act unless the corporation is first authorized to do so by the members in accordance with section 206.

  • Marginal note:Short-form amalgamations

    (2) A corporation may not amalgamate with one or more bodies corporate under the provisions of one of the Acts referred to in subsection (1) respecting short-form amalgamations unless the corporation is first authorized to do so by the directors in accordance with section 207.

  • Marginal note:Discontinuance

    (3) On receipt of a notice that a corporation has amalgamated under one of the Acts referred to in subsection (1), the Director shall issue a certificate of discontinuance in accordance with section 276 if the Director is of the opinion that the corporation has been amalgamated in accordance with this section.

  • Marginal note:Notice deemed to be articles

    (4) For the purposes of section 276, a notice referred to in subsection (3) is deemed to be articles that are in the form that the Director fixes.

  • Marginal note:Act ceases to apply

    (5) This Act ceases to apply to the corporation on the date shown in the certificate of discontinuance.

  • Marginal note:Non-application

    (6) For greater certainty, section 208 does not apply to a corporation that amalgamates under one of the Acts referred to in subsection (1).

 
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