Insurance Companies Act (S.C. 1991, c. 47)

Act current to 2016-06-21 and last amended on 2015-06-23. Previous Versions

Marginal note:Calling shareholders’ meeting
  •  (1) After the meeting referred to in subsection 739(1) is held, the directors of the insurance holding company shall without delay call a meeting of the shareholders of the insurance holding company.

  • Marginal note:Meeting of shareholders or incorporators

    (2) The shareholders of an insurance holding company shall, by resolution at the meeting of shareholders called under subsection (1),

    • (a) approve, amend or reject any by-law made by the directors of the insurance holding company;

    • (b) subject to section 803, 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.

  • 1991, c. 47, s. 740;
  • 2001, c. 9, s. 465.
Marginal note:Term of first directors

 A director named in the application for letters patent to incorporate an insurance holding company holds office until the election of directors at the meeting of shareholders called under subsection 740(1).

  • 1991, c. 47, s. 741;
  • 2001, c. 9, s. 465.

DIVISION 5Capital Structure

Share Capital

Marginal note:Power to issue shares
  •  (1) Subject to this Part and the by-laws of the insurance holding company, shares of an insurance holding company may be issued at such times and to such persons and for such consideration as the directors of the insurance holding company may determine.

  • Marginal note:Shares

    (2) Shares of an insurance holding company shall be in registered form and shall be without nominal or par value.

  • Marginal note:Shares of continued insurance holding company

    (3) If a body corporate is continued as an insurance holding company under this Part, 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.

  • Marginal note:Deemed share conditions

    (4) If any right of a holder of a share with nominal or par value of a body corporate continued as an insurance holding company under this Part, other than a voting right, was stated or expressed in terms of the nominal or par value of the share immediately before the continuance under this Part that right is thereafter deemed to be the same right stated or expressed without reference to the nominal or par value of the share.

  • 1991, c. 47, s. 742;
  • 2001, c. 9, s. 465.
Marginal note:Common shares
  •  (1) An insurance holding 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 insurance holding company on dissolution.

  • Marginal note:Designations of shares

    (2) No insurance holding company shall designate more than one class of its shares as “common shares” or any variation of that term.

  • Marginal note:Continued insurance holding company

    (3) A body corporate continued as an insurance holding company under this Part that is not in compliance with subsection (2) on the date letters patent continuing it as an insurance holding company are issued shall, within twelve months after that date, redesignate its shares to comply with that subsection.

  • 1991, c. 47, s. 743;
  • 2001, c. 9, s. 465.
Marginal note:Classes of shares
  •  (1) The by-laws of an insurance holding 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 insurance holding company is authorized to issue.

  • Marginal note:Shareholder approval

    (2) Where a by-law referred to in subsection (1) is made, the directors of the insurance holding company shall submit the by-law to the shareholders at the next meeting of shareholders.

  • Marginal note: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).

  • 1991, c. 47, s. 744;
  • 2001, c. 9, s. 465.
Marginal note:Shares issued in series
  •  (1) The by-laws of an insurance holding 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).

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • Marginal note: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.

  • 1991, c. 47, s. 745;
  • 2001, c. 9, s. 465;
  • 2005, c. 54, s. 307;
  • 2007, c. 6, s. 314(E).
Marginal note:One share, one vote

 Where voting rights are attached to a share of an insurance holding company, the voting rights may confer only one vote in respect of that share.

  • 1991, c. 47, s. 746;
  • 2001, c. 9, s. 465.
Marginal note:Shares non-assessable

 Shares issued by an insurance holding company are non-assessable and the shareholders are not liable to the insurance holding company or to its creditors in respect thereof.

  • 1991, c. 47, s. 747;
  • 2001, c. 9, s. 465.
Marginal note:Consideration for share
  •  (1) No share of any class of shares of an insurance holding company shall be issued until it is fully paid for in money or, with the approval of the Superintendent, in property.

  • Marginal note:Other currencies

    (2) When issuing shares, an insurance holding 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.

  • 1991, c. 47, s. 748;
  • 2001, c. 9, s. 465.
Marginal note:Stated capital account
  •  (1) An insurance holding company shall maintain a separate stated capital account for each class and series of shares it issues.

  • Marginal note:Addition to stated capital account

    (2) An insurance holding company shall record in the appropriate stated capital account the full amount of any consideration it receives for any shares it issues.

  • Marginal note:Exception

    (3) Despite subsection (2), an insurance holding company may, subject to subsection (4), 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 insurance holding 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 insurance holding 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 insurance holding company at arm’s length within the meaning of that expression in the Income Tax Act if the person, the insurance holding 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 858(1); or

    • (c) to shareholders of an amalgamating body corporate who receive the shares in addition to or instead of securities of the amalgamated insurance holding company.

  • Marginal note:Limit on addition to a stated capital account

    (4) On the issuance of a share, an insurance holding 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.

  • Marginal note:Constraint on addition to a stated capital account

    (5) Where an insurance holding 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 insurance holding 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 759(4).

  • 1991, c. 47, s. 749;
  • 2001, c. 9, s. 465;
  • 2005, c. 54, s. 308.
 
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