Bank Act (S.C. 1991, c. 46)
Full Document:
- HTMLFull Document: Bank Act (Accessibility Buttons available) |
- XMLFull Document: Bank Act [3184 KB] |
- PDFFull Document: Bank Act [5144 KB]
Act current to 2021-02-15 and last amended on 2020-05-09. Previous Versions
PART XVBank Holding Companies (continued)
DIVISION 5Capital Structure (continued)
Share Capital (continued)
Marginal note:Stated capital of continued bank holding company
711 (1) Where a body corporate is continued as a bank holding company under this Part, the bank holding 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
Marginal note: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 bank holding company.
Marginal note:Shares issued before continuance
(3) Any amount unpaid in respect of a share issued by a body corporate before it was continued as a bank holding company under this Part and paid after it was so continued shall be recorded in the stated capital account maintained by the bank holding company for the shares of that class or series.
- 2001, c. 9, s. 183
Marginal note:Pre-emptive right
712 (1) Where the by-laws of a bank holding 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.
Marginal note:Exception
(2) Notwithstanding the existence of a pre-emptive right, a shareholder of a bank holding company has no pre-emptive right in respect of shares of a class to be issued
Marginal note:Exception
(3) Notwithstanding the existence of a pre-emptive right, a shareholder of a bank holding 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 Part; or
(b) where, to the knowledge of the directors of the bank holding 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.
- 2001, c. 9, s. 183
Marginal note:Conversion privileges
713 (1) A bank holding company may issue conversion privileges, options or rights to acquire securities of the bank holding company, and shall set out the conditions thereof
Marginal note:Transferable rights
(2) Conversion privileges, options and rights to acquire securities of a bank holding 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.
Marginal note:Reserved shares
(3) Where a bank holding company has granted privileges to convert any securities issued by the bank holding 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 bank holding company shall reserve and continue to reserve sufficient authorized shares to meet the exercise of such conversion privileges, options and rights.
- 2001, c. 9, s. 183
Marginal note:Holding of own shares
714 Except as provided in sections 715 to 717, or unless permitted by the regulations, a bank holding company shall not
(a) hold shares of the bank holding company or of any body corporate that controls the bank holding company;
(b) hold any ownership interests of any unincorporated entity that controls the bank holding company;
(c) permit any of its subsidiaries to hold any shares of the bank holding company or of any body corporate that controls the bank holding company; or
(d) permit any of its subsidiaries to hold any ownership interests of any unincorporated entity that controls the bank holding company.
- 2001, c. 9, s. 183
Marginal note:Purchase and redemption of shares
715 (1) Subject to subsection (2) and to its by-laws, a bank holding 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.
Marginal note:Restrictions on purchase and redemption
(2) A bank holding company shall not make any payment to purchase or redeem any shares issued by it if there are reasonable grounds for believing that the bank holding company is, or the payment would cause the bank holding company to be, in contravention of any regulation referred to in subsection 949(1) or (2) or any direction made pursuant to subsection 949(3).
Marginal note:Donated shares
(3) A bank holding company may accept from any shareholder a share of the bank holding 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 718.
- 2001, c. 9, s. 183
Marginal note:Holding as personal representative
716 (1) A bank holding company may permit its subsidiaries to hold, in the capacity of a personal representative, shares of the bank holding company or of any body corporate that controls the bank holding company or ownership interests in any unincorporated entity that controls the bank holding company, but only if the subsidiary does not have a beneficial interest in the shares or ownership interests.
Marginal note:Security interest
(2) A bank holding company may permit its subsidiaries to hold by way of a security interest shares of the bank holding company or of any body corporate that controls the bank holding company, or any ownership interests of any entity that controls the bank holding company, if the security interest is nominal or immaterial when measured by criteria established by the bank holding company that have been approved in writing by the Superintendent.
- 2001, c. 9, s. 183
- 2005, c. 54, s. 88(F)
Marginal note:Exception — conditions before acquisition
716.1 (1) A bank holding company may permit any of its subsidiaries to acquire shares of the bank holding company through the issuance of those shares by the bank holding company to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares.
Marginal note: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.
Marginal note:Non-compliance with conditions
(3) If a bank holding company permits any of its subsidiaries to acquire shares of the bank holding 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 665 and subsection 710(2), the bank holding company must comply with the prescribed requirements.
- 2007, c. 6, s. 111
Marginal note:Cancellation of shares
717 (1) Subject to subsection (2), where a bank holding company purchases shares of the bank holding company or fractions thereof or redeems or otherwise acquires shares of the bank holding company, the bank holding company shall cancel those shares.
Marginal note:Requirement to sell
(2) If a subsidiary of a bank holding company, through the realization of security, acquires any shares of the bank holding company or of any body corporate that controls the bank holding company or any ownership interests in an unincorporated entity that controls the bank holding company, the bank holding company shall cause its subsidiary to, within six months after the day of the realization, sell or otherwise dispose of the shares or ownership interests.
- 2001, c. 9, s. 183
- Date modified: