Canada Business Corporations Act (R.S.C., 1985, c. C-44)

Marginal note:Acquisition of corporation’s own shares

• 34 (1) Subject to subsection (2) and to its articles, a corporation may purchase or otherwise acquire shares issued by it.

• Marginal note:Limitation

  (2) A corporation shall not make any payment to purchase or otherwise acquire shares issued by it if there are reasonable grounds for believing that

  • (a) the corporation is, or would after the payment be, unable to pay its liabilities as they become due; or

  • (b) the realizable value of the corporation’s assets would after the payment be less than the aggregate of its liabilities and stated capital of all classes.