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

Act current to 2021-02-15 and last amended on 2019-06-17. Previous Versions

PART XIIFraternal Benefit Societies (continued)

Liquidation and Dissolution of a Society (continued)

Court-supervised Liquidation (continued)

Marginal note:Right to distribution of money

  •  (1) A member or incorporator may apply to the court for an order requiring the distribution of the remaining property of a society to be in money if, in the course of the liquidation of the society, the members resolve to, or the liquidator proposes to,

    • (a) exchange all or substantially all of the remaining property of the society for securities of another entity that are to be distributed to the members or to the incorporators; or

    • (b) distribute all or part of the remaining property of the society to the members or to the incorporators in kind.

  • Marginal note:Powers of court

    (2) On an application under subsection (1), the court may order

    • (a) all of the remaining property of the society to be converted into and distributed in money; or

    • (b) the claim of any member or incorporator applying under this section to be satisfied by a distribution in money.

  • Marginal note: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 society attributable to the member 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 society in favour of the member or incorporator for the amount of the share of the property of the society attributable to the member or incorporator.

  • 1997, c. 15, s. 298

Marginal note:Dissolution by letters patent

  •  (1) On an application made under an order under paragraph 570.2(1)(a), the Minister may issue letters patent dissolving the society.

  • Marginal note:Society dissolved

    (2) A society 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.

  • 1997, c. 15, s. 298

General

Marginal note:Definitions

 In sections 570.25 and 570.26, member and incorporator include the heirs and personal representatives of a member or incorporator.

  • 1997, c. 15, s. 298

Marginal note:Continuation of actions

  •  (1) Even if a society has been dissolved under this Part,

    • (a) a civil, criminal or administrative action or proceeding brought by or against the society before its dissolution may be continued as if the society had not been dissolved;

    • (b) a civil, criminal or administrative action or proceeding may be brought against the society within two years after its dissolution as if the society had not been dissolved; and

    • (c) any property that would have been available to satisfy any judgment or order if the society had not been dissolved remains available for that purpose.

  • Marginal note:Service on society

    (2) Service of a document on a society after its dissolution may be effected by serving the document on a person shown as a director in the incorporating instrument of the society or, if applicable, in the latest return sent to the Superintendent under subsection 549(1).

  • 1997, c. 15, s. 298

Marginal note:Limitations on liability

  •  (1) Even if a society has been dissolved, a member or incorporator to whom any of its property has been distributed is liable to any person claiming under subsection 570.24(1), to the extent of the amount received by that member or incorporator on the distribution.

  • Marginal note:Limitation

    (2) An action to enforce liability under subsection (1) may not be commenced more than two years after the date of the dissolution of the society.

  • Marginal note: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 members or incorporators as a class, subject to such conditions as the court thinks fit.

  • Marginal note: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 member or incorporator;

    • (b) determine, subject to subsection (1), the amount that each person who was a member or incorporator must contribute towards satisfaction of the plaintiff’s claim; and

    • (c) direct payment of the amounts so determined.

  • 1997, c. 15, s. 298

Marginal note:Where creditor cannot be found

 If a creditor, member or incorporator to whom property is to be distributed on the dissolution of a society cannot be found, the portion of the property to be distributed to that creditor, member or incorporator shall be converted into money and paid in accordance with section 570.28.

  • 1997, c. 15, s. 298

Marginal note:Vesting in Crown

 Subject to subsection 570.24(1) and sections 570.28 and 570.29, property of a society that has not been disposed of at the date of the dissolution of the society vests in Her Majesty in right of Canada.

  • 1997, c. 15, s. 298

Marginal note:Unclaimed money on winding-up

  •  (1) Where the business of a society is being wound up under this Part, the liquidator or the society 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 society to a creditor, member or incorporator of the society and that has not, for any reason, been paid.

  • Marginal note:Records

    (2) If a liquidator or a society makes a payment to the Minister under subsection (1) with respect to a creditor, member or incorporator, the liquidator or society shall at the same time forward to the Minister all documents, records and registers in the possession of the liquidator or society that relate to the entitlement of the creditor, member or incorporator.

  • Marginal note:Payment to Receiver General

    (3) The Minister shall pay to the Receiver General all amounts paid to the Minister under subsection (1).

  • Marginal note:Liquidator and company discharged

    (4) Payment by a liquidator or a society to the Minister under subsection (1) discharges the liquidator and the society in respect of which the payment is made from all liability for the amount so paid, and payment by the Minister to the Receiver General under subsection (3) discharges the Minister from all liability for the amount so paid.

  • 1997, c. 15, s. 298

Marginal note:Recovery

 If at any time a person establishes an entitlement to any money paid to the Receiver General under this Part, the Receiver General shall pay an equivalent amount to that person out of the Consolidated Revenue Fund.

  • 1997, c. 15, s. 298

Marginal note:Custody of records after dissolution

 A person who has been granted custody of the documents, records and registers of a dissolved society shall keep them available for production for six years after the date of the dissolution of the society or until the end of such shorter period as may be ordered by the court when it orders the dissolution.

  • 1997, c. 15, s. 298

PART XIIIForeign Companies

Interpretation

Marginal note:Definitions

 In this Part,

association

association means an association of persons formed in a foreign country on the plan known as Lloyd’s, whereby each member of the association participating in a policy becomes liable for a stated, limited or proportionate part of the whole amount payable under the policy; (association)

chief agency

chief agency means the principal office of a foreign company in Canada; (agence principale)

chief agent

chief agent, in respect of a foreign company, means the natural person appointed pursuant to subsection 579(3) and named as such in the power of attorney referred to in paragraph 579(1)(b); (agent principal)

exchange

exchange means a group of persons formed in a foreign country for the purpose of exchanging reciprocal contracts of indemnity or inter-insurance with each other through the same attorney, where the principal office of the exchange is in a foreign country; (groupe d’échange)

foreign entity

foreign entity means an entity incorporated or formed by or under the laws of a country other than Canada, and includes an association and an exchange; (entité étrangère)

foreign fraternal benefit society

foreign fraternal benefit society means a fraternal benefit society incorporated outside Canada; (société de secours étrangère)

foreign life company

foreign life company means a foreign company that is authorized to insure risks that fall within the class of life insurance; (société d’assurance-vie étrangère)

foreign marine company

foreign marine company means a foreign company that is authorized to solely insure risks within the class of marine insurance; (société d’assurance maritime étrangère)

foreign property and casualty company

foreign property and casualty company means a foreign company other than a foreign life company or a foreign marine company. (société d’assurances multirisques étrangère)

fraternal benefit society

fraternal benefit society[Repealed, 1997, c. 15, s. 299]

  • 1991, c. 47, s. 571
  • 1996, c. 6, s. 83.1
  • 1997, c. 15, s. 299
  • 2007, c. 6, s. 256
 
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