PART IVOrganization and Commencement (continued)
Commencement and Carrying on of Business (continued)
Marginal note:Authority to make order
Marginal note:Statement of payments
(2) An application by a company or society for an order under subsection (1) must contain a statement setting out the amounts paid or to be paid by the company or society in connection with its incorporation and organization.
Marginal note:No payments before order
54 Until an order approving the commencement and carrying on of business is made in respect of a company or society, the company or society shall not make any payment on account of incorporation or organization expenses out of moneys received from the paid-in capital of the company or society and interest on those moneys, except reasonable sums
(a) for the remuneration of not more than two officers;
(b) for the payment of costs related to the issue of shares; and
(c) for the payment of clerical assistance, legal services, accounting services, office accommodation at one location, office expenses, advertising, stationery, postage and travel expenses.
- 1991, c. 47, s. 54
- 2007, c. 6, s. 194
Marginal note:Expenses charged to paid-in capital
55 All incorporation and organization expenses of a company or society shall be charged to the paid-in capital of the company or society and shall not in any way be charged directly or indirectly to policyholders.
Marginal note:Deposits and investments before order
56 (1) Subject to subsection (2), where a company or society comes into existence but no order approving the commencement and carrying on of business is made for the company or society, the company or society may only
(2) Subsection (1) does not apply in respect of any company incorporated for the sole purpose of insuring risks in the class of marine insurance.
Marginal note:Conditions for order
(a) it has been shown to the satisfaction of the Superintendent that
(i) the meeting of shareholders, incorporators or supreme governing body of the company or society referred to in subsection 50(1), (2) or (3) has been duly held,
(ii) the company or society has paid-in capital of
(iii) the expenses of incorporation and organization to be borne by the company or society are reasonable, and
(iv) all other relevant requirements of this Act have been complied with; and
(b) in the case of a society, the society has filed with the Superintendent
(i) a report of an actuary appointed by the society, in such form as the Superintendent may require, on the results of an actuarial valuation of each of the benefit funds maintained by the society, having regard to the prospective liabilities of and contributions to each fund,
(ii) the opinion of the actuary that the assets of the society applicable to each fund, together with the contributions to be received thereafter from the members, are sufficient to provide for the payment at maturity of all of the obligations of the fund without deduction or abatement, and
(iii) a statement of its condition and affairs in such detail as the Superintendent may require, as at the date of the valuation referred to in subparagraph (i).
Marginal note:Restrictions re societies
(2) No order approving the commencement and carrying on of business of a society shall be made if the society operates for profit or as a commercial or business enterprise or the property or funds of the society are under the control of persons not periodically elected by members of the society.
Marginal note:Time limit
(3) The Superintendent shall not make an order approving the commencement and carrying on of business by a company or society more than one year after the day on which the company or society comes into existence.
- 1991, c. 47, s. 57
- 1997, c. 15, s. 179
- 2001, c. 9, s. 365
Marginal note:Order to specify classes of insurance
Marginal note:Conditions of order
(2) An order approving the commencement and carrying on of business by a company or society may contain such conditions or limitations that are consistent with this Act and relate to the business of the company or society as the Superintendent deems expedient and necessary.
(a) specify additional classes of insurance risks that the company is permitted to insure pursuant to section 443,
(b) make the order subject to such conditions or limitations that are consistent with this Act and that relate to the business of the company or society as the Superintendent deems expedient and necessary, or
(c) amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject,
but before making any such further order the Superintendent shall provide the company or society with an opportunity to make representations regarding that further order.
(2) to (6) [Repealed, 1996, c. 6, s. 71]
- 1991, c. 47, s. 59
- 1996, c. 6, s. 71
Marginal note:Limit on assets
59.1 (1) The Minister may, by order, require a company that is a converted company in respect of which the Minister has issued an order under subsection 407(8) or a converted company in respect of which subsection 407(11) applied at any time not to have average total assets in any three month period ending on the last day of a month subsequent to the month specified in the order exceeding the company’s average total assets in the three month period ending on the last day of the month immediately before the month specified in the order if the Minister is of the opinion that it is in the best interests of the financial system in Canada to do so, after having considered the Superintendent’s opinion on
Marginal note:Revocation of order
(2) If the Minister is of the opinion that the circumstances giving rise to the order have ceased to exist or have changed substantially, the Minister may, by further order, revoke the order.
Marginal note:Average total assets
(3) For the purposes of subsection (1), the average total assets of a company in a three month period shall be computed by adding the total assets of the company as calculated for the month end of each of the three months in the period and by dividing the sum by three.
- 2001, c. 9, s. 366
Marginal note:Public notice
60 (1) On the making of an order approving the commencement and carrying on of business by a company or society, the company or society shall publish a notice of the making of the order in a newspaper in general circulation at or near the place where the head office of the company or society is located.
Marginal note:Notice in Canada Gazette
Marginal note:Non-application to former-Act company or society
(3) For greater certainty, this section does not apply to a company or society referred to in subsection 52(2).
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