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Insurance Companies Act

Version of section 54 from 2003-01-01 to 2007-04-19:


Marginal note:No payments before order

  •  (1) Subject to subsection (2), until an order approving the commencement and carrying on of business is made for 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 thereon, 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 of the company; 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.

  • Marginal note:Exception

    (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.


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