Insurance Companies Act
Marginal note:Stated capital account
Marginal note:Addition to stated capital account
(2) A company shall record in the appropriate stated capital account the full amount of any consideration it receives for any shares it issues.
(2.1) Notwithstanding subsection (2), a company may record in the appropriate stated capital account part of the amount of any consideration it receives for shares it issues
(a) in exchange for
(b) under an agreement referred to in subsection 246(1) to shareholders of an amalgamating body corporate who receive the shares in addition to or instead of securities of the amalgamated company.
Marginal note:Limit on addition to a stated capital account
(2.2) On the issuance of a share, a company shall not add to the stated capital account in respect of the share an amount greater than the amount of the consideration it receives for the share.
Marginal note:Constraint on addition to a stated capital account
(2.3) Where a company that has issued any outstanding shares of more than one class or series proposes to add to a stated capital account that it maintains in respect of a class or series of shares an amount that was not received by the company as consideration for the issue of shares, the addition must be approved by special resolution unless all the issued and outstanding shares are of not more than two classes of convertible shares referred to in subsection 81(4).
Marginal note:Stated capital of former-Act company
(3) On the coming into force of this Part, a former-Act 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
(4) The amount of any contributed surplus recorded in the stated capital account pursuant to paragraph (3)(b) shall be deducted from the contributed surplus account of the company.
Marginal note:Share issued before coming into force
(5) Any amount unpaid in respect of a share issued by a former-Act company before the coming into force of this Part and paid after the coming into force of this Part shall be recorded in the stated capital account maintained by the company for the shares of that class or series.
- 1991, c. 47, s. 70
- 1997, c. 15, s. 182
- Date modified: