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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-07-01 and last amended on 2019-06-21. Previous Versions

PART XVBank Holding Companies (continued)

DIVISION 6Corporate Governance (continued)

Shareholders (continued)

Marginal note:Notice of meeting

  •  (1) Notice of the time and place of a meeting of shareholders of a bank holding company shall be sent within the prescribed period to

    • (a) each shareholder entitled to vote at the meeting;

    • (b) each director;

    • (c) the auditor of the bank holding company; and

    • (d) the Superintendent.

  • Marginal note:Exception

    (1.1) In the case of a bank holding company that is not a distributing bank holding company, notice may be sent within any shorter period specified in its by-laws.

  • Marginal note:Number of eligible votes

    (2) A bank holding company with equity of twelve billion dollars or more shall set out in the notice of a meeting the number of eligible votes, as defined under subsection 156.09(1), that may be cast at the meeting as of the record date for determining those shareholders entitled to receive the notice of meeting, or if there are to be separate votes of shareholders at the meeting, the number of eligible votes, as defined in that subsection, in respect of each separate vote to be held at the meeting.

  • Marginal note:Publication in newspaper

    (3) In addition to the notice required under subsection (1), where any class of shares of a bank holding company is publicly traded on a recognized stock exchange in Canada, notice of the time and place of a meeting of shareholders shall be published once a week for at least four consecutive weeks before the date of the meeting in a newspaper in general circulation in the place where the head office of the bank holding company is situated and in each place in Canada where the bank holding company has a transfer agent or where a transfer of the bank holding company’s shares may be recorded.

  • 2001, c. 9, s. 183
  • 2005, c. 54, s. 93
  • 2007, c. 6, s. 132
  • 2012, c. 5, s. 78

Marginal note:Notice not required

  •  (1) A notice of a meeting is not required to be sent to shareholders who are not registered on the records of the bank holding company or the bank holding company’s transfer agent on the record date fixed under paragraph 726(5)(c) or determined under paragraph 726(6)(a).

  • Marginal note:Effect of default

    (2) Failure to receive a notice of a meeting of shareholders does not deprive a shareholder of the right to vote at the meeting.

  • 2001, c. 9, s. 183
  • 2005, c. 54, s. 94

Marginal note:Notice of adjourned meeting

  •  (1) If a meeting of shareholders is adjourned for less than thirty days, it is not necessary, unless the by-laws otherwise provide, to give notice of the adjourned meeting, other than by announcement at the earliest meeting that is adjourned.

  • Marginal note:Notice where adjournment is longer

    (2) If a meeting of shareholders is adjourned by one or more adjournments for a total of thirty days or more, notice of the continuation of the meeting shall be given as for an original meeting but, unless the meeting is adjourned by one or more adjournments for a total of more than ninety days, subsection 156.04(1) does not apply.

  • 2001, c. 9, s. 183

Marginal note:Special business

  •  (1) All matters dealt with at a special meeting of shareholders and all matters dealt with at an annual meeting of shareholders, except consideration of the financial statements, report of the auditor, election of directors, remuneration of directors and reappointment of the incumbent auditor, are deemed to be special business.

  • Marginal note:Notice of special business

    (2) Notice of a meeting of shareholders at which special business is to be transacted must

    • (a) state the nature of the special business in sufficient detail to permit a shareholder to form a reasoned judgment thereon; and

    • (b) contain the text of any special resolution to be submitted to the meeting.

  • 2001, c. 9, s. 183

Marginal note:Waiver of notice

  •  (1) A shareholder and any other person entitled to attend a meeting of shareholders may in any manner waive notice of a meeting of shareholders.

  • Marginal note:Attendance is waiver

    (2) Attendance at a meeting of shareholders is a waiver of notice of the meeting, except when a person attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.

  • 2001, c. 9, s. 183

Marginal note:Proposals

  •  (1) Subject to subsections (1.1) and (1.2), a registered holder or beneficial owner of shares that may be voted at an annual meeting of shareholders may

    • (a) submit to the bank holding company notice of any matter that they propose to raise at the meeting (in this section and section 733 referred to as a “proposal”); and

    • (b) discuss at the meeting any matter in respect of which they would have been entitled to submit a proposal.

  • Marginal note:Eligibility to submit proposal

    (1.1) To be eligible to submit a proposal a person shall

    • (a) for at least the prescribed period be the registered holder or beneficial owner of at least the prescribed number of the bank holding company’s outstanding shares; or

    • (b) have the support of persons who, in the aggregate and including or not including the person who submits the proposal, have for at least the prescribed period been the registered holders or beneficial owners of at least the prescribed number of the bank holding company’s outstanding shares.

  • Marginal note:Information to be provided

    (1.2) A proposal is to be accompanied by the following information:

    • (a) the name and address of the person submitting the proposal and the names and addresses of their supporters, if any; and

    • (b) the number of shares held or owned by the person and their supporters, if any, and the date that the shares were acquired.

  • Marginal note:Information not part of proposal

    (1.3) The information provided under subsection (1.2) does not form part of a proposal or of the supporting statement referred to in subsection (3) and is not to be included for the purpose of the prescribed maximum number of words referred to in subsection (3).

  • Marginal note:Proof may be required

    (1.4) If the bank holding company requests within the prescribed period that a person provide proof that they are eligible to submit a proposal, the person shall within the prescribed period provide proof that they meet the requirements of subsection (1.1).

  • Marginal note:Circulation of proposal

    (2) A bank holding company that solicits proxies shall set out in the management proxy circular required by subsection 156.05(1) or attach to it any proposal submitted for consideration at a meeting of shareholders.

  • Marginal note:Supporting statement

    (3) At the request of the person who submits a proposal, the bank holding company shall set out in the management proxy circular or attach to it the person’s statement in support of the proposal and their name and address. The statement and proposal together are not to exceed the prescribed maximum number of words.

  • Marginal note:Nomination of directors

    (4) A proposal may include nominations for the election of directors if it is signed by one or more registered holders or beneficial owners of shares representing in the aggregate not less than 5% of the shares of the bank holding company or 5% of the shares of a class of its shares entitled to vote at the meeting at which the proposal is to be presented.

  • Marginal note:Exemption

    (5) A bank holding company is not required to comply with subsections (2) and (3) if

    • (a) the proposal is not submitted to the bank holding company at least the prescribed number of days before the anniversary date of the notice of meeting that was sent to shareholders in respect of the previous annual meeting of shareholders;

    • (b) it clearly appears that the primary purpose of the proposal is to enforce a personal claim or redress a personal griev­ance against the bank holding company or its directors, officers or security holders;

    • (b.1) it clearly appears that the proposal does not relate in a significant way to the business or affairs of the bank holding company;

    • (c) the person submitting the proposal failed within the prescribed period before the bank holding company receives their proposal to present, in person or by proxy, at a meeting of shareholders a proposal that at their request had been set out in or attached to a management proxy circular;

    • (d) substantially the same proposal was set out in or attached to a management proxy circular or dissident’s proxy circular relating to, and presented to shareholders at, a meeting of shareholders held within the prescribed period before the receipt of the proposal and did not receive the prescribed minimum amount of support at the meeting; or

    • (e) the rights conferred by subsections (1) to (4) are being abused to secure publicity.

  • Marginal note:Bank holding company may refuse to include proposal

    (5.1) If a person who submits a proposal fails to continue to hold or own shares in accordance with paragraph (1.1)(a) or, as the case may be, does not continue to have the support of persons who are in the aggregate the registered holders or beneficial owners of the prescribed number of shares in accordance with paragraph (1.1)(b) until the end of the meeting, the bank holding company is not required to set out any proposal submitted by that person in or attach it to a management proxy circular for any meeting held within the prescribed period after the day of the meeting.

  • Marginal note:Immunity for proposal and statement

    (6) No bank holding company or person acting on behalf of a bank holding company incurs any liability by reason only of circulating a proposal or statement in compliance with subsections (2) and (3).

  • 2001, c. 9, s. 183
  • 2005, c. 54, s. 95
 
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