CPA · Business Corporations Act
Part 5 — Corporate Finance
45 Financial assistance
assistance by means of a loan, guarantee or otherwise.
(2) A corporation may give financial assistance to any person for
any purpose.
(3) Subject to subsection (4), a corporation must disclose to its
shareholders, in accordance with the regulations, financial
assistance that the corporation gives to
(a) a shareholder or director of the corporation or of an
affiliated corporation,
(b) an associate of a sharehold er or director of the corporation
or of an affiliated corporation, or
(c) any person for the purpose of or in connection with a
purchase of a share issued or to be issued by the corporation
or an affiliated corporation.
(4) A corporation is not required to disclose to its shareholders
financial assistance that it gives
(a) to any person in the ordinary course of business if the
lending of money is part of the ordinary business of the
corporation,
(b) to any person on account of expenditures incurred or to be
incurred on behalf of the corporation,
RSA 2000
(c) to a holding body corporate if the corporation is a wholly
owned subsidiary of the holding body corporate,
(d) to a subsidiary body corporate of the corporation,
(e) to employees of the corpor ation or any of its affiliates
(i) to enable them to purchase or erect or to assist them in
purchasing or erecting living accommodation for their
own occupation, or
(ii) in accordance with a plan for the purchase of shares of
the corporation or any of its affiliates to be held by a
trustee,
o r
(f) to any person if all the shareholders have consented to
giving the financial assistance.
(5) A contract made by a corporation in contravention of this
section may be enforced by the corporation or by a lender for value
in good faith without notice of the contravention.
1981 cB-15 s42;2000 c10 s2