Part 2 — Provincial Companies Subpart 1 Status and Powers of Provincial Companies
246 Alternative acquisition of own shares
a provincial company may authorize the company to purchase or
otherwise acquire shares issued by it
(a) to settle or compromise a debt or claim asserted by or
against the company,
(b) to eliminate fractional shares, or
(c) to fulfil the terms of a non-assignable agreement under
which the company has an option or is obliged to purchase
shares owned by a director, officer or employee of the
company.
(2) Despite section 245(2), a provincial company may purchase or
otherwise acquire shares issued by it to comply with an order under
section 776.
(3) The directors of a provincial company must not authorize the
company to make any payment to purchase or acquire under
subsection (1) shares issued by it if there are reasonable grounds
for believing that
(a) the company is, or after the payment would be, unable to
pay its liabilities as they become due,
(b) the realizable value of the company's assets after the
payment would be less than the aggregate of
RSA 2000
(i) its liabilities, and
(ii) the amount that would be required to pay the holders of
shares who have a right to be paid, on a redemption or in
a liquidation, prior to the holders of the shares to be
purchased or acquired,
or
(c) the purchase or acquisition would cause the company to be
in contravention of this Act or the regulations.
1999 cI-5.1 s246