MHHS · Business Corporations Act
Part 16 — Take-over Bids - Compulsory Purchase
198 Offeree corporation's obligations
dissenting offerees the money or other consideration it receives
under section 197(2), and the offeree corporation shall deposit the
money in a separate account in a bank or other body corporate any
of whose deposits are insured by the Canada Deposit Insurance
Corporation or guaranteed by the Quebec Deposit Insurance Board,
RSA 2000
and shall place the other consideration in the custody of a bank or
such other body corporate.
(2) Within 30 days after the offeror sends an offeror's notice under
section 196(1), the offeree corporation shall, if the offeror has paid
or transferred to the offeree corporation the money or other
consideration referred to in section 197(2),
(a) issue to the offeror a share certificate in respect of the shares
that were held by dissenting offerees,
(b) give to each dissenting of feree who elects to accept the
take-over bid terms under section 196(1)(c)(i) and who
sends or delivers the offeree's share certificates as required
under section 197(1), the money or other consideration to
which the offeree is entitled, disregarding fractional shares,
which may be paid for in money, and
(c) send to each dissenting sh areholder who has not sent the
shareholder's share certificates as required under section
197(1) a notice stating that
(i) the shareholder's shares have been cancelled,
(ii) the offeree corporation or some designated person holds
in trust for the shareholder the money or other
consideration to which the shareholder is entitled as
payment for or in exchange for the shareholder's shares,
and
(iii) the offeree corporation w ill, subject to sections 199 to
205, send that money or other consideration to the
shareholder forthwith after receiving the shareholder's
shares.
1981 cB-15 s191