Part 2 — Provincial Companies Subpart 1 Status and Powers of Provincial Companies
250 Adjustment of capital account
provincial company under section 245, 246, 247, 254 or 776(3)(e)
of shares or fractions of shares issued by it, the company must
deduct from the capital account maintained for the class or series of
shares of which the shares purchased, redeemed or otherwise
acquired form a part, an amount equal to the result obtained by
multiplying the market value of the shares of that class or series by
the number of shares or fractions of shares of that class or series
purchased, redeemed or otherwise acquired, divided by the number
of issued shares of that class or series immediately before the
purchase, redemption or other acquisition.
(2) A provincial company must deduct the amount of a payment
made by the company to a shareholder under section 776 from the
capital account maintained for the class or series of shares in
respect of which the payment was made.
(3) A provincial company must adjust its capital account or
accounts in accordance with any special resolution referred to in
section 249(4).
(4) On a conversion or change of issued shares of a provincial
company into shares of another class or series, the company must
(a) deduct from the capital accoun t maintained for the class or
series of shares converted or changed an amount equal to the
result obtained by multiplying the market value of the shares
RSA 2000
of that class or series by the number of shares of that class
or series converted or changed, divided by the number of
issued shares of that class or series immediately before the
conversion or change, and
(b) add the result obtained under clause (a) and any additional
consideration received pursuant to the conversion or change
to the capital account maintained or to be maintained for the
class or series of shares into which the shares have been
converted or changed.
(5) For the purposes of subsection (4), where a provincial company
issues 2 classes or series of shares and there is attached to each
class or series a right to convert a share of one class or series into a
share of the other class or series, the amount to be attributed to a
share in either class or series is the amount obtained when the sum
of the market value of both classes or series of shares is divided by
the number of issued shares of both classes or series of shares
immediately before the conversion.
(6) Shares or fractions of shares issued by a provincial company
and purchased, redeemed or otherwise acquired by it must be
cancelled or restored to the status of authorized but unissued
shares.
(7) For the purposes of this section, a provincial company holding
shares in itself as permitted by section 243(2) or (3) is deemed not
to have purchased, redeemed or otherwise acquired those shares.
(8) Where shares of a class or series are converted or changed into
the same or another number of shares of another class or series,
those shares become the same in all respects as the shares of the
class or series into which they are converted or changed.
RSA 2000 cI-3 s250;2013 c18 s27