Part 6 — Special Seizure Mechanisms
62 Liquidation procedure re non-market securities
Alberta private company:
(a) where an Alberta private company has been served with a
notice of seizure in respect of certain shares, the Alberta
private company must so inform any person who requests
information from the Alberta private company regarding the
enforcement debtor's ownership of or ability to transfer
those shares;
(b) on being instructed to sell seized shares, the agency shall
serve a notice of intended sale on
(i) the Alberta private company,
(ii) any person who, to the knowledge of the agency, would
have a preferential right to acquire the shares on a
voluntary sale of the shares by the enforcement debtor,
and
(iii) every registered sharehol der of the Alberta private
company, if there are not more than 15 registered
shareholders;
(c) the notice of intended sale must set out the method of sale
that the agency intends to follow in selling the shares;
(d) after complying with clause (b), the agency shall not take
any further steps to sell the shares until 15 days have
elapsed from the day that the notice was served under clause
(b);
(e) the agency, subject to clause (f), must in selling shares use a
method of sale that
(i) follows as closely as po ssible any procedure that the
enforcement debtor would be required to follow in order
to sell the shares, and
(ii) subject to subclause (i), provide to the Alberta private
company and the existing shareholders of the Alberta
private company a reasonable opportunity to buy or
redeem the shares before they are offered for sale to any
other person;
RSA 2000
(f) the agency is not required t o comply with clause (e) to the
extent that the method of sale referred to in clause (e) would
prevent the shares from being sold at all or prevent them
from being sold within a reasonable time or for a reasonable
price;
(g) a person who would otherwise be entitled to acquire or
redeem the shares for a predetermined price or at a price
fixed by reference to a predetermined formula is entitled to
buy or redeem the shares from the agency for that price
unless the Court determines that a sale at that price would
unfairly prejudice the enforcement debtor or the
enforcement creditors;
(h) at any time before the share s are sold by the agency, any
person referred to in clause (b) may pay to the agency an
amount sufficient to discharge all related writs and any
outstanding fees or charges of the agency and the taxable
fees and disbursements of the instructing creditor, and on
paying that amount to the agency that person has a lien on
the shares for the amount paid to the agency, plus interest;
(i) on application by the agency or any interested person, the
Court may make any order that the Court considers
appropriate regarding the method of liquidating seized
shares, including an order doing one or more of the
following:
(i) approving, with or without modification, or rejecting
(A) the method of sale proposed by the agency or by any
other person,
(B) any proposed term of the sale, or
(C) any proposed method of realizing the value of the
shares other than through sale;
(ii) suspending sale proceedings;
(iii) directing that the Alberta private company be liquidated
and its proceeds disposed of according to law;
(j) if the agency has sent a no tice of an intended sale to the
persons mentioned in clause (b) and no application is made
under clause (i) before the shares are sold, the method of
sale set out in the notice of intended sale is deemed to have
met the requirements of clause (e).
RSA 2000 cC-15 s62;2006 cS-4.5 s107
RSA 2000
63 Repealed 2006 cS-4.5 s107.