Part 2 — Provincial Companies Subpart 1 Status and Powers of Provincial Companies
247 Redemption of shares
a provincial company may authorize the company to purchase or
redeem any redeemable shares issued by it at prices not exceeding
the redemption price calculated according to a formula stated in the
bylaws.
(2) The directors of a provincial company must not authorize the
company to make any payment to purchase or redeem any
redeemable 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
(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, ratably with or prior to the holders of the
shares to be purchased or redeemed,
or
(c) the redemption would cause the company to be in
contravention of this Act or the regulations.
1999 cI-5.1 s247