Part 2 — Provincial Companies Subpart 1 Status and Powers of Provincial Companies
253 Payment of dividend
provincial company may pay, a dividend by issuing fully paid
shares of the company and, subject to subsection (3), a provincial
company may pay a dividend in money or property.
(2) If a provincial company issues shares of the company in
payment of a dividend, it must add to the capital account for the
shares of the class or series issued the declared amount of the
dividend, stated as an amount of money.
(3) The directors must not declare and a provincial company must
not pay a dividend 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, or
(b) the payment would cause the company to be in
contravention of this Act or the regulations.
1999 cI-5.1 s253