SS · Business Corporations Act
Part 5 — Corporate Finance
32 Prohibited share holdings
33 to 36, a corporation
(a) shall not hold shares in itself or in its holding body
corporate, and
(b) shall not permit any of its subsidiary bodies corporate to
acquire shares of the corporation.
(2) Not more than 1% of the issued shares of each class of shares
of a holding body corporate may be held by all the subsidiaries of
the holding body corporate.
(2.1) A corporation may from time to time hold shares in itself, or
a subsidiary of the corporation may from time to time hold shares
in the corporation, for a maximum of 30 days.
(2.2) At the expiry of the 30-day period set out in subsection (2.1),
the corporation or the subsidiary of the corporation shall
(a) cancel the shares, on the condition that if the articles of the
corporation limit the number of authorized shares, the
RSA 2000
cancelled shares may be restored to the status of authorized
but unissued shares,
(b) return the consideration r eceived by the corporation or the
subsidiary of the corporation to the person or persons who
paid it, and
(c) cancel the entry for the consideration in the stated capit al
account of the corporation or the subsidiary of the
corporation.
(2.3) Subsection (2) does not apply to shares held by a corporation
or a subsidiary of a corporation under subsection (2.1).
(3) Subject to subsections (2) and (4), a corporation shall cause a
subsidiary body corporate of the corporation that holds shares of
the corporation to sell or otherwise dispose of those shares within 5
years from the date that
(a) the body corporate became a subsidiary of the corporation,
or
(b) the corporation was continued under this Act.
(4) This section does not apply to shares acquired by the
subsidiary body corporate before the commencement of this Act.
RSA 2000 cB-9 s32;2005 c8 s14