SS · Business Corporations Act
Part 5 — Corporate Finance
36 Redemption of shares
subject to subsection (2) and to its articles, purchase or redeem any
redeemable shares issued by it at prices not exceeding the
redemption price of those shares stated in the articles or calculated
according to a formula stated in the articles.
(2) A corporation shall not make any payment to purchase or
redeem any redeemable shares issued by it if there are reasonable
grounds for believing that
RSA 2000
(a) the corporation is, or would after the payment be, unable to
pay its liabilities as they become due, or
(b) the realizable value of the corporation's assets would after
the payment be less than the aggregate of
(i) its liabilities, and
(ii) the amount that would be re quired to pay the holders of
shares that have a right to be paid, on a redemption or in
a liquidation, rateably with or prior to the holders of the
shares to be purchased or redeemed.
1981 cB-15 s34