Part 2 — Provincial Companies Subpart 1 Status and Powers of Provincial Companies
251 Enforceability of contract to purchase shares
purchase by it of its own shares is specifically enforceable against
the company, except to the extent that it cannot perform the
contract without contravening section 245 or 246.
(2) In any action brought on a contract referred to in subsection
(1), the provincial company has the burden of proving that
performance of the contract is prevented by section 245 or 246.
(3) Until the provincial company has fully performed a contract
referred to in subsection (1), the other party to the contract retains
the status of a claimant and is entitled
RSA 2000
(a) to be paid as soon as the company is lawfully able to
perform the contract, or
(b) in a liquidation, to be ranked subordinate to the rights of
policyholders, creditors, holders of subordinated notes and
any class of shareholders whose rights were in priority to the
rights given to the class of shares that the other party
contracted to sell to the company, but in priority to the rights
of other shareholders.
1999 cI-5.1 s251