Marginal note:Reduction of capital
Marginal note:Reduction of capital — federal credit unions
(1.1) The stated capital of a federal credit union may be reduced by special resolution of its members and, if it has issued shares, by a separate special resolution of the shareholders, the class of shareholders or the holders of the series of shares that is affected by the special resolution.
(2) A bank shall not reduce its stated capital by special resolution if there are reasonable grounds for believing that the bank is, or the reduction would cause the bank to be, in contravention of any regulation referred to in subsection 485(1) or (2) or any direction made pursuant to subsection 485(3).
Marginal note:Contents of special resolution
(3) A special resolution to reduce the stated capital of a bank shall specify the stated capital account or accounts from which the reduction of stated capital effected by the special resolution will be deducted.
Marginal note:Approval by Superintendent
(4) A special resolution to reduce the stated capital of a bank has no effect until it is approved in writing by the Superintendent.
(4.1) Subsection (4) does not apply if
Marginal note:Conditions for approval
(5) No approval to reduce the stated capital of a bank may be given by the Superintendent unless application therefor is made within three months after the time of the passing of the special resolution and a copy of the special resolution, together with a notice of intention to apply for approval, has been published in the Canada Gazette.
Marginal note:Statements to be submitted
(6) In addition to evidence of the passing of a special resolution to reduce the stated capital of a bank and of the publication thereof, statements showing
(a) the number of the bank’s shares or membership shares, as the case may be, issued and outstanding,
(b) the results of the voting,
(c) the bank’s assets and liabilities, and
(d) the reason why the bank seeks the reduction of capital
shall be submitted to the Superintendent at the time of the application for approval of the special resolution.
- 1991, c. 46, s. 75
- 2007, c. 6, s. 10
- 2010, c. 12, s. 1940
- Date modified: