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Bank Act

Version of section 794 from 2006-04-27 to 2024-05-01:


Marginal note:Director liability

  •  (1) Directors of a bank holding company who vote for or consent to a resolution of the directors authorizing the issue of a share contrary to subsection 709(1) or the issue of subordinated indebtedness contrary to section 723 for a consideration other than money are jointly and severally, or solidarily, liable to the bank holding company to make good any amount by which the consideration received is less than the fair equivalent of the money that the bank holding company would have received if the share or subordinated indebtedness had been issued for money on the date of the resolution.

  • Marginal note:Further liability

    (2) Directors of a bank holding company who vote for or consent to a resolution of the directors authorizing any of the following are jointly and severally, or solidarily, liable to restore to the bank holding company any amounts so distributed or paid and not otherwise recovered by the bank holding company and any amounts in relation to any loss suffered by the bank holding company:

    • (a) a redemption or purchase of shares contrary to section 715;

    • (b) a reduction of capital contrary to section 718;

    • (c) a payment of a dividend contrary to section 722; or

    • (d) a payment of an indemnity contrary to section 799.

  • 2001, c. 9, s. 183
  • 2005, c. 54, s. 113(E)

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