1998/99 Legislative Session: 3rd Session, 36th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE JOY K. MacPHAIL
MINISTER OF FINANCE AND CORPORATE RELATIONS


BILL 85 -- 1999

COMPANY ACT

 
Contents

  Section  
 
Part 1 -- Interpretation and Application
   
Division 1 -- Interpretation
  1  Definitions
  2  Corporate relationships
  3  Share ownership
  4  Recognition of a company
   
Division 2 -- Application
  5  Application of Act to pre-existing companies
  6  Special Act corporations
  7  Dissolution
   
Division 3 -- Distribution of Records
  8  Mailing of records
  9  Sending of records
  10  Provision of records by registrar
  11  Service of records

Part 2 -- Incorporation
   
Division 1 -- Formation of Companies
  12  Formation of company
  13  Notice of articles
  14  Articles
  15  Incorporation
  16  Obligations of completing party
  17  Articles on incorporation
  18  Effect of incorporation
  19  Evidence of incorporation
  20  Effect of notice of articles and articles
  21  Pre-incorporation contract
   
Division 2 -- Corporate Names
  22  Name of company
  23  Reservation of name
  24  Form of name of company
  25  Multilingual names
  26  Assumed names
  27  Name to be displayed
  28  Registrar may order change of corporate name
  29  Other changes of name
   
Division 3 -- Capacity and Powers
  30  Capacity and powers of company
  31  Joint tenancy in property
  32  Extraterritorial capacity
  33  Restricted businesses and powers
   
Division 4 -- Company Offices
  34  Registered and records offices
  35  Change of registered or records office
  36  Change of agent's office
  37  Completion of change of address
  38  Transfer of registered office by agent
  39  Elimination of registered office
  40  Transfer of records office by agent
   
Division 5 -- Company Records
  41  Application and definition
  42  Records office records
  43  Form of records
  44  Missing records
  45  Examination of records
  46  Copies
  47  List of shareholders
  48  Remedies on denial of access or copies
  49  Company to file annual report

Part 3 -- Finance
   
Division 1 -- Authorized Share Structure
  50  Authorized share structure
  51  Description of authorized share structure
  52  Change in authorized share structure
  53  Subdivision, consolidation and change of shares
  54  Alterations to authorized share structure, capital or shares
   
Division 2 -- Share Attributes
  55  Shares of the company
  56  Contents of share certificate
  57  Special rights or restrictions
  58  Classes of shares
  59  Shares in series
  60  No interference with class or series rights without consent
   
Division 3 -- Issue and Allotment of Shares
  61  Issue and allotment of shares
  62  Consideration for shares
  63  Payment of consideration for shares
  64  Deemed receipt of payment
  65  Power of pre-existing company to allot and issue shares
  66  Commissions and discounts
  67  Validation of creation, issue or allotment
  68  Fractional shares
  69  Dividends
  70  Reduction of capital
  71  Exception to section 70
  72  Effective date of resolution
   
Division 4 -- Conversion, Exchange or Acquisition of Shares by Company
  73  Conversion or exchange
  74  Company may redeem or purchase
  75  Purchase of fractional shares
  76  Purchase or acquisition prohibited when insolvent
  77  Redemption prohibited when insolvent
  78  Shares of pre-existing company to be purchased rateably
  79  Shares of pre-existing company to be redeemed rateably
  80  Cancellation and retention of shares
  81  Elimination of fractional shares
   
Division 5 -- Purchase of Shares by Subsidiary
  82  Definitions
  83  Subsidiary may purchase shares of parent
  84  Purchase prohibited when insolvent
   
Division 6 -- Liability of Shareholders
  85  Liability of shareholders
  86  Liability of a pre-existing company for partly paid shares
  87  Shareholder's liability may be extinguished or reduced
  88  Liability of former and present shareholders
   
Division 7 -- Trust Indentures and Debt Obligations
  89  Definitions
  90  Application
  91  Eligibility of trustee
  92  Persons holding debt obligations may request information from trustee
  93  Information for trustee
  94  Evidence of compliance with trust indenture
  95  Contents of evidence of compliance
  96  Additional evidence of compliance
  97  Notice of default
  98  Trustee's duty of care
  99  Reliance on statements
  100  Trustee not relieved from duties
  101  Validity of perpetual debenture
  102  Enforcement of contract to take debentures
  103  Issue of redeemed debenture
   
Division 8 -- Receivers and Receiver Managers
  104  Powers of directors and officers
  105  Duties of receiver and receiver manager

Part 4 -- Securities, Registers and Transfers
   
Division 1 -- Interpretation and General
  106  Definitions and application
   
Division 2 -- Securities and Securities Registers
  107  Right to security certificate
  108  Signature on security
  109  Restriction or lien on security
  110  Completion or alteration of a security
  111  Securities registers
   
Division 3 -- Transfers to Purchasers
  112  Transfers require endorsement and delivery
  113  Endorsement of securities
  114  Guarantee of signature of endorser
  115  Absence of endorsement
  116  Delivery of a security
  117  Delivery of a security if sold on exchange or through brokers
  118  Delivery of securities in negotiable form
  119  Rights acquired by purchaser on transfer
  120  Transfer may be effected through clearing agency
  121  Transferor must provide requisites for registration of transfer
  122  Warranties in favour of purchaser
  123  Other warranties
   
Division 4 -- Registration
  124  Issuer must register transfer
  125  Warranties on presentation
  126  Assurances required by issuer
  127  Effect of registration
   
Division 5 -- Defects and Liabilities
  128  Notice of terms of security
  129  Unauthorized signatures on issue
  130  Staleness as notice of defect
  131  Constructive notice of adverse claim
  132  Endorsement of security in bearer form
  133  Effect of unauthorized endorsement
  134  Action for wrongful transfer
  135  Notice to issuer of adverse claim
  136  Liability of issuer
  137  If securities are lost, destroyed or wrongfully taken
  138  Overissue
  139  Duty of agents for issuer
  140  Transfer by agent in good faith is not conversion
  141  Obligations and defences of guarantor of security
  142  Burden of proof

Part 5 -- Management
   
Division 1 -- Directors
  143  Number and residency of directors
  144  First directors
  145  Succeeding directors
  146  Conditions of election or appointment of directors
  147  Persons disqualified as directors
  148  Share qualification
  149  Register of directors
  150  Companies to file returns as to directors
  151  When directors cease to hold office
  152  Application to remove self as director or officer
  153  Vacancies among directors
   
Division 2 -- Powers and Duties of Directors, Officers, Attorneys, Representatives and Agents
  154  Powers and functions of directors
  155  Revocation of resolutions
  156  Proceedings of directors
  157  Officers
  158  Duties of directors and officers
  159  Validity of acts of directors and officers
  160  Corporations may grant power of attorney in writing
  161  Corporate representatives
  162  Person may rely on authority of companies and their directors and officers
   
Division 3 -- Conflicts of Interest
  163  Disclosable interest
  164  Directors and senior officers to disclose interests
  165  Means of making disclosure
  166  Obligation to account for profits
  167  Approval of contracts and transactions
  168  Disclosure to shareholders
  169  Powers of court
  170  Court may make declaration
  171  Validity of contracts and transactions
  172  Disclosure of conflict of office or property
  173  Limitation of obligations of directors and senior officers
   
Division 4 -- Liability of Directors
  174  Directors' liability
  175  Dissent procedure by companies
  176  Legal proceedings on liability
  177  Exculpation
  178  Liability if company's name not displayed
   
Division 5 -- Indemnification of Directors and Payment of Expenses
  179  Definitions and application
  180  Indemnification and payment permitted
  181  Mandatory payment of expenses
  182  Authority to advance expenses
  183  Indemnification prohibited
  184  Court ordered indemnification
  185  Insurance
   
Division 6 -- Meetings of Shareholders
  186  Location of and participation in general meetings
  187  Requisitions for general meetings
  188  Notice of meetings
  189  Waiver of notice
  190  Setting record dates
  191  Quorum for shareholders' meetings
  192  If only one shareholder at a meeting
  193  Voting
  194  Agreements about exercising voting rights
  195  Date of resolution
  196  Subsidiary not to vote
  197  Election of chair
  198  Minutes
  199  Class meetings and series meetings
  200  Annual general meetings
  201  Reporting company meetings
  202  Information for auditors and shareholders
  203  Powers of court
   
Division 7 -- Shareholders' Proposals
  204  Definitions and application
  205  Requirements for valid proposals
  206  Rights and obligations arising from proposal
  207  No liability
  208  When companies need not process a proposal
   
Division 8 -- Insiders
  209  Liability of related persons
   
Division 9 -- General
  210  Form and effect of contracts
  211  Authentication or certification of records
  212  Financial assistance
  213  Court may waive disclosure
  214  Disposal of unclaimed assets

Part 6 -- Financial Records
   
Division 1 -- Accounting Records
  215  Accounting records required
   
Division 2 -- Financial Statements
  216  Exemption
  217  Financial statements
  218  Approval for publication
  219  Waiver of financial statements
  220  Financial statements for qualifying debentureholders

Part 7 -- Audits
   
Division 1 -- Definition and Application
  221  Definition
  222  Application of this Part
   
Division 2 -- Appointment and Removal of Auditors
  223  Appointment of auditors
  224  Qualifications of auditors
  225  Independence of auditors
  226  Remuneration of auditors
  227  Disqualification of auditors
  228  Removal of auditors
  229  Notice of proposed change
   
Division 3 -- Duties and Rights of Auditors
  230  Auditor's duty to examine and report
  231  Qualifications on auditor's opinion
  232  Auditor's attendance at general meetings
  233  Auditor's information to be provided at general meetings
  234  Amendment of financial statements and report
  235  Access to records
  236  Information as to foreign subsidiaries
  237  Right and obligation of auditors to attend meetings
  238  Qualified privilege
   
Division 4 -- Auditor Certification Board
  239  Auditor Certification Board
  240  Board function and liability
   
Division 5 -- Audit Committee
  241  Application
  242  Appointment and procedures of audit committee
  243  Duties of audit committee
  244  Submission of financial statements to audit committee

Part 8 -- Proceedings
   
Division 1 -- Court Proceedings
  245  Complaints by shareholder
  246  Compliance or restraining orders
  247  Remedy of corporate mistakes
  248  Applications to court to rectify records
  249  Enforcement of duty to make returns
  250  Derivative actions
  251  Powers of court in relation to derivative actions
  252  Relief in legal proceedings
  253  Applications to court under this Act
  254  Court may order security for costs
  255  Registrar's certificates not revocable
   
Division 2 -- Dissent Proceedings
  256  Definitions and application
  257  Right to dissent
  258  Loss of right to dissent
  259  Notice of resolution
  260  Notice of consent resolutions in certain circumstances
  261  Notice of court orders
  262  Notice of dissent
  263  Company's response to dissent
  264  Application to court
  265  Prohibition against payment by companies
  266  Shareholders entitled to return of shares and rights
   
Division 3 -- Investigations
  267  Appointment of inspector
  268  Conditions of appointments of inspectors
  269  Appointment of inspectors by companies
  270  Powers of inspectors
  271  Immunities of inspectors during investigations
  272  Report of inspector
  273  Exemption from disclosure to inspectors
  274  Inspectors' reports as evidence in legal proceedings

Part 9 -- Company Alterations
   
Division 1 -- Memorandum, Notice of Articles and Articles
  275  Memorandum and articles not to be altered
  276  Alteration to notice of articles
  277  Alteration to articles
  278  Shareholders may dissent
  279  Alteration to Table A articles
  280  Copies of articles and notice of articles to include alterations
  281  Change of company name
  282  Requirements for unanimous and exceptional resolutions
   
Division 2 -- Conversion
  283  Conversion of special Act corporations
  284  Articles on conversion
  285  Effects of conversion
   
Division 3 -- Amalgamation
  286  Amalgamation permitted
  287  Amalgamation agreements
  288  Attachments to amalgamation agreements
  289  Shareholder approval of amalgamation agreements
  290  Shareholders' right to dissent
  291  Vertical short form amalgamations
  292  Horizontal short form amalgamations
  293  Withdrawal from vertical or horizontal amalgamations
  294  Formalities to amalgamation
  295  Amalgamations subject to court approval
  296  Amalgamations without court approval
  297  Certificates of amalgamation
  298  Effect of amalgamation
   
Division 4 -- Amalgamation into a Foreign Jurisdiction
  299  Definitions
  300  Amalgamations into foreign jurisdictions
  301  Dissent
   
Division 5 -- Arrangements
  302  Arrangement may be proposed
  303  Adoption of arrangement
  304  Information as to arrangement
  305  Role of court in arrangements
  306  Effect of court orders
  307  Effect of court order if memorandum altered
  308  Effect of court order if notice of articles altered
  309  Effect of court order if articles altered
  310  Effect of court order if amalgamation results
  311  Binding effect of arrangements
  312  Withdrawing from arrangements
   
Division 6 -- Compulsory Acquisitions
  313  Acquisition procedures
   
Division 7 -- Sale of Undertaking
  314  Power to sell undertaking
   
Division 8 -- Transfer of Incorporation
  315  Transfer of incorporation to British Columbia
  316  Continuation
  317  Effect of continuation
  318  Rights preserved
  319  Articles for a continued company
  320  Transfer of incorporation from British Columbia
  321  When continuation out of British Columbia prohibited
  322  Record of continuation

Part 10 -- Liquidation, Dissolution and Restoration
   
Division 1 -- Definitions and Application
  323  Definitions
  324  Application of this Part
   
Division 2 -- Voluntary Dissolution
  325  Authorization for voluntary dissolution
  326  Provision for unpaid debt and undelivered assets
  327  Application for voluntary dissolution
  328  Date of dissolution
   
Division 3 -- Voluntary Liquidation
  329  Authorization for liquidation
  330  Statement of intent to liquidate
  331  Resignation and removal of liquidators in voluntary liquidations
  332  Revocation of statement of intent to liquidate
   
Division 4 -- Powers and Duties of the Court
  333  Powers of the court in respect of liquidations
  334  Court to appoint liquidator
  335  Remuneration of liquidator appointed by court
   
Division 5 -- Liquidators
  336  Qualification of liquidators
  337  Validity of acts of liquidators
  338  Filing of notices
  339  Duties of liquidators
  340  Notice to creditors
  341  Liquidation records office
  342  Powers of liquidator
  343  Disclosure to liquidators
  344  Right to distribution in money
  345  Obligation to account
   
Division 6 -- Corporate Assets and Status Before Dissolution
  346  Capacity of companies in liquidation
  347  Duration of powers of liquidator to manage company
  348  Provision for unpaid debts and undelivered assets
   
Division 7 -- Proceedings for Dissolution
  349  Completion of liquidation
  350  Court confirmation of dissolution in court ordered liquidations
  351  Application for certificate of dissolution
   
Division 8 -- Effect of Dissolution
  352  Effect of dissolution
  353  Certificates of dissolution
  354  Dissolved companies deemed to continue for litigation purposes
  355  Liability of shareholders of dissolved companies
  356  Effect of dissolution on assets
  357  Execution of judgments
  358  Custody of records
  359  Liabilities of dissolved companies survive
  360  Discharge by court order
   
Division 9 -- Records of Dissolved Companies
  361  Entitlement to examine records of dissolved companies
  362  Remedies on denial of access to or copies of records of dissolved companies
   
Division 10 -- Restoration
  363  Interpretation of "related person"
  364  Applications to the registrar for restoration
  365  Applications to the court for restoration
  366  Effect of restoration of company
  367  Restored pre-existing companies must alter charter
  368  Effect of restoration of extraprovincial companies
  369  Restrictions on restoration
  370  Name on restoration
  371  Registrar's duties after restoration
  372  Corporate assets to be returned to restored company

Part 11 -- Extraprovincial Companies
   
Division 1 -- Registration
  373  Definition
  374  Foreign corporations required to be registered
  375  Application for registration
  376  Registration as an extraprovincial company
  377  Effect of registration
  378  Amalgamation of extraprovincial company
  379  Extraprovincial companies to file annual report
  380  Extraprovincial companies to notify registrar of changes
  381  Change of name of extraprovincial companies
   
Division 2 -- Attorneys for Extraprovincial Companies
  382  Attorneys to be appointed
  383  First attorneys
  384  Existing attorneys
  385  Authorization of attorneys
  386  Appointment of attorneys
  387  Change of address for attorney
  388  Revocation of appointments of attorneys
  389  Resignations of attorneys
  390  Obligation to maintain head office or attorney
   
Division 3 -- Liquidation of Extraprovincial Companies
  391  Notice of appointment and change of address
  392  Final returns of liquidators
   
Division 4 -- Cancellation of Registration of Extraprovincial Companies
  393  Cancellation of registration of defunct extraprovincial companies
  394  Suspension or cancellation of registration
  395  Registrar's duties on cancellation of registration

Part 12 -- Administration
   
Division 1 -- Office of Registrar
  396  Appointment of registrar and staff
  397  Seal of office
  398  Registrar may suspend services and functions
  399  Service on registrar
  400  Examination of registrar
  401  Immunities
  402  Appeal to Appeals Commission
   
Division 2 -- Records Filed With or Issued By the Registrar
  403  Means of filing
  404  Registrar may refuse to accept records for filing
  405  Filing of records
  406  Companies and extraprovincial companies in default of filing
  407  Reproduction of records filed with the registrar
  408  Correction of corporate register
  409  Validity of corporate register
  410  Examination and copies of records
  411  Lost or destroyed records
  412  Registrar may issue records
  413  Effect of records issued by registrar
  414  Correction of certificates
  415  No constructive notice
   
Division 3 -- Offences and Penalties
  416  Dissolutions and cancellations of registration
  417  Offence Act
  418  Offences
  419  Misleading statements an offence
  420  Penalties
  421  Remedies preserved
  422  Limitation period
   
Division 4 -- Forms, Fees and Regulations
  423  Forms
  424  Fees
  425  Power to make regulations

Part 13 -- Reporting Companies
   
Division 1 -- Application of this Part
  426  Definition
  427  Articles of reporting companies
   
Division 2 -- Meetings
  428  Shares in name of registrant
  429  Form and use of proxies
  430  Mandatory solicitation of proxies
  431  Information circulars
  432  Information to be included in information circular
  433  Form of proxy and information circular
   
Division 3 -- Financial Statements
  434  Comparative financial statements
  435  Interim financial statement
  436  Comparative interim financial statement
   
Division 4 -- General
  437  Directors
  438  Audit committee
  439  Application to the registrar
  440  Part repealed

Part 14 -- Transitional, Repeals and Commencement
  441  Definition
  442  Transition -- pre-existing companies
  443  Name of specially limited company
  444  Transition -- extraprovincial companies
  445  Repeal
  446  Commencement

Schedule

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