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


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


Certified correct as passed Third Reading on the 13th day of July, 1999
Ian D. Izard, Law Clerk


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  When a company is recognized
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 for a 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  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 file records
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 debts 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 to be altered
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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