2002 Legislative Session: 3rd Session, 37th 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 8th day of October, 2002
Ian D. Izard, Law Clerk


HONOURABLE GARY COLLINS
MINISTER OF FINANCE

BILL 47 -- 2002

BUSINESS CORPORATIONS ACT

Contents

Section
 
Part 1 -- Interpretation and Application
   
Division 1 -- Interpretation
    1  Definitions
    2  Corporate relationships
    3  When a company is recognized
   
Division 2 -- Application
    4  Special Act corporations
    5  Dissolution
   
Division 3 -- Distribution of Records
    6  Mailing of records
    7  Sending of records
    8  Furnishing of records by registrar
    9  Service of records in legal proceedings
 
Part 2 -- Incorporation
   
Division 1 -- Formation of Companies
    10  Formation of company
    11  Notice of articles
    12  Articles
    13  Incorporation
    14  Withdrawal of application for incorporation
    15  Obligations of completing party
    16  Articles on incorporation
    17  Effect of incorporation
    18  Evidence of incorporation
    19  Effect of notice of articles and articles
    20  Pre-incorporation contracts
   
Division 2 -- Corporate Names
    21  Name of company
    22  Reservation of name
    23  Form of name of a company
    24  Restrictions on use of name
    25  Multilingual names
    26  Assumed names
    27  Name to be displayed
    28  Registrar may order change of 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  Withdrawal of notice of change of address
    39  Transfer of registered office by agent
    40  Elimination of registered office
    41  Transfer of records office by agent
   
Division 5 -- Company Records
    42  Records office records
    43  Records may be kept at other locations
    44  Maintenance of records
    45  Missing records
    46  Inspection of records
    47  Inspection of central securities registers 
    48  Copies 
    49  List of shareholders 
    50  Remedies on denial of access or copies 
    51  Company to file annual report 
 
Part 3 -- Finance
   
Division 1 -- Authorized Share Structure
    52  Kinds, classes and series of shares 
    53  Description of authorized share structure 
    54  Change in authorized share structure 
    55  Alterations may be expressed in a single resolution 
   
Division 2 -- Share Attributes
    56  Share is personal estate
    57  Contents of share certificate
    58  Special rights or restrictions
    59  Classes of shares
    60  Shares in series
    61  No interference with class or series rights without consent
   
Division 3 -- Allotment and Issue of Shares
    62  Issue of shares
    63  Issue price for shares
    64  Payment of consideration for shares
    65  Deemed receipt of payment
    66  Restrictions on power of pre-existing company to allot and issue shares 
    67  Commissions and discounts 
    68  Validation of creation, allotment or issue of shares 
    69  Fractional shares
    70  Dividends
    71  Discharge for payment 
   
Division 4 -- Capital
    72  Capital 
    73  Special rule
    74  Reduction of capital
    75  Exception to section 74 
   
Division 5 -- Conversion, Exchange or Acquisition of Shares by Company
    76  Conversion or exchange
    77  Company may redeem or purchase
    78  Purchase or acquisition prohibited when insolvent
    79  Redemption prohibited when insolvent
    80  Shares of pre-existing company to be purchased rateably
    81  Shares of pre-existing company to be redeemed rateably
    82  Cancellation and retention of shares
    83  Elimination of fractional shares 
   
Division 6 -- Purchase of Shares by Subsidiary
    84  Definitions 
    85  Subsidiary may purchase shares of parent 
    86  Purchase prohibited when insolvent 
   
Division 7 -- Liability of Shareholders
    87  Liability of shareholders
    88  Shareholder's liability for partly paid shares of a pre-existing company 
    89  Liability of former and present shareholders on bankruptcy or winding up 
   
Division 8 -- Trust Indentures
    90  Definitions 
    91  Application 
    92  Eligibility of trustee 
    93  Persons holding debentures may request information from trustee 
    94  Information for trustee 
    95  Evidence of compliance with trust indenture 
    96  Contents of evidence of compliance
    97  Additional evidence of compliance
    98  Notice of default 
    99  Trustee's duty of care
    100  Reliance on statements
    101  Trustee not relieved from duties
   
Division 9 -- Debentures
    102  Validity of perpetual debenture
    103  Enforcement of contract to take debentures
    104  Issue of redeemed debenture
   
Division 10 -- Receivers and Receiver Managers
    105  Powers of directors and officers
    106  Duties of receiver and receiver manager 
 
Part 4 -- Shares, Registers and Transfers
    107  Right to share certificate 
    108  Shares jointly owned 
    109  Lost or destroyed certificate 
    110  Signature on share 
    111  Securities registers 
    112  Index of shareholders 
    113  Share transferable 
    114  Instrument of transfer
    115  Powers of personal representative
    116  Transfer by personal representative 
    117  Registration of transfer 
    118  Documents for transmission
    119  Effect of documents provided
 
Part 5 -- Management
   
Division 1 -- Directors
    120  Number of directors
    121  First directors
    122  Succeeding directors
    123  Consent
    124  Persons disqualified as directors
    125  Share qualification
    126  Register of directors
    127  Companies to file notices as to directors
    128  When directors cease to hold office 
    129  Application to remove self as director or officer
    130  Memorandum or articles may apply to vacancies among directors 
    131  Vacancies among directors
    132  Vacancies among class or series directors 
    133  End of term of replacement director 
    134  Loss of quorum 
    135  If no directors in office 
   
Division 2 -- Powers and Duties of Directors, Officers, Attorneys, Representatives and Agents
    136  Powers and functions of directors 
    137  Powers of directors may be restricted and transferred
    138  Application of this Act to persons performing functions of a director
    139  Revocation of resolutions
    140  Proceedings of directors
    141  Officers
    142  Duties of directors and officers
    143  Validity of acts of directors and officers
    144  Corporations may grant power of attorney in writing
    145  Corporate representatives
    146  Persons may rely on authority of companies and their directors, officers and agents
   
Division 3 -- Conflicts of Interest
    147  Disclosable interests
    148  Obligation to account for profits
    149  Approval of contracts and transactions
    150  Powers of court
    151  Validity of contracts and transactions
    152  Limitation of obligations of directors and senior officers
    153  Disclosure of conflict of office or property
   
Division 4 -- Liability of Directors
    154  Directors' liability
    155  Dissent procedure by companies
    156  Legal proceedings on liability
    157  Limitations on liability
    158  Liability if company's name not displayed
   
Division 5 -- Indemnification of Directors and Officers and Payment of Expenses
    159  Definitions
    160  Indemnification and payment permitted
    161  Mandatory payment of expenses
    162  Authority to advance expenses
    163  Indemnification prohibited
    164  Court ordered indemnification
    165  Insurance
   
Division 6 -- Meetings of Shareholders
    166  Location of general meetings
    167  Requisitions for general meetings
    168  No liability
    169  Notice of general meetings
    170  Waiver of notice
    171  Setting record dates
    172  Quorum for shareholders' meetings
    173  Voting
    174  Participation at meetings of shareholders
    175  Pooling agreements
    176  Date of resolution
    177  Subsidiary not to vote
    178  Election of chair
    179  Minutes
    180  Consent resolutions of shareholders
    181  Rules applicable to general meetings apply to other shareholders' meetings
    182  Annual general meetings
    183  First annual reference date for pre-existing companies
    184  Pre-existing reporting company meetings
    185  Information for shareholders
    186  Powers of court
   
Division 7 -- Shareholders' Proposals
    187  Definitions and application
    188  Requirements for valid proposals
    189  Rights and obligations arising from proposal
    190  No liability
    191  Refusal to process proposal
   
Division 8 -- Insiders
    192  Liability of insiders
   
Division 9 -- General
    193  Form and effect of contracts
    194  Authentication or certification of records
    195  Financial assistance
 
Part 6 -- Financial Records
   
Division 1 -- Accounting Records
    196  Accounting records required
   
Division 2 -- Financial Statements
    197  Exemption
    198  Financial statements
    199  Approval for publication
    200  Waiver of financial statements
    201  Financial statements for qualifying debentureholders
 
Part 7 -- Audits
   
Division 1 -- Definition and Application
    202  Definition
    203  Application of this Part
   
Division 2 -- Appointment and Removal of Auditors
    204  Appointment of auditors
    205  Persons authorized to act as auditors
    206  Independence of auditors
    207  Remuneration of auditors
    208  Capacity to act as auditor
    209  Removal of auditor during term
    210  Change of auditor by public company
    211  Replacement auditor must receive representations
   
Division 3 -- Duties and Rights of Auditors
    212  Auditor's duty to examine and report
    213  Qualifications on auditor's opinion
    214  Shareholders may require auditor's attendance at general meetings
    215  Auditor's information to be presented at general meetings
    216  Amendment of financial statements and auditor's report
    217  Access to records
    218  Information as to foreign subsidiaries
    219  Right and obligation of auditors to attend meetings
    220  Qualified privilege
   
Division 4 -- Auditor Certification Board
    221  Auditor Certification Board
    222  Board function and liability
   
Division 5 -- Audit Committee
    223  Application
    224  Appointment and procedures of audit committee
    225  Duties of audit committee
    226  Provision of financial statements to audit committee
 
Part 8 -- Proceedings
   
Division 1 -- Court Proceedings
    227  Complaints by shareholder
    228  Compliance or restraining orders
    229  Remedying corporate mistakes
    230  Applications to court to correct records
    231  Enforcement of duty to file records
    232  Derivative actions
    233  Powers of court in relation to derivative actions
    234  Relief in legal proceedings
    235  Applications to court under this Act
    236  Court may order security for costs
   
Division 2 -- Dissent Proceedings
    237  Definitions and application
    238  Right to dissent
    239  Waiver of right to dissent
    240  Notice of resolution
    241  Notice of court orders
    242  Notice of dissent
    243  Notice of intention to proceed
    244  Completion of dissent
    245  Payment for notice shares
    246  Loss of right to dissent
    247  Shareholders entitled to return of shares and rights
   
Division 3 -- Investigations
    248  Appointment of inspector by court
    249  Conditions applicable to court appointed inspectors
    250  Appointment of inspector by company
    251  Powers of inspectors
    252  Exemption from disclosure to inspectors
    253  Reports of inspector
    254  Inspectors' reports as evidence in legal proceedings
    255  Immunities during investigations
 
Part 9 -- Company Alterations
   
Division 1 -- Memorandum, Notice of Articles and Articles
    256  Memorandum and articles of pre-existing company not to be altered
    257  Alteration to notice of articles
    258  Withdrawal of notice of alteration
    259  Alteration to articles
    260  Shareholders may dissent
    261  Alteration to Table 1 articles
    262  Articles issued by company must reflect alterations
    263  Change of company name
    264  Exceptional resolutions and resolutions respecting unalterable provisions
    265  Resolution must be passed by greatest majority
   
Division 2 -- Conversion
    266  Conversion of special Act corporations
    267  Articles on conversion
    268  Effect of conversion
   
Division 3 -- Amalgamation
    269  Amalgamation permitted
    270  Amalgamation agreements
    271  Shareholder adoption of amalgamation agreements
    272  Shareholders may dissent
    273  Vertical short form amalgamations
    274  Horizontal short form amalgamations
    275  Formalities to amalgamation
    276  Amalgamations with court approval
    277  Amalgamations without court approval
    278  Notice to creditors in relation to an amalgamation without court approval
    279  Amalgamation
    280  Withdrawal of amalgamation application
    281  Registrar's duties on amalgamation
    282  Effect of amalgamation
   
Division 4 -- Amalgamation into a Foreign Jurisdiction
    283  Definitions
    284  Amalgamations into foreign jurisdictions
    285  When amalgamation under this Division prohibited
    286  After amalgamation
    287  Shareholders may dissent
   
Division 5 -- Arrangements
    288  Arrangement may be proposed
    289  Adoption of arrangement
    290  Information regarding arrangement
    291  Role of court in arrangements
    292  Effect of court orders
    293  Effect of court order if memorandum or notice of articles altered
    294  Effect of court order if articles altered
    295  Effect of court order if amalgamation results
    296  Application of Act to arrangements
    297  Binding effect of arrangements
    298  Withdrawing from arrangements
    299  Withdrawal of arrangement filings
   
Division 6 -- Compulsory Acquisitions
    300  Acquisition procedures
   
Division 7 -- Disposal of Undertaking
    301  Power to dispose of undertaking
   
Division 8 -- Transfer of Incorporation
    302  Application for continuation into British Columbia
    303  Continuation
    304  Withdrawal of continuation application
    305  Effect of continuation
    306  Rights preserved
    307  Articles for a continued company
    308  Application for continuation out of British Columbia
    309  Shareholders may dissent
    310  When continuation out of British Columbia prohibited
    311  After continuation
 
Part 10 -- Liquidation, Dissolution and Restoration
   
Division 1 -- Definitions and Application
    312  Definitions
    313  Application of this Part
   
Division 2 -- Voluntary Dissolution without Liquidation
    314  Authorization for voluntary dissolution
    315  Provision for unpaid debts and undelivered assets
    316  Application for voluntary dissolution
    317  Date of dissolution
    318  Withdrawal of application for dissolution
   
Division 3 -- Voluntary Liquidation
    319  Authorization for liquidation
    320  Limits on liquidator
    321  Statement of intent to liquidate
    322  Resignation and removal of liquidators in voluntary liquidations
    323  Withdrawal of statement of intent to liquidate
   
Division 4 -- Powers and Duties of the Court
    324  Court may order company be liquidated and dissolved
    325  Court orders respecting liquidations
    326  Remuneration of liquidator appointed by court
   
Division 5 -- Liquidators
    327  Qualifications of liquidators
    328  Validity of acts of liquidators
    329  Filing of notices
    330  Duties of liquidators
    331  Notice to creditors
    332  Limitations on claimants
    333  Liquidation records office
    334  Powers of liquidators
    335  Recovery of property by liquidators
    336  Right to distribution in money
    337  Provision for unpaid debts and undelivered assets
    338  Obligation to prepare accounts
    339  Limitations on liability
   
Division 6 -- Corporate Status before Dissolution
    340  Capacity of companies in liquidation
   
Division 7 -- Proceedings for Dissolution
    341  Completion of liquidation
    342  Court approval of dissolution in court ordered liquidations
    343  Application for dissolution
   
Division 8 -- Effect of Dissolution
    344  Effect of dissolution
    345  Certificates of dissolution
    346  Dissolved companies deemed to continue for litigation purposes
    347  Liabilities survive
    348  Liability of shareholders of dissolved companies
    349  Dissolved company's assets available to judgment creditors
   
Division 9 -- Discharge of Liquidators of Dissolved Companies
    350  Discharge of liquidator by court order
   
Division 10 -- Records of Dissolved Companies
    351  Custody of records
    352  Entitlement to inspect records of dissolved companies
    353  Remedies on denial of access to or copies of records of dissolved companies
   
Division 11 -- Restoration
    354  Definitions and interpretation
    355  Pre-requisites to application
    356  Applications to the registrar for restoration
    357  Contents of application to the registrar for restoration
    358  Registrar must restore
    359  Limited restoration by registrar
    360  Applications to the court for restoration
    361  Limited restoration by court
    362  Filing of restoration application with the registrar
    363  Restrictions on restoration
    364  Effect of restoration of company
    365  Effect of restoration of extraprovincial company
    366  Name on restoration
    367  Registrar's duties after restoration
    368  Corporate assets to be returned to restored company
   
Division 12 -- Post-restoration Transition for Pre-existing Companies
    369  Definition
    370  Transition -- restored pre-existing companies
    371  Post-restoration transition application
    372  Alteration to articles of restored company
    373  Timing and effect of post-restoration transition
 
Part 11 -- Extraprovincial Companies
   
Division 1 -- Registration
    374  Definitions
    375  Foreign entities required to be registered
    376  Application for registration
    377  Registration as an extraprovincial company
    378  Effect of registration
    379  Amalgamation of extraprovincial company
    380  Extraprovincial companies to file annual report
    381  Extraprovincial companies to notify registrar of changes
    382  Change of name of extraprovincial companies
    383  Cancellation or change of assumed name of extraprovincial company
    384  Liability if name of extraprovincial company not displayed
    385  Enforcement of duty to file records
   
Division 2 -- Attorneys for Extraprovincial Companies
    386  Attorneys to be appointed
    387  First attorneys
    388  Authorization of attorneys
    389  Appointment of attorneys
    390  Withdrawal of appointment
    391  Change of address of attorneys
    392  Withdrawal of notice of change of address
    393  Revocation of appointments of attorneys
    394  Withdrawal of revocation of appointment
    395  Resignations of attorneys
    396  Obligation to maintain head office or attorney
   
Division 3 -- Cancellation of Registration of Extraprovincial Companies
    397  Registrar may cancel registration of defunct extraprovincial companies
    398  Lieutenant Governor in Council may cancel registration of extraprovincial companies
    399  Registrar's duties on cancellation of registration
 
Part 12 -- Administration
   
Division 1 -- Office of Registrar
    400  Appointment of registrar and staff
    401  Seal of office
    402  Registrar may suspend services and functions
    403  Service of records on registrar
    404  Examination of registrar
    405  Immunities
    406  Appeal to Appeals Commission
   
Division 2 -- Records Filed with or Issued by the Registrar
    407  Means of filing
    408  Filing of records
    409  Future dated filing of records
    410  Limitation on future dated filings
    411  Companies and extraprovincial companies in default of filing
    412  Maintenance of records filed with the registrar
    413  Deficient filings
    414  Correction of corporate register
    415  Validity of corporate register
    416  Inspection and copies of records
    417  Lost or destroyed records
    418  Registrar may issue records
    419  Effect of records issued by registrar
    420  Correction of certificates and other certified records
    421  No constructive notice
   
Division 3 -- Powers of Dissolution and Cancellation
    422  Dissolutions and cancellations of registration by registrar
    423  Lieutenant Governor in Council may cancel incorporation of company
    424  Publication of notice of dissolution
   
Division 4 -- Offences and Penalties
    425  Offence Act
    426  Offences
    427  Misleading statements an offence
    428  Penalties
    429  Remedies preserved
    430  Limitation period
   
Division 5 -- Fees and Regulations
    431  Fees
    432  Power to make regulations
 
Part 13 -- Reporting Companies
    433  Prescribed provisions
    434  Obligations of pre-existing reporting companies
    435  Lieutenant Governor in Council may make exclusions
 
Part 14 -- Transitional, Repeals and Commencement
   
Division 1 -- Charter Transition
    436  Transition -- pre-existing companies
    437  Transition application
    438  Alteration to articles
    439  Timing and effect of transition
   
Division 2 -- Company Transition
    440  Registered and records office of pre-existing company
    441  Prescribed address
    442  Name of specially limited company
   
Division 3 -- Extraprovincial Company Transition
    443  Head office of pre-existing extraprovincial company
    444  Attorney for pre-existing extraprovincial company
   
Division 4 -- General
    445  Repeals
    446  Portions of this Part repealed
    447  Commencement
 
Schedule

 


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