Insurance Companies Act — I-11.8 70
Stated capital account 70 (1) A company shall maintain a separate stated capital account for each class and series of shares it issues. Addition to stated capital account (2) A company shall record in the appropriate stated capital account the full amount of any consideration it receives for any shares it issues. Exception (2.1) Despite subsection (2), a company may, subject to subsection (2.2), record in the stated capital account maintained for the shares of a class or series any part of the consideration it receives in an exchange if it issues shares (a) in exchange for (i) property of a person who immediately before the exchange did not deal with the company at arm’s length within the meaning of that expression in the Income Tax Act , (ii) shares of or another interest in a body corporate that immediately before the exchange or because of it did not deal with the company at arm’s length within the meaning of that expression in the Income Tax Act , or (iii) property of a person who immediately before the exchange dealt with the company at arm’s length within the meaning of that expression in the Income Tax Act if the person, the company and all of the holders of shares in the class or series of shares so issued consent to the exchange; (b) under an agreement referred to in subsection 246(1); or (c) to shareholders of an amalgamating body corporate who receive the shares in addition to or instead of securities of the amalgamated company. Limit on addition to a stated capital account (2.2) On the issuance of a share, a company shall not add to the stated capital account in respect of the share an amount greater than the amount of the consideration it receives for the share. Constraint on addition to a stated capital account (2.3) Where a company that has issued any outstanding shares of more than one class or series proposes to add to a stated capital account that it maintains in respect of a class or series of shares an amount that was not received by the company as consideration for the issue of shares, the addition must be approved by special resolution unless all the issued and outstanding shares are of not more than two classes of convertible shares referred to in subsection 81(4). Stated capital of former-Act company (3) On the coming into force of this Part, a former-Act company shall record in the stated capital account maintained for each class and series of shares then outstanding an amount that is equal to the aggregate of (a) the aggregate amount paid up on the shares of each class and series of shares immediately before the coming into force of this Part, and (b) the amount of the contributed surplus of the company that is attributable to those shares. Contributed surplus entry (4) The amount of any contributed surplus recorded in the stated capital account pursuant to paragraph (3)(b) shall be deducted from the contributed surplus account of the company. Share issued before coming into force (5) Any amount unpaid in respect of a share issued by a former-Act company before the coming into force of this Part and paid after the coming into force of this Part shall be recorded in the stated capital account maintained by the company for the shares of that class or series. 1991, c. 47, s. 70; 1997, c. 15, s. 182; 2005, c. 54, s. 221