Cooperative Energy Act — C-41.5 24
Issuance as Partly Paid 24 (1) Class D Shares may be issued as fully paid or as partly paid or with no payment having been made thereon, in the discretion of the directors of the Corporation, on the terms of payment determined by the directors of the Corporation. Demand for payment (2) The directors of the Corporation may demand that the shareholders pay the whole or any part of the amount unpaid on shares held by them, at such times and places, and in such payments or instalments, as the terms of issue of such shares require or allow. Idem (3) A demand for payment shall state that if the demand is not paid in accordance with its terms, all of the securities whether fully paid or partly paid, of the holder of the shares in respect of which the demand is made are liable to be forfeited. Interest (4) Where a shareholder fails to make a payment in accordance with a demand therefor on or before the day appointed for the payment, the shareholder is liable to pay interest on the amount thereof at a rate established by the directors of the Corporation from the day appointed for payment to the day of payment. Forfeiture of unpaid securities (5) Where a demand for payment is not paid in accordance with its terms, the directors of the Corporation may declare forfeited all of the securities, whether fully paid or partly paid, of the holder of the shares in respect of which the demand is made. Disposition of unpaid securities (6) Any securities declared forfeited pursuant to subsection (5) become the property of the Corporation on the forfeiture, and may be cancelled, sold or otherwise dealt with as determined by the directors of the Corporation. Liability of shareholders (7) Notwithstanding the forfeiture of any securities, the holder of the shares in respect of which the demand is made continues to be liable for the full amount unpaid on the securities at that time, less any amounts that are subsequently received by the Corporation in respect thereof. Excess on sale of forfeited securities (8) Where the Corporation receives on the sale of forfeited securities an amount in excess of the full amount unpaid thereon at the time of forfeiture together with interest, the person who, immediately prior to the forfeiture, was the registered owner of the securities or a person who satisfies the Corporation that, immediately prior to the forfeiture, that person could properly have been treated as the registered owner or holder of the securities under section 47 of the Canada Business Corporations Act shall, from the time of the sale, be entitled to receive the net proceeds of the sale, together with any income earned thereon from the beginning of the month next following the date of the receipt by the Corporation of the proceeds of the sale, less (a) the full amount unpaid on the securities at the time of forfeiture together with interest thereon calculated in accordance with subsection (4); and (b) any taxes thereon and any costs of administration of a trust fund constituted in relation thereto. Application of certain subsections (9) Subsection (8) and subsections 15(8) to (14) of this Act apply, with such modifications as the circumstances require, (a) in respect of a person who is entitled under subsection (8) to receive a portion of the proceeds of a sale of securities of the Corporation under subsection (6), and (b) to such portion of the proceeds, subject to any provisions in respect of the sale of constrained shares set out in, or prescribed pursuant to, the Canada Business Corporations Act . Right of action (10) The directors of the Corporation may, in addition to declaring forfeited any securities, enforce payment of all demands and interest thereon by action in any court of competent jurisdiction. Definition (11) In this section, security means a share of any class of shares of the Corporation or an Equity Debenture.