C-41 - Trust Companies Act

Section 8 Disposition versions

1977-12-31

8. A registered company may invest money which it holds in one of the capacities mentioned in paragraph 7 of section 2, in the manner authorized by articles 981o and following of the Civil Code.

The powers provided in this section shall also be subject to the following restrictions:

(1)  A company shall not make any loan out of the moneys which it holds in any of the capacities mentioned in paragraph 7 of section 2:

(a)  to a member of its board of directors, or to the spouse or child of such member;

(b)  to a shareholder who owns more than twenty-five per cent of the company’s shares and, if such shareholder is an individual, to the spouse or child of such shareholder;

(c)  to a corporation directly or indirectly controlled by the persons contemplated in sub-paragraph a or b, or by one or more of them.

(2)  A company shall not acquire or hold shares, bonds or other evidences of indebtedness of a corporation to which it may not make a loan under paragraph 1.

R. S. 1964, c. 287, s. 8; 1965 (1st sess.), c. 74, s. 2; 1966-67, c. 82, s. 3.