S-31.1 - Business Corporations Act

Section 70 Disposition versions

2011-02-14

70. A corporation that issues shares without par value may pay into the issued and paid-up share capital account all or part of the value of the consideration received for the shares issued

(1)  in exchange for property of a person who, at the time of the exchange, is not dealing at arm’s length with the corporation within the meaning of that expression in the Taxation Act (chapter I-3);

(2)  in exchange for property of a person who, at the time of the exchange, is dealing at arm’s length with the corporation within the meaning of that expression in the Taxation Act, if the person, the corporation and all the holders of shares in the class or series of shares so issued, whether or not their shares otherwise carry voting rights, consent to the exchange; such consent is not required, however, if the issue of shares does not result in a decrease in the value obtained by dividing the value of the issued and paid-up share capital account maintained for the class or series of shares issued by the number of issued shares in the class or series;

(3)  in exchange for shares of a legal person who, at the time of the exchange or immediately afterwards, is not dealing at arm’s length with the corporation within the meaning of that expression in the Taxation Act; or

(4)  to shareholders of an amalgamating corporation who are receiving the shares in addition to or instead of shares of the amalgamated corporation, in the case of a long-form amalgamation.

2009, c. 52, s. 70.