C-38 - Companies Act

Section 123.54 Disposition versions

1981-02-16

123.54. A company may acquire fully paid-up shares it has issued and that, under its articles, it must redeem on demand of a shareholder or on a fixed date or a date that may be fixed, for a price determined in its articles or computed in accordance with the method provided in the articles.

In no case, however, may a company pay for the shares where there is reasonable ground to believe that, as a consequence,

(1)  it could not discharge its liabilities when due, or

(2)  the book value of its assets would be less than the aggregate of its liabilities and the sums necessary for the payment, in case of redemption or winding-up, of the shares payable by preference or concurrently.

1979, c. 31, s. 27; 1980, c. 28, s. 14.

1980-01-30

123.54. The cancellation of shares mentioned in subsection 13 of section 48 is carried out in accordance with the procedure provided in sections 123.49 to 123.52.

1979, c. 31, s. 27.