Consolidated Statutes and Regulations Consolidated Statutes Consolidated Regulations Annual Statutes and Regulations Annual Statutes Annual Regulations Additional information Québec Official Publisher What’s new? Information note Policy of the Minister of Justice Laws: Amendments Laws: Provisions not in force Laws: Provisions brought into force Annual Statutes: PDF versions since 1996 Regulations: Amendments Annual Regulations: PDF versions since 1996 Court Decisions

C-38 - Companies Act

Section 123.66
Disposition versions

Full text
123.66. A company may in no case grant a loan, give security or furnish any other form of financial assistance to a shareholder, a shareholder of its parent legal person or a person to assist him in purchasing its shares if 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 sum of its liabilities and its issued and paid-up share capital account.
1979, c. 31, s. 27; 1980, c. 28, s. 14; 1987, c. 5, s. 4; 1999, c. 40, s. 70.
123.66. A company may in no case grant a loan, give security or furnish any other form of financial assistance to a shareholder, a shareholder of its parent corporation or a person to assist him in purchasing its shares if 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 sum of its liabilities and its issued and paid-up share capital account.
1979, c. 31, s. 27; 1980, c. 28, s. 14; 1987, c. 5, s. 4.
123.66. A company may in no case grant a loan, give security or furnish any other form of financial assistance to a shareholder, a shareholder of its parent corporation or to a person for the purchase of its shares if 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 sum of its liabilities and its issued and paid-up share capital account.
1979, c. 31, s. 27; 1980, c. 28, s. 14.
123.66. The by-law contemplating the continuance of the company must be confirmed by the vote of at least two-thirds in value of the shares represented by the shareholders present at a special general meeting called for that purpose.
The by-law must authorize one of the directors to sign the articles of continuance.
The board of directors, if so authorized by the by-law, may annul it before it is acted upon.
1979, c. 31, s. 27.
© Gouvernement du Québec