Cooperative Credit Associations Act

Marginal note:Reduction of capital

• 82 (1) The stated capital of an association may be reduced by special resolution.

• Marginal note:Limitation

  (2) An association shall not reduce its stated capital by special resolution if there are reasonable grounds for believing that the association is, or the reduction would cause the association to be, in contravention of any regulation referred to in subsection 409(1) or (2) or any direction made pursuant to subsection 409(3).

• Marginal note:Contents of special resolution

  (3) A special resolution to reduce the stated capital of an association shall specify the stated capital account or accounts from which the reduction of stated capital effected by the special resolution will be deducted.

• Marginal note:Approval by Superintendent

  (4) A special resolution to reduce the stated capital of an association has no effect until it is approved in writing by the Superintendent.

• Marginal note:Exception

  (4.1) Subsection (4) does not apply if

  • (a) the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 292(4); and

  • (b) there is to be no return of capital to members or shareholders as a result of the reduction.

• Marginal note:Conditions for approval

  (5) No approval to reduce the stated capital of an association may be given by the Superintendent unless application therefor is made within three months after the time of the passing of the special resolution and a copy of the special resolution, together with a notice of intention to apply for approval, has been published in the Canada Gazette.

• Marginal note:Statements to be submitted

  (6) In addition to evidence of the passing of a special resolution to reduce the stated capital of an association and of the publication thereof, statements showing

  • (a) the number of the association’s membership shares and shares issued and outstanding,

  • (b) the results of the voting by members of the association or by class of shares,

  • (c) the association’s assets and liabilities, and

  • (d) the reason why the association seeks the reduction of capital

  shall be submitted to the Superintendent at the time of the application for approval of the special resolution.