Canada Business Corporations Act

Marginal note:Value of security

• 237.7 (1) When, in order to establish the value of the total financial interest referred to in subsection 237.5(1), it is necessary to determine the value of a security that is traded on an organized market, the value of the security is, on the day specified in subsection (3),

  • (a) the closing price of that class of security;

  • (b) if no closing price is given, the average of the highest and lowest prices of that class of security; or

  • (c) if the security was not traded, the average of the bid and ask prices of that class of security.

• Marginal note:Court may adjust value

  (2) The court may adjust the value of a security that has been determined under subsection (1) when the court considers it reasonable to do so.

• Marginal note:Valuation day

  (3) The value of the security is to be determined as of the day that the error, omission or misstatement occurred. If the security was acquired in the period between that day and the day, as determined by the court, that the error, omission or misstatement was generally disclosed, the value is to be determined as of the day that it was acquired.

• Marginal note:Definition of organized market

  (4) In this section, organized market means a recognized exchange for a class of securities or a market that regularly publishes the price of that class of securities in a publication that is generally available to the public.