Copyright © 2004: Queen's Printer,
Victoria, British Columbia, Canada
IMPORTANT INFORMATION

BUSINESS CORPORATIONS ACT

[SBC2002] CHAPTER 57

Assented to October 31, 2002

 

Contents

Section

Part 1 — Interpretation and Application

Division 1 — Interpretation

1 

Definitions

2 

Corporate relationships

3 

When a company is recognized

Division 2 — Application

4 

Special Act corporations

5 

Dissolution

Division 3 — Distribution of Records

6 

Mailing of records

7 

Sending of records

8 

Furnishing of records by registrar

9 

Service of records in legal proceedings

Part 2 — Incorporation

Division 1 — Formation of Companies

10 

Formation of company

11 

Notice of articles

12 

Articles

13 

Incorporation

14 

Withdrawal of application for incorporation

15 

Obligations of completing party

16 

Articles on incorporation

17 

Effect of incorporation

18 

Evidence of incorporation

19 

Effect of notice of articles and articles

20 

Pre-incorporation contracts

Division 2 — Corporate Names

21 

Name of company

22 

Reservation of name

23 

Form of name of a company

24 

Restrictions on use of name

25 

Multilingual names

26 

Assumed names

27 

Name to be displayed

28 

Registrar may order change of name

29 

Other changes of name

Division 3 — Capacity and Powers

30 

Capacity and powers of company

31 

Joint tenancy in property

32 

Extraterritorial capacity

33 

Restricted businesses and powers

Division 4 — Company Offices

34 

Registered and records offices

35 

Change of registered or records office

36 

Change of agent's office

37 

Completion of change of address

38 

Withdrawal of notice of change of address

39 

Transfer of registered office by agent

40 

Elimination of registered office

41 

Transfer of records office by agent

Division 5 — Company Records

42 

Records office records

43 

Records may be kept at other locations

44 

Maintenance of records

45 

Missing records

46 

Inspection of records

47 

Inspection of central securities registers

48 

Copies

49 

List of shareholders

50 

Remedies on denial of access or copies

51 

Company to file annual report

Part 3 — Finance

Division 1 — Authorized Share Structure

52 

Kinds, classes and series of shares

53 

Description of authorized share structure

54 

Change in authorized share structure

55 

Alterations may be expressed in a single resolution

Division 2 — Share Attributes

56 

Share is personal estate

57 

Contents of share certificate

58 

Special rights or restrictions

59 

Classes of shares

60 

Shares in series

61 

No interference with class or series rights without consent

Division 3 — Allotment and Issue of Shares

62 

Issue of shares

63 

Issue price for shares

64 

Payment of consideration for shares

65 

Deemed receipt of payment

66 

[Repealed]

67 

Commissions and discounts

68 

Validation of creation, allotment or issue of shares

69 

Fractional shares

70 

Dividends

71 

Discharge for payment

Division 4 — Capital

72 

Capital

73 

Special rule

74 

Reduction of capital

75 

Exception to section 74

Division 5 — Conversion, Exchange or Acquisition of Shares by Company

76 

Conversion or exchange

77 

Company may redeem or purchase

78 

Purchase or acquisition prohibited when insolvent

79 

Redemption prohibited when insolvent

80 – 81 

[Repealed]

82 

Cancellation and retention of shares

83 

Elimination of fractional shares

Division 6 — Purchase of Shares by Subsidiary

84 

Definitions

85 

Subsidiary may purchase shares of parent

86 

Purchase prohibited when insolvent

Division 7 — Liability of Shareholders

87 

Liability of shareholders

88 

Shareholder's liability for partly paid shares of a pre-existing company

89 

Liability of former and present shareholders on bankruptcy or winding up

Division 8 — Trust Indentures

90 

Definitions

91 

Application

92 

Eligibility of trustee

93 

Persons holding debentures may request information from trustee

94 

Information for trustee

95 

Evidence of compliance with trust indenture

96 

Contents of evidence of compliance

97 

Additional evidence of compliance

98 

Notice of default

99 

Trustee's duty of care

100 

Reliance on statements

101 

Trustee not relieved from duties

Division 9 — Debentures

102 

Validity of perpetual debenture

103 

Enforcement of contract to take debentures

104 

Issue of redeemed debenture

Division 10 — Receivers and Receiver Managers

105 

Powers of directors and officers

106 

Duties of receiver and receiver manager

Part 4 — Shares, Registers and Transfers

107 

Right to share certificate

108 

Shares jointly owned

109 

Lost or destroyed certificate

110 

Signature on share

111 

Securities registers

112 

Index of shareholders

113 

Share transferable

114 

Instrument of transfer

115 

Powers of personal representative

116 

Transfer by personal representative

117 

Registration of transfer

118 

Documents for transmission

119 

Effect of documents provided

Part 5 — Management

Division 1 — Directors

120 

Number of directors

121 

First directors

122 

Succeeding directors

123 

Consent

124 

Persons disqualified as directors

125 

Share qualification

126 

Register of directors

127 

Companies to file notices as to directors

128 

When directors cease to hold office

129 

Application to remove self as director or officer

130 

Memorandum or articles may apply to vacancies among directors

131 

Vacancies among directors

132 

Vacancies among class or series directors

133 

End of term of replacement director

134 

Loss of quorum

135 

If no directors in office

Division 2 — Powers and Duties of Directors, Officers, Attorneys, Representatives and Agents

136 

Powers and functions of directors

137 

Powers of directors may be restricted and transferred

138 

Application of this Act to persons performing functions of a director

139 

Revocation of resolutions

140 

Proceedings of directors

141 

Officers

142 

Duties of directors and officers

143 

Validity of acts of directors and officers

144 

Corporations may grant power of attorney in writing

145 

Corporate representatives

146 

Persons may rely on authority of companies and their directors, officers and agents

Division 3 — Conflicts of Interest

147 

Disclosable interests

148 

Obligation to account for profits

149 

Approval of contracts and transactions

150 

Powers of court

151 

Validity of contracts and transactions

152 

Limitation of obligations of directors and senior officers

153 

Disclosure of conflict of office or property

Division 4 — Liability of Directors

154 

Directors' liability

155 

Dissent procedure by companies

156 

Legal proceedings on liability

157 

Limitations on liability

158 

Liability if company's name not displayed

Division 5 — Indemnification of Directors and Officers and Payment of Expenses

159 

Definitions

160 

Indemnification and payment permitted

161 

Mandatory payment of expenses

162 

Authority to advance expenses

163 

Indemnification prohibited

164 

Court ordered indemnification

165 

Insurance

Division 6 — Meetings of Shareholders

166 

Location of general meetings

167 

Requisitions for general meetings

168 

No liability

169 

Notice of general meetings

170 

Waiver of notice

171 

Setting record dates

172 

Quorum for shareholders' meetings

173 

Voting

174 

Participation at meetings of shareholders

175 

Pooling agreements

176 

Date of resolution

177 

Subsidiary not to vote

178 

Election of chair

179 

Minutes

180 

Consent resolutions of shareholders

181 

Rules applicable to general meetings apply to other shareholders' meetings

182 

Annual general meetings

183 

First annual reference date for pre-existing companies

184 

Pre-existing reporting company meetings

185 

Information for shareholders

186 

Powers of court

Division 7 — Shareholders' Proposals

187 

Definitions and application

188 

Requirements for valid proposals

189 

Rights and obligations arising from proposal

190 

No liability

191 

Refusal to process proposal

Division 8 — Insiders

192 

Liability of insiders

Division 9 — General

193 

Form and effect of contracts

194 

Authentication or certification of records

195 

Financial assistance

Part 6 — Financial Records

Division 1 — Accounting Records

196 

Accounting records required

Division 2 — Financial Statements

197 

Exemption

198 

Financial statements

199 

Approval for publication

200 

Waiver of financial statements

201 

Financial statements for qualifying debentureholders

Part 7 — Audits

Division 1 — Definition and Application

202 

Definition

203 

Application of this Part

Division 2 — Appointment and Removal of Auditors

204 

Appointment of auditors

205 

Persons authorized to act as auditors

206 

Independence of auditors

207 

Remuneration of auditors

208 

Capacity to act as auditor

209 

Removal of auditor during term

210 

Change of auditor by public company

211 

Replacement auditor must receive representations

Division 3 — Duties and Rights of Auditors

212 

Auditor's duty to examine and report

213 

Qualifications on auditor's opinion

214 

Shareholders may require auditor's attendance at general meetings

215 

Auditor's information to be presented at general meetings

216 

Amendment of financial statements and auditor's report

217 

Access to records

218 

Information as to foreign subsidiaries

219 

Right and obligation of auditors to attend meetings

220 

Qualified privilege

Division 4 — Auditor Certification Board

221 

Auditor Certification Board

222 

Board function and liability

Division 5 — Audit Committee

223 

Application

224 

Appointment and procedures of audit committee

225 

Duties of audit committee

226 

Provision of financial statements to audit committee

Part 8 — Proceedings

Division 1 — Court Proceedings

227 

Complaints by shareholder

228 

Compliance or restraining orders

229 

Remedying corporate mistakes

230 

Applications to court to correct records

231 

Enforcement of duty to file records

232 

Derivative actions

233 

Powers of court in relation to derivative actions

234 

Relief in legal proceedings

235 

Applications to court under this Act

236 

Court may order security for costs

Division 2 — Dissent Proceedings

237 

Definitions and application

238 

Right to dissent

239 

Waiver of right to dissent

240 

Notice of resolution

241 

Notice of court orders

242 

Notice of dissent

243 

Notice of intention to proceed

244 

Completion of dissent

245 

Payment for notice shares

246 

Loss of right to dissent

247 

Shareholders entitled to return of shares and rights

Division 3 — Investigations

248 

Appointment of inspector by court

249 

Conditions applicable to court appointed inspectors

250 

Appointment of inspector by company

251 

Powers of inspectors

252 

Exemption from disclosure to inspectors

253 

Reports of inspector

254 

Inspectors' reports as evidence in legal proceedings

255 

Immunities during investigations

Part 9 — Company Alterations

Division 1 — Memorandum, Notice of Articles and Articles

256 

Memorandum and articles of pre-existing company not to be altered

257 

Alteration to notice of articles

258 

Withdrawal of notice of alteration

259 

Alteration to articles

260 

Shareholders may dissent

261 

Alteration to Table 1 articles

262 

Articles issued by company must reflect alterations

263 

Change of company name

264 

Exceptional resolutions and resolutions respecting unalterable provisions

265 

Resolution must be passed by greatest majority

Division 2 — Conversion

266 

Conversion of special Act corporations

267 

Articles on conversion

268 

Effect of conversion

Division 3 — Amalgamation

269 

Amalgamation permitted

270 

Amalgamation agreements

271 

Shareholder adoption of amalgamation agreements

272 

Shareholders may dissent

273 

Vertical short form amalgamations

274 

Horizontal short form amalgamations

275 

Formalities to amalgamation

276 

Amalgamations with court approval

277 

Amalgamations without court approval

278 

Notice to creditors in relation to an amalgamation without court approval

279 

Amalgamation

280 

Withdrawal of amalgamation application

281 

Registrar's duties on amalgamation

282 

Effect of amalgamation

Division 4 — Amalgamation into a Foreign Jurisdiction

283 

Definitions

284 

Amalgamations into foreign jurisdictions

285 

When amalgamation under this Division prohibited

286 

After amalgamation

287 

Shareholders may dissent

Division 5 — Arrangements

288 

Arrangement may be proposed

289 

Adoption of arrangement

290 

Information regarding arrangement

291 

Role of court in arrangements

292 

Required filings

293 

Obligations on company if memorandum altered

294 

Obligations on company if articles altered

295 

If arrangement includes amalgamation

296 

Application of Act to arrangements

297 

Binding effect of arrangements

298 

Abandoning arrangements

299 

Withdrawal of arrangement records

Division 6 — Compulsory Acquisitions

300 

Acquisition procedures

Division 7 — Disposal of Undertaking

301 

Power to dispose of undertaking

Division 8 — Transfer of Incorporation

302 

Application for continuation into British Columbia

303 

Continuation

304 

Withdrawal of continuation application

305 

Effect of continuation

306 

Rights preserved

307 

Articles for a continued company

308 

Application for continuation out of British Columbia

309 

Shareholders may dissent

310 

When continuation out of British Columbia prohibited

311 

After continuation

Part 10 — Liquidation, Dissolution and Restoration

Division 1 — Definitions and Application

312 

Definitions

313 

Application of this Part

Division 2 — Voluntary Dissolution without Liquidation

314 

Authorization for voluntary dissolution

315 

Provision for unpaid debts and undelivered assets

316 

Application for voluntary dissolution

317 

Date of dissolution

318 

Withdrawal of application for dissolution

Division 3 — Voluntary Liquidation

319 

Authorization for liquidation

320 

Limits on liquidator

321 

Statement of intent to liquidate

322 

Resignation and removal of liquidators in voluntary liquidations

323 

Withdrawal of statement of intent to liquidate

Division 4 — Powers and Duties of the Court

324 

Court may order company be liquidated and dissolved

325 

Court orders respecting liquidations

326 

Remuneration of liquidator appointed by court

Division 5 — Liquidators

327 

Qualifications of liquidators

328 

Validity of acts of liquidators

329 

Filing of notices

330 

Duties of liquidators

331 

Notice to creditors

332 

Limitations on claimants

333 

Liquidation records office

334 

Powers of liquidators

335 

Recovery of property by liquidators

336 

Right to distribution in money

337 

Provision for unpaid debts and undelivered assets

338 

Obligation to prepare accounts

339 

Limitations on liability

Division 6 — Corporate Status before Dissolution

340 

Capacity of companies in liquidation

Division 7 — Proceedings for Dissolution

341 

Completion of liquidation

342 

Court approval of dissolution in court ordered liquidations

343 

Application for dissolution

Division 8 — Effect of Dissolution

344 

Effect of dissolution

345 

Certificates of dissolution

346 

Dissolved companies deemed to continue for litigation purposes

347 

Liabilities survive

348 

Liability of shareholders of dissolved companies

349 

Dissolved company's assets available to judgment creditors

Division 9 — Discharge of Liquidators of Dissolved Companies

350 

Discharge of liquidator by court order

Division 10 — Records of Dissolved Companies

351 

Custody of records

352 

Entitlement to inspect records of dissolved companies

353 

Remedies on denial of access to or copies of records of dissolved companies

Division 11 — Restoration

354 

Definitions and interpretation

355 

Pre-requisites to application

356 

Applications to the registrar for restoration

357 

Contents of application to the registrar for restoration

358 

Registrar must restore

359 

Limited restoration by registrar

360 

Applications to the court for restoration

361 

Limited restoration by court

362 

Filing of restoration application with the registrar

363 

Restrictions on restoration

364 

Effect of restoration of company

365 

Effect of restoration of extraprovincial company

366 

Name on restoration

367 

Registrar's duties after restoration

368 

Corporate assets to be returned to restored company

Division 12 — Post-restoration Transition for Pre-existing Companies

369 

Definition

370 

Transition — restored pre-existing companies

371 

Post-restoration transition application

372 

Alteration to articles of restored company

373 

Timing and effect of post-restoration transition

Part 11 — Extraprovincial Companies

Division 1 — Registration

374 

Definitions

375 

Foreign entities required to be registered

376 

Application for registration

377 

Registration as an extraprovincial company

378 

Effect of registration

379 

Amalgamation of extraprovincial company

380 

Extraprovincial companies to file annual report

381 

Extraprovincial companies to notify registrar of changes

382 

Change of name of extraprovincial companies

383 

Cancellation or change of assumed name of extraprovincial company

384 

Liability if name of extraprovincial company not displayed

385 

Enforcement of duty to file records

Division 2 — Attorneys for Extraprovincial Companies

386 

Attorneys to be appointed

387 

First attorneys

388 

Authorization of attorneys

389 

Appointment of attorneys

390 

Withdrawal of appointment

391 

Change of address of attorneys

392 

Withdrawal of notice of change of address

393 

Revocation of appointments of attorneys

394 

Withdrawal of revocation of appointment

395 

Resignations of attorneys

396 

Obligation to maintain head office or attorney

Division 3 — Cancellation of Registration of Extraprovincial Companies

397 

Registrar may cancel registration of defunct extraprovincial companies

398 

Lieutenant Governor in Council may cancel registration of extraprovincial companies

399 

Registrar's duties on cancellation of registration

Part 12 — Administration

Division 1 — Office of Registrar

400 

Appointment of registrar and staff

401 

Seal of office

402 

Registrar may suspend services and functions

403 

Service of records on registrar

404 

Examination of registrar

405 

[Repealed]

406 

Appeal to court

Division 2 — Records Filed with or Issued by the Registrar

407 

Means of filing

408 

Filing of records

409 

Future dated filing of records

410 

Limitation on future dated filings

411 

Companies and extraprovincial companies in default of filing

412 

Maintenance of records filed with the registrar

413 

Deficient filings

414 

Correction of corporate register

415 

Validity of corporate register

416 

Inspection and copies of records

417 

Lost or destroyed records

418 

Registrar may issue records

419 

Effect of records issued by registrar

420 

Correction of certificates and other certified records

421 

No constructive notice

Division 3 — Powers of Dissolution and Cancellation

422 

Dissolutions and cancellations of registration by registrar

423 

Lieutenant Governor in Council may cancel incorporation of company

424 

Publication of notice of dissolution

Division 4 — Offences and Penalties

425 

Offence Act

426 

Offences

427 

Misleading statements an offence

428 

Penalties

429 

Remedies preserved

430 

Limitation period

Division 5 — Fees and Regulations

431 

Fees

432 

Power to make regulations

Part 13 — Reporting Companies

433 

Prescribed provisions

434 

Obligations of pre-existing reporting companies

435 

Lieutenant Governor in Council may make exclusions

Part 14 — Transitional, Repeals and Commencement

Division 1 — Charter Transition

436 

Transition — pre-existing companies

437 

Transition application

438 

Alteration to articles

439 

Timing and effect of transition

Division 2 — Company Transition

440 

Registered and records office of pre-existing company

441 

Prescribed address

442 

Name of specially limited company

Division 3 — Extraprovincial Company Transition

443 

Head office of pre-existing extraprovincial company

444 

Attorney for pre-existing extraprovincial company

Division 4 — General

445 

Repeals

446 

Portions of this Part repealed

447 

Commencement

Schedule


Copyright © 2004: Queen’s Printer, Victoria, British Columbia, Canada