BNY capital reduction; Green Shield dissolution

Summary#

• BNY Trust Company of Canada plans to ask the federal regulator for permission to reduce the stated capital on its common shares by up to $26.5 million, based on a special shareholder resolution passed on September 12, 2024.
• The federal government approved the voluntary liquidation and dissolution of Green Shield Canada on November 12, 2024; its business (including prepayment plans) is being moved to Green Shield Canada Insurance, and any remaining assets will go to Green Shield Association.

What it does#

• For BNY Trust Company of Canada:
  • Intends to apply to the Superintendent of Financial Institutions (Canada) for approval under the Trust and Loan Companies Act (Canada) to reduce the stated capital account for its common shares.
  • The reduction would be up to $26.5 million and was authorized by a special resolution of the company’s sole shareholder on September 12, 2024.
  • The company’s officers (including the Chief Financial Officer) are authorized to set the exact amount within that limit and to complete paperwork and steps needed to seek approval. The notice says publication does not mean approval will be granted.
• For Green Shield Canada:
  • The Minister of Finance approved letters patent to dissolve the company on November 12, 2024, under the Insurance Companies Act (Canada).
  • The company proposes to transfer its business, including prepayment plans, to Green Shield Canada Insurance through an assumption reinsurance agreement.
  • Any remaining property of Green Shield Canada will be distributed to Green Shield Association.

Who's affected#

• BNY notice:
  • The company’s sole shareholder is directly affected because they would receive the distributed amount.
  • Regulators (the Superintendent of Financial Institutions (Canada)) will review the application.
  • It is unclear from the notice whether customers, creditors, or other parties will be directly affected.
• Green Shield notice:
  • People with plans or policies administered by Green Shield Canada, especially those with prepayment plans, because those plans are being moved to Green Shield Canada Insurance.
  • Employees, suppliers, or creditors of Green Shield Canada may be affected by the liquidation process.
  • Green Shield Association will receive any leftover assets.

Why it matters#

• A capital reduction at BNY Trust Company of Canada means money could be paid out to the sole shareholder and the company’s capital structure would change — this matters to anyone watching the company’s financial position or regulatory status.
• The dissolution of Green Shield Canada is a formal end to that legal entity. Policyholders should watch for communications to confirm that their coverage and payments continue under Green Shield Canada Insurance and to learn if any action is needed on their part.
• Both notices involve regulatory approvals and formal steps, so outcomes depend on those processes and the notices do not by themselves complete the changes.