BNY Trust to Reduce Stated Capital

Summary#

BNY Trust Company of Canada says it will ask the Superintendent of Financial Institutions (Canada) for permission to lower the stated capital of its common shares by up to $26.5 million. A special resolution authorizing this was passed by the sole shareholder on September 12, 2024; the company’s chief financial officer will pick the final amount. Publication of the notice does not mean the regulator has approved the change.

What it does#

• Asks for regulatory approval under the Trust and Loan Companies Act (the company cited subsection 78(5)) to reduce the stated capital account for its common shares.
• Proposes a reduction of up to $26.5 million, with that amount to be paid out to the sole shareholder.
• Directs the company’s officers and directors to apply for approval and authorizes the Chief Financial Officer to set the specific reduction amount within the $26.5 million limit.
• Makes clear that publishing the notice is not the same as getting the regulator’s approval.

Who's affected#

• BNY Trust Company of Canada (the company making the application).
• The company’s sole shareholder, who would receive the distributed funds.
• Superintendent of Financial Institutions (Canada), who must approve the proposed reduction.
• The notice does not spell out other impacts. It may be of interest to creditors, customers, employees, or other stakeholders, but the document does not describe broader effects.

Why it matters#

• The move would let the sole shareholder receive up to $26.5 million from the company’s stated capital if the regulator agrees.
• It changes the company’s capital structure, which can matter to people watching the company’s financial strength.
• Because approval is required, nothing happens until the regulator decides. The notice simply informs the public and interested parties that the company intends to apply.