BNY Trust capital reduction request
Canada Gazette, Part I, Volume 158, Number 50: MISCELLANEOUS NOTICES
BNY Trust Company of Canada will apply to the Superintendent of Financial Institutions for approval to reduce the stated capital of its common shares by up to $26.5 million, as authorized by a special resolution of its sole shareholder. The resolution was passed on 2024-09-12 and the notice was published in the Gazette on 2024-12-14; regulator approval is required and is not guaranteed.
Summary
Summary#
BNY Trust Company of Canada says it will ask the Superintendent of Financial Institutions (Canada) for permission to reduce the stated capital of its common shares. The company’s sole shareholder approved a special resolution on September 12, 2024 that would allow a reduction of up to $26.5 million; the notice is dated September 21, 2024. Approval is required under the Trust and Loan Companies Act (Canada) and is not guaranteed by this publication.
What it does#
- Asks the regulator (the Superintendent of Financial Institutions (Canada)) to approve a reduction of the company’s stated capital for common shares under the Trust and Loan Companies Act (Canada).
- Seeks permission to reduce stated capital by up to $26.5 million, with that amount to be distributed to the company’s sole shareholder.
- Records that a special resolution passed on September 12, 2024 authorized the reduction.
- Says the company’s Chief Financial Officer will pick the exact amount to be reduced, up to the $26.5 million limit.
- Authorizes the company’s directors and officers to sign documents and take steps needed to carry out the reduction if approved.
- Notes that publishing this notice does not mean the reduction will be approved.
Who's affected#
- BNY Trust Company of Canada (the company making the request).
- The company’s sole shareholder (unnamed in the notice), who would receive any distribution from the reduction.
- The Superintendent of Financial Institutions (Canada), which must decide whether to approve the request.
- The notice does not say if customers, creditors or other third parties will be affected, so any wider impact is unclear from this item.
Why it matters#
- A reduction of stated capital lets the shareholder take money out of the company — here, potentially up to $26.5 million.
- That can change the company’s capital structure and could affect its financial cushion; regulator approval is required to ensure the company remains safe and solvent.
- For most customers or the public, this is likely an internal financial decision; the regulator’s decision will determine whether it goes ahead.
Key topics
Source: Canada Gazette