BNY Trust Capital Reduction Notice
Canada Gazette, Part I, Volume 159, Number 1: MISCELLANEOUS NOTICES
BNY Trust Company of Canada intends to apply to the Superintendent of Financial Institutions for approval to reduce the stated capital of its common shares by up to $26.5 million, with the amount to be determined by its CFO and distributed to the sole shareholder. The notice also records that The Canadian Transit Company will hold its annual shareholders’ meeting on December 27 at the Detroit International Bridge Company offices.
Summary
Summary#
BNY Trust Company of Canada plans to ask the Superintendent of Financial Institutions (Canada) for permission to reduce the stated capital of its common shares by up to $26.5 million, under the Trust and Loan Companies Act (Canada). The Gazette notice also records that The Canadian Transit Company will hold its annual shareholders’ meeting on December 27 at the Detroit International Bridge Company offices.
What it does#
- BNY Trust Company of Canada
- Intends to apply for approval to reduce the stated capital account for its common shares by up to $26.5 million.
- Says the money from that reduction would be distributed to the company’s sole shareholder.
- Authorizes the company’s chief financial officer to decide the exact amount to be reduced (within the $26.5 million limit).
- Authorizes directors and officers to file the application and sign any needed documents.
- Notes that publishing the notice does not mean approval has been granted.
- The Canadian Transit Company
- Calls an annual shareholders’ meeting to be held at the offices of the Detroit International Bridge Company on December 27 at 3:00 p.m. for election of directors and other shareholder business.
Who's affected#
- For the capital reduction: the sole shareholder of BNY Trust Company of Canada is the direct recipient of the funds if the change is approved. The notice must be reviewed and approved by the Superintendent of Financial Institutions (Canada).
- For the meeting: shareholders of The Canadian Transit Company (meeting held in Warren, Michigan) are the people who would attend and vote.
- The notice does not say whether depositors, creditors, employees, or clients would be affected.
Why it matters#
- A reduction of stated capital is a company-level move that shifts money from the company to its shareholder. That can change the company’s capital structure, which regulators review before allowing it.
- Shareholder meetings decide who runs a company and can affect its direction. The Canadian Transit Company meeting could change its board or policies if shareholders vote for different directors.
- The Gazette notice is informational: it announces intentions and meeting details but does not itself approve the capital change.
Key topics
Source: Canada Gazette