BNY Trust Capital Reduction
Canada Gazette, Part I, Volume 158, Number 49: MISCELLANEOUS NOTICES
BNY Trust Company of Canada will apply to the Superintendent of Financial Institutions (Canada) to reduce the stated capital of its common shares by up to $26.5 million, under the Trust and Loan Companies Act. The reduction was authorized by a special resolution of the sole shareholder on September 12, 2024, and any distribution requires regulatory approval.
- Published
- December 7, 2024
- Department
- Unavailable
- Section
- BNY TRUST COMPANY OF CANADA
- Comment deadline
- Unavailable
- Effective date
- Unavailable
- Publication part
- Part I
Summary
Summary#
BNY Trust Company of Canada says it will apply to the Superintendent of Financial Institutions (Canada) to reduce the stated capital of its common shares by up to $26.5 million. The move follows a special resolution by the company’s sole shareholder on September 12, 2024 and is being made under the Trust and Loan Companies Act (Canada); regulatory approval is required.
What it does#
- BNY Trust Company of Canada will seek approval under subsection 78(5) of the Trust and Loan Companies Act (Canada) to lower the stated capital account for its common shares by up to $26.5 million.
- The company’s sole shareholder passed a special resolution on September 12, 2024 authorizing the reduction and asking company officers to apply for approval.
- The company’s Chief Financial Officer would pick the exact amount to be reduced, up to the $26.5 million limit.
- Any amount reduced from stated capital would be distributed to the sole shareholder if the regulator approves.
- The notice makes clear that publishing this intention is not the same as getting approval.
Who's affected#
- The company’s sole shareholder (not named in the notice) — potential recipient of the distribution.
- BNY Trust Company of Canada — its stated capital and financial statements would change if the reduction is approved.
- Superintendent of Financial Institutions (Canada) — will review and decide the application.
- The notice does not name any direct impacts on customers, depositors, or creditors; it is unclear from the notice whether their interests would be affected.
Why it matters#
- Moving up to $26.5 million out of stated capital transfers value from the trust company to its shareholder and could affect the company’s reported capital position.
- Because this is a regulated trust company, the change needs the regulator’s approval. That review is the key safeguard for customers and the financial system.
- Investors, regulators, and people tracking changes in financial firms’ capital structures may find this significant.
Key topics
Source: Canada Gazette