Definity seeks continuance under CBCA

Summary#

Definity Financial Corporation says it will ask the Minister of Finance, on or after February 6, 2023, for permission to apply for a certificate of continuance to become a corporation under the Canada Business Corporations Act. The notice warns that this is only a planned application and that approval is not guaranteed.

What it does#

• Tells the public that Definity Financial Corporation intends to seek approval to continue under the Canada Business Corporations Act rather than under the Insurance Companies Act.
• Explains the company will ask the Minister of Finance for permission to make that application on or after February 6, 2023.
• Notes the decision depends on the usual review by the minister and that publication of the notice is not proof the change will be approved.

Who's affected#

• Definity Financial Corporation itself and its managers and directors.
• Likely groups who might notice the change include the company’s shareholders, policyholders, creditors, and employees.
• If anything else would be affected is unclear from this notice; the Gazette item does not describe specific legal or practical consequences.

Why it matters#

• If approved, the company would move to be governed as a corporation under the Canada Business Corporations Act, which could change which federal rules apply to its corporate status.
• The notice gives advance public warning of the planned move and gives interested parties a chance to follow the process.
• The outcome is not decided by this notice; it depends on the minister’s review.