BNY Trust capital reduction; Green Shield dissolution

Summary#

This Canada Gazette entry contains two notices.
First, BNY Trust Company of Canada says it will apply for permission to reduce the stated capital of its common shares by up to $26.5 million. Second, Green Shield Canada received approval from the Minister of Finance to be dissolved, with its business and prepayment plans to move to Green Shield Canada Insurance and remaining assets to Green Shield Association.

What it does#

• BNY Trust Company of Canada

  • Intends to apply to the Superintendent of Financial Institutions (Canada) for approval under the Trust and Loan Companies Act (Canada) to reduce its stated capital by up to $26.5 million.
  • A special resolution approving this reduction was passed by the sole shareholder on September 12, 2024.
  • The company’s CFO will pick the exact amount to be reduced (within the $26.5 million limit). The notice says publication is not proof that approval will be granted.

• Green Shield Canada

  • The Minister of Finance (Canada) approved letters patent to dissolve the company on November 12, 2024, under subsection 383(4) of the Insurance Companies Act (Canada).
  • Green Shield Canada plans to transfer its business, including prepayment plans, to Green Shield Canada Insurance by an assumption reinsurance agreement.
  • Any remaining property is to be distributed to Green Shield Association.

Who's affected#

• For BNY Trust Company of Canada:

  • The company’s sole shareholder — the recipient of the distribution if the reduction is approved.
  • The notice does not say whether depositors, clients, or creditors will be affected.

• For Green Shield Canada:

  • Policyholders with plans or prepayment arrangements with Green Shield Canada, because those plans are proposed to move to Green Shield Canada Insurance.
  • Green Shield Association, which is slated to receive remaining assets.
  • The notice does not list employees, creditors, or other parties, so any impact on them is not specified.

Why it matters#

• A reduction of stated capital at BNY Trust Company of Canada would move funds from the company to its shareholder if regulators approve it. That can matter to investors and anyone watching the firm’s capital position, because capital levels relate to a financial institution’s buffer against losses — though this notice does not say there will be operational or customer impacts.

• The dissolution of Green Shield Canada changes which legal entity holds insurance contracts. Policyholders should expect communications about the transfer to Green Shield Canada Insurance and may want to check for any changes in billing, claims handling, or contract contacts. The Gazette notice marks the formal approval step for that change.