BNY Trust capital reduction
Canada Gazette, Part I, Volume 159, Number 3: MISCELLANEOUS NOTICES
BNY Trust Company of Canada intends to apply to the Superintendent of Financial Institutions (Canada) for approval to reduce the stated capital on its common shares by up to $26.5 million. If approved, the reduced amount would be distributed to the company’s sole shareholder; the CFO will set the exact amount within the authorized limit and directors/officers are authorized to carry out the change.
Summary
Summary#
BNY Trust Company of Canada says it will ask the Superintendent of Financial Institutions (Canada) for permission to lower the stated capital on its common shares. The company plans to reduce that stated capital by up to $26.5 million under the Trust and Loan Companies Act (Canada); the resolution was passed on September 12, 2024 and the notice appears in the Gazette on January 18, 2025.
What it does#
- Reduces the stated capital account for the company's common shares by up to $26.5 million. That money is intended to be distributed to the company's sole shareholder.
- Authorizes the company to apply to the Superintendent of Financial Institutions (Canada) for approval under the Trust and Loan Companies Act (Canada).
- Lets the company’s Chief Financial Officer decide the exact amount to be reduced, up to the $26.5 million limit.
- Authorizes directors and officers to sign documents and take steps needed to carry out the reduction if approval is granted.
- The notice makes clear that publication does not mean the regulatory approval has been or will be granted.
Who's affected#
- BNY Trust Company of Canada — the change alters its stated capital account.
- The company’s sole shareholder — named in the resolution as the recipient of the distributed amount.
- The Superintendent of Financial Institutions (Canada) — the regulator who must approve the change.
- Others with a financial interest in the company (creditors, counterparties, or supervisors) may want to watch this, but the notice does not specify broader impacts.
Why it matters#
- If approved, up to $26.5 million would be moved out of the company’s stated capital and paid to the sole shareholder. That changes how capital is held within the company.
- For trust and loan companies, changes to stated capital are subject to regulatory review. This notice is the formal step telling the regulator and the public about the planned change — not the approval itself.
- People who follow the company, its counterparties, or financial-sector oversight may care because it affects the firm’s capital structure and signals decisions about how the company uses its funds.
Key topics
Source: Canada Gazette