BNY Trust to Reduce Stated Capital
Canada Gazette, Part I, Volume 159, Number 3: MISCELLANEOUS NOTICES
BNY Trust Company of Canada will apply to the Superintendent of Financial Institutions for approval under section 78 of the Trust and Loan Companies Act to reduce the stated capital of its common shares by up to $26.5 million. The reduction would be taken from the stated capital account for common shares and the resulting funds would be distributed to the company's sole shareholder; the CFO will decide the exact amount within the $26.5 million limit. Publication of the notice does not mean the regulator will approve the reduction.
- Published
- January 18, 2025
- 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 ask the Superintendent of Financial Institutions (Canada) for permission to reduce the stated capital of its common shares by up to $26.5 million. The company passed a special resolution on September 12, 2024 and the notice was published in the Canada Gazette on January 18, 2025.
What it does#
- Tells the regulator (the Superintendent of Financial Institutions (Canada)) the company intends to apply under section 78 of the Trust and Loan Companies Act to cut its stated capital.
- The cut would be taken from the stated capital account for the company’s common shares, up to $26.5 million.
- Any money freed by that reduction would be distributed to the company’s sole shareholder.
- The company’s Chief Financial Officer would decide the exact amount to be reduced, as long as it stays within the $26.5 million limit.
- The company’s directors and officers are authorized to sign papers and take steps needed to apply for approval.
- The notice warns that publishing this notice does not mean the regulator will approve the reduction.
Who's affected#
- The main direct parties are BNY Trust Company of Canada and its sole shareholder (who would receive the distribution).
- The Superintendent of Financial Institutions (Canada) will be the decision-maker on the request.
- The notice does not identify any other groups (customers, depositors, creditors, or the public) as being affected. It is unclear from the notice whether others would notice any change.
Why it matters#
- A reduction of stated capital by up to $26.5 million changes the company’s capital structure and shifts value to its sole shareholder if approved.
- Because this is a regulated financial company, the regulator’s decision matters for whether the company keeps the capital level the regulator requires. The notice itself does not say how approval or refusal would affect services, customers, or creditors.
- For most members of the public, this is an internal corporate and regulatory matter unless the regulator indicates broader impacts.
Key topics
Source: Canada Gazette