Bank Act

Marginal note:Director’s liability

• 207 (1) Directors of a bank who vote for or consent to a resolution of the directors authorizing the issue of a share contrary to subsection 65(1), the issue of a membership share contrary to subsection 79.1(2) or the issue of subordinated indebtedness contrary to section 80 for a consideration other than money are jointly and severally, or solidarily, liable to the bank to make good any amount by which the consideration received is less than the fair equivalent of the money that the bank would have received if the share, membership share or subordinated indebtedness had been issued for money on the date of the resolution.

• Marginal note:Further liability

  (2) Directors of a bank who vote for or consent to a resolution of the directors authorizing any of the following are jointly and severally, or solidarily, liable to restore to the bank any amounts so distributed or paid and not otherwise recovered by the bank and any amounts in relation to any loss suffered by the bank:

  • (a) a redemption or purchase of shares or membership shares contrary to section 71;

  • (b) a reduction of capital contrary to section 75;

  • (c) a payment of a dividend or patronage allocation contrary to section 79;

  • (d) a payment of an indemnity contrary to section 212; or

  • (e) any transaction contrary to Part XI.