Bank Act

Marginal note:Right to distribution of money

• 359 (1) If in the course of the liquidation of a bank that is not a federal credit union the shareholders resolve, or the liquidator proposes, to exchange all or substantially all of the remaining property of the bank for securities of another entity that are to be distributed to the shareholders or to the incorporators — or to distribute all or part of the remaining property of the bank to the shareholders or to the incorporators in kind — a shareholder or incorporator may apply to the court for an order requiring the distribution of the remaining property of the bank to be in money.

• Marginal note:Right to distribution of money — federal credit union

  (2) If in the course of the liquidation of a federal credit union the members resolve, or the liquidator proposes, to exchange all or substantially all of the remaining property of the federal credit union for securities of another entity that are to be distributed to the members or to members and shareholders — or to distribute all or part of the remaining property of the federal credit union to the members or to members and shareholders in kind — a member or shareholder may apply to the court for an order requiring the distribution of the remaining property of the federal credit union to be in money.

• Marginal note:Powers of court

  (3) On an application under subsection (1) or (2) , the court may order

  • (a) all of the remaining property of the bank to be converted into and distributed in money; or

  • (b) the claim of any person applying under this section to be satisfied by a distribution in money.

• Marginal note:Order by court

  (4) If an order is made by a court under paragraph (3)(b), the court

  • (a) must fix a fair value on the share of the property of the bank attributable to the person;

  • (b) may in its discretion appoint one or more appraisers to assist the court in fixing a fair value in accordance with paragraph (a); and

  • (c) must render a final order against the bank in favour of the person for the amount of the share of the bank’s property attributable to the person.