Acts and Regulations

C-13 - Companies Act

Section 81
Disposition versions

Full text
Borrowing by-law
81(1)If authorized by by-law, sanctioned by a vote of not less than two-thirds of the votes cast at a general meeting duly called for considering the by-law, the directors may from time to time
(a) borrow money upon the credit of the company;
(b) limit or increase the amount to be borrowed;
(c) issue bonds, debentures, debenture stock or other securities of the company, and pledge or sell the same for such sums and at such prices as may be deemed expedient;
(d) hypothecate, mortgage or pledge the real or personal property or both including book debts and unpaid calls, rights, powers, undertakings and franchises of the company to secure any such bonds, debentures, debenture stock or other securities, and any money borrowed or any other liability of the company.
81(2)Any such by-law may provide for the delegation of such powers by the directors to such extent and in such manner as may be set out in the by-law.
81(3)A condition contained in a debenture, or in a deed for securing any debentures, whether issued or executed before or after the passing of this Act, is not invalid by reason only that thereby the debentures are made irredeemable, or redeemable, only on the happening of a contingency however remote, or on the expiration of a period however long, any rule of equity to the contrary notwithstanding.
81(4)Nothing contained in this section limits or restricts the borrowing of money by the company on bills of exchange, or promissory notes made, drawn, accepted or endorsed by or on behalf of the company.
R.S., c.33, s.80; 1960-61, c.29, s.2
Borrowing by-law
81(1)If authorized by by-law, sanctioned by a vote of not less than two-thirds of the votes cast at a general meeting duly called for considering the by-law, the directors may from time to time
(a) borrow money upon the credit of the company;
(b) limit or increase the amount to be borrowed;
(c) issue bonds, debentures, debenture stock or other securities of the company, and pledge or sell the same for such sums and at such prices as may be deemed expedient;
(d) hypothecate, mortgage or pledge the real or personal property or both including book debts and unpaid calls, rights, powers, undertakings and franchises of the company to secure any such bonds, debentures, debenture stock or other securities, and any money borrowed or any other liability of the company.
81(2)Any such by-law may provide for the delegation of such powers by the directors to such extent and in such manner as may be set out in the by-law.
81(3)A condition contained in a debenture, or in a deed for securing any debentures, whether issued or executed before or after the passing of this Act, is not invalid by reason only that thereby the debentures are made irredeemable, or redeemable, only on the happening of a contingency however remote, or on the expiration of a period however long, any rule of equity to the contrary notwithstanding.
81(4)Nothing contained in this section limits or restricts the borrowing of money by the company on bills of exchange, or promissory notes made, drawn, accepted or endorsed by or on behalf of the company.
R.S., c.33, s.80; 1960-61, c.29, s.2