Certificates, warrants or other evidence of a conversion privilege, option, or right to acquire a share or other security
2022, c.16, s.5
51(1)A corporation that has issued a certificate, warrant or other evidence of a conversion privilege, option, or right to acquire a share or other security of the corporation may provide, by coupons or otherwise, for the payment of the future dividends on the shares or other security included in the certificate, warrant or other evidence of the privilege, option or right.
51(2)A holder of a certificate, warrant or other evidence of a conversion privilege, option or right to acquire a share or other security of the corporation may, if the provisions and regulations respecting certificates, warrants or other evidence of a privilege, option or right to acquire a share or other security of the corporation contained in the articles provide, be deemed to be a shareholder of the corporation, either to the full extent or for any purposes defined by the regulations in the articles.
51(3)On the issuance of a certificate, warrant or other evidence of a conversion privilege, option, or right to acquire a share or other security of the corporation, the corporation shall remove from its share register the name of the shareholder entered in the registry as holding the shares or other security as if the holder had ceased to be a shareholder, and shall enter in the share register the following particulars:
(a)
the fact of the issue of the certificate, warrant or other evidence of the privilege, option or right;
(b)
a statement of the shares or other securities included in the certificate, warrant or other evidence of the privilege, option or right; and
(c)
the date of the issue of the certificate, warrant or other evidence of the privilege, option or right.
51(4)Until a certificate, warrant or other evidence of a privilege, option or right to acquire a share or other security of the corporation is surrendered, the particulars referred to in subsection (3) shall be deemed to be the particulars required by this Act to be entered in the share register of the corporation in respect of the shares or other security, and, on the surrender, the date of the surrender shall be entered in the registry as if it were the date at which a person ceased to be a shareholder.
51(5)Despite subsection 47(1), a holder of a certificate, warrant or other evidence of a privilege, option or right to acquire a share or other security of the corporation is not entitled to a security certificate in respect of the shares or other security, until the certificate, warrant or other evidence of the privilege, option or right is surrendered.
51(6)Unless a holder of a certificate, warrant or other evidence of a privilege, option or right to acquire a share or other security of the corporation is entitled to attend and vote at general meetings, the shares or other security represented by the certificate, warrant or other evidence of the privilege, option or right shall not be counted as part of the capital of the corporation for the purpose of a general meeting of shareholders.
2008, c.S-5.8, s.106; 2022, c.16, s.6; 2023, c.2, s.155; 2023, c.2, s.157