Neufeld Legal P.C. 403-400-4092 Chris@NeufeldLegal.com
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Alberta Business Corporations Act
- important elements
Extraordinary sale, lease or exchange
190(1) A sale, lease or exchange of all or substantially all the property of a corporation other than in the ordinary course of business of the corporation requires the approval of the shareholders in accordance with subsections (2) to (6).
(2) A notice of meeting of shareholders complying with section 134 shall be sent in accordance with that section to each shareholder and shall
(a) include or be accompanied with a copy or summary of the agreement of sale, lease or exchange, and
(b) state that a dissenting shareholder is entitled to be paid the fair value of the shareholder’s shares in accordance with section 191, but failure to make that statement does not invalidate a sale, lease or exchange referred to in subsection (1).
(3) At the meeting referred to in subsection (2), the shareholders may authorize the sale, lease or exchange and may fix or authorize the directors to fix any of its terms and conditions.
(4) Each share of the corporation carries the right to vote in respect of a sale, lease or exchange referred to in subsection (1) whether or not it otherwise carries the right to vote.
(5) The holders of shares of a class or series of shares of the corporation are entitled to vote separately as a class or series in respect of a sale, lease or exchange referred to in subsection (1) only if that class or series is affected by the sale, lease or exchange in a manner different from the shares of another class or series.
(6) A sale, lease or exchange referred to in subsection (1) is adopted when the holders of each class or series entitled to vote on it have approved of the sale, lease or exchange by a special resolution.
(7) The directors of a corporation may, if authorized by the shareholders approving a proposed sale, lease or exchange, and subject to the rights of third parties, abandon the sale, lease or exchange without further approval of the shareholders.
* For the full statute, please click on this link. Nothing should be read in the abstract and specific legal advice is always recommended.