C-38 - Companies Act

Full text
172. The provisions of subsection 1 of section 171 shall not prevent a mining company or a company whose assets are wholly or in part composed of goods which are consumed by the use made of them from declaring or paying a dividend out of the funds derived from such use.
The powers conferred by the preceding paragraph may be exercised, although the value of the net assets of the company may thereby be reduced to a sum less than the value of its issued capital stock, provided that, after payment of the dividend, the remaining assets be sufficient to meet all the obligations of the company apart from the paid-up capital.
Such company may pay a dividend by distributing, in species or in kind, part of its property; but the real value of such property shall not exceed the amount of the dividend declared.
R. S. 1964, c. 271, s. 168.