Banking & finance

Financial Assistance

Reform of the Companies Act (Bill 63)

Earlier this month, Bill 63: Business Corporations Act was tabled before the National Assembly of Quebec. Bill 63 is aimed at modernizing and entailing substantial reforms and modifications to the existing Companies Act (Quebec).

More particularly, once the changes proposed by Bill 63 become law, the financial tests that a Quebec company must meet to grant upstream financial assistance, such as loans, guarantees or security to its shareholders or for their benefit, or to anyone purchasing its shares (leveraged buy-out) will be eliminated.

This significant modification will facilitate the financing structure in transactions where one or more Quebec companies are involved.

For any questions concerning this publication, we invite you to communicate with any member of our financing team.

All rights reserved.  This publication may not be reproduced or transmitted in whole or in part without the prior express consent of BCF LLP.



Published by BCF LLP © BCF LLP, 2009

Si vous désirez recevoir ce bulletin électronique en français, veuillez répondre à ce courriel en indiquant « français » dans l'objet du courriel.