H. Financial Statements

• Author: M.H. Ogilvie
• Profession: LSM, B.A., LL.B., M.A., D.Phil., D.D., F.R.S.C. Of the Bars of Ontario and Nova Scotia Chancellor's Professor and Professor of Law, Carleton University
• Pages: 126-127

Page 126

The Bank Act makes brief provision for the annual financial statements of a bank, which are required to reflect generally accepted accounting

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principles. In addition to the usual corporate requirements for approval by both the board of directors and the annual shareholders’ meeting, the annual statements are required to be sent to the Superintendent at least twenty-one days prior to the annual meeting of shareholders, to ensure appropriate oversight over a bank’s affairs. In addition, the Superintendent is to be informed by a bank should it refuse any shareholder request to examine the current financial statements required to be kept at the head office, again to ensure that the Superintendent is present in any ensuing litigation concerning shareholder access.⁴¹¹

Again, the additional step of informing the Superintendent over and above the usual business corporation practices is to ensure the external regulatory...