manner.

in certain members of the company present or represented at a meeting specially called for that purpose, to invest its moneys or any portion thereof in securities of the Government of Canada, or of any Province of Canada, or by them respectively guaranteed, or in bonds or debentures of any municipal or school corporation, or in shares, bonds or debentures of any financial, industrial or commercial institution, corporation, bank or company lawfully incorporated in Canada, and lend its funds on the security of such shares and debentures, and also on mortgages on immoveable property.

Powers of board, &c.

Effect of

domicile by insured.

17. The board of directors shall have the management o the company, its property and its funds, and may make sub ject to the provisions of this act, the by-laws not contrary ta law, which may be necessary to obtain the ends and intention of this act and to give effect to its provisions, provided that a copy of such by-laws be transmitted to the Provincial Treas

urer.

18. Should any person, at the time of his application for election of insurance in the company, make a declaration in writing of election of domicile, all notifications, demands and suits relating to or arising out of the said application or the policy based thereon, shall be made or taken in the district in which such domicile is so fixed.

Effect of act.

Coming into force.

19. This act shall not have the effect of constituting a new company, but only of extending the powers of the Richmond, Drummond & Yamaska Mutual Fire Insurance Company, which shall continue its operations, with all its assets and liabilities, policies, deposit notes, contracts, covenants and agreements, by-laws, board of directors, employees, property, rights, privileges and prerogatives, under the authority of the act governing mutual insurance companies, section seventeenth of chapter third of title eleventh of the Revised Statutes, their supplement and amendments, and with the powers and modifications enacted by this act.

20. This act shall come into force on the day of its sanction.

СНАР. 71

An Act respecting La Foncière Mutual Fire Insurance Company

[Assented to 9th March, 1906]

THEREAS La Foncière Mutual Fire Insurance Company has, Preamble. by its petition, represented that it was incorporated in 1902 as a mutual insurance company under the Revised Statutes of the Province of Quebec; that it is expedient, in the interests of the insured and of the public in general in view of the considerable increase of its business, that it should have a capital stock; whereas it has prayed that an act be passed to that effect and it is expedient to grant such prayer;

Therefore, His Majesty, with the advice and consent of the Legislative Council and of the Legislative Assembly of Quebec, enacts as follows:

1. La Foncière Mutual Fire Insurance Company, hereinafter Head office. called "the company," is hereby authorized to have its head office in the city of Montreal.

2. The company is also authorized to have a capital stock of Capital one hundred thousand dollars at least, and one million dollars at stock, and most, in shares of twenty-five dollars each.

shares.

of calls how

3. The amount of the issue and the date of subscription to Amount and the said capital stock, as well as the calls upon such shares, shall date of issue be determined by the directors, and notice of calls shall be given to determined. the members of the company by a registered letter mailed to their address.

shares.

4. Thirty per cent. shall be paid on subscription and the bal- Payment for ance shall be exigible at intervals of not less than sixty days, by instalments, the amount whereof shall be determined by the directors. Nevertheless any shareholder may pay up his shares in full in advance.

5. Every holder of shares in the said capital, either by sub- Holders of scription, transfer or otherwise, shall be a member of the com- bers of comshares, mempany, with all the rights, privileges and responsibilities inherent pany. in such membership.

6. The shares shall be transferable, but no transfer shall be Transfer of shares and valid unless it be made in the company's register; and no transhow effected. fer can be validly made so long as any instalment remains due and unpaid thereon, in order that the company may have a lien upon the shares for all unpaid instalments or for any debts due by a shareholder to the company.

Confiscation

of shares for

of instal

ments.

Sale of such shares by auction.

7. If any shareholder refuses or neglects to pay to the comnon payment pany the instalment due on any share held by him at the time fixed upon, he shall become indebted for the lawful interest on the arrears of his instalments, and the directors may confiscate such share, as well as the amount already paid thereon; and any share so confiscated may be sold at public auction by the directors after such notice as they may order to be given, and the proceeds of the sale shall be used in paying the arrears on the instalments; Application provided always that, in the event of the proceeds of the sale of of proceeds. such shares being more than sufficient to pay up arrears with interest and costs, the surplus shall be handed over to the owner of such shares on demand, and no more shares shall be sold than may be necessary to cover the said arrears, interest and costs.

Power to

acquire, &c.

immoveable

property to

certain

amount, &c.

8. The company shall have the right to acquire and hold the immoveables necessary for its operations to the amount of two hundred thousand dollars,and it may sell such immoveables and dispose of the same and acquire others in lieu thereof; and it may acquire and hold lands and tenements, real estate and imSale and dis-moveable property which may have been bona fide hypotheposal thereof. cated to it as security or transferred to it for debts previously contracted due to it in the course of its business or obtained by it in payment of such debts or purchased for the purpose of avoiding a loss to the company in respect to the same or to the owners thereof.

Power of

invest in certain securities, &c.

9. It shall be lawful for the directors of the company, by company to by-law passed and approved by a majority of the members of the company, present or represented at a special meeting called for that purpose, to invest its moneys or any portion thereof in securities of the government of Canada or of any province of Canada or respectively guaranteed by either of them, or in bonds or debentures of any municipal or school corporation or bonds or debentures of any financial, industrial or commercial institution, corporation, or company incorporated in Canada, and to lend its moneys upon the securities of such bonds or debentures and also upon mortgages upon immoveable property, with power to receive interest in ad

When company may commence

vance.

10. As soon as the sum of one hundred thousand dollars of the capital stock authorized by this act shall have been subscribed operations. and thirty per cent. paid up thereon, the company may comComposition mence its operations and shall consist:

of company

at that time. a. Of the shareholders or holders of the shares of the said capital;

b. Of the members or persons insured under the mutual system.

vote.

11. Every shareholder or member shall be entitled at all Shareholdmeetings of the company to one vote for every share or deposit ers' right to note, and he may be represented by proxy provided such proxy Proviso. be himself a shareholder or member of the company.

12. When the capital stock is thus subscribed, the board of Election of directors shall then be chosen. Two-thirds at least of its mem- board. bers shall be shareholders as well as insured under the mutual Qualification of directors. system.

In addition to the qualification required by article 5285 of the Further Revised Statutes, the shareholders who are directors must hold qualification. shares to an amount of at least one thousand dollars, on which all instalments called up shall be paid.

13. The affairs of the company shall be administered by a Number of board of not less than seven and not more than fifteen directors.

directors.

14. The annual general meeting of the company shall be held Annual general meeting on the fourth Wednesday of January of each year. when to be

held.

to be pub

15. A notice of each annual or special meeting of the members Notice calof the company shall be published in a French newspaper and in ling meeting. an English newspaper of the district of Montreal, at least fifteen lished. days before the date of such meeting.

16. The board of directors may, at any time, call general General meetings of the members of the company in case of urgency, by how called.. meetings giving notice as aforesaid.

pose

company to

other com

17. The members of the company, assembled in special meet- Power of ing called for the purpose, may adopt all by-laws for the pur- pass by-law of amalgamating with other companies, upon the conditions to amalgato be determined by the Lieutenant-Governor in council; or mate with acquiring the business and assets of any mutual joint stock com- panies, &c. pany; assuming the liabilities of such companies, and of giving the board of directors all the powers necessary for dealing with Copies of byany companies, either with a view to an amalgamation or for sent to Proacquiring the assets and liabilities thereof. Copies of such by- vincial laws shall be sent to the Provincial Treasurer.

laws to be

Treasurer.

18. The members of the company, in ordinary, general or spe- insured, &c. Categories of cial meeting assembled, may decide to establish by categories of the insured, as many special classes as they may deem advisable for the interests of the company. Such special classes shall be Power to be given by administered under the mutual system purely and simply. The general general meeting duly constituted may accordingly give the board meeting reof directors all the necessary powers for regulating the working specting of each of such classes as regards the keeping of the separate rectors.

same to di

Deposit of

with Govern

vince.

accounts which they must keep, the limiting of the responsibilities of the insured, and the right of being represented on the board of management of each of such classes.

19. As soon as the sum of one hundred thousand dollars of the certain sum capital stock shall have been subscribed and thirty per cent. ment of Pro- thereon paid up, the company shall deposit in the hands of the Government of this Province the sum of twenty-five thousand dollars for the security of the insured; and as soon as the insurance in force under the cash premium system shall have reached the figure of three million dollars, the company shall deposit an Further de- additional amount of five thousand dollars for every additional posit. one million dollars of insurance in force under the cash premium system, until the total deposit shall amount to fifty thousand How to be dollars. It shall be lawful for the company to effect such demade. posit either in money, or in Dominion, provincial or municipal bonds. The interest upon the securities deposited shall be securities de- paid to the company when due. posited. Withdrawal

Interest on

If, however, the company obtain a license from the Govof deposit in ernment of the Dominion of Canada, by making the required deposit therewith, it shall be entitled to withdraw that made by it with the Government of the Province of Quebec.

certain

event.

Powers to

insure after deposit made.

Proviso as to

20. After the company shall have deposited in the hands of the Provincial Treasurer the amount mentioned in the foregoing section, the company may insure all kinds of property, rights and interests against loss or damage by fire or lightning, both under the mutual and non-mutual system or on the cash system, throughout the Province of Quebec, without being bound to establish any proportion between the amount of the risks situated in the cities and towns and those situated elsewhere, nor any proportion between the amounts of the risks in force under both systems, and to enter into and execute contracts and covenants, written or printed, or partly written and partly printed in connection with all matters relating to such purposes and calculated to accomplish the same.

However, the assured under the mutual system shall in losses under nowise be responsible for losses sustained under the noncash premutual or cash system.

mium system.

Application

21. The net profits of each year's operations (not including of net profits. the deposit notes), shall be first used in paying a dividend on the capital stock, and the surplus shall be applied in the manner provided by the by-laws of the company.

Act does not ,constitute a new com

22. This act shall not have the effect of constituting a new company, being merely for the purpose of extending the powers pany but ex- of the said La Fonciere Mutual Fire Insurance Company, and it