(a) a purchase, redemption or other acquisition of shares contrary to section 34, 35 or 36;
	(b) a commission contrary to section 41;
	(c) a payment of a dividend contrary to section 42;
	(d) a payment of an indemnity contrary to section 124; or
	(e) a payment to a shareholder contrary to section 190 or 241.
	(3) Subsection 118(4) of the Act is replaced by the following:
Recovery	(4) A director liable under subsection (2) is entitled to apply to a court for an order compelling a shareholder or other recipient to pay or deliver to the director any money or property that was paid or distributed to the shareholder or other recipient contrary to section 34, 35, 36, 41, 42, 124, 190 or 241.
	(4) Paragraph 118(5)(a) of the Act is replaced by the following:
	(a) order a shareholder or other recipient to pay or deliver to a director any money or property that was paid or distributed to the shareholder or other recipient contrary to section 34, 35, 36, 41, 42, 124, 190 or 241;
	47. (1) Subsection 119(1) of the English version of the Act is replaced by the following:
Liability of directors for wages	119. (1) Directors of a corporation are jointly and severally, or solidarily , liable to employees of the corporation for all debts not exceeding six months wages payable to each such employee for services performed for the corporation while they are such directors respectively.
	(2) Subsection 119(5) of the French version of the Act is replaced by the following:
Subrogation de l'administra- teur	(5) L'administrateur qui acquitte les dettes visées au paragraphe (1), dont l'existence est établie au cours d'une procédure soit de liquidation et de dissolution, soit de faillite, a droit à toute priorité qu'aurait pu faire valoir l'employé et, le cas échéant, est subrogé aux droits constatés dans le jugement.
	48. Section 120 of the Act is replaced by the following:
Disclosure of interest	120. (1) A director or an officer of a corporation shall disclose to the corporation, in writing or by requesting to have it entered in the minutes of meetings of directors or of meetings of committees of directors , the nature and extent of any interest that he or she has in a material contract or material transaction, whether made or proposed, with the corporation, if the director or officer
	(a) is a party to the contract or transaction ;
	(b) is a director or an officer, or an individual acting in a similar capacity, of a party to the contract or transaction; or
	(c) has a material interest in a party to the contract or transaction .
Time of disclosure for director	(2) The disclosure required by subsection (1) shall be made, in the case of a director,
	(a) at the meeting at which a proposed contract or transaction is first considered;
	(b) if the director was not, at the time of the meeting referred to in paragraph (a) , interested in a proposed contract or transaction , at the first meeting after he or she becomes so interested;
	(c) if the director becomes interested after a contract or transaction is made, at the first meeting after he or she becomes so interested; or
	(d) if an individual who is interested in a contract or transaction later becomes a director, at the first meeting after he or she becomes a director.
Time of disclosure for officer	(3) The disclosure required by subsection (1) shall be made, in the case of an officer who is not a director,
	(a) immediately after he or she becomes aware that the contract, transaction , proposed contract or proposed transaction is to be considered or has been considered at a meeting;
	(b) if the officer becomes interested after a contract or transaction is made, immediately after he or she becomes so interested; or
	(c) if an individual who is interested in a contract later becomes an officer, immediately after he or she becomes an officer.
Time of disclosure for director or officer	(4) If a material contract or material transaction, whether entered into or proposed, is one that, in the ordinary course of the corporation's business, would not require approval by the directors or shareholders, a director or officer shall disclose, in writing to the corporation or request to have it entered in the minutes of meetings of directors or of meetings of committees of directors , the nature and extent of his or her interest immediately after he or she becomes aware of the contract or transaction .
Voting	(5) A director required to make a disclosure under subsection (1) shall not vote on any resolution to approve the contract or transaction unless the contract or transaction unless the contract or transaction
	(a) relates primarily to his or her remuneration as a director, officer, employee or agent of the corporation or an affiliate;
	(b) is for indemnity or insurance under section 124; or
	(c) is with an affiliate.
Continuing disclosure	(6) For the purposes of this section, a general notice to the directors declaring that a director or an officer is to be regarded as interested, for any of the following reasons , in a contract or transaction made with a party , is a sufficient declaration of interest in relation to the contract or transaction :
	(a) the director or officer is a director or officer, or acting in a similar capacity, of a party referred to in paragraph (1)(b) or (c) ;
	(b) the director or officer has a material interest in the party ; or
	(c) there has been a material change in the nature of the director's or the officer's interest in the party.
Access to disclosures	(6.1) The shareholders of the corporation may examine the portions of any minutes of meetings of directors or of committees of directors that contain disclosures under this section, and any other documents that contain those disclosures, during the usual business hours of the corporation.
Avoidance standards	(7) A contract or transaction for which disclosure is required under subsection (1) is not invalid, and the director or officer is not accountable to the corporation or its shareholders for any profit realized from the contract or transaction, because of the director's or officer's interest in the contract or transaction or because the director was present or was counted to determine whether a quorum existed at the meeting of directors or committee of directors that considered the contract or transaction, if
	(a) disclosure of the interest was made in accordance with subsections (1) to (6);
	(b) the directors approved the contract or transaction; and
	(c) the contract or transaction was reasonable and fair to the corporation when it was approved.
Confirmation by shareholders	(7.1) Even if the conditions of subsection (7) are not met, a director or officer, acting honestly and in good faith, is not accountable to the corporation or to its shareholders for any profit realized from a contract or transaction for which disclosure is required under subsection (1), and the contract or transaction is not invalid by reason only of the interest of the director or officer in the contract or transaction, if
	(a) the contract or transaction is approved or confirmed by special resolution at a meeting of the shareholders;
	(b) disclosure of the interest was made to the shareholders in a manner sufficient to indicate its nature before the contract or transaction was approved or confirmed; and
	(c) the contract or transaction was reasonable and fair to the corporation when it was approved or confirmed.
Application to court	(8) If a director or an officer of a corporation fails to comply with this section, a court may, on application of the corporation or any of its shareholders, set aside the contract or transaction on any terms that it thinks fit, or require the director or officer to account to the corporation for any profit or gain realized on it, or do both those things .
	49. Paragraph 121(a) of the French version of the Act is replaced by the following:
	a) pour les administrateurs, de créer des postes de dirigeants, d'y nommer des personnes pleinement capables, de préciser leurs fonctions et de leur déléguer le pouvoir de gérer les activités commerciales et les affaires internes de la société, sauf les exceptions prévues au paragraphe 115(3);
	50. Subsection 123(4) of the Act is replaced by the following:
Defence - reasonable diligence	(4) A director is not liable under section 118 or 119, and has complied with his or her duties under subsection 122(2) , if the director exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on
	(a) financial statements of the corporation represented to the director by an officer of the corporation or in a written report of the auditor of the corporation fairly to reflect the financial condition of the corporation; or
	(b) a report of a person whose profession lends credibility to a statement made by the professional person.
Defence - good faith	(5) A director has complied with his or her duties under subsection 122(1) if the director relied in good faith on
	(a) financial statements of the corporation represented to the director by an officer of the corporation or in a written report of the auditor of the corporation fairly to reflect the financial condition of the corporation; or
	(b) a report of a person whose profession lends credibility to a statement made by the professional person.
	51. Section 124 of the Act is replaced by the following:
Indemnifi- cation	124. (1) A corporation may indemnify a director or officer of the corporation, a former director or officer of the corporation or another individual who acts or acted at the corporation's request as a director or officer, or an individual acting in a similar capacity , of another entity , against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of that association with the corporation or other entity.
Advance of costs	(2) A corporation may advance moneys to a director, officer or other individual for the costs, charges and expenses of a proceeding referred to in subsection (1). The individual shall repay the moneys if the individual does not fulfil the conditions of subsection (3).
Limitation	(3) A corporation may not indemnify an individual under subsection (1) unless the individual
	(a) acted honestly and in good faith with a view to the best interests of the corporation, or, as the case may be, to the best interests of the other entity for which the individual acted as director or officer or in a similar capacity at the corporation's request ; and
	(b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual had reasonable grounds for believing that the individual's conduct was lawful.
Indemnifi- cation in derivative actions	(4) A corporation may with the approval of a court, indemnify an individual referred to in subsection (1), or advance moneys under subsection (2) , in respect of an action by or on behalf of the corporation or other entity to procure a judgment in its favour, to which the individual is made a party because of the individual's association with the corporation or other entity as described in subsection (1) against all costs, charges and expenses reasonably incurred by the individual in connection with such action, if the individual fulfils the conditions set out in subsection (3).
Right to indemnity	(5) Despite subsection (1), an individual referred to in that subsection is entitled to indemnity from the corporation in respect of all costs, charges and expenses reasonably incurred by the individual in connection with the defence of any civil, criminal, administrative, investigative or other proceeding to which the individual is subject because of the individual's association with the corporation or other entity as described in subsection (1) , if the individual seeking indemnity
	(a) was not judged by the court or other competent authority to have committed any fault or omitted to do anything that the individual ought to have done; and
	(b) fulfils the conditions set out in subsection (3) .
Insurance	(6) A corporation may purchase and maintain insurance for the benefit of an individual referred to in subsection (1) against any liability incurred by the individual
	(a) in the individual's capacity as a director or officer of the corporation; or
	(b) in the individual's capacity as a director or officer, or similar capacity , of another entity , if the individual acts or acted in that capacity at the corporation's request.
Application to court	(7) A corporation, an individual or an entity referred to in subsection (1) may apply to a court for an order approving an indemnity under this section and the court may so order and make any further order that it sees fit .
Notice to Director	(8) An applicant under subsection (7) shall give the Director notice of the application and the Director is entitled to appear and be heard in person or by counsel.
Other notice	(9) On an application under subsection (7) the court may order notice to be given to any interested person and the person is entitled to appear and be heard in person or by counsel.
1994, c. 24, s. 14(F)	52. (1) The definition ``distributing corporation'' in subsection 126(1) of the Act is repealed.
	(2) The definitions ``insider'' and ``officer'' in subsection 126(1) of the Act are replaced by the following:
``insider'' « initié »	``insider'' means, except in section 131,
	(a) a director or officer of a distributing corporation;
	(b) a director or officer of a subsidiary of a distributing corporation;
	(c) a director or officer of a body corporate that enters into a business combination with a distributing corporation; and
	(d) a person employed or retained by a distributing corporation;
``officer'' « dirigeant »	``officer'' means the chairperson of the board of directors, the president, a vice-president, the secretary, the treasurer, the comptroller, the general counsel, the general manager, a managing director, of an entity , or any other individual who performs functions for an entity similar to those normally performed by an individual occupying any of those offices ;
	(3) Subsection 126(1) of the Act is amended by adding the following in alphabetical order:
``business combination'' « regroupe- ment d'entre- prises »	``business combination'' means an acquisition of all or substantially all the property of one body corporate by another, or an amalgamation of two or more bodies corporate, or any similar reorganization between or among two or more bodies corporate;
	(4) Paragraph 126(2)(a) of the Act is replaced by the following:
	(a) a director or an officer of a body corporate that beneficially owns, directly or indirectly, shares of a distributing corporation, or that exercises control or direction over shares of the distributing corporation, or that has a combination of any such ownership, control and direction, carrying more than the prescribed percentage of voting rights attached to all of the outstanding shares of the distributing corporation not including shares held by the body corporate as underwriter while those shares are in the course of a distribution to the public is deemed to be an insider of the distributing corporation;
	(5) Subsections 126(3) and (4) of the Act are repealed.
	53. Sections 127 to 129 of the Act are repealed.
	54. Sections 130 and 131 of the Act are replaced by the following:
Prohibition of short sale	130. (1) An insider shall not knowingly sell, directly or indirectly, a security of a distributing corporation or any of its affiliates if the insider selling the security does not own or has not fully paid for the security to be sold.
Calls and puts	(2) An insider shall not knowingly , directly or indirectly, sell a call or buy a put in respect of a security of the corporation or any of its affiliates.