Designation of Eligible Dividends
EQB Inc., for the purposes of the Income Tax Act (Canada), and any similar provincial and territorial tax legislation, advises that all of its dividends paid to Canadian residents on common or preferred shares in 2006 are eligible dividends and all dividends paid thereafter will be eligible dividends unless indicated otherwise.
Dividend Restrictions
EQB Inc. is prohibited by the Business Corporations Act (Ontario) from declaring dividends on its preferred or common shares if there are reasonable grounds for believing that (a) EQB Inc. is, or the payment would cause EQB Inc. to be, unable to pay its liabilities as they become due, or (b) the realizable value of EQB Inc.’s assets would thereby be less than the aggregate of, (i) its liabilities, and (ii) its stated capital of all classes. EQB Inc. does not anticipate that this condition will restrict it from paying dividends in the normal course of business.
Dividend Reinvestment Plan
On February 7, 2022, EQB’s Board of Directors reinstated EQB’s common share Dividend Reinvestment Plan (DRIP) at a 2% discount. Participation in the plan is optional under the terms of the plan. Shareholders may elect to reinvest their cash dividends to purchase additional common shares based on the volume weighted average trading price of the common shares on the TSX for the five trading days immediately preceding the dividend payment date. Common shares issued through the DRIP are issued from treasury stock. EQB may elect to issue shares to participating shareholders at a discount. As of February 28, 2024, EQB has set the DRIP discount at 0%.
On August 28, 2024, EQB’s Board suspended the DRIP due to the strength of the Corporation’s capital position and ability to generate sufficient capital over the medium to long term to support the growth of the Bank. EQB maintains the right to reinstate the DRIP in future periods.
For any questions regarding the Plan, please contact Equitable’s Plan agent at:
Odyssey Trust Company
Trader’s Bank Building
702, 67 Yonge Street,
Toronto ON M5E 1J8
Canada: 1-587-885-0960
Toll-Free: 1-888-290-1175
Email: shareholders@odysseytrust.com
