Capitalization 9. (1) The authorized capital of the company shall consist of (a) ten million common shares without nominal or par value; and (b) five million preferred shares with a nominal or par value of ten dollars per share with such preferred, deferred or other special rights, restrictions, conditions or limitations attached thereto, including the right of the company to redeem them, as may be prescribed by the by-laws. (2) Subject to the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, the charter of the company and the by-laws, the shares of the company shall be issued, as fully paid and non-assessable shares, (a) at such times, (b) for such consideration, and (c) in such proportions among (i) Her Majesty in right of Canada, (ii) approved telecommunications common carriers, and (iii) persons who fulfil the statutory conditions, as the Board of Directors, with the approval of the Governor in Council, may determine. (3) No offering of preferred shares of the company shall be made after the initial issue of shares of the company to approved telecommunications common carriers or persons who fulfil the statutory conditions, unless the offering and the preferred, deferred or other special rights, restrictions, conditions or limitations attached to the preferred shares so offered have been authorized by by-law sanctioned by at least two-thirds of the votes of the shareholders cast at a special general meeting of shareholders called for the purpose. (4) Subject to section 45, the holders of shares of the company are not entitled as of right to subscribe for or purchase or receive any part of any issue of shares or securities of the company but the company may, on any offering of any class of its shares after the first issue thereof, offer the shares pro rata to the holders of shares of that class. R.S., c. T-4, s. 10.