Tag: share repurchase
SCA upholds minority shareholder rights in share repurchase
A recent decision of the Supreme Court of Appeal (SCA) upholds the rights of dissenting minority shareholders in situations where a company intends to repurchase more than 5% of its issued shares of any particular class.
Dividend treatment overlap
Section 1 of the Income Tax Act (ITA) defines a 'dividend' to be any amount transferred by a resident company for the benefit of any person in respect of any share in that company whether by way of a distribution or consideration for a share repurchase, but does not exclude a reduction of contributed tax capital of the company.
