Common Contracts
1 similar Preference Share Agreement contracts
Preference share agreementPreference Share Agreement • May 25th, 2023
The provisions of the Companies Act and Income Tax Act need to be considered in the context of the outcome which the company wishes to achieve before a company settles the terms of a preference share funding structure. What follows is a brief overview of, and practical guide to, the application of the Companies Act and Income Tax Act provisions relevant to preference share funding structures. 1.1 The existing share capital structure and memorandum of incorporation (MOI) of the company should be reviewed at the start of the preference share structuring process to determine whether it is necessary to increase the authorised share capital of the company in order to create the class of preference shares required for purposes of the funding venture and whether the MOI prescribes compliance with certain formalities prior to such increase being undertaken. 1.2 A share capital increase amounts to an amendment of the company’s MOI and needs to be authorised by the directors and shareholders of
