Document background
A Share Buyback Contract is a critical document used when a corporation wishes to repurchase its own shares from existing shareholders in Canada. This agreement is essential for ensuring compliance with Canadian corporate law, including the Canada Business Corporations Act (CBCA) or relevant provincial legislation. The document is typically used during corporate restructuring, excess cash deployment, or when implementing shareholder exit strategies. It must address specific Canadian legal requirements such as corporate solvency tests, securities law compliance, and tax implications. The contract includes detailed terms about the purchase price, timing, representations and warranties, and closing conditions. For public companies, additional provisions regarding stock exchange rules and securities regulations must be incorporated.
