Resolution - own share purchase

Question 1

CA

Answer 1

S. 701(1) – authority for own share purchase by OR

S. 701(3)(a) CA:

• Must specify maximum
  number of shares
• Determine both
  maximum and minimum prices that may be paid for shares

S. 701(5) CA – Specify expiry (maximum period of 5 years)

Question 2

Investor guidelines

Answer 2

IA Guidelines, however, recommend:

2. 1.1 - SR (not OR as required by s.701)
3. 1.2 – authority should be renewed annually
4. 2.1 – general authority that does not exceed 10% of the issued share capital should not cause concern
5. 3.1 - price should not exceed either 5% above market value for the 5 business days before purchase made or last independent trade.

Question 3

LR

Answer 3

LR 13.7.1R – circular about own share purchase must include:
- Statement of D intentions, method of acquisition, #, intention to cancel or hold in treasury, material terms, price