Setoff and Cancellation Agreement | Canada
Prepare an Agreement for Set-off and Cancellation of Shares between two affiliated Canadian companies with this downloadable template.
- One of the companies (selling company) sells shares to the other (purchasing company), as part of a rollover transaction.
- The purchase price of the shares is set off against the redemption of shares of stock held by the purchasing company in the capital of the selling company.
- The purchaser pays for the shares by way of a promissory note. The vendor redeems the shares and pays the redemption price also by way of promissory note.
- Both promissory notes are for the same amount and set each other off.
- This legal template is available in MS Word format, and is fully editable to fit your specific circumstances.
- This is a Canadian legal document pursuant to the Income Tax Act (Canada).
Last Updated: 21-April-2021