Search - consideration

Generally, a plan will be considered a superannuation or pension fund where contributions have been made to the plan by or on behalf of an employer or former employer of an employee in consideration for services rendered by the employee and the contributions are used to provide an annuity or other periodical payment on or after the employee's retirement in consideration for his or her employment services. ... An annuity or other periodical payment made, esp. by a government, a company, or an employer of labour, in consideration of past services. ...

However, we note that the Province has, in their letter dated December 22, 1999, described the Standard Agreement to include a requirement that the securities lender must pay interest on the cash consideration it receives from the securities borrower in consideration for the securities. ... If the agreement is structured in a manner that the incidents of beneficial ownership of the securities remains with the lender the transaction may not be a sale and the cash consideration paid to the lender could in such case be considered a loan made by the borrower to the lender. ...

The Release that you signed on XXXXXXXXXX states that you waived your right to continue litigation in consideration of a payment to you of $XXXXXXXXXX, payable as follows: $XXXXXXXXXX "in respect of my claim for damages for mental distress" $XXXXXXXXXX as an RRSP contribution $XXXXXXXXXX for costs, payable to your counsel The Release also provides that for other consideration, you released the Defendants from all claims, including those related to "the conditions of [your] employment and the constructive termination thereof". It is not clear what additional consideration (for example, whether it was cash, letters of recommendation, etc.) may have been provided to you. 3. ...

Canco undertakes an arrangement ("Arrangement") pursuant to subsection 192(1) of the CBCA whereby all the Canco common shares (other than those shares held by the dissenting shareholders of Canco described below) are disposed of to Holdco for consideration that consists solely of the Holdco common shares. ... Paragraph 256(7)(e) of the Act states that "where at any time all the shares of the capital stock of a particular corporation are disposed of to another corporation (in this paragraph referred to as the "acquiring corporation") for consideration that consists solely of shares of the acquiring corporation's capital stock and, immediately after that time, (i) the acquiring corporation is not controlled by any person or group of persons, and (ii) the fair market value of the shares of the capital stock of the particular corporation is not less than 95% of the fair market value of all the assets of the acquiring corporation, control of the particular corporation and of each corporation controlled by it immediately before that time is deemed not to have been acquired by the acquiring corporation solely because of the disposition. ... As a result, the Arrangement described above will not necessarily be disqualified under paragraph 256(7)(e) of the Act by reason only that the dissenting shareholders dispose of their Canco common shares to Canco and receive consideration other than shares of Holdco, such as cash, by virtue of exercising the statutory right to dissent as provided for in section 190 of the CBCA. ...

The consideration paid by the borrower is in the form of a right provided to the lender to reacquire an equal number of identical securities for no consideration other than the extinguishment of the right. ... When the right to acquire securities given by the borrower to the lender is settled, the borrower will purchase from a third party the number of securities it originally borrowed (the "new securities") and dispose of them to the lender in consideration for the settlement of its obligation under the right. ...

Under the foreign corporate law, the shares of Subco held by Parentco and the shares of Subco 2 held by Subco are cancelled for no consideration. ... Regarding the merger of Parentco and Subco 2 into Subco, you mention that pursuant to the foreign corporate law the shares of Subco held by Parentco and the shares of Subco 2 held by Subco would be cancelled for no consideration. ... Since the shares of Subco and Subco 2 are cancelled for no consideration and Subco and Parentco, as well as Subco 2 and Subco, are not dealing at arm's length, paragraph 69(1)(b) of the Act would generally apply to deem Parentco and Subco to have received proceeds of disposition for the shares of Subco and Subco 2, respectively, equal to the fair market value of these shares. ...

As consideration, the Husband would pay for the Securities using cash, in-kind consideration or a loan at the Canada Customs and Revenue Agency prescribed rates. ... If the election is made and fair market value consideration was received by the Wife, subsection 74.5(1) of the Act provides that the gain or loss from a disposition of the property by the Husband will not be attributed to the Wife in any year in which the Husband subsequently disposes of the property. ...

Replace subparagraph 10(h) with the following: (h) At the Effective Time, Holdco will issue one or more promissory notes (collectively the "Holdco Note") to Canco evidencing interest-bearing indebtedness owing by Holdco to Canco, will covenant to transfer certain receivables owing immediately before the Effective Time by subsidiaries of Targetco (the "Receivables") that will be transferred to Holdco as soon as practicable after the Effective Time, and will issue common shares (the "New Holdco Shares") to Canco, all in consideration for Canco issuing its common shares to Targetco shareholders. ... In accordance with the relevant XXXXXXXXXX corporate law, the directors of Holdco will determine the fair value of the consideration for which the New Holdco Shares are issued to be an amount equal to the fair market value of all of the outstanding Targetco shares immediately before the Effective Time less the Holdco Note Amount and less the Receivables Value. ... Insert "and the Receivables" after "New Holdco Shares" and before "(the "Holdco Consideration Amount")" in subparagraph 10(j). ...

Principal Issues: Where a corporation loans money to one of its shareholders and takes back a debt instrument from the shareholder as consideration for the loan, whether the corporation confers a benefit with respect to such loan to the shareholder under subsection 15(1)? ... ("Loan II") and as consideration for such loan, X Co. will issue to Mr. ... In our view, where a debt instrument, that is granted by a shareholder borrower to a corporate lender as consideration for a loan given by the lender to the borrower, has a fair market value which is equal to the principal amount of the loan, no benefit will arise with respect to such loan. ...

A determination would require the consideration of the law of contracts since an insurance policy is a legal contract. ... In such a case consideration would also have to be given with regard to the determination of whether such a policy would qualify as exempt. ... We recognize our comments are subjective and have brought this matter to the attention of the Department of Finance for their consideration. ...