Income Tax Act (tax considerations) · Freeze & reorganisation mechanics
Redemption and retraction machinery
What the check looks for
Freeze shares need a workable redemption procedure and a holder retraction right for the freeze to be capable of being unwound.
Authority: Drafting practice (freeze integrity)
This is drafting practice, recommended rather than required by O. Reg. 536/20.
What good looks like
Both a redemption procedure and a holder retraction right are present, so the freeze can be unwound.
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