RE:Can a Canadian company buy back all its shares? In short yes....here is the detail.....
When a company repurchases its own shares it's called a share (or stock) buyback. Companies have two options when they want to buy back shares:
1. Most commonly, a company will repurchase its shares in the open market, just like how you as an investor would buy shares. In Canada, a buyback in the open market is known as a normal course issuer bid.
2. A company can also make what's known as a "tender offer" to its existing shareholders, which allows interested shareholders to sell or "tender" their shares directly to the company.
See below document from the TSX
Reference:
https://www.tsx.com/resource/en/447 Section 2. Substantial Issuer Bid An Issuer can repurchase more of its shares than the number permitted under the Normal Course Issuer Bid rules by making a formal bid under Securities Laws.
Section 3
“Normal Course Issuer Bid” means an Issuer Bid where the purchases (other than purchases by way of a substantial issuer bid):
(a) do not, when aggregated with the total of all other purchases in the preceding 30 days, whether through the facilities of a stock exchange or otherwise, exceed 2% of the total issued and outstanding securities of that class outstanding at the time the purchases are made; and
(b) over a 12-month period beginning on the date specified in the notice of the bid do not exceed the greater of:
(i) 10% of the Public Float; and
(ii) 5% of that class of securities issued and outstanding; on the first day of the 12-month period. 3.2 Unless otherwise defined in this Policy or Policy 1.1 - Interpretation, all terms have the meanings assigned in UMIR.
jdmecomber wrote: Is a Canadian company allowed to buy back all its shares?