RE:TSX Policy 4.3 - Shares for Debt Thanks for posting that Policy Bob. .....I am no expert on income tax or securities regulations....far from it. ..... I doubt if Charar is simply considered an "employee" who receives a salary. He is likely considered a consultant and has a specific contract that spells out how and when he is compensated. It could be cash, shares, options or warrents all with their specific securities regulations and income tax implications. Someone else likely already covered this on here.
To me it is a service that Charar is providing. One would have to see his contract to know what he signed up for.
“Shares for Services” refers to an issuance of securities pursuant to an agreement by the Issuer to pay for services to be provided to the Issuer in securities rather than cash.
Depending on his contract it may not be a "settlement for debt" but simply shares for service. There may never have been any cash or debt contemplated.
Without knowing what his contract says all any of us are doing is speculating?
Point 3 suggests that one valid reason to apply to the exchange for approval to settle "debt" with shares is TO CONSERVE CASH. Since we know that ZEN needs to conserve cash, it would certainly make one wonder about the reasoning behind this transaction.
Just ramblin folks I really know nothing about the subject.