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Samantha is an architect,and she is also the sole shareholder of Sam's Shoes Inc.She wants to semi-retire from the shoe business soon and her three employees have all expressed great interest in taking over the company,however,they do not have the financial resources necessary to make the purchase at this point in time.Samantha is not in a hurry to receive the proceeds from the business as she will continue with her architectural work for another five years.
Samantha has heard about something called a 'share reorganization' and she has asked you to explain what it means and if it would apply to her situation.
Required:
A)Explain what a Subsection 86(1)share reorganization is,and if it would be useful for Samantha in her plans to semi-retire from her shoe store.
B)What is a significant risk factor that might be involved with a share reorganization?
Rival In Consumption
A characteristic of a good whereby its use by one person diminishes its availability for use by another person, contrasting with non-rival goods.
Gym Membership
A paid subscription that grants an individual access to a gym's facilities and equipment for a set period of time, promoting physical fitness and health.
Public Goods
Goods that are non-excludable and non-rivalrous, meaning they can be used by anyone without preventing others from using them as well.
Not Excludable
A characteristic of a good or service that does not allow producers to prevent its use by non-paying consumers, often leading to market failure.
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