Introduction to Financial Assistance by a Company for the Acquisition of its Own Shares

Financial assistance is defined in s 677(1) as meaning any of the following:¹

1.  

   (1)     financial assistance given by way of gift;

2.  

   (2)     financial assistance given by way of guarantee, security or indemnity, other than an indemnity in respect of the indemnifier's own neglect or default, or by way of release or waiver (the words 'guarantee' and 'indemnity' bear their ordinary legal meaning);²

3.  

   (3)     financial assistance given by way of a loan or any other agreement under which any of the obligations of the person giving the assistance are to be fulfilled at a time when in accordance with the agreement any obligation of any other party to the agreement remains unfulfilled