10 October 2003 Roundtable, 2003-0030045 F - AAPE-LIQUIDITE DETENUE MOMENTANCEMENT -- summary under Qualified Small Business Corporation Share

In order that the vendors of a corporation may receive repayment of amounts owing to them, one day before the sale of their shares the purchaser advances cash to the target corporation in order that it can refund amounts owing by it to the vendors. The advances received by the corporation from the purchaser generally would not be considered to be assets used principally in active business carried on primarily by the corporation, with the result that if such cash exceeded 50% of the total value of the target corporation's assets, its shares would cease to qualify.