RECO / TRESA · Business & conduct
The articles let remuneration be received before the three-party agreement is in place
What the check looks for
A written agreement among the corporation, the controlling shareholder and the brokerage is a condition of the exemption. The articles should make entering it a constitutional duty.
Authority: O. Reg. 536/20, s. 3 ¶¶8-11 (three-party agreement)
What goes wrong
The articles let the corporation receive remuneration before the three-party agreement is in place: they require the agreement only after remuneration has started. O. Reg. 536/20 s. 3 ¶8 makes the written agreement among the corporation, the controlling shareholder and the brokerage a condition of the exemption, so it has to exist whenever remuneration is received.
What good looks like
The articles contain a provision to this effect.
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