RECO / TRESA · Share ownership
Right to redeem a share that has ceased to comply
What the check looks for
Ownership can fall out of compliance later, on a divorce, a death, or a minor beneficiary reaching majority. A compliance-redemption right is the self-healing clause.
Authority: O. Reg. 536/20, s. 2 ¶5
What goes wrong
The articles do not address this. Whether the condition is met then rests on conduct alone, with nothing in the articles to prevent a breach. Adding the wording is recommended drafting practice.
What good looks like
The articles contain a provision to this effect.
Check your own articles, free
The PREC Articles Health Check reads your articles of incorporation in your own browser and rates them Red, Yellow or Green against this criterion and 29 others. The check does not upload your document to us.
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