RECO / TRESA · Share ownership
The articles contemplate share ownership the regulation does not permit
What the rule requires
Non-voting shares may only be held by the controlling shareholder, a permitted family member, or a trustee for their minor children.
Authority: O. Reg. 536/20, s. 1 ("family member"), s. 2 ¶5
What goes wrong
The articles do not restrict who may hold the non-voting shares, and go further: item 9 expressly contemplates holders the regulation does not permit, accredited investors, consultants, or officers and employees of affiliated entities. Only the controlling shareholder, a family member, or a trustee for their minor children may hold a non-equity share. This is standard private-issuer wording carried over from a general corporate precedent, and it is inconsistent with a PREC.
What good looks like
The articles limit the non-voting shares to holders permitted by the regulation.
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