RECO / TRESA · Share ownership
The transfer restriction turns on director consent, not on preserving PREC status
What the rule requires
Transfers that would break PREC status must be refused, and a non-compliant transfer should be void rather than merely require consent.
Authority: O. Reg. 536/20, s. 2 ¶¶2 and 5
What goes wrong
There is a transfer restriction, but it is satisfied by the consent of the directors and is not tied to preserving PREC status. The sole director is the controlling shareholder, so the gate can be opened by consenting to oneself, and a transfer that ends PREC status would still be validly registered.
What good looks like
Transfers are gated on preserving PREC status and a non-compliant transfer is void.
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