RECO / TRESA · Share ownership
The transfer restriction turns on director consent, not on preserving PREC status
What the check looks for
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
The articles do not gate transfers on preserving PREC status. A restriction that turns only on the directors' consent does not do it: the sole director is the controlling shareholder, so the gate opens on their own consent, and a transfer that ended PREC status would still be validly registered. Neither O. Reg. 536/20 nor TRESA requires a transfer gate, so this is recommended drafting, not a breach.
What good looks like
Transfers are gated on preserving PREC status and a non-compliant transfer is void.
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