Canadian Telecommunications Common Carrier Ownership and Control Regulations — 10
10 (1) Where the board of a Canadian carrier has information concerning the beneficial ownership and control of the Canadian carrier that causes the board to believe that some of the Canadian carrier’s voting shares are excess voting shares and the Canadian carrier intends to take further action pursuant to these Regulations, the Canadian carrier shall immediately send a notice to the registered holders of those voting shares that are chosen in the order referred to in subsection 9(2). (2) A Canadian carrier shall, in the notice referred to in subsection (1), (a) specify the reasons why the board of the Canadian carrier believes that the voting shares referred to in that subsection are excess voting shares; (b) where the Canadian carrier wishes the registered holder to sell or otherwise dispose of the excess voting shares, specify a date, that is not earlier than 60 days and not later than 180 days after the date of the notice, by which the registered holder shall (i) sell or otherwise dispose of the excess voting shares in favour of Canadians and provide written evidence of the sale or other disposition, or (ii) provide written evidence that no such sale or other disposition of excess voting shares is required; and (c) where the board wishes to suspend the voting rights with respect to the excess voting shares identified in the notice, specify that, unless the registered holder complies with the requirement to sell or otherwise dispose of the shares or to provide written evidence pursuant to subparagraph (b)(ii), the voting rights shall be suspended from the date by which the sale or other disposition should have taken place or the evidence should have been provided, and that a sale of those voting shares by the Canadian carrier in accordance with section 11 or a repurchase or redemption by the Canadian carrier in accordance with section 12 may result, in each case without further notice to the registered holder. (3) Where, after the sending of a notice referred to in subsection (1), the registered holder provides the Canadian carrier with written evidence that no sale or other disposition of excess voting shares is required, the board of the Canadian carrier shall, within 10 days after the receipt of the evidence, assess the evidence and determine whether the registered holder’s voting shares are excess voting shares. (4) Where the board of the Canadian carrier determines that shares are not excess voting shares and that no sale or other disposition of the voting shares is required, the Canadian carrier shall so advise the registered holder and the Commission immediately. (5) Where the board of the Canadian carrier determines that the shares are excess voting shares and that a sale or other disposition of excess voting shares is required in order to reduce the total number of voting shares of the carrier that are excess voting shares to zero, in the case of a carrier referred to in subsection 16(1) of the Act, or to zero or to any percentage such that the percentage of the voting shares that is beneficially owned, and controlled, by non-Canadians is within five per cent of the percentage of the voting shares of the corporation that were beneficially owned, and controlled, by non-Canadians as at July 22, 1987, in the case of a carrier referred to in subsection 16(2) of the Act, the Canadian carrier shall send a notification to the registered holder of the excess voting shares, (a) informing the registered holder of the board’s determination; (b) confirming that the shares are to be sold or otherwise disposed of by the date specified in the notification; and (c) specifying a further date, that is not later than 60 days after the date of the notification, by which the registered holder shall provide written evidence to the Canadian carrier of the sale or other disposition, failing which the rights of the shareholder to vote with respect to the excess voting shares will be suspended from that further date. (6) The Canadian carri