50 Restrictions on share disposal When a company completes an Initial Public Offering (IPO), people who hold early shares may have to retain all or part of them for a time. These people would include company directors, senior officers, and any shareholders who have a significant number of shares. Their shares may be held in escrow, meaning that they cannot be sold for a specific period. The shares may subsequently be released from escrow over eighteen months. For TSX escrow restrictions do not apply to principals of companies meeting the requirements of an exempt listing. Also, restrictions do not apply to non-exempt companies which have a market capitalization of at least $100 million immediately after their IPO. Issuers are also subject to National Policy 46-201. Management style The management style should be considered because of the special constraints and obligations on the management of a public company. Corporate decisions must be fair and in the best interests of the company. Decisions are also subject to public, shareholder and regulatory scrutiny. Ownership of a public company Management should carefully consider the degree of control they wish to retain. When a company goes public, a reasonable percentage of the shares must be publicly owned. For companies listing on TSX, the publicly owned shares must have a minimum market value of $4 million at the time of listing. For companies listing on TSXV, there are no minimum market value requirements.
RkJQdWJsaXNoZXIy MjgzMzQ=