Insider Report for Escrow Shares
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Filing Process for Escrow Shares |
Escrow shares and free trading shares of the same class of security are reported on an aggregated basis (i.e. escrow shares are not reported as a separate class of security from free trading shares). Escrow shares are issued and outstanding shares which, while entitling one to vote, may not be sold or transferred unless regulatory approval is obtained or the shares are released from escrow.
Transactions in these shares must also be reported. Within SEDI, the number of shares in escrow and the release terms are to be disclosed in General remarks (maximum number of characters for remarks: 254). You do not need to report a release of escrow shares as a transaction, as the release does not result in a change in your holdings of the class. Although you are not required to file a report because of an escrow release, you should provide information regarding the release in General remarks when your next report is filed.
In addition, since escrow shares are part of an issuer's issued and outstanding shares, they are included in the calculation to determine if someone is an insider by virtue of holding more than 10% of the voting rights attached to all the issuer's outstanding voting securities. |
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Instructions for Filing Escrow Shares |
Instructions to file an insider report for escrow shares is similar to filing a common share transaction or a stock option transaction with the general remarks noted above. |