Telus 2012 Annual Report Download - page 17

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17
resulting from insufficient Canadian ownership of voting shares. Under the Ownership
and Control Regulations, such companies may restrict the issue, transfer, ownership and
voting of shares, if necessary, to ensure that they and their subsidiaries remain qualified
under such legislation. For such purposes, in particular but without limitation, a company
may, in accordance with the provisions contained in such regulations:
(i) refuse to accept any subscription for any voting shares;
(ii) refuse to allow any transfer of voting shares to be recorded in its share register;
(iii) suspend the rights of a holder of voting shares to vote at a meeting of its
shareholders; and
(iv) sell, repurchase or redeem any voting shares.
To ensure that TELUS remains Canadian and that any subsidiary of TELUS, including
TCC, is and continues to be eligible to operate as a telecommunications common carrier
under the Telecommunications Act, to be issued radio authorizations or radio licences as
a radiocommunications carrier under the Radiocommunication Act, or to be issued
broadcasting licences under the Broadcasting Act, provisions substantially similar to the
foregoing have been incorporated into TELUS’ Articles permitting the directors to make
determinations to effect any of the foregoing actions.
The CRTC reviewed our monitoring procedures in 2012 in response to a complaint from
Globalive Wireless Management Corp (“Globalive”). On December 5, 2012, the CRTC
denied Globalive’s request for a review of the ownership of TELUS in Telecom Decision
CRTC 2012-665.
The federal government announced on March 14, 2012 that it will amend the
Telecommunications Act to remove foreign ownership restrictions for
telecommunications companies that hold less than a 10-percent share of the total
Canadian telecommunications market. The amendments to the Telecommunications
Act subsequently received royal assent in June 2012 and are in force. This change was
made to enable telecommunications companies with a small market share to access the
capital needed to grow and compete. We hope that these changes to foreign ownership
limits provided by the federal government are a first step towards liberalization of
restrictions across the industry.
See MD&A Section 10.3 Regulatory for further details related to regulation generally and
specifically in relation to restrictions on foreign ownership and changes to restrictions on
foreign ownership for small common carries.