An anonymous director reports
CHORUS AVIATION TO IMPLEMENT RECENTLY INCREASED FOREIGN OWNERSHIP LEVELS
Chorus Aviation Inc. will seek shareholder approval at its 2019 annual and special meeting of shareholders to amend its articles of incorporation to increase the limits on foreign ownership and control of its voting shares to those permitted by amendments made to the Canada Transportation Act in 2018. The amendments to its articles, together with certain related amendments to its bylaws, will be undertaken by way of a court-supervised and shareholder-approved statutory plan of arrangement.
Prior to the CTA amendments, no more than 25 per cent of the voting interests of a Canadian air carrier could be owned or controlled by non-Canadians. The government of Canada's stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25 per cent to 49 per cent, the permitted level of foreign ownership of Canadian air carriers. At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25 per cent.
Completion of the plan of arrangement is subject to shareholder approval and approval of the Ontario Superior Court of Justice (Commercial List). Full details regarding the plan of arrangement will be included in the management proxy circular, which will be made available to Chorus shareholders in connection with the shareholder meeting.
About Chorus Aviation Inc.
Headquartered in Halifax, N.S., Chorus was incorporated on Sept. 27, 2010. Chorus's vision is to deliver regional aviation to the world. Chorus has been leasing its owned regional aircraft into Jazz's Air Canada Express operation since 2011 and has established Chorus Aviation Capital Corp. to become a leading, global provider of regional aircraft leases. Chorus also owns Jazz Aviation LP and Voyageur Aviation Corp. -- companies that have long histories of safe and solid operations that deliver excellent customer service in the areas of contract flying operations, engineering, fleet management, and maintenance, repair and overhaul.
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