The CRTC is demanding some minor changes to Mobilicity’s  ownership and control structure, but the new wireless carrier has no issues with the requests and is all set to launch in Toronto this spring.

The CRTC has ruled that veto rights must be changed for Canadian businessman John Bitove and his company Obelysk, and New York-based Quadrangle Capital Partners, the two biggest shareholders of Data & Audio-Visual Enterprises (DAVE) Holdings, the company that controls Mobilicity.

Without these changes, there is “the potential for the non‑Canadian shareholder to exercise a determinative influence over the decision‑making activities of DAVE,” the commission wrote.

DAVE Wireless wanted the partners to each have the right to veto any expenditure over $10 million, or any fees for hiring investment bankers or financial advisers over $250,000.

However, the CRTC determined that $10 million was less than 5% of the enterprise value of the company. As a result, it has told DAVE Wireless to adjust the veto threshold to align with similar decisions on other new wireless companies, Globalive (owner of the WIND brand) and Public Mobile.

The $250,000 fees threshold is allowed to remain, but the value of the company will have to be calculated every two years by an independent party.

The CRTC is also forcing a change to the board structure to avoid deadlocked votes. DAVE Wireless must increase the number of Canadian shareholder nominees to four, for a total of 10 directors, with the chair having the deciding vote. As well, the chair must be a Canadian director, and cannot be a director nominated by a non‑Canadian shareholder.

“The commission considers that this new composition will better reflect the number of voting shares owned by each shareholder while providing DAVE with the flexibility to become a public company,” the decision said.

Mobilicity has 30 days to make the changes to its ownership and control structure, but it said it had no issues with the changes and will be proceeding as planned.