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Shares of Eligible Private Corporations
Your RSP may hold shares of an eligible private corporation as long as you are not a "connected shareholder" of that company.
That means you and your close relatives, singly or together, cannot control 10% or more of any class of the corporation’s shares. This 10% determination applies to both options and directly held shares, but is waived if the book value of the shares involved is less than $25,000. The definition of what constitutes an "eligible" private corporation is complex. If you are interested in holding such shares, we ask that you obtain a written opinion from that corporation’s legal counsel stating that the shares are indeed RSP-eligible, and that you are not a "connected shareholder" if the value of your investment exceeds $25,000.
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