Note 14 - Capital Stock

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

14. Capital stock

The authorized capital stock of the Company is as follows:

An unlimited number of Preferred Shares, issuable in series;

An unlimited number of Subordinate Voting Shares having

one

vote per share; and

An unlimited number of Multiple Voting Shares having

20

votes per share, convertible at any time into Subordinate Voting Shares at a rate of

one

Subordinate Voting Share for each Multiple Voting Share outstanding.

The following table provides a summary of total capital stock issued and outstanding:

	Subordinate Voting Shares				Multiple Voting Shares				Total Common Shares
	Number		Amount		Number		Amount		Number		Amount
Balance, December 31, 2015		37,178,617	$	395,693		1,325,694	$	373		38,504,311	$	396,066
Balance, December 31, 2016		37,322,767		399,401		1,325,694		373		38,648,461		399,774

On

June

1,

2015,

the Company completed the Spin-off. Under the Spin-off, shareholders received

one

Company share and

one

FirstService share of the same class as each Old FSV share previously held. The Spin-off distribution was accounted for at the carrying amount, without gain or loss, and resulted in a reduction of shareholders’ equity of

$138,396.

During the year ended

December

31,

2016,

the Company declared dividends on its Common Shares of

$0.10

per share

(2015

-

$0.14;

2014

-

$0.40).

Pursuant to an agreement approved in

February

2004

and restated on

June

1,

2015

to reflect the impact of the Spin-off, the Company agreed that it will make payments to Jay S. Hennick, its Chief Executive Officer (“CEO”), that are contingent upon the arm’s length sale of control of the Company or upon a distribution of the Company’s assets to shareholders. The payment amounts will be determined with reference to the price per Subordinate Voting Share received by shareholders upon an arm’s length sale or upon a distribution of assets. The right to receive the payments

may

be transferred among members of the CEO’s family, their holding companies and trusts. The agreement provides for the CEO to receive each of the following

two

payments. The

first

payment is an amount equal to

5%

of the product of: (i) the total number of Subordinate and Multiple Voting Shares outstanding on a fully diluted basis at the time of the sale and (ii) the per share consideration received by holders of Subordinate and Multiple Voting Shares minus a base price of

C$3.324.

The

second

payment is an amount equal to

5%

of the product of (i) the total number of shares outstanding on a fully diluted basis at the time of the sale and (ii) the per share consideration received by holders of Subordinate Voting Shares minus a base price of

C$6.472.

The

two

base prices shown above have been restated to

58.57%

of their original values to reflect the Spin-off on

June

1,

2015.

Assuming an arm’s length sale of control of the Company took place on

December

31,

2016,

the amount required to be paid to the CEO, based on a market price of

C$49.49

per Subordinate Voting Share, would be

US$132,562.