A majority stake sounds decisive. Dollarama’s 2024 Dollarcity disclosures make that idea more interesting: the buyer held most of the equity and most board seats, while specified decisions still needed every stockholder’s approval. For an owner keeping shares after selling, that distinction deserves a closer look.
What changed in June 2024
Dollarama, the Canadian retailer, announced on June 12, 2024 that it had acquired another ten percentage points of Dollarcity, taking its interest to 60.1%. Dollarcity operated in Latin America; this case’s Canadian connection is the purchaser. The consideration was 6,060,478 Dollarama common shares. That is a share count, not cash proceeds. Dollarama was adding to its investment rather than acquiring the entire business.
The acquisition happened on June 11, according to Dollarama’s September 11, 2024 investor presentation.
The June release also said Dollarama would continue to have joint control and use equity-method accounting. That was the issuer’s account of this investment, not a rule about every majority-owned business.
Three layers of the same deal
The presentation’s Dollarcity governance summary separated:
Ownership: Dollarama held 60.1%; the founding stockholders held 39.9%.
Board representation: three Dollarama representatives and two Dollarcity representatives sat on the Dollarcity board.
Specified approvals: certain strategic and operational decisions required 100% stockholder approval.
Holding a majority and having sole authority over every listed decision were different things here.
Which decisions needed everyone?
Dollarama’s April 15, 2025 Annual Information Form supplies examples. Its information is generally as at February 2, 2025, unless otherwise indicated. The Dollarcity section describes decisions needing all stockholders’ approval, including:
Changes to the capital structure or nature of the business.
Mergers and acquisitions.
Executive appointments and remuneration.
The annual budget and business plan.
Entry into new countries.
The AIF identifies Central American Retail Sourcing, Inc. (CARS) as the parent of the existing Dollarcity operating entities.
Those categories make the retained stake more concrete. The annual budget and executive appointments concern how the business is run, not simply whether it is eventually sold. This disclosure describes specified consent requirements; it does not say that every decision required unanimity.
Put the terms on separate lines
For an owner considering a partial sale, start a short deal note with the transaction date, stake transferred and form of payment. Keep the shares received as consideration separate from the ownership retained in the business.
Then record the retained percentage and board representation separately. In this case, neither percentage ownership nor the board-seat count alone captures the disclosed decision rules.
Finally, list the specified decisions and whose approval each requires. This case uses Dollarama’s disclosure summary, not the underlying stockholders’ agreement; it establishes neither current rights nor how disagreements were resolved.