Who can own a pharmacy in BC
Key takeaways
- More than 50 percent of the owning corporation’s directors must be pharmacists registered in BC.
- This is a director rule, not a share-ownership rule. The directors control the governance, regardless of who holds the majority of shares.
- Everyone in the ownership chain, directors, officers, and shareholders of the owning and related corporations, must supply a criminal record history at each five-year licence renewal.
- Indirect ownership through a holding company (CRH) is possible but subject to the same director requirements.
The director rule, not the share rule
Pharmacy ownership in BC is governed by the Pharmacy Operations and Drug Scheduling Act (PODSA). Unlike medical or dental professional corporations, where the rule is about who holds shares, the pharmacy rule is about who sits on the board of directors.
A BC pharmacy can be owned through a corporation, but more than half of that corporation’s directors must be pharmacists registered in BC. This applies regardless of who holds the majority of shares. Even if a non-pharmacist owns 100 percent of the shares, the board must be majority BC-registered pharmacists.
Who is caught in the ownership chain
The College captures everyone in the ownership chain. Directors, officers, and shareholders of the owning corporation must all provide a criminal record history every five years when the licence is renewed. This includes shareholders of related or holding corporations in the structure above the pharmacy.
This makes pharmacy ownership more transparent than most other healthcare practices. If you plan to use a holding company above the pharmacy, every individual in that holding company’s ownership chain is also subject to the College’s vetting.
How this compares to a medical or dental professional corporation
| Profession | Ownership rule | Non-professional investors? |
|---|---|---|
| Pharmacy (BC) | >50% directors must be BC pharmacists | Possible, with board control in pharmacist hands |
| Medical (BC) | All voting shares = physicians | Non-voting to family, not to public |
| Dental (BC) | Voting shares held by dentists; family may hold non-voting shares | TBD, see |
Setting up a pharmacy corporation
When you set up a pharmacy corporation, the key step is making sure the board structure meets the director rule from the start. If you plan to bring in a non-pharmacist investor, the investor’s representatives on the board cannot outnumber the pharmacist directors.
The College’s oversight means that changing the board later, for example, adding a non-pharmacist director, must not break the majority rule. This shapes how ownership can be restructured and sold.
Why this matters: the director rule is different from what most professionals expect. Many assume pharmacy ownership is like medical professional corporations, where the rule is about share classes. It is not. The governance structure is what matters, not the share register.
Frequently asked questions
Can a non-pharmacist own shares in a BC pharmacy corporation?
Yes. The rule is about directors, not shares. A non-pharmacist can own shares, as long as more than half of the corporation’s directors are BC-registered pharmacists.
What is CRH in the context of pharmacy ownership?
CRH (controlled related holding) refers to the related or holding corporation structure that owns the pharmacy. Indirect ownership through a CRH is possible, but all individuals in the ownership chain are subject to College oversight.
How often do I need to renew the pharmacy licence?
Every five years. At each renewal, every director, officer, and shareholder in the ownership chain must supply a criminal record history.
Can a pharmacy be owned by a publicly traded company?
Yes, large chains are publicly owned. The director rule still applies, the directors of the operating corporation must be majority BC pharmacists.
What happens if the board composition changes and the pharmacist majority is lost?
The corporation would be in breach of PODSA. The College could suspend or revoke the pharmacy licence until the board is brought back into compliance.
Talk to us about your pharmacy structure at ghumans.ca/pharmacies.
General information only. Talk to us about your situation.