Rakon says managing director Brent Robinson and his brother Darren inadvertently bought shares in the company in contravention of the Takeovers Code.
The brothers each purchased $81,539 worth of shares in July, representing 0.52% of the company's shares.
Rakon says the purchases reflect the brothers' confidence in the company and its prospects.
However, because of other holdings by a family trust, the purchases took their combined holdings above 20%.
The Takeovers Code prohibits parties and their associates from increasing their shareholdings above 20% unless they make a takeover offer or first gain approval from other shareholders.
As a result, the brothers have promised the Takeovers Panel they will sell the shares within a seven-week period and will not use the voting rights attached to the stock.
However, Rakon's board intends to consider seeking shareholder approval which, if given, would allow the Robinson family to purchase Rakon's shares in future.
The chairman of Rakon, Bryan Mogridge, also bought Rakon shares in July.
