Canada’s new “modern slavery” legislation: impact on shareholder activism

Photo of Anisha VisvanathaBy Anisha Visvanatha on Posted in Uncategorized
Row of Canadian flags hanging from a buildingGovernment institutions and businesses in Canada must soon comply with new legislation aimed at combatting forced labour and child labour or “modern slavery”. Bill S-211, an Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (the Act), passed its third reading by the … Continue reading

CSA/IIROC Staff Notice 23-329 – Short Selling in Canada

Photo of Reid BermanBy Reid Berman on Posted in Uncategorized
Close-up of hand scrolling on tabletOn December 8, 2022, the Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) jointly issued Staff Notice 23-329 – Short Selling in Canada (the Notice). The purpose of the Notice is to provide an overview of the existing regulatory regime with respect to short selling and request public feedback on … Continue reading

TSX Confirms Voting Agreements May Require Security Holder Approval

Photo of Brianna MayesBy Brianna Mayes on Posted in Uncategorized
Someone signing a documentOn February 27, 2023, the Toronto Stock Exchange (“TSX”) published Staff Notice 2023-0001 – Voting Agreements (the “Staff Notice”), which formalizes the policy on how it has been addressing voting agreements between TSX-listed issuers and their security holders (“Voting Agreements”) for many years. The Staff Notice does not contain anything new – rather, it confirms … Continue reading

Proxy Advisors and Shareholders Pay Attention to Cybersecurity; Boards Should Too

By The Special Situations Team on Posted in Uncategorized
Computer screen with a row of blue lock icons, middle lock icon is red and unlockedProxy advisors and shareholders are paying an increasing amount of attention to cybersecurity because the stakes are high – a cyberattack can be catastrophic for a company. A successful cyber attack can target confidential information integral to the competitive edge of a business (including trade secrets, supplier and client lists, information regarding research and development … Continue reading

Putting the “green” in green investing

Photo of Brandon SchuppBy Brandon Schupp on Posted in Corporate Governance, Securities, Shareholder Activism
The past several years have seen “green investing” rise to prominence. In 2020, environmental, social and governance (ESG) funds captured $51.1 billion of net new capital from investors, a fifth consecutive annual record. At the same time, companies are facing growing scrutiny of their environmental practices from institutional shareholders and activists. While these trends indicate … Continue reading

ESG & Shareholder Activism: Ready or Not, Here it Comes

Photo of Katherine MacPhail (Calgary)By Katherine MacPhail (Calgary) on Posted in Corporate Governance, Securities, Shareholder Activism
“ESG” stands for Environmental, Social and Governance and describes a handful of criteria used by both issuers and investors to focus on a corporation’s impact and activity regarding topics like environmental protection, climate change, support for the local and global community, diversity in hiring and advancement, and employee compensation. This investment methodology, once considered novel, … Continue reading

Social Media and the Retail Investor: A Regulator’s Dilemma

Photo of Kassem DahroujBy Kassem Dahrouj on Posted in Securities, Shareholder Activism
With the growing accessibility of “do-it-yourself” investment technology, it should come as no surprise that retail investing has been on the rise. In fact, the Ontario Securities Commission (OSC) recently published a study (the Study) which reveals that there has been a sharp increase in retail investing since 2015, and especially since the onset of … Continue reading

A Recap of the OSC Decision on the Minimum Tender Requirement under the New Canadian Takeover Bid Regime

Photo of Ivona ZegreanBy Ivona Zegrean on Posted in Corporate Governance, Securities, Shareholder Activism
On February 23, 2021, the Ontario Securities Commission (OSC) released its reasons in ESW Capital, LLC, 2021 ONSEC 7 (the ESW Decision), in which the OSC considered the availability of an exemption from the minimum tender requirement for takeover bids. The ESW Decision dismissed the proposed bidder’s application for exemptive relief, but provided important clarifications … Continue reading

Climate Change and the Need for Sound Corporate Governance

Photo of Adamo FucileBy Adamo Fucile on Posted in Securities, Shareholder Activism
The United Nations’ Intergovernmental Panel on Climate Change recently released a troubling report, highlighting the irreversible consequences of climate change on humanity. This study is simply adding to the pressures set forth by governments and other entities such as the Task Force on Climate Change-Related Financial Disclosure (TFCD) and BlackRock to hold corporations more responsible … Continue reading

SPACtivism: A New Trend Looming in Shareholder Activism

Photo of Brandon SchuppPhoto of Nader Hasan (Toronto)By Brandon Schupp and Nader Hasan (Toronto) on Posted in Proxy Battles, Securities, Shareholder Activism
The past 18 months have seen a number of developments in North American capital markets, with trends such as the rise of meme stocks and the self-proclaimed retail investor revolution dominating many headlines. Another interesting, if less novel, trend that emerged in 2020 was a resurgence of special purpose acquisition corporations (“SPACs”). In 2020, more … Continue reading
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