Once again, we have rounded up the key developments in corporate governance and disclosure requirements impacting Canadian public issuers from the past year. Issuers should familiarize themselves with the changes that have occurred over the last year and understand changes that may impact them in the near future.
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New guide helps investors susceptible to short-term pressures.
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The role of directors is more challenging than ever given increased volatility and competitive pressures in the business environment coupled with a legal framework that is imperfectly aligned with demands made by increasingly active shareholders and other stakeholders.
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Institutional Shareholder Services ("ISS") and Glass, Lewis & Co ("Glass Lewis") have both released their updates to their respective Canadian proxy voting guidelines for the 2019 proxy season. The ISS updates apply to shareholder meetings of publicly traded Canadian companies occurring on or after February 1, 2019, while Glass Lewis updates apply to meetings that are held on or after January 1, 2019.
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In the fall of 2018, the Supreme Court of Canada (SCC) issued its decision in Reference re Pan- Canadian Securities Regulation. It unanimously found that the proposed national securities regulatory regime, the National Cooperative Capital Markets Regulatory System (Cooperative System), is constitutional. This decision will allow the Federal Government and a coalition of participating provinces, which currently does not include Alberta, Quebec, or Manitoba, to establish a national scheme for regulating securities in Canada.
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The International Organization of Securities Commissions (IOSCO) released a statement urging securities regulators to actively engage public companies to disclose material ESG information to investors.
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Ignoring the financial risks related to climate change no longer is a viable option for investment professionals.
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When it comes to evaluating companies for investment, Canadian institutional investors no longer see financial metrics as the bottom line.
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