The Ontario Securities Commission is considering regulatory proposals that would compel Ontario issuers to address shareholders’ rights issues. The commission announced this week that it is seeking public comment on this initiative.
The OSC’s staff notice states that staff is reviewing three areas related to shareholder democracy:
Slate voting and majority voting for uncontested director elections
Shareholder advisory votes on executive compensation
The effectiveness of the proxy voting system
“Shareholder democracy has attracted considerable public attention in Canada and other countries, and OSC staff are reviewing our regime to identify the need for reform in this area,” said Leslie Byberg, Director, Corporate Finance at the OSC. “I look forward to consulting with our stakeholders and hearing their comments about potential regulatory proposals.”
The announcement was welcomed by the Canadian Coalition for Good Governance, which has been lobbying the commission to introduce such reforms. "These are key fundamental issues the coalition has been focused on since we were founded," CCGG executive director Stephen Griggs told the Globe & Mail.
The OSC is accepting submissions on the subject until March 31, 2011.
This is an interesting development. I hope you post the results.
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