As a general comment, the CAC is in favour of re-examining the current regime related to shareholder rights plans. While the CAC generally favours the proposals put forth by the Canadian Securities Administrators in Proposed National Instrument 62-105 Security HolderRightsPlans(the“proposed rule”), we believe that elements of both proposals can help improve shareholder democracy.
Overview of the Council’s Comments:
The CSA we support efforts to modernize securities legislation and rules in Ontario and were pleased to see that a number of recommendations made by the Taskforce have been addressed. While we appreciate the platform approach taken by the Consultation Draft and the myriad proposals embedded in the draft Act, we believe that additional investor-friendly defining principles for the Act, such as an expanded legislative best interest standard to registrants with discretionary authority over client assets, would make the proposed Act worth the immense prospective effort of implementation for capital markets participants, investors, and regulators