Shareholder Democracy in Canada
National Bureau of Economic Research (NBER); University of Alberta - Department of Finance and Statistical Analysis
November 15, 2010
The federal government stands poised to exercise its constitutional right to regulate financial markets, an area traditionally left to competing provincial securities commissions. The current state of securities regulation renders impotent US-style takeover defences, such as poison pills and staggered boards, but allows voting caps and pyramiding in their stead. Various federal securities regulation models are weighted in light of the current state of their needed complementary institutions. One option, for which Canada is relatively well prepared, is the British model of activist independent institutional investors and mandatory takeover bids.
Number of Pages in PDF File: 42
Keywords: Corporate Governance, Canada, Securities Law
JEL Classification: G3, G38, G23, K22, N22, P5
Date posted: November 20, 2010