Empty Voting Revisited: The Telus Saga
Journal of International Banking and Financial Law, 2013, Forthcoming
9 Pages Posted: 12 Mar 2013 Last revised: 26 Apr 2013
Date Written: March 8, 2013
The recent conflict between Canadian telecommunications provider Telus and US-based hedge fund Mason Capital is the most recent illustration of 'empty voting' – a strategy whereby activist investors eliminate their risk exposure to shares in target companies to pursue idiosyncratic motives. As courts are struggling to find adequate solutions, regulators worldwide are called upon to provide reliable tools to this threat to shareholder voting.
Keywords: empty voting, hidden ownership, Telus, dual-class shares, arbitrage, activist, hedge funds
JEL Classification: G32, G34, G38, K22, L22
Suggested Citation: Suggested Citation