Being A Public Company In 2007: Taking Stock Of Recent Developments
Mondaq Business Briefing › Canada Law Articles in English (2007)
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Being A Public Company In 2007: Taking Stock Of Recent Developments
Reprinted with permission from the 2007/2008 Lexpert/CCCA Corporate Counsel Directory and Yearbook, 6th Edition.
Canadian companies and their directors and officers are facing intense scrutiny from regulators, stock exchanges, institutional investors, shareholders and the media. Regulators in both Canada and the United States have been very active in imposing new governance and disclosure requirements and are increasingly vigilant in enforcing those requirements. In addition, directors' duties, conflicts of interests and processes of deliberation are being scrutinized more closely by investors and the courts, significantly increasing the exposure of directors to lawsuits and potential liability.These developments, and others, have created new risks for Canadian public companies and their directors and officers.CANADIAN INVESTOR CONFIDENCE RULESCanadian securities regulators have adopted or proposed a number of rules to strengthen investor confidence in the public filings of companies. The Canadian rules are substantially similar to comparable provisions of the U.S. Sarbanes-Oxley Act of 2002 (S-Ox) and U.S. stock exchange requirements. Some of the measures are being phased in over time, and certain companies (e.g., foreign and venture issuers) receive slightly different treatment. Highlights of these initiatives are discussed belo...See the full content of this document
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