Canadian boards want proxy recommendation rebuttals

Author: | Published: 23 Aug 2012
Canadian directors will have the chance to respond to negative vote recommendations by proxy advisory firms if the Canadian Securities Administrators (CSA) defer to their requests.

That was one of multiple policy initiatives advocated by trade group Institute of Corporate Directors (ICD) in an August 20 comment letter responding to the CSA’s June 21 consultation paper on proxy advisory firms.

Proxy advisory firms are not regulated by Canadian securities laws so are not required to disclose to the public information regarding potential conflicts, or explain how they concluded shareholders would benefit from voting one way or another.

Further, the country’s most active proxy advisers – Institutional Shareholder Services (ISS) and Glass Lewis & Co – are not held to the same level of legal accountability...