Bill S-19, the
legislation containing amendments to shareholder rights in Canada,
has died on the order paper as a result of the federal election. The
bill amended the Canada Business Corporations Act, which governs the
shareholder process in Canada. The bill died with other pending
pieces of legislation when Prime Minister Chretien called the
election.
While the bill contained some improvements to shareholder rights,
the legislation has been criticized by the Social Investment
Organization and other groups concerned with social investment. The
key failing in the bill, according to these groups, is the fact that
corporations continue to have the right to exclude shareholder
proposals based on social and environmental issues. Such exclusion
means that management has the right to refuse circulation of such
proposals to other shareholders or to put them on the agenda for
shareholder meetings.
Opponents of this exclusion clause will continue to press the
government for improved shareholder rights when the bill is
re-introduced. It's expected that the legislation will be brought
back in the new Parliament.
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