Talisman shareholders set record for vote on social responsibility proposal

Shareholders in Talisman Energy received the highest support ever for a Canadian shareholder proposal on the social impact of a company's business.

The proposal, moved by the Jesuit Fathers of Upper Canada and supported by other religious groups and two large US pension funds, called on the company to implement an independent audit of its operations in Sudan. The resolution failed but obtained 27 per cent shareholder support -- believed to be the highest level of support in Canada for a shareholder proposal on a social issue.

"Twenty-seven per cent, that's a lot of shareholders, especially when the company opposed it," said Peter Chapman of the Taskforce on the Churches and Corporate Responsibility. "It shows the very broad range of shareholders that would like some action from the company."

The proposal was the focal point of Talisman's annual meeting, held May 3 in Calgary. After the shareholder proposal was defeated, shareholders voted 90 per cent in favor of a less stringent company proposal with more generous audit timelines.

Among the shareholders voting against the shareholder proposal was the Ontario Teachers Pension Fund. The company proposal "has more realistic timelines for dealing with the government of Sudan, and is measurable and enforceable," said the fund in a letter to a fund member. The fund said it has the support of the Ontario Teachers Federation on this position.

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