In connection with a securityholder meeting at which directors are to be elected, TSX listed issuers are required to disclose in their management information circular whether they have adopted a majority voting policy for uncontested meetings. If they have not adopted a majority voting policy, they must explain their practices for electing directors and the reason they have not adopted such a policy (section 461.3, TSX Company Manual).
Glass Lewis generally recommends that shareholders withhold votes for all members of the governance committee of companies in the S&P/TSX composite index that "explain" rather than adopt a majority voting policy. In addition, Institutional Shareholder Services considers whether an issuer has adopted a majority voting policy for a number of voting recommendations with respect to director elections.
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