Rob Staley comments in Gryphon Advisors Inc. and FrontLine
Advisors Inc.'s inaugural Proxy Season Review report covering in-depth
analysis on corporate governance and shareholder activism
developments of 2019.
"While activism remains robust in the Canadian market, we are seeing more board-related activist demands settled before a public proxy solicitation campaign by both sides. Boards are increasingly opting to mitigate perceived risk by negotiating settlements where the activist receives a minority of board seats, and offers a time-limited standstill. As activists often don't represent shareholders as a whole, and may have short-term interests inconsistent with the interests of other shareholders, it remains to be seen whether early settlements promote stability or instead provide a platform for further agitation inside the company."
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