On Friday, November 13, 2009, the Canadian Securities Administrators (CSA) announced that they are shelving the proposed changes to the Canadian corporate governance regime that had been published for comment on December 19, 2008.
The proposed changes, which were discussed in our February 2009 issue, would have moved the Canadian corporate governance regime from a rules-dominated approach to a more principles-oriented approach in three main areas:
- National Policy 58-201 Corporate Governance Principles
- National Instrument 58-101 Disclosure of Corporate Governance Practices
- National Instrument 52-110 Audit Committees
The CSA received many comments that were critical of the timing of the proposed changes, pointing out the current focus of issuers on business sustainability issues in a challenging economic climate and on the transition to International Financial Reporting Standards.
The CSA have indicated that they are heeding the comments and are reconsidering whether to recommend any changes to the corporate governance regime. In addition, the CSA have stated that any further proposed changes will be published for comment and would not be effective until the 2011 proxy season at the earliest.
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