A British Columbia Securities Commission panel has overturned a TSX Venture Exchange decision that disqualified a man with a history of criminal convictions from performing investor relations activities.
On June 7, 2007, the commission panel set aside the TSX-V exchange’s decision that William John Nichols is unacceptable to perform investor relations activities on behalf of any exchange-listed company and must obtain exchange approval to do any work for a listed company.
TSX-V disqualified Nichols because of his criminal convictions in 1976 for robbery, theft, and breaking and entering, and because he initially disclosed only his first-degree murder conviction in his personal information form.
TSX-V stated that “in order to foster investor confidence in the exchange it is prudent for the exchange to protect its reputation by refusing to be associated with persons having such a serious criminal history as Mr. Nichols does.”
The commission panel found that, in reaching its decision, TSX-V overlooked material evidence, including:
- the fact that Nichols made no attempt to conceal his first-degree murder conviction and promptly provided full information about all of his convictions when TSX-V requested more information; and
- Nichols’ release from prison under the ‘faint hope’ clause, the passage of time and evidence of rehabilitation since his conviction for murder, and his past work for exchange-listed companies.
In setting aside the decision by TSX-V, the BCSC panel said that “the exchange could not reasonably conclude, based on the evidence before us, that it should disqualify Nichols from performing investor relations activities for listed companies.”