The Investment Industry Regulatory Organization of Canada is seeking comment on a proposed change to its governance by-laws.

IIROC is proposing amendments to its by-law that deals with the board’s ability appoint a director to take the place of a retiring director. Currently, when a director retires part way through their term the board can only appoint a substitute to serve out the rest of the term. IIROC is looking to change the by-law so it can appoint the substitute for a shorter period, allowing it to hold an election to fill a board vacancy in cases where the remaining term is longer than a year.

For example, if a director retires six months into a two-year term, the board must appoint a replacement for the remaining 18 months. Under the proposed changes, it could appoint a replacement for just six months, and then have members elect a director.

The proposed amendments will not affect the normal length of terms for IIROC, which is two years, subject to a maximum of four terms.

IIROC’s board approved the proposed amendments, and its members have approved them, too. They still require regulatory, and Industry Canada, approvals.

Comments on the proposed amendments are due by March 7.

IE