The Pension Investment Association of Canada (PIAC) is urging the Toronto Stock Exchange to amend its security holder approval requirements for issuances of securities to remove the exemption currently provided for the acquisition of public companies.

PIAC states that boards of directors should submit substantial changes to the business of a corporation or proposals that may erode or dilute the rights of existing shareholders, such as a dilutive issuance of shares, to shareholders for approval.

PIAC notes in its submission to the TSX that the New York Stock Exchange, American Stock Exchange and NASDAQ National Market, on which many TSX-listed issuers are interlisted, require security holder approval for stock issuances exceeding 20% of an issuer’s outstanding shares and do not provide exemptions for acquisitions of public companies.

Requiring security holder approval for issuances exceeding 25% (TSX’s threshold) of the outstanding securities in connection with an acquisition by TSX-listed issuers is an important governance process, instilling in investors the same confidence in Canadian capital markets that they have in other markets and enhancing the competitiveness of the Canadian economy.

PIAC has been the national voice for Canadian To view PIAC’s full submission, please visit www.piacweb.org, under Submissions to Government.