Source: The Canadian Press

Magna International shareholders have approved a controversial plan to pay Frank Stronach about $1 billion in cash, shares and other incentives to give up his family’s voting control of the company.

The auto parts giant says about three-quarters of the votes cast were in favour of the transaction.

The plan had been opposed by several of Canada’s biggest pension fund managers but there was little doubt that it would pass since they didn’t have enough shares to block the transaction.

The deal will now go to the Ontario Superior Court for approval but it could face opposition by its opponents including the CPP Investment Board.

Stronach and his family will receive US$300 million in cash, nine million common shares of Magna and control over a joint venture that will develop components for electric vehicles.

In exchange, the Stronachs will give up their special class of voting shares, which gave them control of the global auto parts company founded by Frank Stronach.

Neither Stronach nor his daughter Belinda, a former federal politician, attended the meeting and Magna management declined to comment.