Income trusts and auditing relationships will be getting a closer look this year, according to the Canadian Coalition for Good Governance, said chairman Doug Pearce in his speech at the Coalition’s 2006 annual meeting.
Pearce also outlined the Coalition’s plans for 2006, which included projects to address governance issues for income trusts, guidelines for audit letters of engagement and break fees, as well as continued work on executive compensation and majority voting.
“We need to have a consistent approach to issues surrounding companies that become income trusts,” said Pearce, who’s also CEO/CIO of the British Columbia Investment Management Corporation. “The Coalition will play a leadership role in providing guidance in the income trust arena, as it has in the past with issues such as majority voting and executive compensation, to ensure the highest levels of governance to protect the interest of Canadian Investors.”
According to Pearce, the Coalition’s other new area of work, audit letters of engagement, will, “Help provide guidance to audit committees in drafting the terms of the audit engagement with the external auditor.”
Pearce, who replaced Michael Wilson as Chair — who left to become Canada’s ambassador to the U.S. — is encouraged by the success of the CCGG in its brief three-year history.
“The Coalition has established itself as an influential participant in Canada’s capital markets,” he said. “In the last year alone, we have seen corporate Canada integrate many of the best practices introduced in our working papers on executive compensation and shareholder communication. I have a feeling that our “Governance Gavel Award” for companies that communicate effectively with shareholders through their proxy will become one of the most sought after governance awards in corporate Canada.”
“The Coalition continues to be a growing force on the Canadian investment landscape. We added ten new full members last year and now have more than 47 members with almost $950 billion of assets under management. With a membership as large as ours, I know we will continue to make a difference for Canadian investors,” said Pearce.
Canadian Coalition for Good Governance to look at income trusts and auditing relationships
New chairman says executive compensation will also remain a Coalition focus
- By: IE Staff
- June 28, 2006 June 28, 2006
- 09:51