The mandate and projects of the CIBC Centre for Corporate Governance and Risk Management have already drawn attention from local and national media as well as professional organisations.
The Executive Director comments on the Supreme Court’s decision on BCE Inc.
On Tuesday June 17 2008, the Supreme Court of Canada deliberated on BCE’s treatment of its bondholders, after the ruling by the Quebec Court of Appeal in late May that the proposed privatization of BCE Inc. was not fair and reasonable to the Bell Canada bondholders. The Court of Appeal re-affirmed that the Directors must act in the best interest of the corporation and those interests cannot be equated with the interests of shareholders alone. The reasonable expectation of all stakeholders, including creditors, must be considered.
On June 20 2008, the Supreme Court of Canada released its decision and sided with BCE, its shareholders and directors. In a unanimous decision (7-0), the Court overturned the decision of the Quebec Court of Appeal which had overturned the decision of the lower court and its approval of the BCE plan of arrangement for a leveraged buyout. Though the reasons for the decision will not come for a couple of weeks, the BCE shareholders are happy, the Directors are relieved and the Canadian equity markets are calmed.
Robert Adamson, the Executive Director of the CIBC Centre for Corporate Governance and Risk Management, has been featured in the following public media on this topic:
- Court ruling good news for boards, Vancouver Sun, Saturday, June 21, 2008
- CKNW Sean Leslie Show on Sunday, June 22, 2008 at 3pm.
The CCGRM will continue to promote public and professional outreach to ensure that the Centre’s research and other activities are available to the widest audience possible.
For media inquiries, please contact Robert Adamson [robert_adamson@sfu.ca]