An investor advocacy group says it supports planned changes to corporate governance requirements by the Toronto Stock Exchange, but that the exchange should go further than it plans.
The Canadian Foundation for Advancement of Investor Rights (FAIR Canada) said Wednesday it has submitted comments in support of proposed amendments to the corporate governance requirements of TSX listed issuers, such as eliminating slate voting in favour of individual director elections, and preventing staggered boards.
However, the advocacy group also says that the TSX should mandate majority voting rather than implementing a ‘comply or explain’ approach to voting. “Majority voting policies would support good governance by providing a meaningful way for security holders to hold directors accountable and remove underperforming or unqualified directors. It would also align the TSX Company Manual with international best practices,” it says.
FAIR Canada also recommends that the TSX require public disclosure of the voting results for each item on the proxy, including voting results for individual directors, in order to improve communications between shareholders and issuers and in order to improve accountability to shareholders.
Additionally, the group calls for securities regulators to consider reforms to allow shareholders to put forth board nominees “in an inexpensive and less onerous manner and examine ways that shareholders can communicate with each other without the need for a dissident proxy circular”.