By Trista Vincent
(November 19 – 15:00) –
Transparency and accountability
must be improved says Senator
Michael Kirby, former chair of the
Standing Committee on Banking,
Trade and Commerce. Kirby made
the remark at the opening session
of the Conference Board of Canada’s
one-day workshop on Corporate
Conference in Toronto.
Lauding Canada as the leader in
setting corporate governance
practices, speakers outlined the
need for improvement in matters of
transparency, most notably in the
mutual fund industry.
At the same time, the notion
that members of the media should
be allowed to listen in on, and
particpate in, quarterly conference
calls met with reluctance.
“When journalists become
allowed in on these calls they can
get out of hand,” said Peter Dey,
chairman and managing director of
Morgan Stanley Canada Ltd.
Ironically the former chairman
to the Ontario Securities
Commission and the TSE Committee
on Corporate Governance was author
of a 1994 report “Where Were the
Directors?”. In that report he
stated that public embarrassment,
as a regulatory tool, is highly
effective.
Discussing cronyism and its
relevance in making board
appointments was also on the
agenda. Roberta Wilton, president
of the Canadian Securities
Institute, proposed a regime of
formal accreditation, continued
training, and limiting the tenure
of board members to five years.
When questioned about the
governance issues surrounding the
failed Onex take-over of Air
Canada, Ms. Wilton replied that
she was “sure there were many.”
But she was abruptly cut off by
moderator, David Brown, who
jokingly declined to discuss the
issue saying “the airlines are
active friends of the Conference
Board.”
It was announced that a revised
Canada Business Corporations Act
is expected from Ottawa this
February. The Canadian Securities
Institute’s report on corporate
governance will also be released
in the near future.