Rob says:
“While activism remains robust in the Canadian market, we are seeing more board-related activist demands settled before a public proxy solicitation campaign by both sides. Boards are increasingly opting to mitigate perceived risk by negotiating settlements where the activist receives a minority of board seats, and offers a time-limited standstill. As activists often don’t represent shareholders as a whole, and may have short-term interests inconsistent with the interests of other shareholders, it remains to be seen whether early settlements promote stability or instead provide a platform for further agitation inside the company.”
Please note that this publication presents an overview of notable legal trends and related updates. It is intended for informational purposes and not as a replacement for detailed legal advice. If you need guidance tailored to your specific circumstances, please contact one of the authors to explore how we can help you navigate your legal needs.
For permission to republish this or any other publication, contact Amrita Kochhar at kochhara@bennettjones.com.