Fasken Martineau is pleased to release its Canadian Proxy Contest Study - 2017 Update.
Our 2017 Update offers a review of proxy contest activity in Canada over the past year and follows on from our ground-breaking 2013 Canadian Proxy Contest Study and its companions the Canadian Proxy Contest Study - 2014 Update, Canadian Proxy Contest Study - 2015 Update, and the Canadian Proxy Contest Study - 2016 Update.
Highlights from our analysis include:
- The number of contests continued to decline to levels not seen in over ten years.
- The number of solicitations conducted only by public broadcast declined.
- Management posted a near-perfect record, winning 86% of formal board-related contests.
- Dissidents continued to avoid targeting larger issuers and focused their efforts on micro-cap issuers.
- Institutional investors did not initiate any formal contests in 2016.
In addition to our proxy contest series, we recommend downloading our Directors' Handbook: Shareholder Activism, released earlier this year, which provides practical guidance for public company directors and boards looking to bolster their defence against activists and our 2015 Canadian Hostile Take-Over Bid Study, which provides an empirical analysis of all 143 hostile bids for control of a Canadian-listed issuer over the ten-year period ending 2014.