Are We Closer To Fixing The Proxy Voting System?

The integrity of the shareholder vote is a cornerstone of shareholder democracy for public companies. Shareholders' ability to "have their say" is exercised at shareholder meetings largely through proxy voting, which is a fundamental feature in our capital markets. The layers of depositaries and intermediaries for beneficial ownership are viewed by many as a necessary evil. To facilitate the complexities and the sheer number of market participants involved in proxy voting, an accurate, reliable and accountable infrastructure must be in place for a fair and efficient capital market.

The Canadian Securities Administrators (CSA) have recently published CSA Staff Notice 54-303 Progress Report on Review of the Proxy Voting Infrastructure (the Progress Report) to report on the progress made in its review of the Canadian proxy voting infrastructure since the initial publication in August 2013 by the CSA of Consultation Paper 54-401 Review of the Proxy Voting Infrastructure (