The future of shareholder rights plans (or "poison
pills"), a commonly used tool in the take-over bid world, is
up in the air. As outlined in our March 15, 2013 Update,
"Canadian Securities Regulators Propose New Regimes
for Shareholder Rights Plans", Canadian securities
regulators have recently proposed significant changes to the rules
governing shareholder rights plans.
In the midst of this, the decision of the British Columbia
Securities Commission ("BCSC") to cease
trade a shareholder rights plan adopted by Aurizon Mines Ltd.
("Aurizon") appears to confirm that
until the new rules are adopted it's business as usual for
rights plan oversight in Canada. At the same time, the facts
surrounding the Aurizon rights plan raise interesting questions
about the continuing role of securities regulators in reviewing
defensive tactics other than rights plans.
