CSA Consider Reforms To Determining Director And Audit Committee Member Independence

Overview of CP 52-404

The Canadian Securities Administrators (the "CSA") released CSA Consultation Paper 52-404¹ ("CP 52-404") on October 26, 2017 seeking comments with respect to the current definition of independence as it pertains to director and audit committee members of public issuers. CP 52-404 considers whether or not the current approach to determining independence unnecessarily precludes individuals with the requisite experience and competencies from being considered independent and serving as directors or as audit committee members of non-venture issuers.

CP 52-404 discusses whether changes should be made to the bright line approaches to determining director and audit committee member independence.