CSA Initiate Consultation On Proxy Voting Infrastructure

On August 15, 2013, the Canadian Securities Administrators (CSA) initiated a public consultation process that seeks to examine issues affecting the integrity and reliability of the Canadian proxy voting infrastructure.  In outlining the rationale for more active securities regulatory involvement in this area, the CSA cited their concern with the lack of confidence expressed by some issuers and investors in regards to the reliability of the proxy voting system, particularly given the fundamental role of the system in the legitimacy of shareholder voting and fostering confidence in the capital markets.

The consultation paper is not prescriptive. Rather, the CSA provide a detailed description of the proxy voting infrastructure (including numerous market practices not prescribed in securities legislation, such as the key functions performed by Broadridge Investor Communication Solutions Canada on behalf of the vast majority of intermediaries) and are requesting feedback