Developments In Corporate Governance: Looking Ahead To 2010

A number of developments occurred in corporate governance during 2009. This bulletin recaps some of the key developments affecting Canadian companies and reviews where things stand as we head into 2010.

Canadian Securities Regulators Back Off Overhauling Corporate Governance

Canada's securities regulators have decided not to proceed with their proposed overhaul of the corporate governance regime. The proposals would have introduced a more principles-based regime, including eliminating the bright-line tests in the current definition of independence. Market participants expressed mixed reactions to the proposals, some questioning whether they would bring about meaningful improvements in governance and others expressing concern about introducing significant changes in the face of challenging economic conditions and the upcoming transition to International Financial Reporting Standards.