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ARTICLE · 30 APRIL 2019

Federal Budget 2019: Impact On Corporate Governance

Further to the release of the federal government's budget on March 19, Bill C-97 was introduced in April to implement certain provisions of the budget by amending many federal statutes, including the CBCA.

CanadaCorporate/Commercial Law

Further to the release of the federal government's budget on March 19, Bill C-97 was introduced in April to implement certain provisions of the budget by amending many federal statutes, including the Canada Business Corporations Act (CBCA).

Best interests of the corporation: moving further away from shareholder primacy

Similar to the constituency statutes of our American neighbours, Bill C-97 codifies that directors and officers of both private and publicly traded corporations governed by the CBCA may take into account all stakeholders' interests in corporate decision making. Such interests may include, but are not limited to, those of shareholders, employees, retirees and pensioners, creditors, consumers and governments. The long-term interests of the corporation and the environment, which are top of mind for institutional investors, are also specifically listed as factors that directors and officers may consider.

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