Trends and Predictions in Canadian Proxy Contests

Kingsdale Shareholder Services has released its  2014 Proxy Season Review.  In its report, Kingsdale discusses trends observed in 2014, predictions for the future, and gives its key recommendations for companies in the Canadian marketplace.  In reviewing 2014 and comparing it to the previous year, Kingsdale observes:

• By the numbers – the total number of proxy contests observed in 2014 remained at the elevated level seen beginning in 2008, but was down slightly from 2013.  Kingsdale suggests a number of factors for the relative decline, including stronger capital markets which have helped to mask under-performers' deficiencies, the implementation of structural defences such as advance notice policies and shareholder rights plans, and the increasing settlement of activist challenges at an early stage before the contest becomes public.