Canadian Coalition for Good Governance Releases Corporate Governance Guidelines
|Area||Corporate and Commercial, Corporate Finance and Securities|
Adding to the vast landscape of corporate governance reforms, the Canadian Coalition for Good Governance released a set of twelve guidelines this Fall that it hopes will improve corporate governance practices. The Coalition represents over 20 Canadian institutional investors, including Ontario Teachers' Pension Plan Board, OPSEU Pension Trust and CPP Investment Board.
The guidelines are based largely on, but in many cases go further than, the standards established under the existing legislative and regulatory framework. The Coalition's twelve guidelines include "minimum standards", which the Coalition would normally expect a public company to meet, and "best practices", which the Coalition believes are a combination of best practices of high performing boards that should be more prevalent and innovative ideas from outstanding boards that may be appropriate for other boards.
The Coalition's guidelines focus on three areas:
- Selecting individual directors of "extraordinary qualities",
- Structuring boards to create "team governance strengths", and
- Improving board performance to ensure good governance processes.