Shareholder Activism Defensive Tactics Attract OSC’s Attention
|Lawyer||Jonathan Feldman, Michael Partridge|
|Area||Corporate Finance and Securities|
Shareholder activism continues to evolve in Canada. As the tactics of activists have become increasingly sophisticated, boards have responded by expanding and refining their defensive tactics. A recent example is the growing popularity of contractual restrictions on transferring shares to certain classes of shareholders, including specific activists. This new strategy has attracted the attention of the Ontario Securities Commission (OSC) and may prompt regulatory intervention.