June 12, 2015
Corporate governance regulation in Canada has undergone significant reforms in recent years. From shareholder activism to term limits, governments and other institutions have addressed a range of issues and put forward changes for implementation, consultation or further study (many of which are highlighted in our publications). In an article summarizing key developments within corporate governance, Lexpert sought the perspective of Torys partner Patricia Koval. Below is an excerpt of the article.
The issue of term limits has been live for a number of years, quite apart from any regulatory pronouncements,” says Patricia Koval, a partner at Torys LLP. “Boards that take governance seriously have always carefully reviewed incumbents. If they feel the time has come to tell a director to move on, they do so constructively. It becomes a question of weighing the contribution and quality that a director brings to the table versus simply imposing an arbitrary term limit. I think Corporate Canada is going to choose more of the ‘explain’ [option].”
To read the full article, click here.