Cheryl Reicin Says Good Corporate Governance Imperative in Highly Regulated Cannabis Industry

Torys partner Cheryl Reicin has told Law Times that good corporate governance practices are key for businesses in the highly regulated cannabis industry.

The article discusses the heightened spotlight on the industry where “[e]very bit of news related to the legalization of cannabis for recreational use in Canada can have an immediate impact on publicly traded companies because of the belief there are significant trading profits to be made.”

Cheryl told the publication it’s this scrutiny companies need to be mindful of and added corporate governance practices was an integral part of running a successful company.

“Running a company in a highly regulated industry requires a lot of expertise. There will be a need for strong management,” Cheryl told Law Times.

“The entrepreneurs who have done well here have had to move quickly. These companies have ballooned overnight. Now is the time to catch up in strengthening corporate governance.”

Cheryl also added that it wasn’t just the industry being in the spotlight that triggered a need for good corporate governance, it was also the fact these businesses are operating in a “brand new industry.”

“A lot of the volatility will depend on how it rolls out. Unlike biotech, where you don’t know if you have a blockbuster, this is not as speculative, other than who is going to be the winner. It will depend on the ability to implement,” Cheryl said.

Torys has written extensively on the impending legalization of cannabis in Canada.  You can read their work on the firm’s dedicated Emerging Trends in the Cannabis Industry page.