Page 22 - CCCA63_2012

CCCA_V6No3_ProxyFights-FIN_CCCA_V6No3_ProxyFights 9/18/12 12:55 PM Page 22 Cover Companies also should engage with shareholders at a greater corporate secretary with Enbridge Inc. in Calgary. “We try to be level than ever before. Says Pasparakis:“You have to know your in front of any issue so we’re not surprised with a call from a shareholders. They will be the first to utter frustration and shareholder group saying, ‘We want to replace the board.’” become aware of unusual activity.” Many companies employing Another way to engage with shareholders — but in a far more best practices in such situations are already doing this at a very formal manner — is through the proxy circular, which should high level. For example, Winnipeg-based Manitoba Telecom adhere to industry guidelines and best practices. Every year, the Services Inc. (MTS Allstream) has had “a long-standing philoso- Toronto-based Canadian Coalition for Good Governance phy to engage with shareholders,” says Paul Beauregard, chief (CCGG) issues a document on best practices for proxy circulars legal officer and corporate secretary. “We are one of the few tele- document. The 2011 version states that “[s]hareholders expect the com companies that have an in-person meeting with investors circular to articulate, in plain language, the governance practices when we issue guidance. This has been very well-received.” and activities of the board, the qualifications of directors, the Cristina Circelli, deputy corporate secretary and general coun- issuer’s executive compensation programs… and risk-manage- sel with Montreal-based Canadian National Railway Co. (CN), ment strategy. Such disclosure assists shareholders in assessing the says shareholder engagement is a key priority for the company — board’s performance and its ability to work with management to and must be maintained on a regular basis. “Our engagement determine corporate strategy and oversee the management of the extends beyond interactions before, or at, our annual meetings, company’s primary risks.” but rather, consists of year-round communication with our share- MTS Allstream reviews this document thoroughly every year holders, our employees, the media and the general public,” she because the CCGG “spends a lot of time going through hundreds explains. “We take pride in knowing our shareholders and we of circulars, so it’s a very good starting point,” Beauregard says. work hard to build and nurture long-term relationships with The company also takes the time to see what its peers and the them that are built on trust and respect.” leaders in disclosure are doing. This includes examining the prat- Maintaining such communications is also a critical risk-man- ices of U.S. issuers, which, he says, are far ahead of Canadians in a agement tool. “We try to meet with shareholders who bring up lot of areas. Similarly, the company talks to external compensation big issues… We recently had requests from individuals in consultants who can suggest best practices that other issuers are Vancouver to meet to discuss their opposition to the Northern employing before their documents even go to print. Gateway Pipelines project,” says Alison Love, vice-president and Once that’s done, Beauregard says, “I take a half day off, sit back Quand les actionnaires montrent les crocs Le Canada inc. a été la cible d’un nombre accru de courses aux procurations au cours des dernières années. Une bonne préparation place votre compagnie dans une meilleure position de se défendre. On peut comprendre les conseillers Pacifique, par exemple, a mené à la montre qu’il y a eu plus de 40 courses juridiques d’entreprise de ressentir une démission du PDG, du président du con- aux procurations en 2009, comparative- certaine pression par les temps qui seil et quatre autres dirigeants de la com- ment à environ cinq en 2003.Ce nombre courent.La nature de leur travail a changé pagnie ferroviaire. Research in Motion, s’est stabilisé à 20 ou 25 en 2010 et 2011. e considérablement au cours de la dernière Vittera, Magna et Telus ont-elles aussi M Soliman a été impliqué dans une décennie. Leur participation aux opéra- subi des pressions récemment. quarantaine de ces initiatives au cours des tions quotidiennes de la compagnie est Ce niveau d’activité devrait servir de dernières trois années et demie, tant au devenue de plus en plus active. Et ils mise en garde pour les conseillers niveau de l’entreprise qu’à celui des doivent maintenant composer avec des juridiques d’entreprise, estime Walied actionnaires.Et selon lui,« on va continuer démarches sans précédent de la part d’ac- Soliman, associé chez Norton Rose à à voir une augmentation […] au Canada, tionnaires activistes. Toronto: « Soyez prêts, dit-il. Ne devenez en particulier en raison de preuves tangi- Autrefois plus rares au Canada, cet pas cet avocat qui prend le téléphone bles de succès » connus par le passé. activisme des actionnaires et les courses après que les actionnaires activistes se sont « Auparavant,plusieurs actionnaires sont aux procurations défraient de plus en plus manifestés; ils se seront préparés depuis restés assis à espérer que le conseil agisse, la chronique. La très publicisée campagne des mois. » ajoute l’avocat. Maintenant, ils savent que de Bill Ackman contre le conseil d’ad- Un récent rapport de la firme toron- s’ils investissent temps et énergie, ils pour- ministration et la direction du Canadien toise Kingsdale Shareholder Services ront obtenir ce qu’ils veulent. » 22 CCCA Canadian Corporate Counsel Association FALL 2012