U.S. shareholder activists have been increasingly active in the Canadian market over recent years.
Indeed, Canada is often described—sometimes accurately and sometimes inaccurately—as a more "activist friendly" jurisdiction than the U.S.
This being the case, both U.S. investors and Canadian public companies will be interested to learn of a recent, and somewhat "activist friendly" decision under Canadian securities law.
Specifically, it (1) sets a "relatively high" standard for finding shareholders to qualify as "joint actors," and (2) underscores the importance of the alleged "joint actors" having "actively worked together" in pursuit of a "joint specific purpose."
Writing in The M&A Lawyer (PDF, 177 KB), we explore this important new decision for the benefit of Canadian public companies and their directors, officers and investors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
