Rob Staley comments in Gryphon Advisors Inc. and FrontLine
Advisors Inc.'s inaugural Proxy Season Review report covering in-depth
analysis on corporate governance and shareholder activism
developments of 2019.
Rob says:
"While activism remains robust in the Canadian market, we are
seeing more board-related activist demands settled before a public
proxy solicitation campaign by both sides. Boards are increasingly
opting to mitigate perceived risk by negotiating settlements where
the activist receives a minority of board seats, and offers a
time-limited standstill. As activists often don't represent
shareholders as a whole, and may have short-term interests
inconsistent with the interests of other shareholders, it remains
to be seen whether early settlements promote stability or instead
provide a platform for further agitation inside the
company."
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