have seen their share prices rise after debuting on the public markets despite limited voting rights for common shareholders. But a company can still have unequal voting rights for routine, annual matters.Īnd there is, in fact, a new generation of companies, not necessarily family-owned, that have joined the TSX after having given special voting powers to the shares held by their founders. Why boardrooms must be fluent in the ABCs of ESGĪfter new federal rules came in, how many Canadian companies increased diversity on their boards?Īny company that asks to list its shares on the Toronto Stock Exchange must now include some sort of “coattail” provision that protects the lesser-voting shareholders in the event of a sale of supervoting shares. But the proportion fell amid investor pressure to reduce their use. Two decades ago, about 22 per cent of companies in Board Games had unequal voting rights. this fall, where common shareholders have no vote on most matters and chair Edward Rogers replaced all the independent members of the board of directors using special board-appointment powers, has brought renewed attention to the structure. However, the drama at Rogers Communications Inc. A number of analysts and academics have argued that the supervoting rights of founders can give those companies a long-term focus that delivers superior returns over time.
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In 2020, 32 of 211, or 15 per cent, failed to get full credit – about the same level as a decade ago.Ĭanada has a long history of dual-class shares and family-controlled companies trading on its stock exchanges. Of the 220 companies in this year’s Board Games, all members of the S&P/TSX Composite Index, 37, or 17 per cent, failed to get the full 10-point credit for equal voting rights. With 10 marks out of 100 total points available for companies with equal voting rights for all shareholders, it’s the single most heavily weighted question in Board Games.
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Log In Create Free Accountĭual-class shares and reduced voting rights for shareholders persist in Canada, and those provisions are becoming more popular.įor 20 years, The Globe and Mail’s Board Games evaluation of corporate governance has measured shareholder voting rights, examining companies with dual-class share structures or other provisions that result in owners of common shares not having an equal say in corporate matters.