TORONTO, Feb. 13, 2014 /CNW/ - Toronto Stock Exchange (TSX) today announced that it has received notice of approval from the Ontario Securities Commission to proceed with amendments to the TSX Company Manual, mandating TSX issuers adopt majority voting.
The amendments require each director of a TSX-listed issuer, other than of a majority controlled issuer, be elected by a majority of the votes cast with respect to his or her election other than at contested meetings.
In 2012, TSX implemented changes to director election rules that, among other things, required directors to be elected individually. The majority voting requirement now makes directors more accountable to security holders and gives security holders a stronger voice in electing directors.
"Toronto Stock Exchange is committed to improving corporate governance standards in Canada and believes the new amendments provide shareholders with important rights," said Kevan Cowan, President, TSX Markets and Group Head of Equities, TMX Group. "By mandating majority voting, TSX believes transparency is enhanced and the dialogue between issuers, security holders and other stakeholders is improved."
"TMX Group is Canada's leading marketplace and we provide thought leadership in corporate governance," said Tom Kloet, CEO, TMX Group. "The changes we announced today reflect our commitment to further enhancing Canada's reputation and international position in this area."
The amendments will become effective for listed issuers on June 30, 2014. The final rules can found on www.tmx.com.