Toronto Stock Exchange Mandates Majority Voting to Further Enhance Corporate Governance
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.
About TMX Group (TSX:X)
TMX Group's key subsidiaries operate cash and derivative markets and clearinghouses for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Alpha Group, The Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corporation, Natural Gas Exchange, BOX Options Exchange, Shorcan, Shorcan Energy Brokers, Equicom and other TMX Group companies provide listing markets, trading markets, clearing facilities, depository services, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing and Sydney. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter at http://twitter.com/tmxgroup.
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