WATERLOO, ON, May 4 /CNW/ - Economical Mutual Insurance Company today
announced the settlement of the appeal of the Superior Court of Justice
decision regarding confidential voting by ballot at its Annual and
Special Meeting on May 26, 2011.
The Court ruled in favour of Economical on April 6, but that decision
was appealed by VC & Co. Advisory Limited, the leader of a group of
dissident policyholders. The appeal was to be heard on May 6, 2011.
Economical had already taken steps to provide for a confidential ballot
on important resolutions to be considered at the Annual and Special
Meeting in its March 1, 2011 service agreement with the independent
meeting scrutineer, Computershare Investor Services Inc.. As a result
of the settlement announced today, that service agreement will be
amended to provide that only the meeting-scrutineer will be able to
view the ballots to confirm the voting results of the meeting.
Economical believes its mutual policyholders will be satisfied that the
settlement ensures the proper validation of votes counted at the
Meeting, protects confidential voting by mutual policyholders, and
avoids further unnecessary costs and use of management time brought on
by the VC & Co. appeal.
Given the minor change required to reach the settlement, and that VC &
Co. refused to agree to a joint statement of facts outlining the
settlement, Economical's mutual policyholders may question whether VC &
Co. launched the appeal primarily in pursuit of further publicity,
rather than legal remedy.
Proxy Voting Deadline is Approaching
Mutual policyholders are reminded that the deadline for voting the BLUE
management proxy is 1:00 p.m. Monday May 16, 2011. They are advised to
discard the yellow proxy from VC & Co. Mutual policyholders seeking
further information about the questions to be decided at the Annual and
Special Meeting or the procedures for voting the BLUE proxy are invited
to call Karen Gavan, Chair of the Special Committee of the Board of
Directors at 1-866-265-9996 ex 42997.
About The Economical Insurance Group
Founded in 1871, The Economical Insurance Group (TEIG) is one of Canada's leading property and casualty insurers, with
over $4.6 billion in assets and policyholders' equity of approximately
$1.3 billion. Canadian-owned and operated, TEIG provides a wide range
of insurance products throughout North America. TEIG Member Companies
include Economical Mutual Insurance Company (including Western General Farm Division), Waterloo Insurance Company, Perth Insurance Company, The
Missisquoi Insurance Company, Federation Insurance Company of Canada,
Family Insurance Solutions and The Mattei Companies.
A mutual insurance company since it was founded, The Economical
Insurance Group, announced its intention to demutualize in December,
2010, making it the first to take this step under current Canadian
legislation. It is currently developing a demutualization plan for
approval by regulators and the Group's mutual policyholders.
SOURCE Economic Mutual
For further information:
Vice President, Marketing and Communications
The Economical Insurance Group
519-570-8500 ext. 48589