Description: Last Thursday Canadian Securities Administrators labelled the shareholders’ voting system in Canada “antiquated and fragmented”. This “antiquated and fragmented” approach has lead to miscounts in votes by shareholders at corporate meetings, generating complaints that more votes are cast than the number of outstanding shares in the company. Handling of proxy votes appears to be at the center of the issue.
Source: Globe and Mail.com
Date: January 29, 2015
1) If you were casting a proxy vote at an annual meeting, would the findings in this article concern you? Why?
2) Given that the auditors are appointed at the annual shareholders meeting, what are some of the concerns an auditor might have regarding the findings of this article?
3) What are the required disclosures in financial statements regarding the number of shares issued by a corporation?