Description: The Canadian federal government is on its way to giving shareholders increased power to vote against a board director. Under the rules right now, voters can only withhold a vote for a nominee they are unhappy with. This means, theoretically, that a “bad” director could be elected with a single vote if all other shareholders refused to vote for him or her.
Date: September 29, 2016
1) Are you or any of your classmates shareholders in a publicly traded corporation? Have you ever cast a vote at a shareholders’ meeting?
2) What is your opinion of this proposed change in the voting process for electing directors of publicly traded corporations? Do you think it will lead to better governance?
3) What does Chapter 3 of Wiley’s Auditing: A Practical Approach tell us are some of the key attributes of good corporate governance?