To achieve higher sustainable growth and employment, to raise the standard of living, and maintain financial stability
To improve the expansion of World Trade on a multilateral and non-discriminatory basis
The rights of shareholders were one important policy devised by the OECD, of which Canada is a member.
These rights include
Secure method of ownership registration
Right to Information
The shareholder has the right to obtain any information promptly and regularly.
Right to Information about any Fundamental Matters
If there is any structure or arrangement in place that gives some members control not proportionate to their equity share, the stakeholders have the right to know about it.
Transparency in the Corporate Control Market
Corporate control, capital markets, and extraordinary transactions such as mergers and sales of Corporate assets should be transparent. Investors should be able to know their rights and their options.
The transactions should take place transparently and under fair circumstances.
The structure should not use anti-takeover devices to Shield management from accountability.
Equal Treatment of all Shareholders, Regardless of Their Equity Holding
The corporate governance framework should ensure good treatment of all stakeholders, including minority and foreign shareholders.
Similarly, all stakeholders of a particular class should have equal and the same voting rights.
They should have access to all relevant Information about the voting rights associated with buying shares.
Processes and procedures for general shareholder meetings should ensure equitable treatment of all shareholders.
Prevention of Malpractices
- There should be no insider trading.
- Prohibition of abusive self-dealing
- Staying on board with stakeholders plays a great role in maintaining the supply of components, raw materials, and other inputs, like labour, on a predictable basis.
- If any interruption comes in its provision, it can be a problem for the business.
- In this situation, the business will not only face problems but will also be unable to profit.
- Therefore, cultivating and maintaining productive relationships with the stakeholders is in the company’s best interest in the long term.
- The company’s treatment of its stakeholders is as important as its long-term performance.
- If the company does not have goodwill with them, it will hamper its image, and other suppliers will be reluctant to work with it, obstructing its progress.
Reputational agents are individuals who bridge the gap between the company’s insiders and outsiders. They seek to provide Information about the inside to outsiders.
They also seek to introduce higher professional standards and apply peer pressure and, at times, sanctions to uphold them.
It also refers to private sector agents, self-regulating bodies, the media, and civil society. These enhance the flow of Information and improve the monitoring of firms.
Strengthening these agents, keeping the Information flowing, and keeping them on board improve the functioning of the Corporation. If there is more transparency inside a corporation, it becomes more accountable and efficient, and it leads to enhanced public trust in the business.
The report should include the following:
- What are the policies regarding the representation of women?
- How does an entity consider the appointment of women, and what are the criteria
- Persons with disabilities;
- Indigenous peoples;
- Racialized persons;
- LGBTQ2SI+ persons
Are there any targets for ensuring the representation of designated groups? What is the progress?
“Say on Pay” Vote
- Governance: The role of board oversight, supervision and management of climate-related risks and opportunities.
- Strategy: financial planning and strategy making with regard to managing the risks and capitalizing on opportunities
- Risk management: identifying, assessing, and managing climate-related risk
- Targets: defining the measurement Matrix and target climate impact.
Corporate governance is an ever-evolving and expanding field. With new external challenges and opportunities and growing interconnectivity, laws and policies in Canada are also scrambling to manage the latest challenges and capitalize on the opportunities. Understanding the legislative framework and principles is mandatory to effectively run a business in Canada.