RBC, TD Bank investors to vote on giving bigger voice to smaller shareholders – Financial Post

Andrew MacDougall

Mar 28, 2017

A shareholder proposal included in the proxy circulars of Toronto-Dominion Bank and Royal Bank would change the threshold for nominating a director to the board from a 5% ownership stake to 3%, Financial Post journalist Armina Ligaya reports. While proponents maintain that the proposal will give smaller shareholders a bigger say, both banks are recommending that shareholders vote against it. Osler partner and corporate governance expert, Andrew MacDougall, says the shareholder proposal – the first to suggest a proxy access mechanism similar to the U.S. approach – could be a “forerunner of future legislative changes in Canada.”

“Because it’s the first, it will be very interesting to see how investors react to it,” Andrew continues. “That may drive the degree of support that this initiative gets in Canada compared to the U.S.”

He further explains that because there are already existing provisions in the legislation, he doesn’t see any “meaningful benefit” to significant investors in an organization.

To learn more, read Armina Ligaya’s full article, “RBC, TD Bank investors to vote on giving bigger voice to smaller shareholders” in the Financial Post