Wednesday February 22 2017

News Source: Global Disclosures

Focus: Foreign Investment

Type: General

Country: Canada




Following several high-profile takeovers of Quebec companies, such as Rona Inc. and Cirque du Soleil, the provincial government have stated they will set up a watchdog group to monitor the risks of Quebec-based companies being subject to a sale or hostile takeover offer.

Some of the measures proposed include:

  • Deferral of tax on an alleged sale of shares of a listed company, to avoid the loss of control or the sale of Québec businesses to foreign interests;
  • Harmonisation of the taxation of stock options with the rest of Canada to encourage business leaders to Québec;
  • Introduce new Canadian regulations governing hostile takeover bids, to provide greater flexibility to boards of directors in the event of a hostile takeover bid; and
  • Encourage companies to issue multiple voting shares as an effective tool to protect against hostile takeover bids.

Follow the link at the top of the page for more information (French)