May 25, 2020 - The COVID-19 pandemic has resulted in the imposition of safety measures by governments around the world, including that in Canada, to protect the health of their citizens. Similarly, businesses have imposed safety measures to protect their employees. These measures include restrictions on...
What’s Next for Public Companies? Becoming a “Next Generation” Governance Organization
Chapter 9 of Davies Governance Insights 2019
In this final chapter, we discuss how boards and senior management might respond to the ever-changing environments in which their companies operate, to maximize their viability and profitability in the near, medium and long terms. What does a “next generation” governance organization look like? We consider three critical elements to becoming a next generation organization, focusing on strategy, people, and shareholders and other stakeholders. We also cast a spotlight on the U.S. Business Roundtable’s recent expanded corporate purpose statement, articulating a commitment to all stakeholders of a corporation, and consider what this might mean for directors and officers in Canada. While directors and officers are not bound to give primacy to any particular stakeholder in exercising their fiduciary duties, we increasingly see companies being pressed to be “good corporate citizens,” failing which they risk damaging their brand and competitiveness and compromising their ability to generate sustained value.
This chapter appears in the 2019 edition of Davies Governance Insights, our comprehensive annual report on the trends and issues most important to Canadian public companies.
May 20, 2020 - In The Toronto-Dominion Bank v Queen (2020 FCA 80), the Federal Court of Appeal (FCA) confirmed a Federal Court (FC) decision and ruled that a secured creditor had a statutory obligation to pay the Canada Revenue Agency (CRA) for a tax debt of an arm’s-length borrower because the...