In this Governance Insights article, we review 10 developments that general counsel and directors of Canadian public companies, and their investors, should know for 2026 and beyond. 1. Federal Objectives in 2026 and the Canadian Regulatory Environment Global geopolitical power dynamics are expected to result in continued trade disruption and regulatory uncertainty in 2026, which will require GCs, boards and investors to apply both strategic macro and microeconomic lenses to their investment decisions. For 2026, we expect federal decision-makers to support initiatives that align with government policy and contribute to desired outcomes of enhanced productivity, economic growth and improving affordability for Canadians. Although we expect government scrutiny of commercial transactions that come under regulatory purview will continue through 2026, we also expect that projects of national interest and transactions that strengthen Canada’s relationship with reliable trading partners or bring down costs for Canadians will be approved. To minimize regulatory delay and long interim periods before closing, parties should discuss with their advisors how their business plans fit into and can support broader government objectives. For more on this topic, see Federal Objectives and Commercial Goals in 2026 (Page 10). 2. AI Tech in the Boardroom: Confidentiality, Privilege and Litigation Risk Governance literature from this past year is awash with advice to GCs and directors regarding fiduciary oversight of their businesses’ AI strategy (see our discussion here). Although not as headline-grabbing, the risks presented by the incorporation of AI technologies into board meetings and in-house counsel matters also deserve careful attention. The efficiencies offered by AI tech cannot be ignored – transcription software can save hours of work to prepare meeting minutes; board books can be summarized to help directors absorb materials more efficiently; and AI chatbots can assist counsel and directors as they work through difficult issues. But these tools come with risks unique to counsel and directors, for whom confidentiality, privilege and litigation- discoverability considerations are ever-present. For one, confidentiality is necessary to establish privilege, which in turn is a defence against the demands of evidentiary production. GCs should ensure that directors and in-house counsel are instructed to use only software that has been vetted by the company’s legal and IT teams on the basis of rigorous confidentiality requirements.
1
Governance Insights 2026
Powered by FlippingBook