Owing to federal legislative changes which came into force on August 31, 2022, public companies governed by the Canada Business Corporations Act (CBCA) are now subject to true majority voting for uncontested director elections. Under the new true majority voting regime, a director will be elected to the board in an uncontested meeting only if the director receives a majority of the votes cast by shareholders. For an overview of this recent statutory change, along with other updates to the CBCA, refer to Development #3 of Chapter 1. In this chapter, we discuss what federal public corporations can do to prepare for true majority voting in advance of their next director election.
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Governance Insights 2022
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