Activists Continue to Swarm The phenomenon of activist swarms continues to play out in Canada. Defined by "Bloomberg" as multiple shareholders of a single issuer making contemporaneous but uncoordinated public demands from the company’s leadership, these activist swarms have made headlines in recent years. We previously covered this topic in our 2023 Governance Insights article, “ As the Pandemic Abates, Activists Advance: Shareholder Activism Rebounds in Canada .” In 2024, multiple shareholders targeted several large companies, including Dye & Durham Limited, Parkland Corporation and Gildan Activewear Inc. In each instance, the targeted company confronted disparate demands from multiple constituencies, each with its own objectives. For instance, in both the Gildan and Dye & Durham boardroom battles, the company entered into a settlement with one of its shareholders while continuing to attempt to address the concerns of others. This strategic response to an activist swarm seeks to “divide and conquer” by placating certain shareholders within the group while isolating those whose demands might be more challenging to satisfy. As activist swarms become more prevalent, companies need to be proactive in their engagement strategies. By developing a comprehensive understanding of their shareholder base and maintaining open lines of
communication, companies can better anticipate and address shareholder concerns before they escalate. Additionally, companies should be prepared to negotiate and potentially settle with activists whose objectives align with the company’s best interests. We expect the activist swarm “playbook”—how companies respond to swarms and how activists respond to competing demands from other shareholders—to continue evolving as this trend persists. The Davies Guide to Shareholder Activism and Proxy Contests in Canada For a more general guide to the principal legal and practical issues faced by both shareholders and target companies in the context of activism and proxy contests, refer to our Guide to Shareholder Activism and Proxy Contests in Canada .
Note on the data: Activism data in this chapter was sourced from Diligent Market Intelligence and excludes shareholder proposals.
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Governance Insights 2024
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