Mme. Saucier is Chair of the
Canadian Broadcasting Corporation and sits on the boards of several major Canadian
corporations, including the Bank of Montreal, Petro-Canada and Nortel Networks Ltd. A
leader within the CA profession, Mme. Saucier recently served as chair of the CICA Board
of Directors. She was also a member of the CICA Task Force on Corporate Governance and
chaired the Directors Advisory Committee to the CICAs Criteria of Control Board.
"Corporate governance is a long-standing interest of mine, and I
am encouraged to see the progress that some Canadian companies are starting to make in
this area," says Saucier. "However, we still have a great deal to accomplish
particularly as governance is becoming an international business issue as well. For
Canadian markets to attract investors, we would be wise to ensure that our governance
practices respond not only to business needs at home, but also keep pace with developments
in other countries."
Under Mme. Sauciers leadership, this new Committee will review
the current state of corporate governance in Canada, compare Canadian and international
best practices, and make recommendations for changes that will ensure Canadian corporate
governance is among the best in the world.
Barbara Stymiest, President and CEO of the Toronto Stock Exchange,
said, "Corporate governance is a vital link that connects investors to companies.
Sound corporate governance is crucial to healthy capital markets. Protecting the interests
of shareholders enables issuers to access competitively priced capital."
"People who invest in a company want to have a sense of assurance
about how it is managed, and how effectively management is monitored. Investors want to
know they have a voice in the board room, and an eye on the companys
direction," explained Bill Hess, CDNX President and CEO.
The Chair of the Ontario Securities Commission, David Brown, welcomed the establishment
of the Committee, noting that it will provide a timely check of the state of Canadian
corporate governance.
"The Committee has an excellent opportunity to build on the innovative work that
has been done in Canada and elsewhere and make recommendations to strengthen the corporate
governance culture in Canada in ways that will assist companies in meeting their business
objectives and ensure we compare favourably with other markets," Mr. Brown said.
Five years ago the Toronto Stock Exchange introduced a series of
guidelines for corporate governance of listed companies. The guidelines reflected the
recommendations of the Corporate Governance Committee chaired by Peter Dey. The Dey
Committee shaped its report on the basis of 18 months of extensive study that included
public meetings across Canada, and more than 150 submissions by interested parties.
The report's 14 guidelines provide a basis for clear corporate
accountability, by spelling out best practices in board responsibility, composition,
compensation, education, assessment, and committee structure. The guidelines are
recognition of the fact that best practices for boards lead to best results for
shareholders. But they are also recognition of the fact that not all companies are the
same, which is why they are guidelines rather than rules. Of the 14 guidelines adopted by
the TSE, many were applicable to the junior marketplace and were implemented by CDNX.
Last summer, the first official follow-up study on how closely
corporate Canada follows Toronto Stock Exchange corporate governance guidelines was
released by the TSE and Institute of Corporate Directors. The study found that the
majority of companies that Canadians invest in take seriously the Dey guidelines. The
study also found that although progress is being made, not all companies embrace the
guidelines aimed at improving the effectiveness of their boards.
Today's announcement signals a strong commitment to the advancement of
Canadian corporate governance. A future announcement, including the names of those chosen
for the committee, will be made by the end of the summer. A report is expected by the
spring of 2001.
CICA
The Canadian Institute of Chartered Accountants (CICA), together with the provincial and
territorial institutes of chartered accountants, represents a membership of over 66,000
professional accountants and 8,500 students in Canada and Bermuda. The CICA conducts
research into current business issues and sets accounting and auditing standards for
business, not-for-profit organizations and Government. It issues guidance on control and
governance, publishes professional literature, develops education programs and represents
the CA profession nationally and internationally.
CDNX
The Canadian Venture Exchange (CDNX) was launched in November 1999 with some 2,300 listed
companies active in the technology, resource, industrial and manufacturing sectors. As the
countrys venture marketplace, CDNX provides emerging companies with improved access
to capital while providing investors a with a well-regulated market in which to make
venture investments.
TSE
The Toronto Stock Exchange consistently ranks among the worlds top exchanges by
market capitalization and trading volume. In 2000, the average daily value of TSE trading
has exceeded $4 billion. The TSE provides investors with a well-regulated, fair and
accessible marketplace.
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