The Canadian Securities Administrators (CSA) had previously issued a consultation paper to initiate a discussion about the appropriateness of the current definition of “independence” for directors and audit committee members of reporting issuers. After reviewing the comments received, the CSA published Staff Notice 52-330 (Staff Notice) on July 26, 2018 confirming that the CSA intend to maintain the current approach to determining independence, which combines a principles-based approach with a number of bright-line”disqualifications.
According to the Staff Notice, the comments received by the CSA expressed general support for the current approach. Accordingly, the CSA opted to maintain the status quo as it is well understood by market participants and enables issuers to determine, and allows investors to evaluate, independence with certainty.
You can read the Staff Notice here.
DISCLAIMER: This post is intended to convey general information about legal issues and developments as of the date above. It does not constitute legal advice and must not be treated or relied on as such.