CSA Uncontested Director Elections


On Jan. 31, CSA OSC published exemption for reporting issuers.


  • CSA OSC published an exemption from director election form of proxy requirement.
  • Subsection 9.4(6) of NI 51-102 Continuous disclosure obligations, for reporting issuers
  • Under Canada business corporations act (CBCA) for uncontested election of directors.
  • CSA staff notice regarding CSA coordinated blanket order 51-930 was published concurrently by CSA ALB, CSA BC, CSA NBW, CSA NVS and CSA Que.
  • Exemption
  • Relief implemented through local blanket orders substantively harmonized across CAN.
  • On Aug, 31, 2022, amendments to CBCA and associated regulation came into effect that generally require majority voting for each candidate nominated for director.
  • In uncontested director elections of CBCA-incorporated reporting issuers.
  • Where majority voting applies, form of proxy required must provide shareholders with option to specify whether vote is to be cast for/against rather than voted/withheld.
  • Exemption aims to clarify applicable rules by exempting CBCA-incorporated reporting issuers from requirement under legislation to specify securities be voted or withheld.
  • Effectiveness
  • Comes into effect Jan. 31, 2023, remains in effect until earlier of Jul. 31, 2024; unless extended, effective date of an amendment to NI 51-102 that addresses same matter.
  • May 2024 CSA OSC Commission Approval
  • On May 9, 2024, CSA OSC published notice of commission approval of OSC Rule 51-506, providing extension in Ontario to CSA blanket order 51-930 in the official bulletin.
  • Extends temporary extension to exemption given in blanket order 51-930 in Ontario.
  • Exemption from director election form of proxy mandate is extended to Jan. 31, 2026.
  • Upon ministerial approval, Rule 51-506 will come into force on Jul. 31, 2024.
  • Jul. 4, 2024 CSA OSC Notice of Ministerial Approval
  • On Jul. 4, 2024, CSA OSC issued notice of ministerial approval, effective Jul. 31, 2024.
  • Minister of Finance approved CSA OSC Rule 51-506 re extension, on Jun. 26, 2024.
  • Jul. 4, 2024 CSA OSC Approval Publication
  • On Jul. 4, 2024, CSA OSC published notice of ministerial approval in OSC Bulletin.

Regulators CSA; CSA ALB; CSA BC; CSA NBW; CSA NVS; CSA OSC; CSA Que
Entity Types Corp
Reference CSA OSC Bul Vol. 47 No. 27 p. 5466, 7/4/2024; CSA ALB: PR, 1/31/2023; CSA BC: PR 2023/07, 1/31/2023; CSA NBW: PR, 1/31/2023; CSA NVS: PR, 1/31/2023; CSA Que: PR, 1/31/2023; CSA OSC: Nt, 7/4/2024; Bul. Vol. 47 No. 19, RF 51-506, 5/9/2024; PR, Nt, Order 51-930, 1/31/2023; CBCA; Citation: CSA OSC Rule 51-506; NI 51-102;
Functions Compliance; C-Suite; Legal; Operations
Countries Canada
Category
State
Products Corporate; Securities
Regions Am
Rule Type Final
Rule Date 1/31/2023
Effective Date 7/31/2024
Rule Id 161897
Linked to N/A
Reg. Last Update 7/4/2024
Report Section International

Last substantive update on 07/10/2024