CANADA: Quebec to introduce rules to protect firms from foreign hostile takeovers Canada

Monday November 26 2012

Reports have indicated that the Parti Québécois government plans to bring in legislation making it tougher for Quebec companies to become targets of hostile foreign-takeover Canada bids.

Finance Minister Nicolas Marceau told reporters in Montreal on Friday the bill would give the board of directors of publicly traded companies the authority to examine the impact of a hostile takeover Canada bid on workers, retirees and suppliers and take into account their interests.

The legislation would also ensure the company is protected from potential legal action should it refuse a takeover bid. And if the board of directors viewed the hostile bid as being inadequate and having a negative impact on the company, it would have the authority to withhold the offer from being voted on by shareholders.

This information will be updated as further details become available.