I can't see Rosseau so blatently shaffting the current shareholders there has to be some accountability. I’m sure the TSE and SEC have some rules and regulations governing a Board of Directors’ of a Publicly Traded Company. All public corporations have a board that should be responsible to manage the company in a appropriate and acceptable manner. This would include discharging their duties in good faith in the best interests of the company and its shareholders. In some states there is a clause called the Duty of care and a duty of Loyalty. The following is from the laws concerning the state of New Jersey.
Duty of Care: “ member of the board must discharge his duties in good faith and with the degree of diligence, care and skill that an ordinarily prudent person in a comparable position would exercise under similar circumstances. This duty is commonly referred to as the “duty of care.”
Duty of Loyaltiy: “members of the board have a “duty of loyalty.” That means that no director may undertake an act or omission which that person knows or believes to be contrary to the best interest of the corporation or its shareholders in connection with any matter in which the board member has a material conflict of interest. To the extent that members of boards fail to satisfy the duties owed to the corporation, they may be held personally liable for their conduct. In fact, there are some instances in which board members will be jointly and severally
liable to the extent creditors or shareholders are injured by actions taken by the board.”
If there are not laws like this regarding TSX companies there should be. I am going to call the Securities and exchange and see it these type’s of laws, checks and balances apply in Canada.
Relic
