[co-author: Ethan Schiff]

On April 28, 2016, The Toronto Stock Exchange (the “TSX”) published proposed amendments (the “Amendments”) to introduce requirements regarding Dividend / Distribution Reinvestment Plans (the “DRIPs”) to Part VI of the TSX Company Manual (the “Manual”). The TSX published the Amendments for public comment for a 30 day period. Comments should be in writing and delivered by May 28, 2016.

The Proposed Amendments

The proposed s. 617.1 requires pre-clearance from the TSX for new DRIPs, listing of additional securities under existing DRIPs and amendments to existing DRIPs. The Amendments include obligatory terms and conditions for all DRIPs including requirements pertaining to the price per listed security, the available number of additional securities for listing and security-holder eligibility. The Amendments impose procedural obligations for suspending, terminating, resuming and re-instating DRIPs. The new regime includes further amendments to the Manual to bring DRIPs within the TSX’s electronic communications regime and to impose the same rules upon non-corporate issuers. For more information, please see the TSX’s published request for comment.