Quebec’s Anti-Take-Over Law: Coming Soon?

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The issue made the headlines during the 2012 Quebec provincial elections. Each of the three major parties in the running claimed that they would make it harder for foreign companies to acquire Quebec-based ones. The Parti Québécois and the Coalition Avenir Québec also proposed creating multibillion-dollar funds within the Caisse de dépôt et placement du Québec, the province’s pension-fund management arm, to buy up shares in Quebec-based companies “threatened” with foreign takeovers.

In November 2012, Quebec Finance Minister Nicolas Marceau said that the minority government formed by the Parti Québécois wanted to make it more difficult for Quebec companies to be sold following a hostile takeover bid from foreigners. Marceau indicated that his government wanted to give boards of directors the right to take into account the views not only of shareholders, but also employees, retirees, suppliers and affected communities after receiving a hostile bid.

Reporters and others have suggested that another component of the yet to come proposals would empower the board of directors of a Quebec company faced with a hostile bid to make such bid unavailable to the company’s shareholders if the board of directors believes that the bid is inadequate.

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Published In: Business Organization Updates, Business Torts Updates, International Trade Updates, Mergers & Acquisitions Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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