This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Stakeholders’ primacy: paradigm shift confirmed

  • Canada Image

Sep 30, 2019

In September 2019, Norton Rose Fulbright released a summary of Bill C-97, which stipulates that when acting in the best interests of the corporation, directors and officers may consider, but are not limited to the interests of shareholders and certain other stakeholders.

At first glance, the new provision appears consistent with the Supreme Court’s reasoning in cases on director liability, but, given a heightened climate for director accountability and recent focus on stakeholder interests in Canada and abroad, it is imperative to review the potential implications of these changes for corporate leaders.

The summary covers:

  • From shareholder’s to stakeholder’s primacy?
  • CBCA now expressly recognizes stakeholder interests
  • Differences between the CBCA and US corporate statutes
  • Recommendations

Review Bill C-97 on the Parliament of Canada's website and the summary on Norton Rose Fulbright's website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.