Quebec Companies Could Veto Foreign Takeovers
This is an ominous sign.
Quebec could become the first province to arm companies with a veto power over foreign takeovers, under a proposal with potential domino-effect implications for other parts of the country.
Two political parties have now promised that if they win the Sept. 4 election they would allow a company’s board of directors to repel a foreign acquisition if it’s deemed to be against the interest of workers or the greater community.
The latest such pledge from the Charest Liberals, whose promise Monday resembles an earlier one from the Parti Quebecois, prompted one analyst to predict copycat moves elsewhere in Canada.
The PQ, which leads in the polls, last week promised to amend the Quebec Corporation Act to also give corporate boards broader powers.
– Canadian Press