Proxy contests in Canada fell to 10 in 2015, the lowest level since 2006, reflecting “a strong year for management” and its continued ability to mount successful defenses, said law firm Fasken Martineau DuMoulin's “Canadian Proxy Contest Study: 2016 Update,” released Friday.
By contrast in 2014, there were 15 proxy contests.
Broken out, last year was made up of nine board-related contests and one transaction-related contest, compared with 12 and three, respectively, the previous year.
“Institutional investors initiated a majority (five) of all formal board-related contests but were wholly unsuccessful in their efforts,” the report said.
In 2015, in board-related contest, boards won seven, while dissents tallied one full and one partial win.
Last year, dissents focused seven of their targets in board-related contests on companies with market capitalizations of less than C$50 million ($36.3 million).
The study was written by Aaron J. Atkinson and Bradley A. Freelan, both partners in the law firm.