• TSX to Require Shareholder Approval for Dilutive Public Company Acquisitions
  • September 28, 2009 | Authors: Matthew W. Cockburn; Sharon C. Geraghty
  • Law Firm: Torys LLP - Toronto Office
  • The Toronto Stock Exchange has amended its rules to require listed companies to obtain shareholder approval when acquiring another public company if the transaction involves issuing more than 25% of the listed company's outstanding shares (on a non-diluted basis). While TSX originally proposed a 50% threshold dilution level, it adopted the lower 25% threshold in part to make the new rule for public company acquisitions the same as the existing rule for private company acquisitions.