Document Type

Article

Publication Date

2010

Source Publication

Banking and Finance Law Review. Volume 25 (2010), p. 247.

Keywords

Canadian; capital market; corporate governance; funds; investment; pension

Abstract

The article analyzes Canadian pension funds from the perspectives of corporate governance and the capital markets. It reviews their investment allocations and revenue patterns since the 1990s and identifies significant changes. The article finds that pension funds, as shareholders, have turned more activist and they wield considerable influence on corporate governance. They also contribute to shaping public policy, as evident from the relaxation of the rules on foreign investment and the removal of restrictions on communications among shareholders. The paper predicts that the role of pension funds will likely further expand in the future, given the constant rise in their resources and increased awareness of the need for responsible shareholder activism. Pension funds are ideally suited to be responsible shareholders who can effectively engage with the corporations, particularly in the areas of director elections and promoting corporate accountability.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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