Provincial securities regulators in Alberta, Manitoba and New Brunswick have given notice to move ahead with regulations to address conflicts of interest for insiders and related parties.
On Thursday the provinces’ securities regulators issued a notice of adoption of Multilateral Instrument 61-101: Protection of Minority Security Holders in Special Transactions (MI 61-101)—which is already in place in Ontario and Quebec.
“The instrument contains requirements for enhanced disclosure, independent valuations and majority of minority security holder approvals for transactions such as insider bids, issuer bids, business combinations and related party transactions,” the Canadian Securities Administrators says in a release.
CSA says the regulation is designed to facilitate “the fair treatment of all security holders” by addressing these potential conflicts of interests.
The effective date of MI 61-101 for the three provinces is July 31.