Regulatory Alerts2019-11-12
CSA Multilateral Staff Notice 51-359 Corporate Governance Related Disclosure Expectations for Reporting Issuers in the Cannabis Industry
Staff of securities regulatory authorities in seven Canadian jurisdictions issued this notice to address inadequate transparency regarding cross-ownership of financial interests by cannabis issuers and their directors or executive officers. The guidance mandates detailed disclosure of these financial interests in merger, acquisition, and other significant corporate transaction documents to mitigate conflicts of interest and ensure investors can make informed decisions. Additionally, the notice emphasizes the need for rigorous assessment of board member independence and encourages the adoption of written codes of business conduct and ethics to address potential conflicts.
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