Mr. Speaker, I rise today to speak on behalf of the Minister of Industry in support of the expeditious passage of Bill S-11, an act to amend the Canada Business Corporations Act and the Canada Cooperatives Act and to amend other acts.
During second reading debate on Bill S-11 several hon. members took note that the bill would represent the first substantive amendment to the CBCA in over 25 years. In that time there have been significant developments in corporate governance practices driven primarily by the globalization of capital and business markets. These developments are only exceeded by the tremendous advances in technology that have made globalization possible.
Hon. members may recall that the bill is the product of extensive review and analysis that began in 1994. Consultation with stakeholders was comprehensive. There were nine discussion papers, coast to coast meetings by Industry Canada and parallel national consultations by the Standing Senate Committee on Banking, Trade and Commerce.
The reforms in the bill would improve and modernize four important areas of the marketplace framework statutes that govern business corporations and co-operatives. First, they would expand the rights of shareholders by facilitating wider communication and encouraging more participation in corporate decisions through the shareholder approval process.
Second, they would help eliminate barriers to global competitiveness by allowing corporations more flexibility in choosing directors from a wider international pool of talent.
Third, they would more reasonably define the responsibilities and liabilities of directors, officers and shareholders.
Finally, they would eliminate unnecessary regulatory duplication and reduce the cost of compliance.
All the reforms in the bill would give corporations and co-operatives greater flexibility in pursuing marketplace opportunities. Because of this, shareholders large and small can be more confident in the future value of their investments.
The reforms are a response to the new ways Canadian companies are doing business today. They would encourage corporate governance practices that are geared to long term growth and they would provide a sound framework for prospering in the global marketplace.
The level of agreement on the provisions of the bill is exceptionally high. The witnesses who appeared before the Senate committee were all but unanimous in their support of the principles of the bill as it appears before us. As well, virtually every stakeholder who appeared before the Senate committee urged quick passage of the bill. They included representatives from the corporate community, large institutional investors, shareholder activists, provincial securities commissions and co-operative associations, among others.
The reforms in the bill are long overdue. Corporations want them so they can take advantage of the efficiencies and cost savings the bill would deliver.
Investors too want a modern corporate law that helps protect the value of their securities. Shareholder activists want to be able to use the liberalized shareholder communication and proposal provisions, especially before next proxy season.
Consideration of the previous version of Bill S-19 was postponed by the dissolution of parliament last October. However the interruption allowed the government time to give further consideration to representations made before the Senate committee.
The bill would incorporate the resulting improvements, and that is what we would make into law. I am confident that hon. members will agree that we should approve the recommendations of the Standing Committee on Industry, Science and Technology and then approve Bill S-11 as amended.