Companies must disclose corporate governance system

Listed Canadian incorporated companies will be required to disclose their approach to corporate governance in their annual reports or information circulars, says the Toronto Stock Exchange’s board of governors.

The board adopted a recommendation from the final report of the TSE’s Committee on Corporate Governance in Canada, which has been studying this issue during the past two years.

The new requirement will make it mandatory for companies to disclose their corporate governance systems, making particular reference to the guidelines contained in the TSE committee report called Where were the directors? Where a company’s governance system differs from the report’s guidelines, it will be required to give an explanation of the differences.

This new requirement is subject to regulatory approval by the Ontario Securities Commission and will apply to all companies with a fiscal year ending on or after June 30, 1995.