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Directors of listed companies that are contemplating related-party transactions should pay attention to a bulletin issued by the Canadian Securities Administrators last month.

The regulators of Ontario, Quebec, Alberta, Manitoba and New Brunswick jointly served notice that they are going to be looking at many factors more carefully in order to protect minority shareholders in so-called conflict transactions. Regulators are trying to ensure minority shareholders have access to the reasoning and analysis of the board and special committee regarding why a transaction is fair, how a deal is desirable, and more.

Lexpert contributor Sandra Rubin reports at www.lexpert.ca.

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