For general knowledge. Just received
Vancouver Stock Exchange - Street Wire
17 days to go, and the plot thickens
Tue 2 Nov 99 Street Wire
Also Alberta Stock Exchange (ASE)
With less than 20 business days to go before the proposed effective date
for the merger of the Vancouver and Alberta stock exchanges into the
Canadian Venture Exchange, there are still a number of matters to be
resolved before it can be considered a fait accompli.
Not the least of them is the question of recognition of the new exchange by
the British Columbia and Alberta securities commissions. Alberta Stock
Exchange president Tom Cumming told Stockwatch that the exchanges applied
in September to both commissions for full recognition of the new exchange,
but this has not yet been received. If it is not given by the end of the
month, the merger will not take place as scheduled on Nov. 29.
One of the questions posed to him in connection with joint recognition
related to which commission would hear an appeal from a decision made by
the new exchange. He replied that the proposed structure envisaged a
national hearing committee made up of representatives from the industry and
from the appropriate components of the new exchange which would, in the
first instance, hear such appeals. He was not so definite as to which
commission would hear an appeal from a decision of the new committee,
particularly in cases where the listed company had no relationship to
either province except for its listing on the new exchange.
Mr. Cumming admitted that he was not sure they had thought of all the
questions that might arise, although he hoped so, and thought that the
undealt-with questions could be resolved as they went along. He stressed
that the Canadian Securities Administrators, particularly those of Alberta,
British Columbia and Quebec had worked constructively and co-operatively
with them in their endeavours.
According to the proposed plan Alberta and B.C. will be the lead
jurisdictions, and, as mentioned above, they hoped to have their
recognition before the proposed merger date. Ontario has indicated that
when the Canadian Venture Exchange plans to open an office in that
province, it will probably grant the new exchange an exemption from
recognition, and Mr. Cumming was hopeful that Quebec would take the same
position, when the time comes. He admitted that Quebec's present position
was different, and that it will not allow the opening of an office, which
the amalgamators consider to be the hallmark of carrying on business as an
exchange in the province, without granting recognition.
Another hurdle yet to be jumped is the Alberta Legislature. The proposed
plan sees the Alberta Stock Exchange, presently a Private Act company,
becoming a company under the Alberta Business Corporations Act, with
shareholders rather than seatholders, but retaining its not-for-profit
status. This requires legislative action in Alberta. The Vancouver
exchange, a Special Act company, will then continue into Alberta and merge
with the reconstituted Alberta exchange, to become the Canadian Venture
Exchange, and apparently this does not require any legislative action in
B.C. According to Mr. Cumming the only thing that could derail the
legislative changes in Alberta would be something like a major blizzard or
other event that would prevent the legislature from sitting.
If this, and the joint recognition of the new exchange by the two lead
securities commissions, are not obtained before November 29, then the
merger can not possibly take place until next March. Although this would
have a harmful effect on the existing staffs and their morale, the
powers-that-be are leery of proceeding further until they are sure that
there will not be any Y2K problems. |
