Reply from FAIR Canada, I guess we can't expect any help from them. It troubles me when he claims he see's "far too many of these cases". I do believe this does raise policy or systemic issues. Maybe if more people send him emails he will at least write a letter to the OSC. If not maybe he will speak to the media about it, if someone wants to forward his name to any contacts they have. Has anyone spoken to a lawyer about the remedies he mentions.
Dear XXXXX:
Thank you for getting in touch with FAIR Canada about Allen-Vanguard. We certainly understand your frustration at the process and your anger at the losses that you have incurred. In those feelings, unfortunately, you are in very good company in this country. We at FAIR Canada see far too many of these sorts of cases.
FAIR Canada devotes our limited staff and resources to policy issues that affect the masses of Canadian investors. We do not and cannot get involved in individual cases, no matter how deserving. In cases that raise policy or systemic issues we have written to regulators encouraging them to intervene.
We have devoted much effort to encouraging the TSX and securities commissions to require shareholder voting on transformative, related party and “going private” transactions. And we are working hard to come up with specific suggestions to address the problem of white collar crime in Canada, particularly the historic weakness of the enforcement and investor protection regimes.
In most cases, only the regulators (in this case the Ontario Securities Commission) have the statutory responsibility, authority and substantial resources to intervene – so your request should be directed to them. In the Allen-Vanguard case, a judge will have to determine whether the transaction is fair and reasonable, mainly by looking at the interests of the parties (including shareholders) whose rights are affected. Shareholders can also seek redress through Section 106 of the OBCA, which allows a judge to require a shareholder meeting, as well as the CBCA’s oppression remedy. Legal representation will be required.
We wish you much success in your quest and hope that we might be of greater assistance in the future.
Sincerely,
Steven Y. Garmaise, CFA
Associate Director
161 Bay Street, 27th Floor | Toronto, ON | M5J 2S1 [Note new address and phone number]
steve.garmaise@faircanada.ca | www.faircanada.ca | 416-572-2743 |
