Real Causes of the Changing Role of Corporate Boards of Directors in Canada

Corporate governance has been the subject of much debate in recent years. Many factors have forced publicly traded companies to redefine their relationship with their shareholders. In response to the rise of shareholder activism and the globalization of markets, much less has been said in the Canadian business community and media about a new approach for corporate governance issues such as board composition, succession, responsibilities and compensation. The main forces that have triggered these changes in Canadian boards of directors are examined, in order to understand them and draw implications for managers, shareholders and directors alike.