June 21, 2008
Canada Gets it Right, Darn
The Canadian Supreme Court, without a written opinion, ruled unanimously in favor of Bell Canada and its buyout group, overruling a lower court that had ruled in favor of bondholders and held up the buyout. Now the buyers, who are suffering buyer's remorse, have to decided whether to go through with the buyout. In so doing, the Court upheld the shareholder primacy theory of Anglo-American law for Canada, against the wishes of academics and other members of the left who are pushing a "constituency theory" of board duty. By deciding sensibly, the Canadians will be more competitive with us than otherwise, darn.
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