Thursday, May 22, 2008
A Canadian appellate court sided with the bondholders of Canadian telecommunications company BCE Inc. and held that the company's LBO is unfair to them. According to the court,
"The Board should have considered the interests (including reasonable expectations) of the [bondholders]. In Canada, the directors of a corporation have a more extensive duty...giving consideration to the interests of all stakeholders, which, in this case, includes the [bondholders]."
Is this an accurate expressesion of Canadian law, or will the decision be overturned on appeal? Any experts in Canadian corporate law out there? WSJ, BCE Buyout Blocked in Canada Court.