Canadian regulators seek more leeway for boards battling hostile takeovers

TORONTO – Canada’s provincial security regulators are proposing a new set of rules for so-called poison pills, a type of defence against hostile takeovers.

The Canadian Securities Regulators say the changes would give a target company’s board of directors more discretion about when to lift the defence.

Under current rules, Canadian regulators will generally suspend a shareholder rights plan after a limited time.

The CSA says regulators wouldn’t intervene under the new rules except under extraordinary circumstances.

However, shareholders could terminate a plan at any time with a majority vote.

The proposed changes will be open for comment until June 12.