Petition to Justice Minister Rob NicholsonAnyone invested in Canadian public companies may take an interest inthis corporate governance and fair treatment of shareholders issue.
As a Canadian investor, please consider the implications of this precedent.
I am referencing Allen-Vanguard Corp. going private/buy-out, paying $0 funds to shareholders and seeking court approval.
The CFO wrote off $550 Mil in equity - much done during a prolonged"exclusive" negotiations period - WITHOUT third party review.
At first glance this may look like an isolated company specific issue -NOT so - as it could set a precedent for all Canadian public tradedcompanies. Just imagine the repercussions if any Canadian public tradedcompany were permitted to wipe-out shareholder equity by simply“tweaking” the balance sheet assets to be lower than its debt...without the required standard bankruptcy public disclosure of books.
Further troubling to current shareholders, Allen-Vanguard recentlyreleased a PR indicating they would be permitted to buy back all theassets within 18 months of the deal closing, with only a small profitdue to the "exclusive" buyer (U.S. investment bank).
Please consider signing this petition to Justice Minister Rob Nicholson
https://www.gopetition.com/online/31916.html
Thanks for reading the petition and an even bigger thanks if you decideto sign it. Please accept my apology if this is of no interest to you.