Governance Insights Report

Last updated on October 8, 2020

Earlier this week, Davies published their 2020 report on corporate governance trends and developments.

Against the backdrop of the COVID-19 crisis, this year’s report explores key issues for boards to consider in order to build resilience in the short, medium and long terms. In our view, taking a proactive, principles-based approach to governance will best position organizations to respond and recover when – not if – the next disruption occurs.

This year’s edition comprises the following chapters:

  • Special Committees: Governance Safeguards for Conflict of Interest Transactions and High-Stakes Situations. Sets out best practices for establishing and operating a special committee to mitigate risks in M&A and other contentious situations.
  • Risky Business: The Board’s Role in Enterprise Risk Management. Discusses practical steps for boards to adopt to strengthen their risk management oversight and business continuity planning post-pandemic.
  • Navigating Financial Distress: Key Considerations for Directors. Outlines key considerations, including duties, obligations and liabilities, for directors of companies in or potentially entering financial distress.
  • Shareholder Activism Abates, but Not for Long: Significant Activity and Developments in 2020. Offers guidance for both issuers and shareholders navigating today’s markets, in which board-related, M&A and other types of activism have become a permanent fixture.
  • Let’s Take This Online: Virtual Shareholders’ Meetings in 2020 and Beyond. Details top considerations when holding a virtual AGM, including meetings held to consider contested or other significant changes.
  • Executive Decisions: Compensation Trends in and Outside of Times of Crisis. Highlights top trends in response to the COVID-19 crisis and guidance for boards considering recalibrating their compensation plans.
  • Beyond Gender: Diversity and Inclusiveness Now and Going Forward. Explores growing diversity expectations and offers practical tips for boards to enhance racial and ethnic diversity and stay ahead of the changing landscape.
  • ESG and Climate Change in the Shadow of COVID-19: “E,” “S” & G Are Here to Stay. Considers the growing importance of ESG matters, particularly with respect to the environmental and social components and convergence toward the TCFD reporting framework.
  • Governance in a Nascent Industry: Lessons from Canada’s “Green Rush.” Summarizes governance pitfalls and key learnings for young issuers and those in emerging growth industries to draw from Canada’s cannabis experience.

Go here to access the full report.