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April 2019
FAIR Focus

FAIR Canada Statement on SNC: Why penalize millions of Canadians? 
FAIR Canada supports the use of deferred prosecution agreements to resolve allegations of criminal offences brought against Canadian public companies in order to mitigate the victimization of innocent shareholders. As a general rule, a deferred prosecution agreement is in the best interests of innocent stakeholders including current shareholders, employees, communities in which a company carries on business and Canada as a whole. 

The decision by the Director of Public Prosecutions Service of Canada (DPP) not to enter into discussions involving a deferred prosecution agreement with SNC-Lavalin (SNC) cost Canadians approximately $1 billion. On October 10, 2018 the day SNC announced the DPP decision, SNC shares fell 13.5% from $51.85 to $44.86. Canadians own 82% of SNC's outstanding shares. The drop in the value of SNC shares amounts to approximately $1.234 billion with Canadians owning 82%. So the decision essentially fined Canadian pensioners and other investors $1 billion.

To read the full statement click here
Stephen Jarislowsky On SNC Governance and DPA
In the wake of scandals, SNC shareholders should have the right to vote on the sale of the 407 shares

Stephen Jarislowsky (a former director of SNC and current director of FAIR Canada) has written a personal note where he calls on the Board of SNC-Lavalin to have a shareholder vote on the sale of the 407 shares. He also asks: why is the government reluctant to negotiate a settlement?

Having served as a director of SNC Inc and its successor SNC-Lavalin from 1975 until 1996, I have maintained a strong interest in the company, and have been highly perturbed by the scandals it has undergone during the last decade. SNC, during my terms on the Board of Directors, was probably the company I was most proud of being associated with, among the 25 board memberships I took on during my career. It was, in those years, well-managed first by Camille Dagenais and then later by Guy St-Pierre, both men of high ethics and superb leaders.

After I retired, the company kept growing, but the board was not as effective. Loose controls and tough budgets led to cheating to earn bonuses. Jacques Lamarre, who was a strong project manager during his time, did not work well with his board, and the board in turn did not fulfill its function. The results under Jacques' successor led to the Libya scandal that occurred over 7 years ago.

In the years following this, the company cleaned house under a revised board. Punishment was exacted upon the worst offenders, but many were only fired and not pursued, and the directors escaped punishment entirely, although they too had a duty to know what was going on. Many good people left, and many are still leaving, finding work with competitors or in different careers. The company itself was never exonerated, and though the board initially cleaned house, they never succeeded in attracting strong new directors or management, in spite of mergers with other firms which have not impressed me.

To read the full letter click here
Update on Staffing and the Board of Directors
On April 15, 2019 FAIR Canada announced changes in staffing and its Board of Directors. 

Staffing

Ermanno Pascutto has been appointed interim Executive Director on March 1, 2019 as a result of the resignation of Frank Allen effective February 28, 2019. "FAIR Canada is undergoing a major transformation, and we hope to re-emerge as a new and improved FAIR Canada 2.0.",said Ermanno.

"The Board appreciates Ermanno stepping back into the Executive Director role on an interim basis to assist with the transition.", said Guy Lemoine, Co-Chair of FAIR Canada "FAIR Canada is currently searching for a full-time Executive Director."

"We are pleased to announce the addition of Douglas Walker and Line Deslandes, experienced securities experts to our team.", said Ermanno.

...

Board of Directors

...

We are pleased to announce that Larry Bates has joined the Board of Directors. Larry Bates is an independent investor advocate, author, consultant and speaker. Larry enjoyed a thirty-five year banking career with several major financial institutions in both Canada and the U.K. including as Global Head of Debt Capital Markets for RBC.

To read the full announcement click here
FAIR Canada is Searching for a New Executive Director 
As of April 15, 2019 FAIR Canada has renewed its initiative to find a new Executive Director. Click here for more information about the position. 
 
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Investment Executive -  FAIR Canada rejigs management, board
 
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