Laurentian Bank of Canada | Become a benefit company at Laurentian Bank of Canada

Status
5.97% votes in favour
AGM date
Previous AGM date
Proposal number
3
Resolution details
Company ticker
LB:CN
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Corporate purpose
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
It is proposed that the Bank assess the possibility of becoming a benefit corporation and report on this consideration at the next annual meeting.
Supporting statement
Since 2002, banks have been disclosing information about their contribution to society, not only in terms of economic performance, but also social and environmental performance. Twenty years in, banks must take further their commitment to inclusive, environmentally sustainable prosperity by assessing like the Business Development Bank of Canada (BDC) is already doing, the possibility of adjusting their by-laws to become a benefit corporation. “Introduced in the State of Maryland in 2010, and now adopted in 36 U.S. states,” and in British Columbia and enacted in Bill 797, the benefit company is characterized by the following elements among others: (1) The purpose of the Company shall include [...] the creation of a positive impact on society and the environment, taken as a whole, from the business and operations of the Company […] (2) The Directors shall, when deciding what is in the best interests of the corporation, consider the short-term and the long-term interests of the corporation and the interests of the corporation’s shareholders, employees, suppliers, creditors and consumers, as well as the government, the environment, [stakeholders], and the community and society in which the corporation operates [...]. (3) In discharging his or her duties, and in determining what is in the best interests of the corporation, each director shall consider all of the Stakeholders [...] but shall not be required to regard the interests of any particular Stakeholder as determinative. McGill University Management Studies Professor Henry Mintzberg says, "Successful corporate social responsibility initiatives will never match or remedy the effects of corporate social irresponsibility.” Benefit companies make it possible to incorporate, in the banks' by-laws, their commitment to work in the general interest of the public and to accoung for the impact of their actions. corporation will allow the Bank to enshrine its commitment to operating in the general public interest in its articles of incorporation and to be accountable for the impact of its actions on all of its stakeholders.

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