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

Status
3.58% votes in favour
AGM date
Previous AGM date
Proposal number
1
Resolution details
Company ticker
NA:CN
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 examine the possibility of becoming a benefit company and report back to shareholders at the next annual meeting.
Supporting statement
Since 2002, banks have been required to report on their contribution to society, not only in terms of economic performance but also social and environmental performance. Twenty years later, banks need to take a step further in their commitment to inclusive, green, and sustainable prosperity by exploring the possibility of becoming a benefit company, as the Business Development Bank of Canada (BDC) has already done by amending its bylaws. Introduced in Maryland in 2010 and now adopted in 36 U.S. states, the concept of benefit company has been introduced into B.C. legislation and in Quebec’s Bill 797. A benefit company has the following characteristics: (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, and the community and society in which the corporation operates (the “stakeholders”) to inform their decisions. (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.” 

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