Metro Inc. | Call for a different firm of chartered accountants at Metro Inc.

Status
AGM passed
AGM date
Previous AGM date
Proposal number
5
Resolution details
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Other
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
Canada
Resolved clause
Given the number of shareholders who supported this proposal - 15.92% of votes cast last year - it is reiterated that, depending on the duration of current
contracts, the Board of Directors should call in another firm of chartered accountants.
Supporting statement
Such a vote reflects the desire of many shareholders for a fresh vision of the reliability of the financial information they receive, and of the independence of our chartered
accountants.
The goal of rotating auditors is to reduce the risks to their independence, which are largely due to the familiarity that may develop over time. There is a risk that, in the
long term, the auditor may become too close to the client. For example, the auditor's independence may be reduced when friendships are forged: the auditor becomes
too closely associated with the interests of the client's management, the audit plan becomes repetitive, or the auditor is hesitant to make decisions that would suggest
that his or her previous decisions were flawed.
In summary, the risks of familiarity with the client are likely to undermine the auditor's rigor, objectivity and critical thinking. Does the percentage of abstentions on the appointment of the current auditor reflect this opinion?
We consider that such a service should be subject to a more frequent renewal of vision, in order to assure shareholders that their auditors are offering them the best service at a competitive price, by ensuring a new approach to auditing, by a different firm.

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