CSA publishes national corporate governance guideline published.

In late April, the Canadian Securities Administrators (CSA) published, in final form, new corporate governance guidelines and disclosure requirements. National Policy 58-201 Corporate Governance Guidelines (the Policy) and National Instrument 58-101 Disclosure of Corporate Governance Practices (the Instrument) come into force June 30, 2005.

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The policy introduces guidance on corporate governance practices for all issuers except investment funds. The disclosure instrument requires issuers to give specific disclosure regarding their governance practices. The purpose of this is to increase the transparency of market issuers' governance practices. If an issuer does not follow the guideline specifically, it must disclose what the board of directors does to facilitate the objective of the guideline. All companies on the TSX that are subject to the disclosure instrument will replace the TSX guidelines with the new instrument.

The policy, while it provides guidance on governance practices, is a principles-based approach to practices, rather than a set of mandatory rules. The CSA also recognizes that governance practices will continue to evolve and will need to be reviewed regularly, so this won't be the last word we hear on the issue.

For more information visit www.osc.gov.on.ca.