Governance experts 'disheartened' by disclosure review in Canada

A Canadian corporate governance group has expressed concern over standards of disclosure in the country following the publication of a new report.

The Canadian Securities Administrators (CSA), an umbrella organisation of provincial securities regulators, completed a review that found 55 per cent of companies need to improve their disclosure practices.

This figure, up from 36 per cent in 2007, was met with dismay by the Canadian Coalition for Good Governance (CCGG)

"It's disheartening that this report is indicating the disclosure … is getting worse," Stephen Griggs, executive director of the coalition, told the Financial Post.

The CSA's review was based on the analysis of shareholder proxy circulars from 72 companies.

Some of the most common disclosure deficiencies identified by the report included a failure to explain risk management practices and provide information about the process for nominating directors.

The 43 members of the CCGG control assets worth more than CA$1.4 trillion (£894.5 billion).