In the wake of scandals, SNC shareholders should have the right to vote on the sale of the 407 shares

Stephen Jarislowsky (a former director of SNC and current director of FAIR Canada) has written a personal note where he calls on the Board of SNC-Lavalin to have a shareholder vote on the sale of the 407 shares. He also asks: why is the government reluctant to negotiate a settlement?

Having served as a director of SNC Inc and its successor SNC-Lavalin from 1975 until 1996, I have maintained a strong interest in the company, and have been highly perturbed by the scandals it has undergone during the last decade. SNC, during my terms on the Board of Directors, was probably the company I was most proud of being associated with, among the 25 board memberships I took on during my career. It was, in those years, well-managed first by Camille Dagenais and then later by Guy St-Pierre, both men of high ethics and superb leaders.

After I retired, the company kept growing, but the board was not as effective. Loose controls and tough budgets led to cheating to earn bonuses. Jacques Lamarre, who was a strong project manager during his time, did not work well with his board, and the board in turn did not fulfill its function. The results under Jacques' successor led to the Libya scandal that occurred over 7 years ago.

In the years following this, the company cleaned house under a revised board. Punishment was exacted upon the worst offenders, but many were only fired and not pursued, and the directors escaped punishment entirely, although they too had a duty to know what was going on. Many good people left, and many are still leaving, finding work with competitors or in different careers. The company itself was never exonerated, and though the board initially cleaned house, they never succeeded in attracting strong new directors or management, in spite of mergers with other firms which have not impressed me.

To read the full letter click here. 

On April 15, 2019 FAIR Canada announced changes in staffing and its Board of Directors. 

Staffing

Ermanno Pascutto has been appointed interim Executive Director on March 1, 2019 as a result of the resignation of Frank Allen effective February 28, 2019. "FAIR Canada is undergoing a major transformation, and we hope to re-emerge as a new and improved FAIR Canada 2.0.",said Ermanno.

"The Board appreciates Ermanno stepping back into the Executive Director role on an interim basis to assist with the transition.", said Guy Lemoine, Co-Chair of FAIR Canada "FAIR Canada is currently searching for a full-time Executive Director."

"We are pleased to announce the addition of Douglas Walker and Line Deslandes, experienced securities experts to our team.", said Ermanno.

...

Board of Directors

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We are pleased to announce that Larry Bates has joined the Board of Directors. Larry Bates is an independent investor advocate, author, consultant and speaker. Larry enjoyed a thirty-five year banking career with several major financial institutions in both Canada and the U.K. including as Global Head of Debt Capital Markets for RBC.

To read the full announcement click here.