Legislation on the case, AbitibiBowater, at Parliament of Quebec. Mr. Rebello keeps his word.
At the Adoption of the Law 7 Parliament of Quebec. The case of AbitibiBowater has been cited as an example. Here is an excerpt below. Maybe this can help you. Also was present, the AMF, I believe, is the equivalent of the SEC in Canada. Both SEC and AMF authorities, speak every week. I can not believe that the investigation be completed on this fraud. When one mentions such an anomaly in a parliament and that we pass legislation to prevent such fraud, It's that the former shareholders of AbitibiBowater are the victim of this planning by management.
Important question? 1) Have you received your notice of hearing? 2) Do we have still time for a class action? -----------------------------------------------------------------
The second proposal we do is in section 43 of Bill 7, the bottom is to ensure that frames ... that's compared to the conflict of interest, the first point I have brought you to the beginning of the session today, the importance of framing the conflict of interest in the detention of products.
Basically, what we propose is to specify that a person can not hold securities, derivatives in an amount sufficient to come to place a conflict of interest with respect to its power restructuring in the company. We had taken as an example. AbitibiBowater, which bondholders who had a say in the restructuring could also hold "credit default swap" that were betting on the collapse of the company in an amount sufficient to influence their future votes on restructuring . That's what prompted doubts about the decision that was made in restructuring Abitibitibibowater. But in the media, it was noted that a significant portion of bondholders could hold also in large quantities of "credit default swap." So we propose to add a fourth item of Article 43, right, which states, (it looks like: By inserting at the end of paragraph 11, the following: "It must limit the holding of derivatives risk of default, "credit default swap" on the company to a person who also has securities with a restructuring of the power company as creditors, shareholders holding more than 1% of the company and a fund or another company in connection with an administrator in order to prevent there being more interest in the failure of the company.) So that's the proposal we made, just to clarify in the bottom Article 43 the principle we want to prevent the owner of "credit default swap" is a conflict of interest in the company. So, it submits that the Second Amendment to the minister and hope he will be able to watch it with his team and then come back with an opinion on it. With that, I will ask the President if it were possible to take a short break to go to the bathroom.
Mr. Rebello: ... to ensure that these people are in conflict of interest in the restructuring of a company. It seems appropriate that it be done. Because right now it is not clear who should do it. In fact, there is no one who looks at it right now. Then the only actor who could really do it, the AMF <T>. Ensure that, when there is transaction ... For example, suppose that there is a transaction of a significant amount of "credit default swaps" based on ... that focus on the fall of any business. Well, the two actors who make this transaction there, one who sells and who buys that product have necessarily a situation of interest versus the company. It should be ensured that there is nobody in there is a conflict of interest, that is to say that his interest in relation to its "credit default swaps" that holds would the ... as opposed to its interests as a shareholder or creditor. That's right, that is the objective. I think the minister will also .
This is one question that is on the agenda in the U.S. right now. The SEC consult on legislation called Dodd-Frank. Then one component in this regulation is precisely to know is do we have to limit ... we must frame the famous CDS, credit-default swaps. We in Quebec, I think we had better ask the question too. Of course, we can not do it alone, then these regulations. We must act together with others. But I think to follow that debate is very timely, especially in the context where we, we have large companies such as Abitibibowater, which are very important business here, which ... with thousands of jobs, and who find themselves victims sometimes a little of the reality of financial markets. That is to say that the company executives can not just act in the direction to produce the best product at the best price and then sell it. They must also act in the interests of their board of directors and shareholders who are represented. So it's important to look at these issues not to be just one of the victims of this.
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