Canadian securities regulators rely on their public interest jurisdiction to address concerns that may arise in the absence of a breach of securities law. Securities legislation gives the regulators broad powers in this area, and a cease trade order is often the device of choice. In the 1980s, the regulators announced through a policy statement that they were prepared to engage their public interest jurisdiction to prevent shareholders of public companies from being deprived of the opportunity to decide for themselves whether to accept a take-over bid. The policy statement, which is now National Policy 62-202 (NP 62-202), served as a warning to managements of take-over targets that the regulators were prepared to override take-over defences in appropriate cases.

Republished with permission.

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