Issues in Canadian board transparency

Abstract

Transparency is considered one of the principles of good corporate governance. But what does it mean - in practice - especially when it comes to Board transparency - i.e. the ability of shareholders to gain knowledge about an organization's corporate governance practices in order to make an informed assessment of Directors' individual and collective roles and performance. In a preliminary investigation of Board transparency practices in Canadian listed firms (using data from 2003-2004), it was found that there were wide variations in the nature and quantity of corporate governance practices disclosed. The reasons for these variations are discussed and a number of recommendations for improved disclosure are presented. © 2007, Dr. Chris Bart, C.A. All rights reserved.