Toronto Stock Exchange Members Overwhelmingly Support Demutualization And Realignment Plans

The members of the Toronto Stock Exchange today (June 10) approved demutualization of the exchange and the realignment of the Canadian stock exchanges. Both motions were supported by the overwhelming majority of the exchange's 99 members at the exchange's annual and special meetings of members held at the TSE Conference Centre today. The new demutualized structure of the Exchange will allow the TSE to respond quickly and decisively, based on sound business principles and accountability to shareholders. "All market participants will enjoy a more efficient Exchange, where the TSE's success is dependent on providing quality products and services for the best value, backed by reliability and protected by a well regulated, fair and efficient market place," said outgoing Chair, Barbara Stymiest. A third significant item was also approved which will see changes to the composition of the TSE Board of Governors. In line with best corporate governance practices, the TSE board will now have at least 50% non-member governors. With immediate effect, the number of member governors is reduced from 10 to seven, while introducing three non-member governors. There will continue to be four public governors. The new board is: Member Governors (Seven): Daniel F. Sullivan, Chair (ScotiaMcLeod Inc.); Wayne C. Fox, Vice Chair (CIBC Wood Gundy Securities Inc.); Paul K. Bates (Charles Schwab Canada, Co.); Paul W. Hand (RBC Dominion Securities Inc.); Helen M. Kearns (Kearns Capital Limited); Richard W. Nesbitt (HSBC James Capel Canada Inc.); Eric C. Tripp (Nesbitt Burns Inc.). Non-Member Governors (NEW) (Three): Brian A. Canfield (BCT Telus); Michael J. Sabia (Canadian National Railway Company); (Third non-member governor still to be appointed). Public Governors (Four): Diana Bennett Gale; W. Robert Farquharson; John P. Mulvihill; (Fourth public governor will be appointed as soon as his/her nomination is approved by the Lieutenant Governor-in-Council). President (To be appointed). Barbara Stymiest, outgoing chair (Nesbitt Burns Inc.), John Curtin (Goldman Sachs Canada) and public governor, William Broadhurst, stepped down at the meeting. "I am proud to have served as chair during one of the most challenging and exciting times in the history of the exchange. I hand over the reins to Dan Sullivan, knowing that the TSE is well-positioned to capitalize on future opportunities and secure its position as Canada's premier stock exchange," said Ms. Stymiest. Incoming Chair, Daniel Sullivan said: "Members have overwhelmingly put their support behind the TSE to ensure we secure a strong and robust exchange, and capital market system, for Canada and for all market participants - dealers, issuers and investors. The TSE is well on its way to responding to the global capital market challenges and securing a strong and successful future." "I am also pleased to report that we have a short-list of candidates for the position of President. Any one of these outstanding candidates would make a significant contribution to the TSE. We anticipate being able to make an announcement in a very short time," he said. The fully automated Toronto Stock Exchange consistently ranks as one of the world's top exchanges and is Canada's premier market for senior equities, accounting for approximately 90% of all equity trading in Canada. In 1998, more than 26 billion shares traded, worth more than $490 billion - about $2 billion a day in share transactions. With a proud 147-year history at the heart of the Canadian economy, the TSE continues to provide Canadian and international investors with a well-regulated, fair and accessible marketplace.