Canadian Businesses To Save Up To $140 Million Annually

Archived Release

Canadian Businesses To Save Up To $140 Million Annually

Ministry of Consumer Services

Securities Transfer Act Passes Third Reading; Ontario Markets More Competitive QUEEN'S PARK, ON, May 19 - Investors will soon benefit from a more efficient and competitive securities market thanks to important legislation passed with all party support on Thursday in the Ontario legislature. For businesses these efficiencies will lead to an annual savings of approximately $140 million. "Pensioners, mortgage holders and investors all win with this bill because it helps ensure Ontario will remain an investment destination of choice." said Minister of Government Services Gerry Phillips. "We're on the side of businesses and investors who will benefit from efficient capital markets that can compete with the world and Bill 41 helps with that." The Securities Transfer Act brings Ontario up to date by giving the same kind of legal certainty to securities transferred electronically as those that are transferred by physically moving paper certificates. It consolidates all of Ontario's current securities transfer laws, making it easier for everyone to know the rules and understand their rights and obligations. "This new act will help keep the capital markets efficient in a time of increased competition," said Richard Nesbitt, CEO of TSX Group. "We welcome its passage on behalf of all market participants." "Bill 41 confirms Ontario's leadership role in giving business people the certainty and predictability they need to get deals done," said Robert Scavone, a corporate law partner with the legal firm McMillan Binch Mendelsohn LLP. "It's state-of-the-art legislation, and I think that putting it on the books will send a strong signal to the North American capital markets that this province is a good place to do business." Bill 41 was introduced on December 1, 2005, as the first part of a three- phase plan to update corporate and commercial laws in Ontario and was part of the unanimous recommendations of an all-party legislative committee. The bill carried second reading on May 2, 2006, and will come into force the day it is signed by the Lieutenant Governor. Disponible en fran├žais www.mgs.gov.on.caFor further information: Paul de Zara, Minister's Office, (416) 327-3072; Jason Wesley, Ministry of Government Services, (416) 327-2805