On December 19, 2008, the Supreme Court of Canada released reasons supporting its June 20, 2008 decision to unanimously overturn the controversial Québec Court of Appeal decision and approve BCE’s proposed plan of arrangement. Although the transaction did not ultimately proceed due to the recent turmoil in the credit markets and concerns regarding the impact of the transaction on the solvency of BCE, the Supreme Court’s reasons provide valuable clarification regarding the duties of directors and the thresholds for challenging a transaction under the oppression remedy or the statutory standard for approval of a plan of arrangement.

type Securities and Capital Markets Alert - December 23, 2008 - Supreme Court of Canada Releases Reasons in BCE Decision