November 2, 2021
A high-profile family dispute over control of Rogers Communication Inc’s (RCI) board concluded in a Canadian court on Monday, when lawyers for former chairman Edward Rogers argued that he had the authority to appoint a new board without personally meeting shareholders, while the company’s lawyers argued that due process was deliberately ignored.
RCI’s boardroom battle stems from a public feud between the founding family members erupted publicly, weighing on the shares of Canada’s largest carrier and cast doubt on the future of a multibillion-dollar takeover.
The judge has scheduled November 5 to decide on the legitimacy of the composition of the new board.
The battle began after Edward Rogers, son of the late founder Ted Rogers, tried to dislodge CEO Joe Natale in September, claiming he had lost confidence in the CEO’s ability to lead the merged company after the start of its planned C$20 billion takeover of Shaw Communications.
The high-profile family feud is a rare event in Canada and has had an impact on RCI’s shares in public trading. The events have had a largely negative impact on Rogers’ stock, which has lost 1.4% this year, compared with a 17.9% rise at BCE and a 12.67% rise at Telus.
For more information, you may view the original story from Reuters.
