Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50879
CLOSING • A roundup of legal department news and trends Execs view cloud computing with caution Cloud computing is trying to make inroads in Canadian companies, but most business executives are still confused by the concept, with privacy and secu- rity being the top concerns, according to a recent study. The legal implications of operating on an Internet-based platform, where data can be stored by outside parties or flow through two or more jurisdictions, has also long been a worry for in-house lawyers. But the reduced costs and easier access make the option to co-operate, share, and communicate through an Internet- based system increasingly attractive for Canadian companies, particularly small- to medium-sized businesses. However, the survey conducted for CA Technologies by Leger Marketing shows 62 per cent of Canadian business executives say they are confused by the concept of cloud computing. Even the majority of those who understand its use in their companies say there must be more education on the topic. The 525 surveyed executives say the security and privacy teams within their companies are the most likely to be opposed to adopting cloud computing. The survey also indicated a rift between business executives and IT professionals over cloud computing risks. More than 44 per cent of IT professionals say privacy is their top concern, while 35 per cent of business executives believe that's the case. Cloud and data storage has been gaining a foothold in Canada, particularly among small businesses, where this type of infrastructure comes in handy. Almost half, or 47 per cent, of Canadian small businesses were using cloud-computing services — things like remote e-mail and messaging or data storage, according to a survey of 1,000 Canadian small business owners published in late 2010 by Angus Reid Public Opinion and Hewlett-Packard Co. More than 44 per cent of IT professionals say privacy is their top concern, while 35 per cent of business executives believe that's the case. IT PROFESSIONALS BUSINESS EXECUTIVES 35% 44% International companies looking for Canadian acquisitions International companies are looking to grab a piece of the good life in Canada's economy after the coun- try's positive showing while much of the rest of the world lingered in recession. As a result, there will be an increase in mergers and acquisitions activity in 2011, lawyers at Stikeman Elliott LLP wrote in a report looking at likely trends in the M&A market. The report's authors, Richard E. Clark and Curtis A. Cusinato, say Canada remains open for business internationally, despite all of the hype generated by the government inter- vention that stopped the takeover of Potash Corp. of Saskatchewan Inc. by Australia's BHP Billiton Ltd., citing con- cern for Canadian national interests. "In spite of the publicity generated by the Potash case, we believe that the situation was an anomaly rarely to be repeated," the authors wrote. "Canada remains open for business in 2011. It will be business as usual for most for- eign acquisitions of control of Canadian businesses." Stikeman's M&A team was directly involved in the case, as it worked with PotashCorp in defence of the BHP unsolicited takeover bid. The full report is available at http:// tiny.cc/IHMA. Little progress seen among women executives Women's representation has not grown significantly in U.S. corporate boardrooms, executive office suites, or the ranks of companies' top earners in the last year, according to a recent Catalyst Census report. "The 2010 Catalyst Census: Fortune 500 Women Board Directors" report looked at women's representa- tion in corporate governance at the largest U.S. companies. In 2010, women held 15.7 per cent of board seats at Fortune 500 companies. In both 2009 and 2010, more than half of companies had at least two women board directors, yet more than 10 per cent had no women serving on their boards. Similar to 2009, visible-minority women held three per cent of all board seats and rep- resented about one-fifth of all women directors. The annual report provides critical statistics to gauge women's advancement into leadership and highlights the gender diversity gap south of the border. 46 • FEBRUARY 2011 INHOUSE