Canadian Lawyer InHouse

July 2017

Legal news and trends for Canadian in-house counsel and c-suite executives

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JULY 2017 6 INHOUSE News Roundup T he federal government issued an Order in Council June 7, delaying the coming into force date of the private right of action under Canada's Anti- Spam Legislation until completion of a par - liamentary review "in order to promote legal certainty for numerous stakeholders claim- ing to experience difficulties in interpreting several provisions of the Act while being ex- posed to litigation risk." "I heard through the grapevine three weeks ago and I didn't believe it — I thought it was too last minute," says Eloïse Gratton, partner and national co-leader of the privacy and data protection practice group at Borden Ladner Gervais LLP. Sources indicate the Retail Council of Canada sent a notice to members signalling the Order in Council was expected soon. "Canadians deserve to be protected from spam and other electronic threats so that they can have confidence in digital technol - ogy. At the same time, businesses, charities and other non-profit groups should have rea- sonable ways to communicate electronically with Canadians. We have listened to the concerns of stakeholders and are committed to striking the right balance," said Navdeep Bains, Minister of Innovation, Science and Economic Development in a press release. "If they are delaying it, that's definitely good news for businesses. A lot of them have been struggling in the past few months to make sure they are complying with CASL in light of the two changes that will be com - ing into force — the private right of action as well as the end of the transition period," says Gratton. Inga Andriessen, founder of Andries- sen & Associates, says the big message that will need to get out is that CASL hasn't been repealed. "CASL is still going to be in place. The government can still fine you the same way as they could before, but the good news is nobody is going to be suing you in court for any violation of CASL. If anything, it's a time to really take a look at your CASL poli - cies and make sure you're still compliant or get compliant if you weren't before." The government ought to be taking a "very careful review" of CASL to find out what is working and what isn't working and determine whether CASL is really serving its purpose in a way that is respectful of the needs of all stakeholders, says Dan Glover, partner with McCarthy Tétrault LLP. "It's the only sane decision the govern - ment could have made," says Glover. "With the private right of action, the really, really dangerous aspect of it is that it allowed for the combination of individual actions into class actions with extraordinarily high pen - alties that had nothing to do with actual harm. If you look at the language of the pri- vate right of action, it's a statutory penalty up to $1 million a day. "The prospect for class actions that don't actually connect to the guiding purposes of CASL just doesn't make sense and doesn't promote the goals of a more confident digi - tal economy," adds Glover. "What would happen is people would basically take the most conservative route to communicating with the public out of fear." CASL first came on the scene with anti- spam provisions in July 2014, with a three- year transitional period planned for com - mercial electronic messages. In January More women general counsel showing up on Canadian public boards M ore women general counsel are landing positions on Canadian public boards compared to their male counterparts, according to a report on opportunities for legal professionals on boards. Of 2,288 board positions in Canada in 2016, 35 general counsel held 44 board positions. Of those, 26, or 59 per cent, of the board positions held by GCs were women (six women each occupy two board positions) and 41 per cent were held by men. That's up from 2015 when 45 per cent were held by women GCs, according to the "Blakes Board Report: Opportunities for Women General Counsel: The Canadian Public Company Landscape for Legal Professionals on Boards." In fact, the report shows women GCs have achieved and exceeded gender parity on board representation, which does not exist among lawyers in general (where women hold 23 per cent of board positions) or board members generally (where women hold 20 per cent of board positions). In late 2016, Blake Cassels & Graydon LLP initiated a study to look at the involvement of general counsel and lawyers on the board of directors of Canadian publicly listed companies that comprise the S&P/TSX Composite Index. The results are based on 2016 proxy data that includes key fields such as board member name and biography, current employer ad title and company industry classification. Most of the board positions held by women GCs are in banking, insurance and the energy sector — all very regulated industries where GCs would have considerable experience in areas attractive to boards. Last year at this time, Trudy Curran, former GC of Canadian Oil Sands, decided she was moving on from the GC role and began pursuing board positions. At the time, Curran said it was a natural progression for a GC like herself, motivated to expand learning and skillsets, to seek out board positions. "In my view, the move is to take the next step and apply my skills in a board-director context. I think if you're a general counsel, you're used to not being the boss and, therefore, more apt to take into account other people's views and have a consensus-building approach," she says. Today, Curran serves on three boards: Baytex Energy Corp., Dominion Diamond Corp. and the Alberta Securities Commission. She is also on the Kids Cancer Care Foundation of Last-minute reprieve as feds suspend controversial private right of action provision in CASL

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