West Face Capital reaches accord with Maple Leaf Foods

On February 3, 2011, Canadian food processor Maple Leaf Foods announced that it had appointed Gregory A. Boland, CEO of Toronto-based investment fund West Face Capital, to its board of directors.

West Face Capital took a 11.4% stake in Maple Leaf Foods in August 2010, becoming its second-largest shareholder and a leading critic of the company's governance.

West Face had asked for a special meeting of shareholders to vote on several nonbinding resolutions, including resolutions to decrease the size of the board, to ensure most board directors are independent, and to allow shareholders to regularly review Maple Leaf's approach to executive compensation.

As part of an agreement with West Face, Maple Leaf said it will reduce the number of directors to be nominated for election at the April 28 annual meeting. West Face has dropped its request for a special meeting, and its resolutions will not be considered at the company's annual meeting.

Fasken Martineau advised West Face Capital on its initial investment in Maple Leaf as well as subsequent negotiations with the company, with a team led by Jon Levin and that included Daniel Batista.