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Media Coverage

Financial Post quotes Krisztián Tóth in an article about how the Canadian Securities Exchange plans to restrict “shell” companies’ access to the public market

Fasken
Reading Time 1 minute read
“Stock exchange cracks down after stream of ‘shell’ companies make it to market” by Barbara Shecter and Peter Koven, Financial Post Financial Post quotes Toronto lawyer Krisztián Tóth in an article about how shell companies have evaded regulatory bars and the CSE’s proposed steps to rein in their proliferation.

 

“I can see why they’re cracking down on it in the sense that you’ve got listed companies without real businesses,” said Krisztián Tóth, a partner in the securities practice at law firm Fasken Martineau DuMoulin LLP in Toronto. “Once there’s real mischief, it’s not the CSE that’s going to stop it. It’s the OSC that has to step in.”

 

“I’m sure it was either partially not being diligent enough, and, also, you’re getting fees…it’s probably a combination of those that led to this situation,” Tóth said.

 

“They always had this discretion. It’s just they got called out on it by their parent, the regulator, having some concern,” Tóth said.