OSC Stands Firm Over Management Cease Trade Orders For Hollinger

by Mike Godfrey, for LawAndTax-News.com, Washington

30 March 2005

The Ontario Securities Commission (OSC) announced on Monday that it would not be varying the terms of management cease trade orders (MCTOs) against certain directors, officers and insiders of Hollinger Inc. and Hollinger International.

The MCTOs were initially issued by the OSC in June 2004 because Hollinger Inc. and Hollinger International failed to comply with their obligations under Ontario securities law to file interim and annual financial statements, related Management’s Discussion and Analysis, and Annual Information Forms.

Hollinger Inc. and its principal, former owner of the Telegraph group, Conrad Black had applied for the trading ban to be lifted in order to allow Hollinger Inc. to be taken private by Lord Black via his Ravelston Corp. holding company. Ravelston currently owns a reported 78% of the firm.

In a statement, the OSC explained that:

“In pursuing the purposes of the (Ontario Securities) Act, the Commission is directed to have regard to, and balance in specific cases, the fundamental principles which are set out in section 2.1 of the Act. The fundamental principles of the Act include: requirements for timely, accurate and efficient disclosure of information; restrictions on fraudulent and unfair market practices and procedures; and requirements for the maintenance of high standards of fitness and business conduct to ensure honest and responsible conduct by market participants."

“The Commission is guided by these purposes and principles in its administration of the Act. In the circumstances of this case, and for the reasons discussed above, the Commission has been unable to form the opinion that it would not be prejudicial to the public interest to grant the relief requested. Accordingly, the applications to vary the MCTOs are denied.”

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