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CHART: Steps to limit liability


Canadian companies can take steps to limit their liability under provincial laws that introduce new requirements for corporate disclosures:

Assume the new legislation creates liability for any public disclosure.

Establish and disseminate a disclosure policy and form a disclosure committee.

Ensure that all disclosures and statements are materially accurate and correct any inaccuracies.

Discourage directors, officers and other corporate representatives from making impromptu public remarks and ensure that all public statements are approved by appropriate company representatives in advance.

Create a written policy for reviewing public statements that includes the procedure to be followed if an inaccuracy is found.

Ensure that forward-looking statements are accompanied by appropriate cautionary language, and tailor such language to the specific disclosure situation.

Source: Blake, Cassels & Graydon L.L.P.