Browning West seeks court order to prevent Gildan sale before vote on new directors - The Globe and Mail

Browning West seeks court order to prevent Gildan sale before vote on new directors - The Globe and Mail 13/04/2024 22:18 Browning West seeks court order to prevent Gildan sale before vote on new directors - The Globe and Mail Browning West seeks court order to prevent Gildan sale before vote on new directors NICOLAS VAN PRAET AND ANDREW WILLIS PUBLISHED APRIL 7, 2024 FOR SUBSCRIBERS Usman Nabi (l. [...] Browning says in its suit that even if the Gildan board is acting in a good-faith attempt to explore a sale, the continuing uncertainty regarding the future leadership of the company weakens its negotiating position in talks with any potential buyer. [...] “It appears designed solely as an attempt to generate headlines and obstruct a potential sale of the company.” At least one court decision has confirmed boards can do what they believe is in the best interest of the company for the entirety of their term. [...] In a 2011 case concerning Bennett Environmental, then in the midst of a proxy battle, Justice Ruth Mesbur, an Ontario Superior Court judge, said: “A board need not curtail its activities in the face of a fight for control.” In an interview with The Globe and Mail on March 27, Gildan chairman Donald Berg said the board chose to launch a sales process because the takeover approach it received was a. [...] It’s not in the best interest of shareholders and other stakeholders to seek to tie the hands of the board of directors and prevent its work, said Franois Dauphin, chief executive of Montreal’s Institute for Governance of Private and Public Organizations, who’s been following the Gildan drama.