This Toronto Stock Exchange Act solidified the incorporation of the Toronto Stock Exchange (TSE). Although a resolution was passed in 1861 that recognized the TSE as a legitimate stock exchange, it could only trade a minimal number of stocks and bonds until the Ontario legislature passed the act in 1878.

Function

The Toronto Stock Exchange Act acknowledges that the TSE is subject to the guidelines enacted by the Canada Business Corporations Act (CBCA).

Features

The Canadian Library of Parliament says that the CBCA holds directors of corporations liable for "a breach of their fiduciary duties" to help prevent fiscal wrongdoing by a director or board of directors, including those of the TSE, who are governed by the Toronto Stock Exchange Act.

Amendments

Bill S-19, introduced by the industry minister in 2000, contains more than 300 amendments to address CBCA problems, thus affecting the TSE under the Toronto Stock Exchange Act. These include provisions to give shareholders more power in decision-making processes.

Regulation

Under the Toronto Stock Exchange Act, the TSE regulates its own markets. In November 2009, TLC Vision Corporation, an eye care services company, was given 30 days' notice for possibly failing to meet the financial eligibility requirements, and it faced possible "de-listing" from the TSE.

Recent Action

Energy giant Canadian Superior Energy Inc. was cleared by the TSE in October 2009 as meeting all of the listing requirements under the Toronto Stock Exchange Act.

Source:

Library of Parliament: Directors' Liability Under the Canada Business Corporations Act

CNN.com: TLC Vision Listing Review Initiated by the Toronto Stock Exchange

MSN.com: Canadian Superior Energy Inc. Announces Toronto Stock Exchange Listing Requirements Satisfied

Resource:

E-Laws.gov: Toronto Stock Exchange Act