Tariffs-Free Regulatory Importing?
Asad Akhtar
public interest jurisdiction to a general power.21 The public interest jurisdiction remains a unique
and powerful remedy that is not available to the SEC.
1. Defining the Scope
The term “public interest” is not defined within the Act and, subsequently, the scope of
discretion afforded under this power has been interpreted through administrative and judiciary
proceedings.22
Asbestos Corp
In Asbestos Corp,23 the Supreme Court of Canada (“SCC”) was presented with the
opportunity to provide guidance on the scope of the public interest jurisdiction.
Background
In this case, the Quebec government sought control of an asbestos manufacturer whose
shares traded on the Toronto Stock Exchange. To effect the acquisition, Quebec entered into
negotiations with a U.S. company to indirectly obtain voting control of the organization.24 It was
alleged by minority shareholders that this acquisition was a “take-over bid”. If true, this
acquisition would be consider a violation of take-over bid rules as it was not offered to all
shareholders.25 The minority shareholders applied to the OSC to exercise its public interest
jurisdiction to remove the trade exemptions used to effect the initial acquisition by Quebec. The
Commission, while finding the conduct of Quebec abusive to minority shareholders, declined to
exercise its power.26
21
Ibid at 3.
Ibid.
23
Committee fo r the Equal Treatment of Asbestos Minority Shareholders v OSC, 2001 SCC 37, 2 SCR 132
[Asbestos Corp].
24
Ibid at para 12.
25
Asbestos Corp, at para 15.
26
Asbestos Corp, at para 27.
22
12