The British Columbia Supreme Court has given its decision in the case pitting Rogers Communications against controlling shareholder Rogers Control Trust, regarding the dispute over board nominations to the company. The court has ruled in favour of Rogers Control Trust, reinstating ousted Edward Rogers as chairman of the board. The ruling also confirms the nomination last month by Edward Rogers of Michael Cooper, Jack Cockwell, Jan Innes, Ivan Fecan and John Kerr to the board.
Rogers Communications said it will not seek an appeal to the ruling.
The nominations were appointed by Rogers Control Trust through a written consent, and without convening a meeting of shareholders. It followed the appointment of John A MacDonald as chairman of the board of directors. Rogers Communications then took Rogers Control Trust to court. The trust looks after the Rogers' family shareholding in the company; it controls 97.5 percent of voting Class A shares and owns almost 10 percent of the non-voting B shares.
The new board members replace John Clappison, David Peterson, Bonnie Brooks, Ellis Jacob and John MacDonald. The board now includes Robert Depatie, Robert Gemmell, Alan Horn, Philip Lind, Edward Rogers, Melinda Rogers-Hixon, Martha Rogers, Loretta Rogers and Joe Natale, as well as Cooper, Cockwell, Innes, Fecan and Kerr.
Some analysts raised concerns that the dispute could hurt the CAD 26 billion merger plans of Rogers Communications with Shaw Communications. Edward Rogers said after the ruling however that he supported CEO Joe Natale.
"Much has been written about Rogers CEO Joe Natale and his future," Edward Rogers said in a statement after the ruling. "Natale remains CEO and a director of Rogers Communications and has the board's support." Edwards Rogers said the focus must now return to closing the Shaw merger, the biggest deal in the company's history.
