Fairness Opinions: What Directors Need to Know

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At a time when the need for transparency is high and when transactions are being scrutinized more closely than ever, fairness opinions provided by independent business advisors are growing in importance. For good reason: a fairness opinion is an effective corporate governance tool for an increasing number of directors charged with the task of protecting their stakeholders’ interests – especially where transactions involve multiple shareholders and other stakeholders.

The following article, written by Helen Mallovy Hicks of PricewaterhouseCoopers, discusses the Ontario Securities Commission’s ruling on fairness opinions and its impact on directors and corporate governance. It originally appeared in the April 2010 issue of Director Journal, a publication of the Institute of Corporate Directors (ICD).