Client Work Detail

On June 20, 2008, the Supreme Court of Canada (SCC) released its highly anticipated decision in the proposed $51.7 billion privatization of BCE Inc. (BCE). In this landmark case, some holders of debentures of Bell Canada (BCE's wholly-owned subsidiary) attempted to prevent court approval of the transaction. In a unanimous 7-0 decision, the SCC reversed the decision of the Quebec Court of Appeal (QCA), rejected the claims made by the debentureholders, and restored the trial judge's approval of the transaction. Ogilvy Renault was retained to assist the BCE legal team when the case reached the Supreme Court of Canada.

Two main issues were raised before the SCC. The first concerned the duties of directors of public companies when faced with a change of control transaction. The second addressed the test for judicial approval of plans of arrangement.

The Court reserved its detailed reasons, which will be released at a later date. The SCC's decision will be of fundamental importance to public companies and their directors, as well as to shareholders, creditors and other corporate stakeholders. 

The Ogilvy Renault team that assisted BCE and Bell Canada in the SCC appeal was comprised of Pierre Bienvenu, Steve Tenai, Ruth Wahl, Catherine Martel and Charlotte Conlin.