Decision cancelled and fine against Regroupement des marchands actionnaires

Securities Decisions and Freeze and cease trade orders

Montréal – In a ruling dated June 28, 2006, Judge Michel Lassonde of the Court of Québec (Criminal and Penal Division), district of Montréal, allowed an appeal filed by the Autorité des marchés financiers (AMF) in respect of a decision issued by the Bureau de décision et de révision en valeurs mobilières (BDRVM) on November 5, 2004 whereby only a reprimand was imposed on the Regroupement des marchands actionnaires inc. The Court now ordered an administrative penalty in the amount of $1,000 against the Regroupement.

The Regroupement acted as the exclusive representative and proxy for the shareholder-retailers and owners of approximately 168 Metro stores with respect to the exercise of the voting rights attached to Metro shares. Since its last insider report, dated September 28, 2002, transactions were carried out without disclosure by the Regroupement of any change in its control over the securities of Metro.

On May 12, 2004, the AMF asked the BDRVM, under subparagraphs 6 and 10 of sections 93 and 94 of the Act respecting the Autorité des marchés financiers, to:

  • impose an administrative penalty against the Regroupement, pursuant to section 273.1 of the Québec Securities Act (the “Act”);
  • take any other measure to ensure compliance with the Act, including ordering the Regroupement to file an insider report with the AMF within ten days of the BDRVM decision and, failing such filing, to prohibit the exercise of its right to vote in connection with Metro’s Class A and Class B shares.

The AMF is the regulatory and oversight body for Québec’s financial sector.

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