Q: I own these shares. these are rate reset preferreds for Brookfield infrastructure that pay a yield of 7.475% until March 2029. These dividends are eligible dividends.The company is trying to redeem these shares at 26.50 a share. I will vote against it. If however if a majority vote for it, is there any legal way for dissenting shareholders to resist being taken over. This process seems somewhat unfair because the company could've offered 26.50 to those shareholders who want to be taken out and leave the other shareholders to continue to receive their dividends
5i Research Answer:
The proposal has to be approved by a majority 66.7% of shareholders. So, like any vote, not everyone is going to be happy if approved. Canada does have dissenting shareholder rights but on preferred shares, with not vote on company operations, there is little chance of keeping shares if the vote hits the majority. In addition, dissenting is legally expensive and typically does not result in any material gain for dissenters anyway.