© Reuters. FILE PHOTO: General view of the Rogers Building, quarters of Rogers Communications in Toronto, Ontario, Canada October 22, 2021. REUTERS/Carlos Osorio/File Photo
By David Ljunggren and Ismail Shakil
(Reuters) – A Canadian court on Friday backed a petition by former Rogers (NYSE:) Communications Inc chairman Edward Rogers to validate a new board constituted by him, in a ruling that could result in a major management shakeup in the country’s biggest wireless carrier.
British Columbia Supreme Court Justice Shelley Fitzpatrick announced the decision but did not immediately give her reasons.
A rare public fight in the Canadian corporate world was sparked over the question of who should lead the company and has weighed on the stock. Some analysts have raised doubts about the fate of Rogers’ C$20 billion ($16.1 billion) bid for rival Shaw Communications (NYSE:).
Rogers stock is down 0.5% so far this year, compared with a 16.2% gain in rival BCE (NYSE:) Inc and a 14.8% rise in Telus (NYSE:) Corp in the same period.
On Monday, both sides presented their cases, with lawyers for former chairman Edward Rogers arguing that he had the authority to appoint a new board without an in-person shareholder meeting. The company lawyers countered, saying that due processes were not followed while naming a rival board.
($1 = 1.2461 Canadian dollars)
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