A Family Fight Shakes Rogers Communications, Canada’s Largest Telecommunications Company | International

Each year the Rogers family appears on the list of the great fortunes of Canada. Known for her philanthropic activities, she owns the Blue Jays, the Toronto baseball team, and a good part of the Maple Leafs and the Raptors, the hockey and basketball squads of the Canadian metropolis. However, the source of his wealth is Rogers Communications, the largest telecommunications company in the country. The news that has been feeding headlines for several weeks is the struggle between Edward Rogers, son of the founder, with his mother and sisters for control of the firm. Each side supports a board of directors.

Rogers Communications offers internet, telephone and pay television services to some 11 million users. It employs more than 24,000 people and has a market value of 30,000 million Canadian dollars (about 24,000 million from the neighboring country). The company was created in 1960 by Ted Rogers, who died in 2008. This Friday, Judge Shelley Fitzpatrick, of the Supreme Court of British Columbia, ruled in favor of the petition filed by Edward Rogers. “I grant the requested order,” Fitzpatrick stated without elaborating. Rogers (Toronto, 1969) presented a document at the end of October to request that this judicial body declare legitimate the board of directors that he formed after being removed from the position of president. He considers that he has the power to do so, since he is in charge of the family trust that owns 97.5% of the class A shares – with voting rights – of the company. Ted Rogers had named his son responsible for the trust.

The story, with overtones of a television series, began at the end of September. Edward Rogers wanted to replace Joe Natale as CEO by Anthony Staffieri, the firm’s chief financial officer, arguing that Natale was delivering poor results and that there were doubts about his leadership in bringing the acquisition of Shaw, a rival company, to fruition. However, as reported by the newspaper The Globe and Mail, the play was exposed when Staffieri accidentally phoned Natale while talking to someone else about the plan.

Loretta Rogers and her daughters, Melinda and Martha, called a meeting on October 21 at which they agreed with other partners to dismiss Edward Rogers as chairman of the board of directors. They also ratified Joe Natale as CEO. The son of the founder of Rogers Communications, who retained the helm of the family trust, did not sit idly by. Three days later, he changed five members of the board of directors in one fell swoop and reinstated himself as president. Subsequently, he filed the petition in the Supreme Court of British Columbia. Martha Rogers wrote on Twitter that it was all a consequence of her brother’s “perpetual tantrums” “when he doesn’t get his way.”

The parties to the conflict participated in a hearing on November 1. At the meeting, the representatives of Edward Rogers reiterated that the change in the board of directors was valid for being in charge of the family trust. Also, because this way of proceeding is contemplated in the Business Law of British Columbia, the province where the company is registered, although its headquarters is located in Toronto (Ontario). In turn, they pointed out that Loretta Rogers had signed a document in which she supported the departure of Joe Natale, but that she had changed her mind days later.

Ted Rogers’ widow retorted – through a written statement – that she had been initially misled about Natale’s performance. She also indicated that the decision to remove her son from the presidency was “extremely difficult for her and other family members, and that it was made after trying to work with him for weeks.” Likewise, the lawyers representing the mother and daughters stressed that the appointment of the new members of the board of directors by Edward Rogers contravenes the company’s governance rules.

This Friday, after knowing the decision in favor of Edward Rogers, the lawyers of the counterpart indicated that they plan to appeal the ruling and asked the judge to suspend the order for four days to avoid more dismissals. However, Fitzpatrick did not agree to the request. In a statement, Loretta, Melinda and Martha Rogers expressed feeling “very disappointed by the court’s decision,” stressing that it “sets a dangerous precedent for the Canadian financial market.”

Edward Rogers said he takes responsibility for ensuring the company is properly governed and effectively managed. “Our family has disagreements, like any other. I am hopeful that we will resolve these differences in private. I know we all want a brighter future for Rogers Communications, ”he added. The next few days will be crucial to know if this fight between billionaires of the same blood ends or continues.

Subscribe here to the newsletter from MRT América and receive all the informative keys of the current situation of the region