July 28, 2004

Alberta asks stakeholders for input on governance of income trusts

Edmonton… As follow-up to the passing of the Income Trusts Liability Act, Revenue Minister Greg Melchin has released a discussion paper entitled Income Trusts: Governance and Legal Status to allow stakeholders an opportunity for further input on this increasingly significant type of financing vehicle.

Income trusts have become an integral part of Alberta's business sector and are invested in by many Albertans. Previously, issues regarding potential personal liability had served to limit the extent of investment in income trusts among some individual and institutional investors. However, during the 2004 spring sitting, Bill 34, Income Trusts Liability Act, was passed to help resolve these concerns and improve investor protection through amendments to the Securities Act.

"Alberta is currently the only province to have such comprehensive legislation to help protect unitholders of income trusts," said Melchin. "The purpose of this discussion paper is to seek input on important legal and governance policy considerations surrounding income trusts and to see if further improvements would be beneficial to both investors and business. Once again, Alberta is leading the way."

Some of the topics the paper presents include: ensuring that investors have access to the right information to make informed decisions; clarifying the legal framework around income trusts; and ensuring that income trusts are held to a high standard of governance.

Stakeholders are asked to make submissions by September 30, 2004.  Click here for the discussion paper:  Income Trusts: Governance and Legal Status.

For media inquiries, please contact:

Cathy Housdorff, Director of Communications Alberta Revenue (780) 427-5364
Dial 310-0000 for toll free access outside of Edmonton.

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