Washington’s boardroom power move raises new questions for Canadian shareholders and pension funds
A foreign government now holds a board seat and a significant stake in a Canadian mining company—an arrangement experts say could reshape the landscape for Canadian shareholders and pension funds, according to BNN Bloomberg.
The US government’s recent acquisition of a 10 per cent stake in Vancouver-based Trilogy Metals Inc., for US$35.6 million, includes the right to appoint a director to the board.
This move, paired with an executive order from President Donald Trump to build a road accessing Alaska’s Ambler mining district—where Trilogy has interests—signals a new era of state involvement in Canadian resource firms.
Richard Leblanc, professor of governance, law and ethics at York University, calls this situation “uncommon” and warns of the risks.
“It absolutely is a conflict of interest,” he said, referring to the involvement of an outside investor who can obtain regulatory approval.
BNN Bloomberg reportes that Leblanc explained that this situation “introduces the capacity for unequal treatment of Canadian shareholders vis-a-vis an American shareholder who’s also a regulator.”
The speaker emphasized that such an arrangement raises concerns about fairness and regulatory impartiality.
Leblanc notes that a large shareholder such as the US government could influence the board directly by nominating a director, fundamentally changing boardroom dynamics and potentially creating a “super shareholder.”
This development follows the US government’s minority stake in Lithium Americas, a Canadian-headquartered company developing a major lithium mine in Nevada.
Such moves are part of a broader trend as governments compete for minerals critical to economic and strategic priorities, including clean energy and defence.
Sara Ghebremusse, assistant professor at the Allard School of Law at the University of British Columbia, sees clear conflict of interest concerns.
“Appearances of conflict of interest, and even real incidents of conflict of interest, I don’t think the US administration is currently concerned about that right now,” she said.
Despite these risks, Ghebremusse does not expect the Canadian government to take issue with a 10 per cent foreign stake, noting it is within the bounds of acceptable ownership.
However, Leblanc urges Ottawa to scrutinize the Trilogy deal “with great care,” citing the implications for economic security and sovereignty.
“This could be a test case for what the Canadian government is prepared to accept,” he said.
Adam Fremeth, associate professor at the Ivey Business School, observes that government stakes can “de-risk” investments and lower capital costs, a trend increasingly visible in infrastructure and resource projects.
