CALGARY, April 3, 2020 /CNW/ - TransAlta Corporation
("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC) today
announced that it has adopted certain changes to its Stock Option
Plan.
In TransAlta's management information circular dated
March 9, 2020 (the "Information
Circular") for its upcoming annual and special meeting of
shareholders scheduled to be held on April
21, 2020 (the "Meeting"), the Company disclosed that it is
seeking approval by its shareholders at the Meeting to amend its
Stock Option Plan solely to increase the number of shares available
for issuance pursuant to options granted under the Stock Option
Plan. In the meantime, in order to align features of the Stock
Option Plan with current best governance and market practices, the
Company has adopted certain changes to the Stock Option Plan's
amendment provisions to further limit the Board of Director's
ability to make amendments without shareholder approval in the
future. As a result of these changes, the amendment provisions in
the Stock Option Plan require that majority shareholder approval be
obtained for any changes to the Stock Option Plan (in addition to
those enumerated items already requiring shareholder approval) that
would: (i) reduce the exercise price of (or any cancellation
and re-grant of an option that would reduce the exercise price of)
options or other entitlements held by non-insiders;
(ii) extend the term of options held by non-insiders beyond
their original expiry date; (iii) expand the Stock Option
Plan's eligibility criteria or participation limits (including
amendments to the definition of "participant") applicable to
non-employee directors; and (iv) permit options to be
transferred or assigned other than for normal estate settlement
purposes. At the Meeting, shareholders will still be asked to
approve an ordinary resolution to increase the number of shares
available for issuance under the Stock Option Plan, as described in
the Information Circular. TransAlta's Board of Directors continues
to unanimously recommend that shareholders vote "FOR" the increased
allocation under the Stock Option Plan, which will only become
effective if approved by shareholders at the Meeting.
A copy of the updated Stock Option Plan, which reflects the
changes described above, will be available under our profile on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Further details
in respect of the Meeting are available in the Information Circular
and related proxy materials, which can be found under our profile
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
About TransAlta:
TransAlta owns, operates and
develops a diverse fleet of electrical power generation assets in
Canada, the United States and Australia with a focus on long-term
shareholder value. TransAlta provides municipalities, medium and
large industries, businesses and utility customers with clean,
affordable, energy efficient and reliable power. Today, TransAlta
is one of Canada's largest
producers of wind power and Alberta's largest producer of hydro-electric
power. For over 100 years, TransAlta has been a responsible
operator and a proud community-member where its employees work and
live. TransAlta aligns its corporate goals with the UN
Sustainable Development Goals and has been
recognized by CDP (formerly Climate Disclosure Project) as an
industry leader on Climate Change Management. TransAlta is proud to
have achieved the Silver level PAR (Progressive Aboriginal
Relations) designation by the Canadian Council for
Aboriginal Business.
For more information about TransAlta, visit its website
at transalta.com.
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SOURCE TransAlta Corporation