Canadian pension fund mulls withholding support from directors

Trains are seen in the yard at the CN Rail Brampton Intermodal Terminal.

MONTREAL LONDON - Canada's second largest pension fund is considering withholding support from certain Canadian National Railway Co directors at an upcoming annual meeting on French-speaking representation on the company's board, a source familiar with the matter said.

Caisse de depot et placement du Quebec is weighing the protest vote, after denouncing an earlier move by Canada's biggest railroad operator in April that would have left its board without any local, native French-speaking directors.

Montreal-based Caisse, CN's tenth largest shareholder, didn't reveal its voting intentions ahead of the May 20 annual general meeting.

CN didn't make a statement. The source declined to be identified as the discussions were confidential.

In late April, CN's board said it would appoint a francophone and Quebec-based director in the coming months to replace former provincial premier Jean Charest, who is bilingual.

According to Eikon Refinitiv data, Caisse had privately mentioned board representation to shareholder TCI Fund Management Ltd, which owns just over 5% of the CN shares. TCI didn't make a statement.