Pierre Karl Péladeau looms large over Québecor board meeting

The shadow of Québecor Inc.'s controlling shareholder loomed large over the company's annual meeting Thursday despite efforts of board members to distance themselves from the man who will likely become leader of the Parti Québecois.

Pierre Karl Péladeau, who owns the majority of voting shares in Québecor, hasn't been involved in the governance of the company for "months and months," said Pierre Dion, president and CEO of the media conglomerate.

(Péladeau) has been very good in not interfering at all and that's been my experience for the last year.- Brian Mulroney, Québecor chairman

"I don't remember the last time I met with Pierre Karl,'' Dion told reporters after the meeting.

"It's been a very long time. Mr. Péladeau is not involved in the day-to-day operations of this organization."

Since being elected to the legislature last year, Péladeau and Québecor have been dogged by conflict-of-interest allegations, while calls for him to divest his shares have increased ever since he launched his bid for the PQ leadership.

Péladeau won't sell 

Péladeau maintains he is willing to put his Québecor shares in a blind trust but has steadfastly rejected the idea of selling his stake in the company.

Quebec's National Assembly is currently studying what to do about Péladeau or any future politician who owns large business assets.

Québecor chairman Brian Mulroney said Péladeau is sometimes consulted on company matters but that such an approach is normal.

"We have to consult because he is the controlling shareholder," the former prime minister said.

"If the board decided to sell (TV network) TVA or did something else that was dramatic, it would be appropriate that he be consulted because he would vote on it."

Mulroney added that Péladeau "has been very good in not interfering at all, and that's been my experience for the last year."

Dion also talked about TVA Sports, Québecor's fledgling all-sports station, which recently lost a CRTC decision to Bell Canada over distribution rates.

"TVA Sports is here to stay," Dion said, repeating it several times because Québecor initially told the broadcast regulator the outcome of the issue of distribution rates was crucial for the future of TVA Sports.

Québecor announced Thursday that first-quarter revenues rose 5.7 per cent to $948.6 million from a year earlier.

Per-share profit fell to $29.4 million, or 24 cents a share, from $39.1 million, or 32 cents a share.