Mar 12, 2009. /Lesprom Network/. Domtar Corporation announced that its Board of Directors has approved a proposal to effect a reverse stock split of the Company's outstanding common stock and a corresponding reverse split of the outstanding exchangeable shares issued by the Company's indirect subsidiary, Domtar (Canada) Paper Inc. The proposal calls to authorize the Board to effect, at its discretion, a reverse stock split by a ratio of 1-for-12, 1-for-15 or 1-for-18 shares. The proposal is outlined in the Company's preliminary proxy statement filed today with the Securities and Exchange Commission and Canadian securities regulators. It will be submitted to a vote by stockholders at the Company's annual meeting on May 29, 2009. The reverse stock split is also subject to certain customary regulatory approvals. Domtar Corporation is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp.