I think the practice is still legal in Canada but not certain.

That last sentence (Excuse) says it all. Yea I bet some "believe" it to be a good practice. It allows them to game the system so why wouldn't they?

It allows nefarious actors to risk NOTHING but reap substantial gains.

In the US where it is illegal, there should be jail time for heads of these entities just as Sabanes/Oxley pins the financials on the CEO of corporations.