Public corporations incorporated under the Canada Business Corporations Act (CBCA) will soon be required to report the diversity of their directors and senior management.
Effective January 1, 2020, public CBCA corporations must disclose:
- if they have adopted policies on the identification and nomination of "designated groups", and details of such adopted policies, including assessments of progress. "Designated groups" are:
- Aboriginal peoples;
- persons with disabilities; and
- members of visible minorities;
- whether the board or nominating committee considers the level of representation of designated groups on the board and in senior management, and whether it has adopted targets for each designated group;
- the percentage of each designated group on the board and in senior management1, including in its major subsidiaries2;
- any adopted board term limits or other mechanisms of board renewal, or reasons why it has not adopted such limits or mechanisms; and
- if it has not taken any action in adopting policies or targets, or does not consider diversity with respect to the designated groups, it must disclose why it has not done so.
These disclosure requirements will come into force prior to the 2020 proxy season when many public corporations hold their annual shareholders meetings.3