Diversity disclosure requirements are changing

On January 1, 2020, new diversity disclosure requirements under the Canada Business Corporations Act (CBCA) take effect. These new rules require federally-incorporated, public companies to provide shareholders with information on diversity policies and practices regarding the make up of their board of directors and senior management, including the proportion of women, Aboriginal peoples, persons with disabilities and members of visible minorities.

These requirements follow the “comply or explain” approach - where companies without a written board policy to identify and include members of each group on the board must explain why they have not done so.