Andrew MacDougall
May 30, 2016
In 2015, women held 19.5% of all FP500 board seats, 81.5% were held by men. Although this number is an improvement from past years, it shows that gender barriers still exist in the corporate world. Lexpert Magazine author Bev Cline discusses how countries are pushing for gender parity in two ways, through a disclosure approach and a quota system.
Canada uses a disclosure system, National Instrument 58-101, which was implemented in late 2014. Osler partner Andrew MacDougall believes that this system creates conversations that weren’t happening before its implementation. “Prior to last year’s proxy season, there wasn’t a reason you could point to for bringing the diversity issue to the board,” Andrew said.
The new system asks that firms submit reports regarding gender-related practices. These reports are offered up on a comply-or-explain basis. This means that companies that choose not to submit the reports must publicly explain why they made that decision.
As companies begin to disclose their board gender diversity, it is important for in-house counsel to keep the conversation alive. This is because in-house counsel may be expected to work with the board and establish policies regarding gender parity in the future. These policies are important as company shareholders will be able to see how they are improving board diversity over time.
To learn more about National Instrument 58-101 and the difference between the disclosure approach and quota system, read Bev Cline's article, “On Board with diversity” in Lexpert Magazine – May Issue 2016 © Thomson Reuters Canada Limited.
On Board with Diversity - Lexpert Magazine