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1st Session, 42nd Parliament,
64-65 Elizabeth II, 2015-2016
HOUSE OF COMMONS OF CANADA
An Act to amend the Financial Administration Act (balanced representation)
Whereas women in Canada continue to be under-represented on the boards of directors of corporations;
Whereas a growing body of research has shown that gender-diverse corporate boards are more effective, perform better, access the widest talent pool, are more responsive to the market and lead to better decision-making;
Whereas the majority of parent Crown corporations have a much larger number of men than women appointed as directors, with women representing only 27% of directors appointed;
Whereas women are active participants in the democratic government of the country, both as voters and as politicians, and should have balanced representation in the management of parent Crown corporations;
Whereas there are many women in Canada who have the qualifications and experience to act on boards of directors;
And whereas women should be provided with equal opportunity to be appointed to the boards of directors of parent Crown corporations;
R.S., c. F-11
Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1 The Financial Administration Act is amended by adding the following after section 105:
Gender parity requirement
105.1 (1) Subject to subsection (2), the composition of the board of directors of a parent Crown corporation shall be such that the proportion of directors of each sex is not less than
(a) 30%, two years after the coming into force of this section;
(b) 40%, four years after the coming into force of this section; and
(c) 50%, six years after the coming into force of this section.
Board of eight members
(2) When the board of directors of a parent Crown corporation consists of no more than eight members, the difference between the number of directors of each sex may not be greater than two.
105.2 Any appointment of a director of a parent Crown corporation that contravenes section 105.1 is invalid and the vacant position shall be filled without delay by the appropriate Minister, with the approval of the Governor in Council.
Validity of acts
105.3 An act of the board of directors of a parent Crown corporation the composition of which is not in compliance with section 105.1 is not invalid on the sole ground of that non-compliance.
105.4 (1) Six years after the coming into force of sections 105.1 to 105.3 and every five years after that, a comprehensive review of these sections and of their operation shall be undertaken by such committee of the Senate, of the House of Commons or of both Houses of Parliament as may be designated or established by Parliament for that purpose.
Report to Parliament
(2) The committee referred to in subsection (1) shall, within a year after a review is undertaken pursuant to that subsection or within such further time as Parliament may authorize, submit a report on the review to Parliament, including a statement of any changes the committee recommends.
Published under authority of the Speaker of the House of Commons