This enactment amends the Financial Administration Act to provide that the boards of directors of parent Crown corporations are not to be composed of fewer women than men.

Preamble

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 corporate boards composed of both men and women 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 higher percentage of men than women appointed as directors, with women making up only 27% of directors;

Whereas, in 2011, nearly 40% of Financial Post 500 companies and close to half of all publicly traded companies had no women on their boards;

Whereas, in 2012, only 14.‍5% of the directors of Financial Post 500 companies were women and, excluding Crown corporations, only 10% of the directors of those companies were women;

Whereas women are active participants in the democratic government of the country, both as voters and as politicians, and should have balanced representation on the boards of directors of parent Crown corporations;

Whereas there are many women in Canada who have the qualifications and experience to act on the boards of directors of parent Crown corporations;

And whereas women should be provided with equal opportunity to be appointed to the boards of directors of parent Crown corporations;

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Tabling in Parliament

(1.‍1) The appropriate Minister shall cause notice of any appointment made under subsection (1) to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the appointment is made.

Composition of board

105.‍1 (1) The board of directors of a parent Crown corporation shall not be composed of fewer women than men.

Invalid appointment

(2) The appointment of a person as director of a parent Crown corporation that would result in its board being composed of fewer women than men is void.

Validity of acts

(3) An act of the board of directors of a parent Crown corporation whose composition is not in compliance with subsection (1) is not void on the sole ground of that non-compliance.

Report — status

105.‍2 (1) Within six months after the day on which this section comes into force, the appropriate Minister shall cause a report on the male-to-female composition of the board of directors of each parent Crown corporation for which the Minister is accountable to Parliament to be tabled in each House of Parliament.

Review

(2) On the fifth anniversary of the day on which this section comes into force and every five years after that, a comprehensive review of section 105.‍1 and its operation shall be undertaken by the committee of the Senate, of the House of Commons or of both Houses of Parliament that may be designated or established for that purpose.