Federal distributing corporations, including venture issuers, created under the Canada Business Corporations Act (CBCA) need to disclose information to their shareholders and to Corporations Canada on the diversity of their boards of directors and senior management teams.
Corporations Canada (CC) encountered some challenges while reviewing the disclosed information received throughout 2020. CC took this opportunity to propose guidelines in order to help businesses to disclose information more clearly and consistently and increase awareness of the new filing requirement.
Guidelines to help corporations
Corporations Canada implemented guidelines to help corporations to report on the representation of four designated groups: women, Indigenous peoples (First Nations, Inuit and Métis), persons with disabilities and members of visible minorities.
These guidelines address how to effectively disclose:
- the timeframe for diversity information disclosure
- targets for representation on the board and among senior management and
- the number and percentage of directors from each of the designated groups on the board and among senior management.
The guidelines are not intended to add any additional disclosure requirements. They also do not address all of the disclosure requirements.
How to disclose diversity information to Corporations Canada
Your corporation may choose to include the diversity information in its proxy circular (free). If so, the simplest way to send the information to Corporations Canada is through the Online Filing Centre or by email to firstname.lastname@example.org.
Note: Even if corporations file the proxy circular with SEDAR, they also have to file it with Corporations Canada.