Diversity disclosure for boards of directors and senior management comes into force

The provisions of Bill C-25 regarding diversity on boards of directors and among senior management, as well as the associated regulations, were approved by Order in Council. These measures aim to foster diversity at the highest levels of corporate leadership in Canada, improve shareholder democracy, and drive shareholder value through better transparency.

All distributing corporations governed by the Canada Business Corporations Act, including emerging issuers, will soon need to disclose information on the diversity of their board of directors and senior management to shareholders. Distributing corporations typically file documents with a securities commission and sell shares on a stock exchange.

For all annual meetings held on or after January 1, 2020, corporations will report on the representation of, at minimum, the following four groups:

  • women
  • Indigenous peoples (First Nations, Inuit and Métis)
  • persons with disabilities; and
  • members of visible minorities.

They may also disclose information about additional groups they believe contribute to the diversity of their board or senior management team.

Diversity disclosure information must be sent to:

  • shareholders, with the notice of meeting; and
  • Corporations Canada.

Find out more about diversity of boards of directors and senior management, including how to submit diversity information to Corporations Canada.

Laws and regulations