Senators push for stronger legislation for boosting diversity on boards

The Liberals should toughen up proposed legislation aimed at boosting diversity on corporate boards at publicly traded companies if they want it to be effective, says a group of senators pushing for the change.

“We want it to mean something,” said Sen. Ratna Omidvar, who was named to the upper chamber in 2016 by Prime Minister Justin Trudeau and represents Ontario as an Independent.

Senators are expected this week to debate Bill C-25, which would, among other things, amend the Canadian Business Corporations Act to require publicly traded companies to disclose the number of women — and others from equity-seeking groups, such as visible minorities — on their corporate boards and in senior management, as well as their policies on diversity.

Failure to do so would require companies to explain themselves to their shareholders.

The Canadian Business Corporations Act affects nearly 270,000 companies, but the proposed changes would affect only those that also issue shares and report to a securities commission, which would include about 600 companies on the Toronto Stock Exchange.

The legislation would not specifically require targets for increasing diversity, although companies would be required to disclose whether they have them already.

That is something Omidvar is hoping to change.

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