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FederalDid not become law (session ended)40th Parliament, 3rd Session

Bill S-206 explained in plain English

An Act to establish gender parity on the board of directors of certain corporations, financial institutions and parent Crown corporations

Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.

At a glance

Jurisdiction
Federal Parliament
Legislature / Parliament
Parliament of Canada
Session
40th Parliament, 3rd Session
Bill number
Bill S-206
Full title
An Act to establish gender parity on the board of directors of certain corporations, financial institutions and parent Crown corporations
Current status
Did not become law (session ended)
Latest event
At report stage in the Senate
Last updated
Feb 8, 2011

Official Parliament of Canada snapshot for 40th Parliament, 3rd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.

Chamber
Parliament of Canada
Current Stage
At report stage in the Senate
Latest Activity
Feb 8, 2011
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

Bill S-206, if passed, would require certain Canadian corporations, financial institutions, and parent Crown corporations to achieve gender parity on their boards of directors.

What It Means

Bill S-206, titled the "Board of Directors Gender Parity Act," aims to promote gender balance on the boards of directors for certain Canadian corporations, financial institutions, and parent Crown corporations. It proposes to amend several existing federal acts to require that, following an election or appointment of directors, the board composition achieves gender parity. This means that if the board has an even number of directors, 50% must be women, and if it has an odd number, the difference between the number of women and men must be one. These requirements would generally apply starting from the second annual meeting after the law comes into force, with a possibility for a deferral to the third annual meeting under certain conditions. For parent Crown corporations, the requirement applies three years after the provisions come into force. The bill also includes provisions regarding the validity of board actions and the process for issuing certain certificates or letters patent, making compliance a condition for their issuance in some cases.

What This Bill Does
  • Amends the Canada Business Corporations Act, the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act, the Trust and Loan Companies Act, and the Financial Administration Act.
  • Establishes a gender parity requirement for the composition of boards of directors for specific types of corporations and financial institutions.
  • Defines 'distributing corporation' for the purposes of the gender parity requirements.
  • Sets the requirement for gender parity to apply at the second annual meeting after the relevant provisions come into force, with a possible deferral to the third annual meeting.
  • Allows for a deferral of the gender parity requirement under specific conditions related to amending incorporating instruments and avoiding undue hardship.
  • Applies the gender parity requirement to parent Crown corporations three years after the relevant provisions come into force.
  • Makes compliance with the gender parity requirement a condition for the issuance of certain certificates or letters patent in some circumstances.
  • States that acts of a board of directors are not invalid solely due to non-compliance with the gender parity requirement.
  • Provides for the appointment of a Director and Deputy Directors to carry out duties under the Canada Business Corporations Act.
Who Is Affected
  • Corporations that are distributing corporations under the Canada Business Corporations Act and have outstanding securities held by more than one person.
  • Banks listed in Schedule I to the Bank Act.
  • Insurance companies and trust and loan companies that are distributing companies.
  • Cooperative credit associations.
  • Parent Crown corporations listed in Schedule III to the Financial Administration Act.
  • Other publicly traded corporations.
  • The Director and Deputy Directors appointed under the Canada Business Corporations Act.
  • The Minister responsible for appointing directors.
  • The Superintendent (in relation to financial institutions).
Rights, Duties, Or Obligations
  • Corporations and financial institutions must ensure their boards of directors achieve gender parity (50% women for even-numbered boards, or a one-person difference for odd-numbered boards) when directors are elected or appointed.
  • Corporations may apply for a deferral of the gender parity requirement to their third annual meeting if amending their articles or incorporating instrument to comply earlier would cause undue hardship.
  • Parent Crown corporations must comply with the gender parity requirement three years after the relevant provision comes into force.
  • In certain cases, the issuance of certificates or letters patent may be contingent on compliance with gender parity requirements.
Important Dates
  • The Act comes into force 180 days after receiving royal assent.
  • The gender parity requirement applies to distributing corporations, banks, insurance companies, cooperative credit associations, and trust and loan companies starting at the second annual meeting following the day the relevant provision comes into force.
  • The gender parity requirement applies to parent Crown corporations three years after the relevant provision comes into force.
Enforcement Or Penalties
  • Compliance with the gender parity requirement is linked to the ability of certain corporations to obtain certificates or letters patent necessary for various corporate actions. The bill states that acts of the board of directors are not invalid solely due to non-compliance, but the enforcement mechanism appears to be through the approval processes for corporate actions.
  • The bill does not explicitly detail monetary penalties for non-compliance.
Uncertainties Or Limits
  • The definition of 'corporation' in Part 3 is extensive and includes exclusions, such as corporations listed in the schedules to the Financial Administration Act or those governed by specific acts like the Bank Act, Canada Business Corporations Act, etc.
  • The specific details regarding the 'undue hardship' required for a deferral of the gender parity requirement are not fully elaborated.
  • The bill does not specify penalties for non-compliance beyond the linkage to the issuance of certificates or letters patent.
  • The text of section 260 of the Canada Business Corporations Act is presented as existing text that is being replaced, but the specific changes in wording or effect are not fully detailed in the provided excerpts, only noted as 'existing text'.
  • The exact scope of 'other publicly traded corporations' in Part 3 is defined through a set of criteria and exclusions, which may require careful interpretation.
Laws Or Regulations Affected
Canada Business Corporations Act
amends

Adds new sections (105.1, 105.2, 105.3) to define 'distributing corporation' and establish gender parity requirements for its board of directors, including application timelines and deferral provisions. It also amends section 262 regarding the issuance of certificates to require compliance with gender parity for corporations to which subsection 105.1(2) applies, with an exception for amendments enabling compliance.

Source: Section 2

Canada Business Corporations Act
amends

Replaces section 260, which deals with the appointment of the Director and Deputy Directors, though the text provided does not detail the change in effect beyond stating the existing text.

Source: Section 3

Canada Business Corporations Act
amends

Amends subsection 262(2) to require a statutory declaration or certificate stating compliance with the gender parity provisions for corporations subject to section 105.1(2). It also adds a new subsection (2.1) making compliance a condition for the Director to issue a certificate, with an exception for proposals enabling compliance.

Source: Section 4

Bank Act
amends

Adds new sections (159.1, 159.2) to define 'bank' (referring to Schedule I banks) and establish gender parity requirements for their boards of directors, including application timelines and deferral provisions. It also amends section 216 to make compliance a condition for issuing letters patent for proposals related to banks subject to section 159.1(2), with an exception for proposals enabling compliance.

Source: Section 5

Cooperative Credit Associations Act
amends

Adds new sections (169.1, 169.2) to establish gender parity requirements for the boards of directors of cooperative credit associations, including application timelines and deferral provisions. It also amends section 220 to make compliance a condition for issuing letters patent for proposals related to these associations, with an exception for proposals enabling compliance.

Source: Section 7

Insurance Companies Act
amends

Adds new sections (167.1, 167.2) to establish gender parity requirements for the boards of directors of distributing insurance companies, including application timelines and deferral provisions. It also amends section 225 to make compliance a condition for issuing letters patent for proposals related to these companies, with an exception for proposals enabling compliance.

Source: Section 9

Trust and Loan Companies Act
amends

Adds new sections (163.1, 163.2) to establish gender parity requirements for the boards of directors of distributing trust and loan companies, including application timelines and deferral provisions. It also amends section 221 to make compliance a condition for issuing letters patent for proposals related to these companies, with an exception for proposals enabling compliance.

Source: Section 11

Financial Administration Act
amends

Adds a new section (105.1) to establish gender parity requirements for the boards of directors of parent Crown corporations. This requirement applies three years after the provision comes into force.

Source: Section 18

Canada Business Corporations Act
amends

Amends section 262(2) by adding a new subsection (2.1) that makes compliance with gender parity requirements a condition for the Director to issue a certificate for corporations subject to subsection 105.1(2), with an exception for proposals that will enable compliance.

Source: Section 4

Bank Act
amends

Amends section 216 by adding new subsections (1.1) and (1.2). Subsection (1.1) states that the Minister shall not issue letters patent for a proposal in respect of a bank subject to section 159.1(2) unless satisfied of compliance with that section. Subsection (1.2) provides an exception for proposals that will enable compliance.

Source: Section 6

Cooperative Credit Associations Act
amends

Amends section 220 by adding new subsections (1.1) and (1.2). Subsection (1.1) states that the Minister shall not issue letters patent for a proposal in respect of an association subject to section 169.1(1) unless satisfied of compliance with that section. Subsection (1.2) provides an exception for proposals that will enable compliance.

Source: Section 8

Insurance Companies Act
amends

Amends section 225 by adding new subsections (1.1) and (1.2). Subsection (1.1) states that the Minister shall not issue letters patent for a proposal in respect of a company subject to section 167.1(1) unless satisfied of compliance with that section. Subsection (1.2) provides an exception for proposals that will enable compliance.

Source: Section 10

Trust and Loan Companies Act
amends

Amends section 221 by adding new subsections (1.1) and (1.2). Subsection (1.1) states that the Minister shall not issue letters patent for a proposal in respect of a company subject to section 163.1(1) unless satisfied of compliance with that section. Subsection (1.2) provides an exception for proposals that will enable compliance.

Source: Section 12

Canada Business Corporations Act
amends

Section 260 is amended. The provided text shows the existing wording, but the explanatory notes indicate it is being replaced.

Source: Section 3

Canada Business Corporations Act
amends

Amends section 262(2) by adding paragraph (a.1) which requires a statutory declaration or certificate to be attached when articles or a statement are sent to the Director for corporations to which subsection 105.1(2) applies.

Source: Section 4(1)

Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.

Official text

Parliamentary Process

Step 1
First reading
Mar 9, 2010
Completed

This record details the procedural progress of Bill S-206 through its first reading and subsequent stages in the Senate, up to its report stage.

Introduction and first reading, Mar 9, 2010
End of stage activity, Mar 9, 2010
Chamber sittings
Introduction and first reading - Mar 9, 2010

Bill S-206, concerning gender parity on corporate boards, was introduced for its first reading in the Senate on March 9, 2010, during a sitting that also addressed other government business and discussions.

Step 2
Second reading
May 13, 2010
Completed

Bill S-206, aiming to establish gender parity on corporate boards, completed its Second Reading stage in the Senate on April 15, 2010.

Second reading, May 13, 2010
Referral to committee, May 13, 2010
End of stage activity, May 13, 2010
Chamber sittings
Debate at second reading - Apr 15, 2010

During the Senate's second reading debate on Bill S-206, which aims to establish gender parity on corporate boards, the discussion was adjourned.

During the Senate's second reading debate on Bill S-206, aimed at achieving gender parity on corporate boards, the bill's sponsor presented arguments for its necessity, which was then adjourned.

Debate at second reading - Apr 28, 2010

On April 28, 2010, the Senate held a sitting that included Senators' Statements, Routine Proceedings, Question Period, and debated the second reading of several bills, notably continuing the debate on the "Board of Directors Gender Parity Bill" (Bill S-206) and adjourning debates on others.

In the Senate on April 28, 2010, debate on Bill S-206, concerning gender parity on corporate boards, continued with Senator Frum arguing against the bill due to concerns about government intrusion and the natural progression of diversity, while other senators discussed the nuances of the bill and educational trends.

Debate at second reading - May 13, 2010

The Senate debated Bill S-206, aiming to establish gender parity on corporate boards, with senators expressing both support and reservations before referring it to committee, alongside discussions on various other government and social issues.

Step 3
Consideration in committee
Feb 3, 2011
Completed

This record shows that Bill S-206 completed its committee review and moved to the report stage in the Senate.

Committee report presented with a recommendation, Feb 3, 2011
End of stage activity, Feb 3, 2011
Chamber sittings
Committee report presented with a recommendation - Feb 3, 2011

The Senate's Banking, Trade and Commerce Committee presented a report recommending against further proceeding with Bill S-206, citing legal, constitutional, and practical concerns regarding gender parity on corporate boards.

Step 4
Report stage
Feb 8, 2011
Not completed

The Senate was at the report stage for Bill S-206 on February 8, 2011, but this stage was not completed.

Chamber sittings
Debate at consideration of committee report - Feb 8, 2011

During a Senate sitting on February 8, 2011, various legislative and procedural matters were discussed, including a debate on a committee's report recommending against proceeding with Bill S-206 (Gender Parity on Boards) and concerns raised about the committee's process.

Step 5
Third reading
Not reached yet
Not reached

We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.

Step 1
First reading
Not reached yet
Not reached

We don't have a plain-language summary for First reading yet. The official source linked below is the full record.

Step 2
Second reading
Not reached yet
Not reached

We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.

Step 3
Consideration in committee
Not reached yet
Not reached

We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.

Step 4
Report stage
Not reached yet
Not reached

We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.

Step 5
Third reading
Not reached yet
Not reached

We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.

Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.

Vote Summary

No published recorded division

This bill is still active. We only show vote counts after the legislature publishes a recorded division.

Sponsor
Céline Hervieux-Payette
Senator | Details not listed in current Senate roster
Jurisdiction
Federal Parliament

No published representative vote breakdown

This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.

Official sources

Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.

How this data is sourced