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FederalDid not become law (session ended)41st Parliament, 2nd Session

Bill S-212 explained in plain English

An Act to modernize the composition of the boards of directors of certain corporations, financial institutions and parent Crown corporations, and in particular to ensure the balanced representation of women and men on those boards

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

At a glance

Jurisdiction
Federal Parliament
Legislature / Parliament
Parliament of Canada
Session
41st Parliament, 2nd Session
Bill number
Bill S-212
Full title
An Act to modernize the composition of the boards of directors of certain corporations, financial institutions and parent Crown corporations, and in particular to ensure the balanced representation of women and men on those boards
Current status
Did not become law (session ended)
Latest event
Bill not proceeded with
Last updated
Feb 26, 2014

Official Parliament of Canada snapshot for 41st Parliament, 2nd 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
Bill not proceeded with
Latest Activity
Feb 26, 2014
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

This bill would modernize the composition of boards of directors for certain corporations and financial institutions by requiring balanced representation of women and men, and would establish rules for shareholder voting on directors.

What It Means

This bill, entitled the Boards of Directors Modernization Act, would require certain corporations, financial institutions, and parent Crown corporations to ensure balanced representation of women and men on their boards of directors. Specifically, it aims for at least 40% of directors to be of each sex, with a maximum difference of two between the sexes if the board has eight or fewer members. The bill outlines a phased implementation over six years, with an initial target of 20% representation after three years. It also addresses shareholder voting rights regarding director appointments and includes provisions for deferrals under certain circumstances. The bill would invalidate elections or appointments that do not comply with these new requirements.

What This Bill Does
  • Requires "distributing corporations" under the Canada Business Corporations Act to have at least 40% of directors of each sex on their board, or a maximum difference of two if the board has eight or fewer members. This requirement would be phased in over six years, with an interim target of 20% after three years.
  • Requires banks listed in Schedule I of the Bank Act to meet the same gender balance requirements for their boards of directors, phased in over six years.
  • Requires cooperative credit associations regulated by the Cooperative Credit Associations Act to meet the same gender balance requirements for their boards of directors, phased in over six years.
  • Requires distributing companies regulated by the Insurance Companies Act to meet the same gender balance requirements for their boards of directors, phased in over six years.
  • Requires distributing companies regulated by the Trust and Loan Companies Act to meet the same gender balance requirements for their boards of directors, phased in over six years.
  • Requires other federally regulated, publicly traded corporations to meet the same gender balance requirements for their boards of directors, phased in over six years.
  • Subjects parent Crown corporations listed in Schedule III of the Financial Administration Act to the same gender balance requirements, but without the specific shareholder voting provisions for directors.
  • Specifies that if a company's incorporating instrument needs amendment to meet these requirements, the three-year deadline for the 20% target can be extended by one year.
  • States that any appointment or election of a director that violates these gender balance provisions would be invalid.
  • Provides that acts of a board of directors are not invalid solely because the board's composition does not comply with these sections.
  • Introduces provisions for voting on directors in situations where cumulative voting is not provided for in by-laws or the incorporating instrument, including rules for directors elected with more votes against them than for them.
Who Is Affected
  • Distributing corporations as defined by the Canada Business Corporations Act
  • Banks listed in Schedule I to the Bank Act
  • Cooperative credit associations regulated by the Cooperative Credit Associations Act
  • Distributing companies regulated by the Insurance Companies Act
  • Distributing companies regulated by the Trust and Loan Companies Act
  • Other federally regulated, publicly traded corporations
  • Parent Crown corporations listed in Schedule III to the Financial Administration Act
  • Shareholders of these corporations
  • Directors of these corporations
  • The Director appointed under the Canada Business Corporations Act
  • The Superintendent (of financial institutions)
Rights, Duties, Or Obligations
  • Corporations and financial institutions must ensure at least 40% of their directors are of each sex.
  • If a board has eight or fewer members, the difference in the number of directors of each sex cannot be more than two.
  • Shareholders have the right to vote against a candidate for a director's position in certain corporations.
  • The Director or Superintendent may grant a deferral for compliance with interim targets under specific hardship conditions.
Important Dates
  • The Act comes into force 180 days after receiving Royal Assent.
  • The gender balance requirements apply as of the close of the sixth annual meeting of shareholders after the Act comes into force.
  • An interim requirement of at least 20% representation of each sex applies as of the close of the third annual meeting of shareholders after the Act comes into force.
  • For parent Crown corporations, the requirements apply as of March 31 of the sixth year after the Act comes into force, with an interim target of 20% by March 31 of the third year.
Enforcement Or Penalties
  • Any appointment or election of a director in violation of the gender balance requirements is invalid.
  • The issuance of certificates or letters patent may be conditional on compliance with these gender balance requirements.
Uncertainties Or Limits
  • The bill does not specify which specific provincial securities legislation defines a 'reporting issuer' for the purposes of Part 3.
  • The bill does not detail the process for filling a vacant director position if an election is invalidated, beyond stating it should be done according to existing by-laws or the act of incorporation.
  • The bill does not explicitly state the consequences for a parent Crown corporation if its board composition violates the gender balance requirements, other than that the appointment is invalid and the position must be filled.
Laws Or Regulations Affected
Canada Business Corporations Act
amends

Adds new sections (105.1 to 105.6) to define 'distributing corporation' and establish gender balance requirements for its board of directors, including phased implementation, rules for smaller boards, and provisions for deferrals. It also amends section 260 regarding the appointment of a Director and section 262 concerning compliance with these new requirements.

Source: Section 2, 5

Bank Act
amends

Adds new sections (159.2 to 159.6) to define 'bank' and establish gender balance requirements for its board of directors, including phased implementation, rules for smaller boards, and provisions for deferrals. It also amends section 216 concerning the issuance of letters patent.

Source: Section 6, 8

Cooperative Credit Associations Act
amends

Adds new sections (168.2, 169.1 to 169.4) to establish gender balance requirements for the board of directors of an association, including phased implementation, rules for smaller boards, and provisions for deferrals. It also amends section 225 concerning the issuance of letters patent.

Source: Section 9, 11

Insurance Companies Act
amends

Adds new sections (167.1 to 167.4) to establish gender balance requirements for the board of directors of a distributing company, including phased implementation, rules for smaller boards, and provisions for deferrals. It also amends section 225 concerning the issuance of letters patent.

Source: Section 12, 14

Trust and Loan Companies Act
amends

Adds new sections (163.1 to 163.4) to establish gender balance requirements for the board of directors of a distributing company, including phased implementation, rules for smaller boards, and provisions for deferrals. It also amends section 221 concerning the issuance of letters patent.

Source: Section 15, 17

Financial Administration Act
amends

Adds new sections (105.1 to 105.4) to establish gender balance requirements for the board of directors of parent Crown corporations, including phased implementation and rules for smaller boards.

Source: Section 25

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
Nov 27, 2013
Completed

Bill S-212, an act to modernize corporate board composition for balanced gender representation, completed first reading in the Senate in November 2013 but was later dropped from the Order Paper in February 2014.

Introduction and first reading, Nov 27, 2013
End of stage activity, Nov 27, 2013
Chamber sittings
Introduction and first reading - Nov 27, 2013

The Senate sat on November 27, 2013, to hear tributes for retiring Senator Gerald J. Comeau, introduce Bill S-212, and discuss various other matters including shipbuilding, privacy, and Indigenous education.

Step 2
Second reading
Date not listed
No activity

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

Step 3
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