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FederalDid not become law (session ended)41st Parliament, 1st Session

Bill S-203 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, 1st Session
Bill number
Bill S-203
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
At consideration in committee in the Senate
Last updated
Dec 16, 2011

Official Parliament of Canada snapshot for 41st Parliament, 1st 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 consideration in committee in the Senate
Latest Activity
Dec 16, 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-203 requires federally regulated corporations, financial institutions, and parent Crown corporations to ensure at least 40 per cent of their board members are of each sex, with a phased implementation timeline and enforcement mechanisms including invalid elections that violate the requirement.

What It Means

Bill S-203 requires certain federally regulated corporations, financial institutions, and parent Crown corporations to ensure that their boards of directors have balanced representation between women and men. Specifically, the bill requires that at least 40 per cent of board members be of each sex. For smaller boards (eight members or fewer), the difference between male and female directors cannot exceed two. The bill applies to distributing corporations under the Canada Business Corporations Act, banks listed in Schedule I to the Bank Act, cooperative credit associations, distributing companies under the Insurance Companies Act, distributing companies under the Trust and Loan Companies Act, other federally regulated publicly traded corporations, and parent Crown corporations listed in Schedule III to the Financial Administration Act. The balanced representation requirement takes effect gradually: at least 20 per cent representation of each sex must be achieved by the third annual shareholder meeting after the bill comes into force, and the full 40 per cent requirement must be met by the sixth annual shareholder meeting. Corporations can apply for a one-year extension of the three-year deadline if they need to amend their incorporating documents. The bill also gives shareholders the right to vote against director candidates, and elections or appointments made in violation of the balanced representation requirement are invalid. The bill comes into force 180 days after receiving royal assent.

What This Bill Does
  • Requires distributing corporations under the Canada Business Corporations Act to ensure at least 40 per cent of board members are of each sex
  • Requires Schedule I banks under the Bank Act to ensure at least 40 per cent of board members are of each sex
  • Requires cooperative credit associations under the Cooperative Credit Associations Act to ensure at least 40 per cent of board members are of each sex
  • Requires distributing companies under the Insurance Companies Act to ensure at least 40 per cent of board members are of each sex
  • Requires distributing companies under the Trust and Loan Companies Act to ensure at least 40 per cent of board members are of each sex
  • Requires other federally regulated publicly traded corporations to ensure at least 40 per cent of board members are of each sex
  • Requires parent Crown corporations listed in Schedule III to the Financial Administration Act to ensure at least 40 per cent of board members are of each sex
  • For boards with eight or fewer members, limits the difference between the number of male and female directors to no more than two
  • Implements a phased timeline: at least 20 per cent of each sex must be achieved by the third annual shareholder meeting, and the full 40 per cent by the sixth annual shareholder meeting
  • Allows corporations to apply for a one-year extension of the three-year deadline if amending their incorporating documents is necessary
  • Allows shareholders to vote against director candidates
  • Makes director elections or appointments that violate the balanced representation requirement invalid
  • Requires corporations to submit statutory declarations or certificates confirming compliance with the balanced representation requirement
  • Prevents regulatory authorities from issuing certificates or letters patent for certain corporate transactions unless the corporation is in compliance with the requirement, except for transactions that would enable compliance
  • Comes into force 180 days after royal assent
Who Is Affected
  • Shareholders of distributing corporations under the Canada Business Corporations Act
  • Shareholders of Schedule I banks under the Bank Act
  • Members and shareholders of cooperative credit associations
  • Shareholders of distributing insurance companies
  • Shareholders of distributing trust and loan companies
  • Shareholders of other federally regulated publicly traded corporations
  • Board members and directors of all affected corporations
  • Ministers and regulatory authorities responsible for issuing certificates and letters patent
  • Parent Crown corporations and their employees
  • The public, as users and stakeholders of these regulated corporations
Rights, Duties, Or Obligations
  • Corporations must ensure at least 40 per cent of board members are of each sex
  • For boards with eight or fewer members, corporations must limit the difference between male and female directors to no more than two
  • Corporations must meet a 20 per cent milestone for each sex by the third annual shareholder meeting
  • Corporations must meet the full 40 per cent requirement by the sixth annual shareholder meeting
  • Shareholders of corporations (except parent Crown corporations) have the right to vote against a director candidate
  • Shareholders have the right to abstain from voting, but cannot cumulate votes
  • A director who receives more votes against than for must serve for the shorter of 90 days or until replaced by the board
  • Corporations must submit statutory declarations or certificates confirming compliance with the requirement
  • Corporations can request deferral of the three-year deadline by one year if amending their incorporating documents is necessary
  • Regulatory authorities cannot issue certain certificates or letters patent unless the corporation complies with the requirement
Important Dates
  • The Act comes into force 180 days after receiving royal assent (Section 26)
  • At least 20 per cent of directors of each sex must be achieved by the close of the third annual shareholder meeting after the Act comes into force
  • The full 40 per cent requirement must be met by the close of the sixth annual shareholder meeting after the Act comes into force
  • Corporations can request a one-year extension to the third annual meeting deadline if they need to amend their incorporating documents
  • For parent Crown corporations, the 20 per cent milestone applies by March 31 of the third year after the Act comes into force
  • For parent Crown corporations, the full 40 per cent requirement applies by March 31 of the sixth year after the Act comes into force
Financial Or Tax Impacts
  • The bill does not specify any direct financial costs or tax impacts
Enforcement Or Penalties
  • Any director election or appointment made in violation of the balanced representation requirement is invalid
  • When an invalid election occurs, the vacant position must be filled in accordance with existing vacancy procedures in the relevant Act
  • A director elected but receiving more votes against than for serves only until the earlier of 90 days or replacement by the board
  • Regulatory authorities cannot issue certificates or letters patent for certain corporate transactions unless the corporation complies with the requirement, except for transactions that would enable compliance
  • Corporations must submit statutory declarations or certificates confirming compliance
Uncertainties Or Limits
  • The bill does not define what qualifies as a 'director of each sex' and does not address whether non-binary or other gender identities are recognized
  • The bill text does not specify penalties or fines for non-compliance beyond invalidating elections and appointments
  • The bill does not explain how the Director will determine whether 'unreasonable hardship' justifies a deferral
  • The bill does not specify how a vacancy caused by an invalid election will be filled if the normal succession procedure is unclear
  • The bill does not address how the requirement applies to corporations that transition between categories or change their status
  • The bill refers to Schedule I of the Bank Act and Schedule III of the Financial Administration Act, but these schedules are not included in the bill text provided
  • The bill does not specify whether the voting right to vote 'against' a director is a new right or modifies existing voting procedures
  • The bill does not clarify how the requirement interacts with provincial securities regulations or other provincial laws
Laws Or Regulations Affected
Canada Business Corporations Act
amends

Adds new provisions requiring distributing corporations to have at least 40 per cent of board members of each sex, with a phased timeline and enforcement mechanisms. Shareholders gain the right to vote against director candidates. Elections in violation of the requirement are invalid.

Source: Sections 2, 3, 4, 5

Bank Act
amends

Adds new provisions requiring Schedule I banks to have at least 40 per cent of board members of each sex, with a phased timeline and enforcement mechanisms. Shareholders gain the right to vote against director candidates. Elections in violation of the requirement are invalid. Ministers cannot issue letters patent for certain bank proposals unless the bank complies with the requirement.

Source: Sections 6, 7, 8

Cooperative Credit Associations Act
amends

Adds new provisions requiring cooperative credit associations to have at least 40 per cent of board members of each sex, with a phased timeline and enforcement mechanisms. Associations can govern director elections through by-laws. Elections in violation of the requirement are invalid. Ministers cannot issue letters patent for certain proposals unless the association complies with the requirement.

Source: Sections 9, 10, 11

Insurance Companies Act
amends

Adds new provisions requiring distributing companies to have at least 40 per cent of board members of each sex, with a phased timeline and enforcement mechanisms. Shareholders gain the right to vote against director candidates. Elections in violation of the requirement are invalid. Ministers cannot issue letters patent for certain company proposals unless the company complies with the requirement.

Source: Sections 12, 13, 14

Trust and Loan Companies Act
amends

Adds new provisions requiring distributing companies to have at least 40 per cent of board members of each sex, with a phased timeline and enforcement mechanisms. Shareholders gain the right to vote against director candidates. Elections in violation of the requirement are invalid. Ministers cannot issue letters patent for certain company proposals unless the company complies with the requirement.

Source: Sections 15, 16, 17

Financial Administration Act
amends

Adds new provisions requiring parent Crown corporations listed in Schedule III to have at least 40 per cent of board members of each sex, with a phased timeline. Unlike other corporations, Crown corporations are not required to give shareholders the right to vote against candidates. Appointments in violation of the requirement are invalid.

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
Jun 21, 2011
Completed

Bill S-203 completed its First Reading in the Senate on June 21, 2011, and its Second Reading on October 26, 2011, before being referred to a committee.

Introduction and first reading, Jun 21, 2011
End of stage activity, Jun 21, 2011
Chamber sittings
Introduction and first reading - Jun 21, 2011

On June 21, 2011, Bill S-203 received first reading in the Senate during a sitting that also featured tributes to Senator Lucie Pépin and the tabling of various reports and notices of motions.

Step 2
Second reading
Dec 16, 2011
Completed

Bill S-203 completed its second reading in the Senate and was referred to committee in December 2011.

Second reading, Dec 16, 2011
Referral to committee, Dec 16, 2011
End of stage activity, Dec 16, 2011
Chamber sittings
Debate at second reading - Oct 26, 2011

During a Senate sitting on October 26, 2011, debate on Bill S-203, concerning balanced representation on corporate boards, was adjourned at the second reading stage, while other legislative and procedural matters were addressed.

During the Senate's second reading debate on Bill S-203, Senator Hervieux-Payette advocated for balanced gender representation on corporate boards and enhanced shareholder voting rights.

Debate at second reading - Nov 17, 2011

During the Senate's second reading debate on Bill S-203, senators discussed the merits and drawbacks of mandating gender quotas on corporate boards, with some arguing for the bill and others expressing concerns about its potential negative impacts.

During a Senate sitting on November 17, 2011, debate on Bill S-203 (modernizing corporate boards for gender representation) continued with opposing views presented, while other bills and matters were addressed.

Debate at second reading - Dec 7, 2011

During the Senate's second reading debate on Bill S-203, which proposes gender balance on corporate boards, a senator spoke in favour of the bill's objectives, while other Senate business and debates on unrelated matters also occurred.

Second reading - Dec 16, 2011

In this Senate sitting, Bill S-203 related to balanced representation on corporate boards was debated at second reading and referred to committee, alongside progress on other significant bills.

Step 3
Consideration in committee
Date not listed
No activity

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.

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