YELLOWKNIFE (January 5, 2015) –The Northwest Territories is encouraging greater representation of women on corporate boards and in senior management by making changes to its securities rules.
The amendments to the securities rules are intended to increase transparency for investors and other stakeholders regarding the representation of women on boards of directors and in senior management. This transparency is intended to assist investors in making investment and voting decisions and will apply to all non-venture issuers reporting in the NWT.
“Helping women reach their full potential by supporting them in leadership is part of this government’s commitment to creating sustainable, healthy communities,” says Minister Responsible for Women, Premier Bob McLeod. “Increasing the role of women in leadership is not just about equality for women. It is about strengthening our territory for the benefit of all Northwest Territories residents.”
The Northwest Territories is joining eight other provinces and territories in adopting these amendments, which came into effect on December 31, 2014. Under the new securities rules, companies reporting to the NWT Securities Office that list on major stock exchanges such as the Toronto Stock Exchange would be required to disclose:
- the number of women on the board and in executive officer positions;
- policies regarding the representation of women on the board;
- targets related to the representation of women on the board and in executive officer positions;
- any consideration of the representation of women in the director identification and selection process; and
- any consideration of the representation of women in executive officer positions when making executive officer appointments.
The rule amendments provide for a “comply or explain” model. An issuer is not required to have any particular gender diversity policies, practices or targets in place as part of its corporate governance practices but, if not, the issuer must disclose why it has not done so.
“The changes are intended to ensure that investors and other stakeholders are better informed about the composition of corporate boards and senior management teams,” said Minister of Justice David Ramsay. “We hope this will lead to more women on the boards of major Canadian companies, as well as in senior management positions.”
The rule amendments were finalized after a period of public and stakeholder consultation, firstly by the Ontario Securities Commission and later by other provinces and territories through the Canadian Securities Administrators. The amendments, which will apply in Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Québec and Saskatchewan, are made under the authority of the securities legislation of each jurisdiction. The present NWT Securities Act was enacted in 2008.
Media inquiries:
Brenda Norris
Media Liaison
Government of the Northwest Territories
Tel: 867-669-2304
Email: brenda_norris@gov.nt.ca