Order Fixing January 1, 2020 as the Day on which Section 24 of that Act Comes into Force: SI/2019-50
Canada Gazette, Part II, Volume 153, Number 14
SI/2019-50 July 10, 2019
AN ACT TO AMEND THE CANADA BUSINESS CORPORATIONS ACT, THE CANADA COOPERATIVES ACT, THE CANADA NOT-FOR-PROFIT CORPORATIONS ACT AND THE COMPETITION ACT
Order Fixing January 1, 2020 as the Day on which Section 24 of that Act Comes into Force
P.C. 2019-927 June 22, 2019
Her Excellency the Governor General in Council, on the recommendation of the Minister of Industry, pursuant to subsection 108(5) of An Act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act and the Competition Act, chapter 8 of the Statutes of Canada, 2018, fixes January 1, 2020, as the day on which section 24 of that Act comes into force.
(This note is not part of the Order.)
Pursuant to subsection 108(5) of An Act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act and the Competition Act (the Act), this Order in Council fixes January 1, 2020, as the day on which section 24 of the Act comes into force. This section of the Act amends Part XIV of the Canada Business Corporations Act (CBCA) and will result in a new section related to corporate diversity disclosure requirement, section 172.1, being added.
The objective of this Order is to bring into force legislative amendments to the CBCA related to corporate diversity disclosure requirements.
The Act received royal assent on May 1, 2018. The Act creates new section 172.1 of the CBCA which requires that prescribed corporations disclose to their shareholders prescribed diversity information related to their board of directors and within senior management. The prescribed information respecting diversity is to be established by regulation. This order will fix January 1, 2020, as the day on which the legislative amendments to the CBCA related to diversity disclosure come into force.
The new section will come into force on January 1, 2020, on the same day the associated regulatory amendments under the CBCA come into force. Once in force, distributing corporations under the CBCA will be required to provide shareholders with information related to diversity among the directors and among the members of senior management for annual meetings held on or after January 1, 2020. The costs and benefits related to the new diversity disclosure requirements have been assessed in support of the regulatory proposal. The present value costs for all distributing corporations under the CBCA are estimated to be $1.5M from 2020 to 2039 (discounted at 7%) or $140,000 on an annualized basis. The government costs for administrative activities and an awareness campaign were assessed at $6,500 a year.
The section being brought into force was reviewed through the Parliamentary process. ISED has actively engaged with key stakeholders (i.e. associations, corporate lawyers representing distributing corporations, provincial security authorities) about the legislative and regulatory changes related to the diversity disclosure information. ISED consulted stakeholders on proposed changes to the Act and, where possible, addressed the issues raised. ISED has also continued to engage key stakeholders as well as the general public throughout the regulatory development process.
Innovation, Science and Economic Development Canada
Att: Isabelle Breault