Mandates Gender Parity on Crown Boards

Summary#

This bill changes the Financial Administration Act to require gender parity on the boards of federal “parent Crown corporations” (government‑owned companies that report through a minister). It also increases transparency of board appointments and sets reporting and review rules. Most of the parity rules start six years after the bill becomes law; the appointment‑notice rule starts right away (Coming into Force; Bill — s.105(1.1)).

• Boards must have at least as many women as men; on odd‑numbered boards, women must be the majority (Bill — new s.105.1(1)).
• Any director appointment that would make a board have fewer women than men is void (Bill — new s.105.1(2)).
• If a board has fewer women when the law takes effect, the minister may appoint only women until parity is reached (Transitional Provision).
• Acts of a non‑compliant board remain valid; the board’s decisions are not void only because of non‑compliance (Bill — new s.105.1(3)).
• Ministers must table notice of each appointment in both Houses within 15 sitting days (Bill — s.105(1.1)).
• Within 6 months after the parity rule takes effect, ministers must table a report on each board’s male‑to‑female makeup; Parliament must review the law every 5 years (Report — status; Review).

What it means for you#

• Households and the public

  • No direct change to services or taxes. The bill targets how federal Crown corporation boards are composed (Bill — new s.105.1).

• Women professionals and prospective directors

  • More board seats will be open to women at parent Crown corporations, especially during the transition period once the parity rule starts (Transitional Provision).
  • On boards with an odd number of seats, women must hold a majority of seats after the rule takes effect (Bill — new s.105.1(1)).

• Current and prospective male directors

  • Future appointments that would reduce or keep women below parity cannot proceed; those appointments are void under the law (Bill — new s.105.1(2)).
  • If a board is below parity when the rule starts, only women can be appointed until parity is reached; men may face longer waits for vacancies to open that do not breach the rule (Transitional Provision).

• Ministers, departments, and recruiters

  • Must table appointment notices in both Houses within the first 15 sitting days after each appointment, starting at Royal Assent (Bill — s.105(1.1)).
  • Must plan recruitment to meet the parity rule beginning six years after Royal Assent; any non‑compliant appointment is legally void (Coming into Force; Bill — new s.105.1(2)).
  • Must table a report on each board’s male‑to‑female composition within 6 months after the parity rule takes effect, and support 5‑year parliamentary reviews (Report — status; Review).

• Parent Crown corporations

  • Board decisions remain valid even if the board is temporarily out of compliance, reducing operational risk (Bill — new s.105.1(3)).
  • Subsidiaries are not covered; the rule applies to parent Crown corporations only (Bill — new s.105.1(1)).

• People who are non‑binary or do not identify as women or men

  • The bill speaks only to “women” and “men.” It does not state how non‑binary directors are counted. Data unavailable.

• Timeline

  • Appointment‑notice tabling starts at Royal Assent (Bill — s.105(1.1)).
  • All other provisions, including parity, start on the sixth anniversary of Royal Assent (Coming into Force).

Expenses#

Estimated net cost: Data unavailable.

• No explicit appropriations, new fees, or revenue changes are in the bill (Bill — passim).
• Administrative mandates:
  • Table each appointment notice within 15 sitting days (Bill — s.105(1.1)).
  • Table a one‑time composition report within 6 months after the parity rule starts (Report — status).
  • Support a parliamentary review every 5 years (Review).
• Potential recruitment and compliance costs for departments and corporations: Data unavailable.

Proponents' View#

• Ensures gender parity at federal parent Crown corporations by setting a clear floor: women must be at least 50% of directors (and a majority on odd‑sized boards) (Bill — new s.105.1(1)).
• Improves governance by widening the talent pool and diversity; the preamble cites research claiming mixed‑gender boards perform better (Preamble).
• Builds in time to transition; the 6‑year delay allows terms to expire and planned recruitment to meet the rule without mass turnover (Coming into Force).
• Protects continuity; board actions remain valid even if composition is temporarily non‑compliant (Bill — new s.105.1(3)).
• Increases transparency and oversight through prompt tabling of appointments, a public composition report, and recurring 5‑year reviews (Bill — s.105(1.1); Report — status; Review).

Opponents' View#

• Appointment constraints may slow filling vacancies; any appointment that would keep women below parity is void, which narrows immediate choices (Bill — new s.105.1(2)).
• Odd‑numbered boards require a female majority, which may force board‑size changes or staggered appointments to maintain compliance (Bill — new s.105.1(1)). Data unavailable on operational impacts.
• The law does not cover subsidiaries, so parity could be uneven within Crown corporate groups (Bill — new s.105.1(1)).
• Enforcement is limited to future appointments; the bill does not remove sitting directors or set penalties, which may delay full compliance until seats naturally turn over (Bill — new s.105.1; Transitional Provision).
• The 6‑year delay may weaken near‑term impact; meaningful change would not be required until that date (Coming into Force).
• The bill uses only binary categories (“women” and “men”) and gives no guidance on non‑binary directors, which could create classification or reporting challenges. No publicly available guidance in the bill text.