Industry Committee on Feb. 21st, 2017

[Clare Beckton]

I think that if we really want it to be successful, there should be a signal sent out to the federally regulated industries to say that's what you're looking for. Otherwise, with a bill, at least as I see it in the legislation itself, that doesn't require an explanation. It's a very soft nudge. I think you need to have a push, not just a nudge.

[Alex Nuttall, Conservative, Barrie—Springwater—Oro-Medonte, ON]

As we move forward on this bill, this committee is going to make a recommendation back. Is there an opportunity for you or for others who've spoken with the minister to start pushing that type of target?

[Clare Beckton]

As I said, I'm not an advocacy group. I'm a centre for research in politics, so I don't lobby. I'll make that clear; I'm not a lobbyist. I give, however, my best advice when I'm asked to come before a parliamentary committee. When I'm asked by any member of Parliament or a minister, I will give them my best advice.

I'll leave it at that.

[Alex Nuttall, Conservative, Barrie—Springwater—Oro-Medonte, ON]

As to economic benefits, because I believe this was the original driver behind the bill—it's actually a bill from the previous government—the stats have been out, but they haven't been published very widely.

From your perspective, how do we get the information to Bay Street and to the public that these are facts of the data we've collected, not some talking point? How do we actually get the information out there so that people know it? Very few people realize the detrimental effect of having a closed shop.

[The Chair, Liberal, Dan Ruimy]

Respond very briefly, please.

[Clare Beckton]

I think you can put it out in some of the messages coming from here, as you put the bill out, that there's all sorts of evidence pointing to the significance and the economic advantage of having women and diversity on your boards. The studies are there, and if you're in the corporate world and you haven't read them, that's not a good thing.

[Alex Nuttall, Conservative, Barrie—Springwater—Oro-Medonte, ON]

Yes, for sure.

[The Chair, Liberal, Dan Ruimy]

Thank you.

We're going to move to Mr. Baylis. You have five minutes.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

My questions would be for Ms. Woodside.

I'd like to understand and to draw out a bit more on the bearer shares concern. If I understand correctly, when this law is drafted, I can voluntarily give up my bearer shares, but I'm not obligated to. Is that the crux of the matter?

[Claire Woodside]

Yes. The current drafting means that if you have bearer shares.... For example, if you are a criminal, you could register them.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

Hypothetically—

[Claire Woodside]

Hypothetically, if you were a criminal.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

I'm a criminal hypothetically.

[Voices]

Oh, oh!

[Claire Woodside]

Or you could be a regular person and you might want to register them. You could have had them sitting in a safe for 20 years.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

I'm a politician, but I'm not yet—

[Claire Woodside]

Not quite there, eh?

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

Is what happens right now that some person who is a holder of bearer shares can with this law request them, and the company must convert them; however, if I'm not interested in converting them, I don't need to and I can maintain the bearer shares?

[Claire Woodside]

Yes.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

You're looking to change that provision. Can you elaborate on how you would like to change it?

[Claire Woodside]

We're looking to ensure that before an individual exercises the rights associated with those shares, they have to register them. They have to convert them.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

For example...?

[Claire Woodside]

For example, they pledge them as a security or they cash them in.

[Frank Baylis, Liberal, Pierrefonds—Dollard, QC]

Or they want to vote them...?

[Claire Woodside]

Sure, or they want to vote.