This is consistent with some of the advocacy we received regarding turnovers of boards and basically piercing the establishment of some of the long-standing boards that haven't had a changeover or haven't had a thorough review about how to include gender, diversity, and all of those things. We're suggesting that no director shall hold office for more than six consecutive years. The important thing is the “consecutive years”, so it doesn't mean that a director on a board can't come back. They usually have two-year terms, so we're looking at three general cycles of two years. Then, if they do want to come back, that is a possibility in the organization for the board.
One of the things we've heard a great deal of testimony about is the lack of opportunities. You have people from either established families or established connections who end up being on the board. Nepotism, quite frankly, is even part of the board culture, whereas there are supposedly many opportunities for those outside of the traditional realm. We saw that laid out in the evidence from Montreal, for example, that was put in front of us. I believe that racial minorities made up something like 1% or 2% of boards in Montreal. I also come at this from the point of persons with disabilities, who have a hard time. When you look at persons with disabilities in general, there is a 50% unemployment rate among those who are looking for jobs. That's not counting all the people who have missed out on those regular jobs, let alone those who are trying to get into boards and so forth. The turnover aspect here will bring some awareness. It will also provide a more open democratic board selection process and voting for shareholders that will provide an opportunity for other people to get into the system.
I'll leave it at that.
I think once again we're looking at a culture that needs to be broken. This is one of the ways in which you can do so that is not egregious. It also provides opportunity and lessens the excuse necessary on comply or explain. With comply or explain, one of the various things you can probably do is to go to the minister and say that these are existing board members who have stayed on continually and there has been no opportunity for renewal or change.
This will actually provide that window so the minister under comply or explain can say, “Well, listen, you actually had a turnover of four, five, or six spots, whatever it might be, in the last year. Why are you coming out with the same type of people with no improvement of gender or diversity?” That provides an opportunity for there to be some more analysis. Again, I believe a political statement is necessary, as part of this bill, in good bound principles. This is one of those ones that could provide an opportunity without it being egregious.
To conclude I will say again that it doesn't bar a person from ever being part of that board again. It just provides a pause for the board members and the people to think about their terms.