The FINANCIAL — The ASX Corporate Governance Council (Council) proposes to expand the Corporate Governance Principles and Recommendations to require each entity listed on the Australian Securities Exchange – on an “if not, why not?” basis – to adopt and disclose a diversity policy that includes measurable objectives relating to gender.
The proposal is contained in a communiqué about recent work activity released by the Council on December 7.
Within their diversity policy, listed entities will be required, on an “if not, why not?” basis, to disclose in their annual report:
• Their achievement against the gender objectives set by their board; and
• The number of women employees in the whole organisation, in senior management and on the board.
Alongside the new recommendations, changes will be made to the guidance commentary to:
• Encourage nomination committees of listed entities to include in their charters a requirement to continuously review the proportion of women at all levels in the company. Commentary will highlight that it is the responsibility of the nomination committee to address strategies on board gender diversity and diversity in general.
• Require that the performance review of the board include consideration of diversity criteria in addition to skills.
Also, boards will be required to disclose what skills and diversity criteria they look for in any new board appointment.
The Council’s communiqué also outlines proposals to improve listed entities’ record keeping of analyst briefings and to elevate the existing suggested composition of remuneration committees – that they be comprised of a majority of independent directors, be chaired by an independent director and have at least three members – to an “if not, why not?” recommendation.
Council expects to provide an exposure draft of the proposed changes to the Corporate Governance Principles and
Recommendations for public consultation in early 2010 with an anticipated implementation date of 1 July 2010.
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