Most Read Contributor in New Zealand, September 2016
NZX's decision not to require listed equity issuers
to adopt gender diversity policies will disappoint some, and there
will be pressure on NZX to move to a compulsory model if its
current approach is not effective.
But, if the momentum for change is as strong as the body
of submissions to NZX suggests, NZX policy may still deliver the
The new Diversity Rule
Listed equity issuers will need to disclose in their annual
a breakdown of the gender composition of their directors and
officers, including comparative figures from the previous reporting
a statement from the Board evaluating the company's
performance with respect to its diversity policy, if it has
An issuer will be encouraged to disclose any other diversity
policy, practice or position it has in place (including in relation
to diversity other than gender).
The Diversity Rule applies to annual reports with a balance date
on or after 13 December 2012.
Changes from original proposal
The rule NZX plans to implement, subject to FMA approval,
differs from the proposal it put out for consultation in the
following ways, and for the following reasons (offered by NZX):
for practicality - issuers will no longer have to provide a
breakdown of the gender composition of each of their subsidiary
for certainty - issuers will need to disclose the gender
composition of their 'Officers' (as defined in the
Securities Market Act 1988) as opposed to their 'Senior
for clarity in diversity trends - issuers will need to provide
comparative figures in respect of the gender composition of their
directors and officers, over time, and
for guidance - issuers will be encouraged to follow
recommendations in an NZX guidance note (yet to be released),
Diversity Policies and Disclosure, including to adopt a
diversity policy with measurable objectives, and to report progress
against those objectives.
NZX must have given this serious consideration, not only because
that is the way ASX has gone but also because the ASX rule, adopted
on 1 January 2011, has proved successful. But NZX decided against
compulsion to provide members with flexibility and because of the
potential compliance costs.
NZX has committed to working with the Ministry of Women's
Affairs, the 25 Percent Group and Global Women to help companies
develop and implement gender diversity policies and we expect that
these efforts will deliver a positive improvement within a
relatively short time frame.
But if that does not happen, NZX can expect that this issue will
be brought back onto the table.
Chapman Tripp's submission on the proposed diversity rule is
here. Other submissions are available
The information in this article is for informative purposes
only and should not be relied on as legal advice. Please contact
Chapman Tripp for advice tailored to your situation.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The committee set up to draft a Code on Resolution of Financial Firms, by the Ministry of Finance, Government of India, on September 28, 2016, released a draft bill – The Financial Resolution and Deposit Insurance Bill, 2016...
In a race to adopt technology innovations, Banks have increased their exposure to cyber incidents/ attacks thereby underlining the urgent need to put in place a robust cyber security and resilience framework.
RG 256 deals primarily with remediation programs conducted by licensees who provide personal advice to retail clients.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).