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Changes to the NZSX/ NZDX Listing Rules that will require Main Board listed issuers to include diversity reporting in their annual reports will come into effect on 1 December 2012. This follows formal approval for the change being given by the Financial Markets Authority.
Issuers with equity securities quoted will need to provide:
• A breakdown of the gender composition of their Boards of Directors and Officers, and
• If they have a formal diversity policy, an evaluation of their performance with respect to it,
in annual reports covering balance dates ending on or after 31 December 2012.
NZX Chairman Andrew Harmos said, “International research demonstrates that diversity in management and governance is an important factor in improved company performance.
“Whilst reporting on diversity in the listed equities sector will not in itself address the relative paucity of women in senior corporate and governance roles across the New Zealand corporate sector, we believe it will encourage our companies to consider diversity as one of a number of tools to deliver quality decision making,” said Harmos.
“There has already been a noticeable increase in diversity of appointments across the listed sector. We attribute this in part to the discussion and debate which the pending new rules, and advocacy from business groups and business leaders, have encouraged,” said Harmos.
NZX Regulation has also released a draft guidance note to help companies wanting to develop and implement diversity policies and related measures. Submissions on the draft guidance note from interested parties are requested by Friday 23 November.
“Whilst the Diversity Rule itself does not require companies to formalise their own diversity policy, introducing a policy that is the right fit for an individual business will also help that business set expectations for its staff and measure progress,” said Harmos.
For a copy of the draft guidance note and further information about making a submission, please refer to the following link:
https://www.nzx.com/market-supervision/rules/nzsx-and-nzdx-listing-rules
