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Diversity
Board diversity
Diversity
Board diversity
Board diversity is a continuous journey, in which the nomination committee has an important role to play.
Board diversity
Diversity policy
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Useful resources
Gender diversity on the board
Issuers are required to have at least one director of a different gender on the board. An issuer who fails to comply with this requirement (for example, where the sole director of a different gender resigns) must immediately publish an announcement containing the relevant details and reasons. That issuer must then appoint appropriate member(s) to the board to re-comply with such requirement within three months after failing to meet it.
Issuers should continue to assess their own circumstances and needs; and strive to commit to gender diversity targets beyond the required minimum of one.
Role of the nomination committee
Issuers should have at least one director of a different gender on the nomination committee. A nomination committee comprising members of diverse backgrounds and perspectives could help reduce cognitive biases, expand the committee’s connections for recruitment purposes, and promote greater diversity in the boardroom.
The director nomination process should be appropriately structured so that a diverse range of candidates is considered. There should also be transparency in the consideration of diversity during such process.
The nomination committee should use the
board skills matrix
and the
periodic board performance reviews
to assess the mix of competencies and diversity on the board, identify whether there are any gaps in the board’s collective skillset, and formulate and/or revise the issuer’s succession plans accordingly. It should take a holistic and strategic view of the closely linked issues of board composition, diversity commitments and succession planning.
To learn more about the role of the nomination committee, please see the section on
Nomination Committee
in the Guide.
Download Topic – Diversity
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