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- Release Date: 04/07/12 19:30
- Summary: GENERAL: NZX: Diversity information part of investment decisions
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NZX
04/07/2012 17:30
GENERAL
REL: 1730 HRS NZX Limited
GENERAL: NZX: Diversity information part of investment decisions
Diversity information part of investment decisions
4 July 2012 - NZX is pleased to announce the introduction, subject to
Financial Markets Authority approval, of a Diversity Listing Rule, following
a consultation process with the markets in April and May this year.
The new Rule will be applied to annual reports for all NZX Main Board listed
issuers with a balance date on or after 31 December 2012.
NZX's primary concern, as the operator of New Zealand's capital markets, is
that listed issuers provide all relevant information to the market so
investors can develop an informed view of the current, and potential future,
value of a company's securities.
There is credible research based evidence which suggests that diversity - and
gender diversity in particular - at both Board and senior management level
contributes to improved performance.
NZX is also conscious of the need to balance provision of information to
investors with the ongoing compliance costs to issuers. Therefore, in
response to the feedback NZX received during the consultation process, a
number of changes to the proposed Rule have been made which give companies
flexibility around their decisions to develop a formal diversity policy while
encouraging them to do so and to set measurable objectives.
In summary, the new Diversity Rule will require listed issuers to:
o Provide a breakdown of the gender composition of their Directors and
Officers; and
o If they have a formal diversity policy, give an evaluation of their
performance with respect to that
policy.
"The responses on quantifying gender composition at governance and senior
management level indicated that this is an issue of importance to our
markets. Therefore we elected to incorporate this into our Rules," said NZX
CEO Tim Bennett.
"However, it's important that we give our listed companies the flexibility to
make their own decisions about whether a formal diversity policy is a
priority for them at this stage. Obviously, over time, we'd like to see more
listed companies taking the opportunity to report on diversity as a
contributor to investing decisions made by shareholders," said Bennett.
NZX will work with the Ministry of Women's Affairs and agencies such as the
25% Group and Global Women, who are supporting companies to develop and
implement their own gender diversity policies.
Further information about the Diversity Rule is attached to this
announcement. This document, and submissions received during the consultation
period, will be made available at www.nzx.com/
market-supervision/rules-consultation on Tuesday 10 July.
ENDS
End CA:00224643 For:NZX Type:GENERAL Time:2012-07-04 17:30:19
