The Corporations and Markets Advisory Committee (CAMAC) has released its report Diversity on boards of directors.

In considering diversity on corporate boards, the report looks at:

• the role and structure of boards, including the processes by which directors are appointed and the elements that make up an effective board
• the current state of diversity
• possible ways to promote an environment conducive to a more open approach to the composition of boards, including recruitment of directors from a more diverse pool of qualified candidates
• possible ways to assist in the development of a broader pool of skilled and experienced board candidates.

The Committee does not support any move to impose a particular model of board diversity on private sector companies, such as through quotas. Such a move would cut across the responsibility of shareholders for the appointment of directors who are to be accountable to them.

CAMAC considers that effective change depends on convincing corporate leaders and shareholders of the benefits of a more open approach to the identification and selection of directors.