The Investment Dealers Association has published a proposed rule amendment that would require its board of directors be comprised of an equal number of public and industry directors.

On July 15, 2005, the Ontario Securities Commission published a proposed rule amendment for comment that would have eliminated the requirement that the board be comprised of two-thirds industry directors. The IDA has since informed the Canadian Securities Administrators that it has withdrawn that proposed amendment.

Instead, the IDA has submitted proposed rule amendments that would both eliminate the requirement that the board be comprised of two-thirds industry directors and specifically require an equal number of industry and public directors on the board.

“The objective of the amendments is to enhance the corporate governance structure by creating a structure that is manageable in size for effective governance and decision making and which reflects a higher standard of independence than currently exists,” it says. “Creating a more independent and transparent Board of Directors who is held responsible is necessary in today’s corporate landscape.”