EU to impose quota for women on company boards

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On Tuesday, 7 June, the The EU’s directly elected legislative body comprised of 705 members. It is involved in policymaking but it does not have the power to propose new legislation. European Parliament and the An institution representing the Member States’ interests. Either comprised of the heads of government (European Council) or more frequently the ministers (Council of the EU) meeting in different constellations depending on the policy area. Involved in policy-making, often together with the European Parliament. Council reached a political agreement on a A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. Directive to improve gender balance in large EU companies. The main element of the A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. Directive is that at least 40% of seats in non-executive boards or 33% of all directors have to be of the ‘underrepresented sex’, which are women in most cases, by the end of June 2026. 

The legislation foresees that all companies with at least 250 employees will be subject to the A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. Directive. This means they will have to be transparent about their recruiting procedures, informing authorities about the gender representation on their board on an annual basis. If two candidates of different sexes are equally qualified, the underrepresented sex should be hired. Companies must fulfill the quota by 30 June 2026, as negotiated by the Parliament.

The ‘Women on Boards’ A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. Directive was first proposed by the The EU’s politically independent executive arm. It is responsible for drawing up proposals for new European legislation, and it implements the decisions of the European Parliament and the Council. European Commission in 2012 but got blocked by several The 27 countries that are part of the EU. See the list of all members here. member states. A decade later, there seems to be more political interest in improving gender balance. 

In addition to wanting to ensure more gender equality in the EU, economic growth is also mentioned as a reason for  the A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. Directive, as stated in the proposal for the A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. Directive: ‘’The under-utilisation of the skills of highly qualified women constitutes a loss of economic growth potential.’’

Commission President Ursula von der Leyen also addressed the relevance of the proposal: 

‘’Diversity is not only a matter of fairness. It also drives growth and innovation. The business case for having more women in leadership is clear. After ten years since the The EU’s politically independent executive arm. It is responsible for drawing up proposals for new European legislation, and it implements the decisions of the European Parliament and the Council. European Commission proposed this A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. directive, it is high time we break the glass ceiling. There are plenty of women qualified for top jobs: they should be able to get them.’’

The The EU’s directly elected legislative body comprised of 705 members. It is involved in policymaking but it does not have the power to propose new legislation. European Parliament and An institution representing the Member States’ interests. Either comprised of the heads of government (European Council) or more frequently the ministers (Council of the EU) meeting in different constellations depending on the policy area. Involved in policy-making, often together with the European Parliament. Council still have to formally approve the text before it becomes EU law. The 27 countries that are part of the EU. See the list of all members here. Member states then will have to implement the A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. Directive by incorporating it into national law within two years. Companies not complying with the A Directive is a piece of legislation that serves as a guideline and needs to be translated into national law by every Member State. Directive will be exposed to sanctions, which can include fines or annulment of boards that do not reach the quota. 

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