The draft directive was tabled by the European Commission as long as 10 years ago, and for most of that time there was no political will among member states to support solutions against discrimination against women on corporate bodies. In March, the Council reached a preliminary agreement to proceed, in October the directive was adopted by that body, and in November a vote was held in Parliament. The directive will soon be published in the Official Journal of the EU, and later implemented into national law.
The new obligations will apply to large companies whose shares are listed on the stock exchange. These companies will have to meet prerequisite, that is, the percentage of underrepresented gender on the board will have to be min. 40%. If this condition is not met, the following can be fulfilled alternative condition: min. 33% of representatives(s) of the underrepresented gender among the members of the supervisory and management boards combined.
What does this mean?
I) Company A has 2 women and 3 men on the board and 1 woman and 2 men on the board: basic condition met
II) Company B has 2 women and 3 men on the board and only 3 men on the board: basic condition met
III) Company C has 1 woman and 4 men on the board and 2 women and 2 men on the board: basic condition not met, but alternative condition met
IV) Company D has only 5 men on the board and only 3 women on the board: basic condition not met, but alternative condition met
The directive will be in effect from 2026, so companies will have about three years to adapt to the new regulations. That's enough time to incorporate the appropriate changes in the composition of supervisory boards and management boards.
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