Insight
Formal adoption of the Women on Boards Directive
On 22 November 2022, the European Parliament formally adopted the Women on Boards Directive, ten years after the proposal was launched.
Key provisions
- Introduction for large, listed companies in the EU of transparent recruitment procedures, so that at least 40% of non-executive director posts or 33% of all director posts are occupied by the under-represented sex by the end of June 2026, merit remaining the key criterion in selection procedures
- Companies to provide information about the gender representation on their boards to the competent authorities once a year and, if the objectives have not been met, how they plan to attain them and to also publish this information on their website
- Member States to put in place rules on effective, dissuasive and proportionate penalties, such as fines, for companies that fail to comply with open and transparent appointment procedures. A judicial body could also annul the board of directors selected by the company if it breaches the principles of the directive
- Small and medium-sized enterprises with fewer than 250 employees are excluded from the scope of the Directive
Next steps
The text will be published in the Official EU Journal in December 2022. It will enter into force 20 days after publication and then Member States will have two years to transpose its provisions into national law.
Source
Parliament approves landmark rules to boost gender equality on corporate boards | News | European Parliament (europa.eu) – 22 November 2022
Deloitte
Nordic Board & Executive Advisory, 5 December 2022
