New Gender Quotas for Listed Company Directors

The government has proposed changes to the Law on Equality of Women and Men requiring listed companies to ensure at least 33% of director positions are held by the underrepresented gender, typically women. This proposal implements a European directive on gender balance among company directors that required transposition into national law by the end of 2024.

How will the new gender quota affect listed companies?

The proposed mandates apply to positions within administrative boards, supervisory boards, and the boards of public companies. According to the proposal, the underrepresented gender must occupy a minimum of 33% of these roles.

The legislation also sets an upper limit. The share of the underrepresented gender cannot exceed 49% of the total director posts.

Did You Know? The proposed regulations specify that while the underrepresented gender must hold at least 33% of posts, their representation is capped at a maximum of 49%.

What are the reporting requirements for boards?

Companies will be required to submit annual reports. These filings must include the total number of men and women in director positions and the specific measures the company took to reach the gender balance goal.

Social Minister Natalija Efremowa stated that equality policy helps people, regardless of whether they are men or women, overcome difficulties. Efremowa added that such policies promote the development of concrete strategies and measures.

Expert Insight: Samantha Carter notes that the requirement for annual reporting on “measures taken” transforms the quota from a static number into an active corporate mandate. This could force companies to document their recruitment pipelines more rigorously to avoid non-compliance.

What is the legal basis for these changes?

The changes stem from a European directive aimed at improving gender balance among company directors. National legislation was required to incorporate these provisions by the end of 2024.

Because these changes are currently proposed, the final implementation could lead to a restructuring of board compositions across the public sector. Companies may need to adjust their appointment processes to meet the 33% threshold.

Frequently Asked Questions

What is the minimum representation required for the underrepresented gender?
At least 33% of director positions in listed companies must be held by the underrepresented gender.

Which specific corporate bodies are covered by this proposal?
The proposal applies to administrative boards, supervisory boards, and the boards of public companies.

What must companies report annually?
Companies must report the number of men and women in director roles and the measures implemented to achieve the gender balance target.

How might these reporting requirements change the way public companies approach board recruitment?