|Author (Corporate)||European Commission|
|Series Details||COM (2012) 614|
Legislative initiative tabled by the European Commission on 14 November 2012, aimed at addressing gender imbalance on company boards in the European Union (EU). This is a text with EEA relevance.
Company boards in the EU are characterised by persistent gender imbalances. Compared to other areas of society, especially to the public sector, the under-representation of women on the boards of publicly listed companies is particularly significant.
EU Member States and the EU institutions took steps over the decades to promote gender equality in economic decision-making by adoption recommendations and encouraging self-regulation. However, progress in increasing the presence of women on company boards has been slow. The rate of improvement in individual countries has also been unequal and has produced divergent results. Moreover, growing discrepancies between Member States likely increased given the very different approaches pursued by individual Member States.
The purpose of the draft law is to substantially increase the number of women on corporate boards throughout the EU by setting a minimum objective of a 40% presence of the under-represented sex among the non-executive directors of companies listed on stock exchanges and by requiring companies with a lower share of the under-represented sex among the non-executive directors to introduce pre-established, clear, neutrally formulated and unambiguous criteria in selection procedures for those positions in order to attain that objective.
The draft Directive was adopted by the European Commission on 14 November 2012 alongside a Communication focusing on gender balance in business leadership. The European Parliament adopted a negotiating position on 20 November 2013. Following years of deadlock between Member States, the Council of the European Union eventually adopted its general approach on 14 March 2022. An informal agreement between the co-legislators on a compromise text for this file on 7 June 2022.
|Subject Categories||Business and Industry, Employment and Social Affairs|
|Subject Tags||Gender Equality, Social Policy, Women|
|International Organisations||European Union [EU]|