The European Council approves EU law to improve gender balance on company boards
The directive lays down that at least 40% of directors of listed companies should be members of the underrepresented sex.
As announced in an October 17 press release, the European Council gave its final go-ahead to new EU rules establishing that, by 2026, at least 40% of non-executive director positions in listed companies should be held by members of the underrepresented sex. If member states choose to apply the new rules to both executive and non-executive directors, the target would be 33% of all director positions. For background, see our earlier alert on the matter.
Member states that already have an effective system in place are able to keep it. They are also free to introduce measures that go beyond the proposed system.
Member states have two years following the entry into force of the directive to adopt the required national measures. The directive, which still needs to be adopted by the European Parliament, will enter into force on the 20th day following its publication in the Official Journal of the European Union.