EU Law Aims For Gender Equality In Corporate Governance

The European Union’s gender balance on corporate Boards directive, aimed at improving gender representation in corporate leadership, is now in effect, the European Commission announced on January 3.

The directive mandates 40% representation of the under-represented gender among non-executive Directors and 33% among all Directors in listed companies across member states. Countries had until December 28, 2024, to integrate the directive into national legislation, with companies required to meet targets by June 30, 2026. Rules include transparent selection procedures, gender-neutral criteria, and penalties for non-compliance. Member states must report progress, list compliant companies, and ensure oversight. The European Commission will monitor adherence and take action against non-compliant states.