The EU passed legislation requiring company boards to have at least 40% of non-executive director positions or at least 33% of director positions held by women by 2026. This is another law within the EU’s policy framework tightening corporate governance around responsible business conduct.
- On 23 November the EU Parliament adopted the EU law on gender balance on corporate boards. This new legislation requires large listed company boards to have at least 40% of non-executive director positions or 33% of director positions held by the underrepresented sex, from June 2026.
- The legislation also requires companies to publicly report annually on gender representation on their boards and the measures in place to reach the targets.
- Member states will publish a list of companies that meet the targets of the Directive annually.
- The legislation was first proposed in November 2012 and stalled. EU President von der Leyen made a commitment to unblock the legislation, and it was passed in very quick succession. It was endorsed by the EU Council in October 2022, and the EU Parliament on 22 November 2022. The Act was signed by co-legislators on 23 November 2022.
- The legislation will be transposed into EU Member State law and come into effect for companies from June 2026.