EU sets rules for more gender balance on company boards

APD NEWS

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EU deputies agreed on new rules Tuesday that will require top companies to have at least 40 percent of either gender on their boards, in a bid to boost female representation.

"After 10 years, since the European Commission proposed this directive, it is high time we break the glass ceiling," Commission President Ursula von der Leyen said in a statement.

"There are plenty of women qualified for top jobs: they should be able to get them," she added.

The proposal, agreed on by EU member states and the European Parliament, was first made by the Commission, the EU's executive, in 2012.

Under the new rules, EU countries must ensure that listed companies fill at least 40 percent of non-executive board seats "with the underrepresented gender" by the end of June 2026, the statement said.

Companies must also "prioritize the underrepresented sex" if two candidates of different sexes are equally qualified, it added.

A penalty system will be set up for companies that fail to comply with the rules.

"Despite years of roadblocks, I'm proud to have pushed member states to finally agree to this 'women on boards' milestone," said Dutch MEP Lara Wolters, who negotiated the law for the parliament.

It "will push for progress in 27 member states at once," she said.

Currently, only nine of the bloc's member states have national legislation regarding gender equality on boards, according to the Commission.

(AFP)