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 The Gender Balance on Corporate Boards Directive enters into force

On 19 December 2024, MEPs concluded their recommendations for the EU’s position at the upcoming UN global gathering on women’s rights in New York in March 2025. The European Parliament calls for women’s equality in all areas of life, including by implementing the Beijing Declaration and Platform for Action.

MEPs have called for gender mainstreaming in all relevant EU policy areas and for equal opportunities through funding, work opportunities and health care. MEPs have also urged the EU to implement equal pay and pensions, more female political leadership, and work opportunities.

In recent years, many EU companies have introduced statutory gender quotas to balance gender on company boards, but progress has been slow. The Gender Balance on Corporate Boards Directive, which entered into application at the end of 2024, aims for a more balanced gender representation on the boards of listed companies across all EU Member States. The Directive requires large listed companies in the EU to have 40% of the underrepresented sex among their non-executive directors and 33% among all directors. 

The deadline for transposition by Member States was 28 December 2024, with companies needing to meet the targets by 30 June 2026. If companies fail to achieve these objectives, they will need to adjust their selection process, and where candidates are equally qualified, priority should be given to the underrepresented sex. The European Commission may also launch infringement proceedings against Member States that fail to notify transposition, or correctly transpose, the Directive. 

As noted by Lina Gálvez (S&D, ES), rapporteur and Chair of the Committee on Women’s Rights and Gender Equality: “The European Parliament wants women’s rights to be taken more seriously in all policy areas.” Overall, the new Directive represents a positive step forward, framing the Commission’s efforts on gender equality and enhancing gender diversity. European Commission President von der Leyen’s ongoing commitment to achieving gender balance is further demonstrated by her efforts to establish gender balance within the College of Commissioners last year. 

The European Parliament’s recommendations for the UN global gathering on women’s rights reflect a strong commitment to advancing gender equality across all areas of life. The focus on gender mainstreaming, equal pay, and enhanced female representation is a necessary step forward. The new Gender Balance on Corporate Boards Directive is a welcome effort and underscores the EU’s ongoing push for gender equality amongst its citizens. 

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