Spain: law requiring 40% of company boards to be women

Spain’s authorities will search to go a gender parity regulation making it obligatory for company boards to be composed of a minimum of 40% girls. An analogous quota can be imposed on the federal government Cupboard.

The gender quota invoice can be accredited at a weekly Cupboard assembly on March 7, earlier than being despatched to Congress, Prime Minister Pedro Sánchez introduced Saturday. The regulation will search to determine that boards embody a minimum of 40% “of the least represented gender” and that they be certain that related ranges of parity exist in prime administration, the federal government mentioned in a separate assertion.

If handed, the foundations will apply to all publicly-traded firms by July 1, 2024, and for all firms with a minimum of 250 staff and €50 million ($53 million) in annual revenues by June 30, 2026. The federal government can even set a 40% quota for the Cupboard and can mandate that every one political lists for elections alternate between female and male candidates. 

Sánchez has repeatedly outlined his Socialist-led coalition authorities as feminist and has pushed high-profile equality legal guidelines, together with on trans rights and a politically-controversial sexual consent regulation. Fourteen of his 22 ministers are girls, and all three deputy prime ministers are feminine. 

Gender parity isn’t uncommon in Spain’s foremost company boardrooms. The native securities regulator has a non-binding advice for publicly-listed companies to have a minimum of 40% girls on their boards. Though most of the companies on the Ibex-35 benchmark meet the quota or are comparatively near it, a number of additionally fall brief. The shortfall on gender parity on boards is extra acute on smaller companies exterior the benchmark. 

Sánchez’s determination to go a regulation making board parity obligatory is aligned with a European Union directive issued final yr, which calls for that such legal guidelines be handed within the area by 2026. That directive doesn’t require parity in prime administration or in political positions. 

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