Netherlands: A way forward to gender equality in company boards
The Dutch Senate recently adopted a new law to promote greater diversity on companies’ management boards. It contains 2 measures.
The law contains a quota covering appointments to the supervisory boards of companies listed on the stock exchange. It’s intended to help ensure that men and women each occupy at least one third of the seats on a company’s supervisory board. This quota will apply to all new appointments of supervisory board members.
It will become compulsory for large public and private limited liability companies to set appropriate and ambitious target ratios for enhancing gender diversity on their management boards and among their senior executives. Companies will be required to report annually on their progress.
The law will enter into force on 1 January 2022. Its adoption is a positive signal in terms of unlocking a proposal for a directive that has been held up at EU level for more than seven years now.