Spain is preparing a law to ensure that at least 40% of company boards of directors are women

The Spanish government will try to pass a law that will oblige companies to have at least 40% women on their boards of directors – the same quota will be imposed on the government.

It is reported Bloomberg.

The bill is expected to be approved by the government on March 7, after which it will be sent to Congress, Prime Minister Pedro Sanchez said. The law will aim for company boards to include at least 40% of the “underrepresented gender” and to ensure a similar level of parity in senior management.

If passed, the rules will apply to all public companies by July 1, 2024, and to all companies with at least 250 employees and an annual revenue of €50 million or more by June 30, 2026.

The government will also establish a 40% quota for the Cabinet of Ministers and oblige that all political lists in the elections alternate between male and female candidates.

Currently, in Sánchez’s government, 14 out of 22 ministers are women, and all three deputy prime ministers are also women.

It is noted that until now the securities regulator had a non-binding recommendation for listed companies to have at least 40% women on their boards of directors. Now this recommendation will be made mandatory.

Such a law on boards of directors is in line with an EU directive issued last year that requires such laws to be in place in the region by 2026. At the same time, this directive does not require parity representation in senior management or in political positions.