Gender balance on company boards: European Parliament adopts first reading position on European Commission proposal to address gender imbalance on company boards

The European Parliament (EP) plenary session, on 20 November 2013, adopted a legislative Resolution, at first reading, on the European Commission proposal for a Directive of the European Parliament and of the Council on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures.

Following the call of the EP Committees on Legal Affairs and Women's Rights and Gender Equality Joint Report, adopted on 14 October 2013, to support the Commission proposal (see Legal update, Gender balance on company boards: European Parliament Committee supports European Commission proposal to address gender imbalance on company boards in Europe), the EP legislative Resolution of 20 November 2013:

For further details, see Legal update, Non-executive directors: European Parliament resolution on gender balance on listed company boards directive.

Next step: The proposed Directive falls under the ordinary legislative procedure, which means that both the EP and the Council, being co-legislators, will have to adopt the same final text of the Directive.

For a detailed overview of the regulatory developments relating to this draft Directive, see Gender balance on company boards: legislation tracker.

Background: In the European Pact for Gender Equality (2011-20), the Council urged for action at member state and EU level to adopt measures to close gender gaps and combat gender segregation on the labour market (see Legal update, Council adopts European Pact on gender equality and considers European Commission progress report on equality between men and women). Furthermore, the Commission stated in its strategy for equality between women and men (2010-15) that it would address the gender imbalance in business decision-making through targeted initiatives (see Legal update, European Commission adopts new strategy on gender equality). It had also called on publicly-listed companies to sign a "Women on the Board" pledge by March 2012, making a voluntary commitment to increase women's presence on their boards to 30% by 2015 and to 40% by 2020 by actively recruiting qualified women to replace outgoing male board members (see Legal update, Gender balance in boardrooms: first two companies sign up to "Women on the Board pledge"). The proposed Directive, based on Article 157(3) of the Treaty on the Functioning of the EU, has been drafted following the results of a public consultation, launched on 5 March 2012, on possible action at EU level to redress the continuing gender imbalance on corporate boards in Europe, and on the findings of a Progress Report, Women in economic decision-making in the EU, published on the same date (see Legal update, Gender imbalance in corporate boards: European Commission consultation). On 23 October 2012, the Commission announced that it was postponing publication of the proposed Directive on women in boardrooms until 14 November 2012, to give the Legal Service time to consider its legality (see Legal update, Gender equality: European Commission postpones legislative measure on women in boardrooms until 14 November 2012 and European Parliament votes against an all-male ECB board).

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