The law implements the EU directive on gender quotas in supervisory bodies, which stipulates a 40 percent quota for the underrepresented gender on supervisory boards. In executive boards, at least one person of the underrepresented gender must be represented if there are three or more members.

40 Percent Women Quota in Publicly Listed Companies

These principles are enshrined in a so-called "Corporate Management Positions Act," according to a statement from the ministry. If a publicly listed company fails to meet the 40 percent quota on the supervisory board, the so-called "empty chair" principle applies: an appointment of a person from the already overrepresented gender - typically a man - would be invalid, and the seat would remain vacant.

Rules for Women Quota in Executive Boards

For executive boards, the rule is: in one- to two-member management bodies, only men or only women may be allowed. However, from three members, at least one person of the opposite gender must be represented. An appointment that does not meet this quota would be illegal. When registering the entry in the commercial register, the court must check the quota - if it is not met, the registration cannot be made. This also applies if a person leaves the body prematurely. The new appointment must then comply with the existing quota.

Low Women Representation in Leadership Positions

"The proportion of women in leadership positions is still far too low in 2025, even though there are many highly qualified women in companies," said Justice Minister Alma Zadić (Green Party) in a statement. "With the Women-on-Boards Directive, we are ensuring more gender equality in leadership positions." This would enable structural change. "Because it is an excuse that no qualified women can be found for many boards."

(APA/Red)

This article has been automatically translated, read the original article .