Europe imposes a 40 percent Reservation for Women

After countless years, we now live in a time when the writhing voices of the underrepresented are receiving the attention they well deserve. However, the path to equality is incredibly rocky, and this struggle is likely to continue for the rest of this century at the very least.

But in the interim, one of the biggest economies in the world has achieved success! The "Women in Boards" Directive has been approved by the European Union (EU) parliament after ten years of deliberation. The mandate will work to increase the representation of women in their largest publicly traded enterprises, which might serve as a much-needed catalyst for other regions of the world.

"Ten years after it was first suggested, the "Women on Boards" Directive was finally adopted, marking a significant advancement in gender equality. Finally, we are enhancing corporate governance and giving women an equal opportunity to hold senior business roles. Women are creative, intelligent, strong, and capable of a variety of tasks "Vice-President of the European Parliament Evelyn Regner adds.

"We are reducing informal male networks, one of the major barriers that prevent women from obtaining "top jobs." Transparency and competency will now be more important than ever in a selection process."

The initiative for women in boards

The Directive will include a number of provisions that will strengthen accountability and transparency in the hiring practises of significant enterprises in the EU. By the end of June 2026, at least 40% of non-executive director positions, or 33% of all director positions, must be held by women.

Additionally, the listed businesses (small and medium-sized organisations with fewer than 250 employees are exempt) will need to give details on the gender representation in their current workforces as well as concrete plans for how they intend to achieve these new goals.

The ruling instructs member states to put effective penalties in place that will ensure compliance in order to prevent this from turning into corporate wishy-washy in order to appear progressive. If the board of directors doesn't follow the Directive's provisions, this could potentially result in their dissolution.