New gender equality law for management boards in the Netherlands
On 28 September 2021, the First Chamber of Parliament (Senate) adopted the law proposal with the title ‘diversity at the top of business’
On 29 September 2021, the First Chamber of Parliament in the Netherlands passed a new law entitled 'diversity at the top of business' which contains two measures that aim to create a more balanced ratio between men and women in the board of directors and supervisory board. The measures are as follows:
1) A quota covering appointments to the supervisory boards of companies listed on the stock exchange, which is intended to help ensure that men and women each occupy at least one third of the seats on a company’s supervisory board.
2) 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 is based on research conducted by the Social and Economic Council (SER) which can be accessed here.
The law itself will enter into force on 1 January 2022. The full text can be found here.
More information can be found on the government's website here.