Finance

Senate agrees with women’s quota in top business sector

The parties VVD, VVD, GroenLinks, SP, PvdA, D66 and PvdD voted in favor of the proposal, the factions of SGP, Fractie-Nanninga, FVD, Fractie-Otten, 50PLUS, PVV and ChristenUnie voted against. The OSF fraction was absent. With the approval of the Senate, the law is finally passed.

The outgoing ministers Sander Dekker (Legal Protection) and Ingrid van Engelshoven (Emancipation) aim to have the law take effect on January 1, 2022.

If that succeeds, at least one third of the supervisory boards of listed companies will have to consist of women and at least one third of men. The point is that in the coming years a woman will be appointed for every man who leaves, until the quota is met.

Annual Report

Large public and private companies are required to set targets to balance the gender ratio in company leadership. They must report on this annually. This concerns about five thousand companies that are not listed on the stock exchange.

The outgoing cabinet finds the law “necessary as a push in the back of the business community to really work on diversity” and “to get rid of the old appointment culture we know.” It is good that women are given equal opportunities and, moreover, a diverse top ensures better business operations, says the current coalition. The bill was based on an advice from the Social and Economic Council (SER).

The annual Dutch Female Board Index recently revealed that more than two-thirds of the dozens of Dutch listed companies already meet the one-third female quota. The smaller funds, in particular, still need to appoint women to catch up.

The law will be evaluated after five years and both provisions will expire after eight years.

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