Are quotas an effective way of addressing gender imbalances in senior roles? Ranjit Dhindsa examines the law & weighs up the pros & cons
In brief
- The Council of the EU has adopted the ‘Women on Boards’ Directive.
- What will the Directive change, and to whom does it apply?
- Do gender quotas work, and what are the downsides?
The Council of the EU adopted the ‘Women on Boards’ Directive (the Directive) in October 2022, ten years after it was first proposed by the EU Commission, which is aimed at improving the gender imbalance among directors and those in senior roles in listed companies.
Although the Directive may not be directly applicable in the UK, it will have an impact for the following reasons:
- Publicity: it is receiving publicity and there is awareness of it both in Europe and the UK,
- Expectations: this publicity creates an expectation and a slight pressure. Employees, shareholders and investors who operate throughout Europe and the UK will have similar expectations of UK businesses.
- Reputation:
