On September 28, 2021, the Dutch Senate (Eerste Kamer) adopted the legislative proposal on balanced gender diversity at the top of large companies (the “Act”, in Dutch: Wetsvoorstel inzake evenwichtige man/vrouwverhouding in de top van het bedrijfsleven), which is expected to enter into force on January 1, 2022.
Measures
The Act introduces two measures: (i) a diversity quota for supervisory boards of companies listed on Euronext Amsterdam (irrespective of whether they are a two-tier board company and/or subject to the so called “large company regime”) and (ii) the obligation for large NVs and BVs to set an appropriate and ambitious self-determined target and to prepare a plan of action (the “Target Plan”) in order to promote gender diversity on the management board, supervisory boards and within senior management. “Large” companies are required to publish their Target Plan (included in the annual director’s report) yearly within 10 months after the end of each book year and report their progress to the Social and Economic Council (SER).
Transitional provision
The abovementioned reporting requirements apply to the financial year starting on or after January 1 of the year the Act entered into force. Effectively this means that if the Act’s effective date is January 1, 2022, the large companies will have to monitor their progress during the financial year 2022 and will account for this in their directors’ report in 2023.
Evaluation and sunset clause
The Act will be evaluated five years after taking effect and it will lapse after eight years.
For more detailed information with regard to the measures, we refer to our previous blog on this topic: https://vancampenliem.com/blog/legislative-proposal-on-balanced-gender-diversity-at-the-top-of-large-companies/
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