Global Diversity and International Employment

Global Diversity and International Employment

Legally mandated gender quotas are also starting to appear outside Europe. In 2011, for example, Malaysia’s Ministry of Women, Family and Community Development succeeded in passing an amendment to the 2004 regulation requiring 30 per cent of directors on boards in the public sector being women. Similarly, Brazil has a 40 per cent target, by 2022, for female representation on the boards of state-controlled enterprises; India’s Companies Act 2013 requires prescribed classes of companies to have at least one female board member; and Israel and the United Arab Emirates require all companies and government agencies to have at least one woman on the board, a requirement that has been expressly adopted by the United Arab Emirates’ Securities and Commodities Authority to be listed on the exchange. In Japan, Prime Minister Shinzo Abe announced in 2015 the goal of increasing the percentage of women in executive positions at Japanese companies to 30 per cent by 2020, and a new law that promotes women’s career activities, which took effect on 1 April 2016, requires private and public sector Japanese companies with more than 300 employees to disclose gender diversity targets. However, in 2021 women occupied less than 13 per cent of corporate management positions in Japan and the government pushed back the 30 per cent target to 2030. In 2018, the US state of California passed a law that mandates that all public companies with their principal executive offices located within the state must have at least one female director on their corporate board by 31 December 2019. In 2020, California passed a second piece of legislation mandating minimum representation by minority individuals on corporate boards by the end of 2021. Several lawsuits have been brought in a California federal court, alleging that the California quota laws are unconstitutional. Colorado, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Washington have similarly introduced or passed legislation or resolutions concerning board diversity. In August 2021, the US Securities and Exchange Commission adopted new listing rules submitted by Nasdaq that require all companies listed on Nasdaq’s US exchange to disclose aggregated statistical information about each board’s voluntary self-identified gender and racial characteristics and LGBTQQ status for the current and prior years, and either include on each company’s board or publicly disclose why the board does not include a certain number of ‘diverse’ directors.

https://www.lexology.com/library/detail.aspx?g=3f6e72cf-0f98-42ab-9147-3880166c96ee

Related Articles

Responses