Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 88
The quota was only for the public and private corporations which are considered big. To be considered big a
corporation should have at least two of the conditions which are indicated in DCC. If in total a public or private
limited company cannot carry at least two of those conditions, the quota would not be applicable. Those
conditions are based on the value of assets, net turnover of the financial year, average number of employees.
According to the reports it was estimated that 4500 corporations in the Netherlands satisfied at least two of
those conditions (Galle, 2016; Lückerath-Rovers, 2015). At this point it is important to declare that most of the
Dutch companies have a limited number of employees so mostly the main criteria are the value of assets and net
sales (Lückerath-Rovers, 2015).
In cases where corporations do not reach the designated percentages of men and women, the law did not specify
a sanction which penalized or punished the corporate or corporate representatives. The law has embraced
comply or explain approach. If a corporate which carry at least two of the criteria does not reach 30%, the board
should explain it in corporate9s annual report. Explanation should include the reason of uncomplying distribution
of the seats, what company tried to reach the expected percentage and how company will change the
unbalanced seats in the board (Lückerath-Rovers, 2015). The law has a limited application time so the
government has renewed the quota rule in 2016.
In 2021, the Dutch government introduced a new amendment to Book 2 of the Dutch Civil Code. This
amendment took effect on 1st January 2022. According to new rules, the quota set for each gender on the
supervisory board is 1/3. So it can be said that the Dutch government has slightly raised the quota, but as a result
the change does change most of the companies9 boards. However, there have been some meaningful changes in
other aspects of the quota. First of all, listed companies are now also subject to the new quota. Secondly, apart
from the comply or explain approach. According to DCC art. 142b/2, an appointment which does not contribute
to the gender diversity of the board is considered null, unless if it is a reappointment after 8 years or falls under
an exception specified in the Dutch Civil Code.
Another important amendment is about large companies. According to DCC art. 166/2, these companies should
point to the target number of diversity seats in the board and prepare a plan for reaching it. This rule applies to
supervisory boards, management boards, and other categories of employees in executive positions. Those should
be declared in the annual report with the same explanations as mentioned before. These recent developments
indicate that, while maintaining the comply-and-explain approach, the Netherlands has begun to implement
sanctions regarding the composition of boards in listed companies. The shift suggests a growing emphasis on
accountability and enforcement in achieving gender diversity goals.
7.4.1.6. BELGIUM
Belgium is a pioneer in regulating gender equality through the implementation of quotas. These regulations have
a wide-reaching impact, spanning from politics to corporate governance. While gender quotas can be found in
various sectors in Belgium, three main areas are subject to scrutiny: government advisory committees, political
candidates, and corporate boards. Despite the diversity of gender quotas in Belgian laws, the country boasts a
relatively long history of gender quota legislation compared to its European counterparts. In 1990, the first quota
laws were established with the intention of promoting gender equality in advisory committees (Meier, 2018). The
scope of these laws expanded in 1994 to include elected political offices, and, in 2011, gender quotas were
extended to the corporate boardrooms of Belgian companies (Belgisch Staatsblad, 14 September 2011/ Quota
Act).
According to the federal law passed in 2011, the boards of listed and state-owned companies are mandated to
comply with a new gender quota. This legislative move is aimed at promoting gender diversity and equality in the
corporate sector and ensuring that women are well-represented in leadership positions. The law not only
