Equbusiness book VERSION 28SEPT2023 - Flipbook - Page 92
underrepresented sex has the right to bring the matter before the court or another competent authority for
assessment.
In cases where the selection of candidates involves a vote by shareholders or employees, the directive mandates
a transparent process with proper voter information. Member states are empowered to implement necessary
precautions, including fines for non-compliance (Directive 6/5). Similarly, under Directive Art. 6/4, unsuccessful
candidates retain the right to challenge the decision in court or before an authority if the election lacked proper
information about the candidates and the criteria involved.
7.4.2.1.2. REPORTING
The Woman on Board Directive introduces reporting as a means to foster diversity in corporate boardrooms.
Drawing lessons from examples in Spain and Germany, where reporting alone has triggered progress leading to
more diverse corporate boards, Directive Art. 7/1 mandates member states to require listed companies to submit
information to the competent authority regarding the gender representation of their boards. The report must be
sufficiently detailed to differentiate between executive and non-executive members, and it should outline the
measures taken to establish gender diversity and comply with the rules. Furthermore, these reports and
information should be easily accessible through the companies' websites.
For instance, using the information provided by the companies, member states are directed to publish and
regularly update a list of companies that have achieved the quota objectives outlined in Art. 5/1 or 5/2. In cases
where listed companies fail to meet the quota objectives or the objectives set forth in Art. 5/2 (which are
company-created objectives), the reasons for non-compliance should be stated in the reports, along with the
necessary measures already implemented or planned. All the reports and information submitted are to be
included in the corporate governance statement of the company. It is important to note that reporting rules are
not applicable to a member state that has suspended the application of Art. 6 pursuant to Article 12.
7.4.2.2. GERMANY
In addition to quotas, transparency rules, and reporting requirements, Germany has taken a distinctive approach
to enhancing gender diversity in corporate boardrooms through its affiliation with the
