On May 30, FIN MoJ proposed the implementation of the EU directive.
FIN MoJ announced FIN GVT proposals to implement EU directive on gender equality in the top management positions of listed companies, with changes to Limited Liability Companies Act and the Chamber of Commerce Act, affecting 35-40 listed companies.
All of these legal amendments are based on the requirements within the EU directive.
It is proposed that as a goal, all boards of listed companies within the scope should have at least 40% of the current underrepresented gender by Jun. 30, 2026 at latest.
However, in Finnish listed companies, the development of gender distribution has been successful for years through self-regulation, and it is possible for Finland to postpone introduction of regulations, because gender distribution of the boards is quite balanced.
It is proposed this possibility of postponement be utilized in Finland, as self-regulation continues to create best conditions for development of current board selection process.
The directive on balancing gender distribution of members of the management bodies of listed companies, and related measures, had entered into force on Dec. 27, 2022.
Timing
The changes to the laws are now all intended to enter into force on Dec. 28, 2024.
Next Steps
The bill has now been presented to FIN PRL and the legislation will now continue through its parliamentary process, until approved, at which time it will pass into law.
Nov. 22, 2024 Changes Pass Into Law
On Nov. 22, 2024, FIN GVT confirmed President of the Republic approved the laws amending Limited Liability Companies Act and Section 2 Chamber of Commerce Act.
The Act on amending the Limited Liability Companies Act adds a new annex to Chapter 6 on election of a member of the board of directors of certain listed companies.
Applies to listed companies with more than 250 employees and balance sheet total of more than EUR 43 million, or reported turnover of more than EUR 50 million.
The target number of under-represented genders shall be calculated as per annex.
These companies shall aim to achieve these gender quotas by Jun. 30, 2026 at latest.
Section 2 of the Chamber ofCommerce Act is amended to add that Central Chamber of Commerce has task to promote, analyze, monitor and support the development of gender balance, analyze and promote gender equality in listed company boards.
Both these amending Acts come into force on Dec. 28, 2024.
Regulators
FIN GVT; FIN MoJ
Entity Types
Corp
Reference
RF Act 60/2024, Act 87/2024, 11/22/2024; Bill HE 60/2024 vp; PR 5/30/2024; Act 624/2006; Act 878/2002; Directive (EU) 2022/2381; ESG
