Otherwise: "Empty chair"

New law to bring quotas for women into companies

(Bild: peopleimages.com – stock.adobe.com)

A draft law from the Ministry of Justice aims to bring more women onto supervisory boards and management boards: The proposal envisages a mandatory quota for women in listed companies.

Specifically, it implements the EU's Women on Boards Directive and provides for a 40 percent quota for the under-represented gender on supervisory boards. A person of the underrepresented gender must be represented on boards with three or more members.

These principles are laid down in a so-called "Company Law Management Positions Act", according to a statement from the ministry. If the 40 percent quota is not met on the supervisory board of a listed company, the so-called "empty chair principle" applies: a person of the already overrepresented gender - usually a man - would then be null and void and the seat would remain vacant.

Rules for board members too
The following applies to the board of directors: only men or only women should be allowed to sit on one to two-member boards. However, if there are three or more members, at least one person of the opposite sex must be represented. A board appointment that does not meet this quota would therefore be illegal. When applying for entry in the commercial register, the court must check the quota - if it is not met, the entry may not be made. This also applies if a person leaves the board prematurely. The new appointment must then be made in accordance with the existing quota.

"The proportion of women in management positions is still far too low in 2025, even though there are many highly qualified women in the company," said Justice Minister Alma Zadić (Greens) in a press release. "With the Women on Boards Directive, we are ensuring greater gender equality in management positions." This would make structural change possible. "Because it is an excuse that no qualified women can be found for many management boards."