- Professional News
- 20 December 2012
Act on more women in senior management positions now a reality
On 14 December 2012, the Danish Parliament passed a bill on equal treatment of men and women in senior management positions. The new Act introduces target figures and a duty to report in the annual report.
The purpose of the Act is to create a more equal distribution of men and women in the supreme governing bodies of companies, which is typically the board of directors. The Act is part of the plan introduced by the Danish government in the spring of 2012 on how to increase the number of women in senior management positions in large Danish companies by way of several legislative changes.
The Act lays down requirements as to target figures and the drafting of policies to ensure more women in senior management positions. The Act applies to listed companies and state-owned public limited companies in reporting class D as well as to large companies, including commercial foundations covered by reporting class C. Large companies are defined as companies for which two of the following limits are exceeded in two successive financial years:
- a balance sheet total of DKK 143m
- a revenue of DKK 286m and
- an average number of full-time employees of 250
Companies, who fulfil two of the abovementioned criteria, but have less than 50 employees, are not required to draft a policy to increase the number of women in senior management positions. State-owned companies and institutions are subject to the Act irrespective of their size. The Danish Business Authority will cooperate with major business organisations to prepare relevant guidelines for undertakings.
The Act comes into force on 1 April 2013. The new provision on the duty to report provided for in the Danish Financial Statements Act, however, is effective as from 1 January 2013.