A new bill proposed by the Ministry of Justice is set to introduce mandatory gender quotas for listed companies, requiring a 40% quota for the underrepresented gender on supervisory boards.

For executive boards with three or more members, at least one must be from the underrepresented gender, typically a woman.

“The proportion of women in leadership positions is still far too low in 2025, despite the many highly qualified women in business,” Justice Minister Alma Zadic said in a statement. “With the Women-on-Boards Directive, we are ensuring greater gender equality in leadership positions.”

If a listed company fails to meet the 40% quota for its supervisory board, the “empty chair” principle will apply. This means that if a seat is filled by someone from the overrepresented gender – typically a man – it will be deemed invalid, and the seat will remain unoccupied.

The draft law is still subject to approval by parliament.

Gender Quotas for Executive Boards

The new regulations will also apply to executive boards. For one- or two-member boards, all members must be of the same gender. For boards with three members or more, at least one must be from the opposite gender. Any appointments not meeting this requirement will be considered illegal.

Courts will check compliance with the quota during the company registration process, and any non-compliance will prevent registration. The same applies if a member leaves early – the new appointment must adhere to the gender quota.

Minister Zadic added that the law would enable structural change, rejecting the argument that qualified women were unavailable for executive positions. “It’s a poor excuse to say there are no qualified women available for many executive boards.”