More diversity at the top | Hogan Lovells

On September 28, 2021, the Dutch Senate adopted the law ” A more balanced composition of men and women in the boards of directors and supervisors of large public and private companies ” (the ” Law ”). The law aims to balance the ratio of men to women at the top. To this end, an assimilation quota and a target figure will be put in place. The law is expected to come into force on January 1, 2022. Assimilation quota for listed companies The law requires a balanced composition of the supervisory board (and non-executive members in the case of a single-level board) of listed companies, in this meaning that at least a third of it must be composed of men and a third of women. If this quota is not reached, it is not possible to appoint a new person who does not contribute to a balanced composition. An appointment in violation of the rule is null and void, but does not affect the validity of decision making by the supervisory board or at a level. A company may deviate from this assimilation quota in the event of i) appointment within eight years of the initial appointment year, or ii) exceptional circumstances, which means that the deviation is necessary to serve the interests long-term and sustainability of the company as a whole or to ensure its viability.

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