Assembly Approves Minimum Quota for Women on Boards

Law 56 of July 11th, 2017 established the right of women to access and actively participate in the decision-making of public and private entities in the country.   A 30% minimum of women must be assigned to the total amount of positions available on the board of directors of all government institutions, public companies, financial intermediaries and all companies regulated by them who have a corporate governance, a board of directors, an administrative council or a similar structure.

However, the Law states that it should not affect the current composition of the board of directors that have previously been designated or its current members. The Law must be enforced for all appointments that take place after it went into effect as of July 12th, 2017.

Furthermore, the board of directors composed of State authorities where there is a restriction by legal mandate to designate nominal members as a whole or in a quota greater than 61% will be the exception to the norm.

The 30% minimum quota will apply in three stages: 10% during the first year of the Law going into effect,  20% during the second year and 30% during the third year. However, there is no current sanction for non-compliance. Please be advised that the Executive Branch will issue a special Decree regulating this Law.

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