Gender Quota Regulation for the board of directors of Norwegian private limited liability companies
New and extended gender quota regulations to the board of directors of Norwegian private limited liability companies are adopted. Until now, gender quota regulations have applied only for listed public limited liability companies and state owned companies. The newly adopted regulation, which shall also apply to inter alia certain partnerships, co-operatives and foundations, significantly broadens the scope of gender quota mandates.
The regulation targets companies with combined operating and financial revenue of MNOK 50 or more than 30 employees, with boards comprising more than three members.
The regulation will take effect on 1 January 2024. It will, however, be implemented gradually, in five stages. These are the stages (each stage extends the group of companies required to meet the regulation):
- 31 Dec 2024: Companies with combined operating and financial revenue of MNOK 100.
- 30 Jun 2025: Companies with over 50 employees.
- 30 Jun 2026: Companies with over 30 employees.
- 30 Jun 2027: Companies with a combined operating and financial revenue of MNOK 70.
- 30 Jun 2028: Companies with a combined operating and financial revenue of MNOK 50.
The required number of board members of each gender is to be the number closest to the proportion of 40%:
- 3-4 board members: No more than two board members of the same gender.
- 5-6 board members: No more than three board members of the same gender.
- 7 board members: No more than four board members of the same gender.
- 8 board members: No more than five board members of the same gender.
- 9 or more board members: No more than 60% of the board members of the same gender.
The legislation extends to deputy board members, and a distinct rule applies for board members elected by and amongst the company's employees. If three or more board members shall be elected by and amongst the employees, these board members cannot be of the same gender. In companies where 80 percent or more of the total number of employees are of the same gender, this does not apply.
Link to the resolution adopted by the Parliament: Lovvedtak 21 (2023-2024) - stortinget.no