In Chile, the "More Women on Boards of Directors" Law was passed, which seeks to increase the participation of women on company boards.
The initiative suggests that neither gender representation - both men and women -should exceed 60% on boards of directors, thus promoting an equal integration of men and women.
To this end, the law adopts a "comply or explain" model, in which companies will have to publicly justify if they do not follow the suggestion set out in the legislation.
Implementation of regulations
On the other hand, its application will be progressive. Initially, it is recommended that companies establish a quota of 80%, then 70%, until reaching the maximum suggested quota of 60%.
Six years after the publication of the law, the Financial Market Commission - the body that supervises and regulates the financial markets and listed companies in Chile - will evaluate its application and may establish a mandatory transitory quota for companies that do not adopt the measure.
In addition, the regulations incorporate recognition mechanisms to highlight companies that present good equity indicators, such as a system of incentives in public procurement and recognition in the promotion of gender equality and female leadership.
A transitional Advisory Committee, made up of public and private actors, will also be created to advise the Ministries of Economy, Finance and Women's Affairs in the implementation of the law.
Check the original note on the Ministry of Economy's website.
