UK partners welcome EU delay on female quotas for company boards
UK partners have welcomed a decision to postpone plans to impose an EU-wide quota dictating the number of women on company boards. EU Justice Commissioner Viviane Reding had been pushing for a vote to take place earlier this week (23 October) on a proposed law which would force companies to keep 40% of positions on their supervisory boards for women by 2020, however the delay means it will not now be discussed until 14 November.
October 25, 2012 at 06:43 AM
3 minute read
UK partners have welcomed a decision to postpone plans to impose an EU-wide quota dictating the number of women on company boards.
EU Justice Commissioner Viviane Reding had been pushing for a vote to take place earlier this week (23 October) on a proposed law which would force companies to keep 40% of positions on their supervisory boards for women by 2020, however the delay means it will not now be discussed until 14 November.
The proposed law had already faced significant criticism from EU lawyers that it may not be enforceable, with several local governments, including the UK, strongly opposed to idea of imposing quotas.
Linklaters corporate partner Clodagh Hayes commented: "Commissioner Reding has previously expressed determination to legislate in the area of gender diversity in the boardroom. This vote means that she needs to come up with a compromise of some kind if she is to achieve her aims."
SJ Berwin employment partner Hilary O'Connor said: "I don't find it surprising that a decision has been postponed as there has been a lot of negative feedback towards it, including from female entrepreneurs. I think it makes little sense for anyone to be appointed other than on merit."
Despite the latest setback, some partners believe an EU quota is still likely.
Pinsent Masons corporate partner Martin Webster said: "There is a danger in thinking this is the end of the argument. I suspect Viviane Reding is not going to give up yet, and she has significant support in the European Parliament. Add to that the risk that the momentum in the UK could flag so we miss Lord Davies's 2015 target of 25%, the argument in favour of hard quotas could well re-surface."
Norton Rose chairman Stephen Parish (pictured) added: "Quotas are an issue that seem to divide people. If you are having to reach a decision by committee it is therefore going to be difficult to get a consensus. The debate over whether quotas are good or bad is, I believe, useful in any event. Ultimately what our profession needs is more diversity across its people, but not from a perspective that could create a degree of artificiality – personally I support a more natural process. Ultimately the important thing is, by whatever means, we continue progressing."
A number of law firms have been active in encouraging female representation both in their partnerships and at management level. Last year Ashurst said that it plans to have one quarter of its management posts filled by women by 2014, meanwhile Hogan Lovells set a target earlier this month of increasing its proportion of women in management roles to 30% by 2015. This is a marginal increase on the present figure of 28%.
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