Cyprus MPs examine bill requiring 33% gender balance on listed company boards

Nicosia, Cyprus. MPs began examining legislation on Tuesday that would require the underrepresented gender to hold at least 33 per cent of all director positions in listed companies. The bill is part of Cyprus’ implementation of the EU Women on Boards directive.

Board selection and reporting rules

The bill, before the House energy, trade, industry and tourism committee, would introduce requirements affecting both the composition of company boards and the selection of directors.

Selection procedures would have to be based on clear, neutral and objective criteria, with greater emphasis on transparency and merit in senior appointments.

Companies covered by the law would also be required to submit annual reports containing information on their compliance. The Office of the commissioner for gender equality would monitor implementation.

Commissioner’s office response

The Commissioner’s office welcomed the start of the parliamentary debate, stating that balanced representation involved more than numerical targets.

It linked the measure to equal opportunities, transparency and merit in appointments, as well as increased participation by women and men in economic decision-making.

The office also said greater balance at senior level could strengthen corporate governance, organisational performance, profitability and competitiveness.

EU directive implementation

The legislation forms part of Cyprus’ implementation of the EU Women on Boards directive, which entered into force in December 2022 and seeks to improve gender balance in the EU’s largest listed companies.

The bill was drafted with the involvement of the Office of the commissioner for gender equality, the Office of the commissioner for legislation, and the department of registrar of companies and intellectual property at the commerce ministry.

Cabinet approved the bill in July. At the time, Gender Equality Commissioner Josie Christodoulou said it represented a further step towards more equal participation by women and men in decision-making.

The government said the framework was designed to combine broader representation with merit-based and transparent appointments.

Target for listed companies

Under the EU rules, large listed companies must meet one of two targets: the underrepresented gender must account for at least 40 per cent of non-executive directors, or 33 per cent of all directors, including executive and non-executive positions.

Cyprus has chosen the target requiring the underrepresented gender to hold at least 33 per cent of all director positions.