Norway Mandates 40% Gender Quota In Large Private Companies

The government suggested a policy that would force large private Norwegian companies to have boards that include at least 40% women, or else they would be forced to close down.

A regulation voted by the European Parliament last month mandates that by the middle of 2026, large listed firms operating in the European Union must have at least 40% female non-executive board members. The law has already been endorsed by EU nations. The European Union passed the "Women on Boards" rule last month. A minimum of one-third of all enterprises must have female company directors in addition to the 40% limit.

A 40% gender quota for large private enterprises, not just publicly traded ones, is  suggested by Oslo's center-left government.

40% Gender Quota In Norway

"Companies are not good enough in using the skills of both genders. It is high time this changes," as per a statement from Industry Minister Jan Christian Vestre.

According to the government, there are now 20% more women on boards of private companies than there were 20 years ago (15%).

"The share has increased by 5 percentage points during the course of 20 years. We won't ever achieve our objective (of gender balance) if we keep moving forward at this rate", Minister for Equality Anette Trettebergstuen remarked.

According to the statement, the new policy won't apply to smaller private enterprises in order to "appropriate and not (be) more extensive than necessary". If the law were passed in its current form, it would have an impact on 3-7% of private enterprises.

The regulations also state that the underrepresented sex must be given preference if two applicants with the same qualifications submit their applications. Failure to comply could result in a fine or the contested director's appointment being revoked.

In 2005, the Nordic nation became the first in the world to impose a 40% gender quota on the boards of publicly traded companies, sparking a global movement to compel corporations to include more women on their boards.

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