site.btaParliament Passes at First Reading Gender Balance for Directors of Large Companies

On Thursday, Parliament approved at first reading amendments to the Gender Equality Act to ensure balance between women and men among directors of large companies. The proposal was submitted by the Council of Ministers and supported by 117 MPs, while 31, mainly from Vazrazhdane, voted against it, while other eight abstained.

The proposal’s explanatory notes say that the aim is to enhance gender balance among directors of companies listed on the stock exchange and to implement corresponding measures in line with European requirements. The deadline for transposing the relevant EU directive expired on December 28, 2024.

The notes add that setting minimum and incentive measures to balance women and men in public company boards is expected to benefit the economy. The underrepresented gender must hold at least 33% of director positions, with a maximum of 49%, to be achieved by June 30, 2026.

The law also requires companies to publicly disclose this information in their corporate governance statements. Penalties apply for non-compliance. Public companies must adjust board selection procedures and inform meeting participants of the gender balance target, the National Assembly decided.

Under the bill, the Bulgarian Labour and Social Policy Minister is tasked with promoting, analyzing, monitoring, and supporting gender balance in the governing bodies of public companies. The bill’s report was presented in plenary months ago but was not voted on at the time as the sitting had ended.