Zagreb - Justice, Administration and Digital Transformation Minister Damir Habijan said on Wednesday during a parliamentary debate on amendments to the Companies Act that, of the 24 companies listed on the stock exchange, six have balanced gender representation on their management and supervisory boards.
"Out of the 24 companies that will be subject to the proposed amendments to the Companies Act, six currently meet the conditions," Habijan said, expressing hope that the remaining 18 will follow their example. He was responding to MP Ante Babić of the ruling HDZ, who asked how many of those 24 companies have balanced representation on their management and supervisory boards.
Several opposition MPs inquired why equal representation of men and women is not ensured in the management and supervisory boards of state-owned or predominantly state-owned companies, while this requirement is imposed on private companies operating in the capital market.
Habijan said the Ministry of Finance was preparing legislation on state-owned legal entities to address this matter.
The amendments to the Companies Act transpose the European Parliament and Council Directive of 23 November 2022, aimed at improving gender balance among directors of listed companies and associated measures, Habijan said. The Directive, he added, applies to publicly listed companies with more than 250 employees, revenue exceeding €50 million, and assets exceeding €43 million.
These companies will be required by 30 June 2026 to meet the condition that representatives of the underrepresented gender occupy at least 40% of non-executive director positions, and at least 33% of all director positions must be filled by members of the underrepresented gender.
Habijan said that when selecting candidates for director positions, preference should be given to equally qualified candidates from the underrepresented gender. However, this preference should not be absolute, as exceptional cases may exist where objective business assessments justify choosing an equally qualified candidate of the other gender over the underrepresented gender.
The opposition supported the proposed amendments but said the government was fast-tracking their adoption not out of advocacy for gender equality but due to the deadline to implement the European Parliament and Council Directive on gender balance and adopt OECD recommendations by 28 December.
We Can!: 67% of listed companies have no women in management
MP Rada Borić (We Can!) said 67% of Croatian companies listed on the stock exchange have no women on their management boards, and 37% have no women on their supervisory boards. She questioned whether Croatia will be able to meet the Directive’s goal of having at least 33% of director positions held by women by 30 June 2026.