Cassels Brock
MONTH-IN-BRIEF (Aug 2024)
New Obligations for Directors of Spanish Companies
By Ignacio Montoya, Across Legal
To comply with European Union objectives, the Spanish government approved the Gender Equality Law published on August 2, 2024, which aims to promote gender balance in the political, economic, and public spheres.
The law’s new obligations for companies will apply to listed companies and public interest companies that have more than 250 employees and an annual turnover greater than €50 million or total assets exceeding €43 million.
The main obligations are: (i) ensuring that the board of directors and senior management of the company is at least 40 percent persons of the underrepresented gender; (ii) providing shareholders with information on the measures required regarding balance between women and men on the board of directors, as well as on possible sanctions for noncompliance; and (iii) publish annually, as part of the sustainability report, information related to this topic.