The European Commission has taken a decisive step regarding gender imbalance in Cyprus’s corporate landscape. The Commission has initiated the second stage of the infringement procedure against the Republic due to its delays in implementing EU directive 2022/2381, which mandates gender quotas in company boards.
Gender imbalance: Targets for Gender Representation
This directive aims to ensure that at least 40 per cent of non-executive board members in listed companies are from the ‘underrepresented gender’. Additionally, it sets a target of 33 per cent representation among all directors. The deadline for meeting these targets is December 2024.
Previous Infringement Procedure
The Commission’s latest action follows the initiation of the first stage of the infringement case in January 2025. During that stage, Cyprus was urged to adopt necessary measures to comply with the directive but has yet to take significant actions to address the gender imbalance.
Consequences of Non-Compliance
Cyprus, along with eight other EU member states—including Austria, Belgium, Poland, and Portugal—now faces a two-month period to implement the required changes. If the Republic fails to comply, the case may escalate to the European Court of Justice, which could impose financial sanctions on Cyprus.
Broader Implications for Gender Equality
This ongoing situation highlights the European Union’s commitment to gender equality in corporate governance. The EU is keen on ensuring that companies reflect the diversity of society, which remains a pressing issue across member states.
