Syllabus Section: Society
WHY IN NEWS?
Germany is planning to impose a mandatory quota for the number of women working in senior management positions in the country’s listed firms.
ABOUT NEW BOARDROOM QUOTA
• In case executive boards of the listed companies have more than three members, one of them must be a women.
• Companies in which the federal government has a stake will require a supervisory board quota of at least 30 percent and minimum participation in executive boards.
NEED FOR SUCH A QUOTA IN GERMANY
• Since 2015, Germany, which Europe’s biggest economy, has had a voluntary quota of 30 per cent for women on supervisory boards.
• The new provision will build upon this already existing voluntary quota.
Source: Indian Express