The Gender Balance on Corporate Boards Directive, which has not yet been transposed into Irish law, sets a target for EU large listed companies of 40 per cent of the “under-represented sex” among their non-executive directors and 33 per cent among all directors.

The deadline for the transposition by EU member states was 28 December 2024, and companies must meet the targets by 30 June 2026.

Women are under-represented on most corporate boards in the EU, with women making up just over a third (34 per cent) of the membership of the average EU boardroom.

Representation varies by member state, with women accounting for 39.6 per cent of board members of the largest listed companies in countries with binding gender quotas, compared to 33.8 per cent in countries with soft measures, and just 17 per cent in countries that have taken no action at all.

The new Directive sets representation targets as well as introducing new rules around transparent appointments.

It introduces specific binding measures for the selection procedure of board directors, with transparent and gender-neutral criteria, as well as a preference rule under which a candidate of the “under-represented sex” must be chosen over another equally qualified candidate.

The Directive requires member states to publish a list of companies that have achieved the gender balance targets as well as to designate one or more bodies for the promotion, analysis, monitoring and support of gender balance on boards.

Hadja Lahbib, the European commissioner for equality, preparedness and crisis management, said: “Gender balance is about fairness for all, and equal opportunity must be provided in all aspects of life.

“This Directive is a significant milestone — the rules adopted by the EU in 2022 now have to be applied by member states. These rules will release the amazing potential of women to drive our growth and innovation.

“I will follow-up to ensure this important legislation is properly transposed by member states and applied in a diligent manner. Together, we can break the glass ceiling.”