Public limited companies: Gender parity – fast, please!
An important date in company law is fast approaching. Public limited companies must comply with an important provision of Law No. 19-20 (1) amending and supplementing Law No. 17-95, which requires the proportion of board members of each gender to be at least 30%. In addition, technical committees must include at least one representative of each gender (Articles 51, 76 and 106 bis of Law 17-95).
Article 7 of Law No. 19-20 on transitional measures sets the deadline at January 01 of the third year following publication of the law in the Official Gazette (1), which refers to January 01, 2024, the date by which the composition of boards of directors and technical committees must comply with legislative requirements (Article 7). However, lawmakers have provided flexibility for latecomers. The 30% quota for the first year of implementation must be met by the end of the general meetings held in 2024. This deadline corresponds to March 2024 for companies with a September 2023 year-end, or June at the latest for companies with a December 31 year-end. According to the interpretation of Article 7 of Law No. 19-20, the last deadline for reaching the 30% quota actually expires at the end of June 2024.
As a reminder, Article 9 of Law No. 17-95 on Public Limited Companies defines a company making a public offering as «any entity whose securities are listed on a stock exchange, or entities which, for the placement of the securities it issues, has recourse either to brokerage firms, banks or other financial institutions, or to canvassing or advertising procedures of any kind».
By contrast, other categories of entities, including limited companies not making a public offering, are excluded. It should also be noted that this provision also applies to existing companies. The lawmakers’ goal in introducing this measure is to encourage, for the time being, only public limited companies to ensure a gender balance in their management and supervisory bodies.
Law No. 19-20 provides for an increase in the proportion of women in the management and supervisory bodies of public limited companies. This means that by January 01, 2027, the proportion of men and women in these bodies must reach 40%, compared with 30% by January 01, 2024, giving a 6-year respite to bring these entities into line with gender equality legislation.
Article 105-5 of Law No. 19-20 provides for sanctions against organizations that fail to comply with its provisions by the deadline.
Hassan EL ARIF
