The Czech Republic is taking significant strides to address gender inequality in its corporate sector by introducing a draft law mandating a minimum of one-third female representation in the management of large companies. This legislative move underscores a commitment to transparency and fairness in the selection process for board members, aiming to rectify the existing gender gap.

The proposed law targets five prominent companies and banks, recognizing the pressing need to elevate women’s participation in leadership roles. Currently, women hold only 21 percent of leadership positions in Czechia, lagging behind the EU average of 32.2 percent and ranking 20th among EU member states in terms of female representation in upper management.

Aligned with a European directive, the Czech Republic must adopt regulations by December 28 to adhere to gender diversity standards. Companies subject to the law must ensure a minimum of 40 percent female representation on supervisory and management boards or a combined 33 percent across boards and management boards.

Prominent entities such as ČEZ, Komerční banka, Moneta Money Bank, Philip Morris ČR, and Kofola Československo are specifically named in the legislation, highlighting the scope of its application.

The proposed law mandates companies to achieve gender balance by mid-2026, requiring them to publish progress reports and disclose candidate selection details. Failure to comply may result in fines, with oversight provided by relevant government bodies.

Accompanying documents on the government’s website emphasize that the law is formulated in the most minimal manner necessary to meet EU directives while still addressing the pressing need for gender diversity in corporate leadership. Through these measures, the Czech Republic aims to foster a more inclusive and equitable business environment.

Article by Prague Forum