The new Organic Law 2/2024, of August 1, 2024, on equal representation and balanced presence of women and men, published in the BOE on August 2, 2024 and coming into force on August 22, 2024, is based on the equality before the law of all citizens as set forth in the first article of the Spanish Constitution. In the same field, it is worth mentioning the Resolution of the United Nations General Assembly, which presents the balanced participation of at least forty percent of each sex in representative and decision-making positions as a parity threshold to eliminate bias in decision-making.
As a point of origin of the progress made by this new legislation focused on achieving equality in political and economic decision-making, we can place the Organic Law 3/2007, of March 22, which focuses on eradicating inequality so that the presence of men and women as a whole does not exceed sixty percent and is not less than forty percent.
This new text is intended to break glass ceilings and ensure that women are represented fairly and equally at all decision-making levels, as required by the Constitution and the European Union.
From this provision it is worth highlighting as a priority the already mentioned balanced presence of men and women, without exceeding sixty percent or being less than forty percent, both in higher and executive bodies of the General State Administration and in entities of the State institutional public sector, bringing with it several changes, among which we can highlight the Constitutional Court, the Council of State or the Court of Auditors.
Specifically, it sets out this balance in decision-making bodies such as boards of directors, constitutional bodies and management teams.
But it does not only stop there, it covers new sectors and areas such as sports, public procurement, foundations or the tertiary sector, modifying the Sports Law, the Public Sector Contracts Law and the Organic Law of the University System.
In terms of its impact, it directly affects companies, especially listed companies, which must ensure that at least 40% of the members of their boards of directors are women. Nor should they forget that minimum percentage in senior management positions.
On the other hand, transparency must not be left aside, since in the event of female representation exceeding sixty percent, this deviation must be justified in writing.
This new law presents a challenge and an opportunity for both companies and organizations. Those that best adapt to the new requirements will see this reflected in greater competitiveness and long-term sustainability. To do so, they will have to correctly apply this regulation by revising their selection, promotion and professional development policies to ensure that they can meet the new requirements.
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