The Cabinet has approved a bill requiring more balanced representation of women and men in the senior decision-making bodies of listed companies, marking another step in Cyprus’ efforts to align corporate governance with EU equality rules.

Gender Equality Commissioner Josie Christodoulou said the bill, entitled “The Gender Balance in Managerial Positions of Listed Companies and Related Measures Law of 2026”, provides that members of the underrepresented sex must hold at least 33 per cent of all management positions in listed companies.

Writing on her personal platform, Christodoulou described the approval as “another essential step towards equality between women and men”, saying the bill promotes balanced representation on boards through merit-based and transparent selection procedures.

The proposed legislation brings Cyprus into line with Directive 2022/2381, the EU’s corporate board gender balance framework. Under the directive, large listed companies in the EU must meet one of two targets, 40 per cent representation of the underrepresented sex among non-executive directors, or 33 per cent among all directors, by June 30, 2026.

The directive also requires companies that have not reached the target to apply clear, gender-neutral and unambiguous criteria when selecting board candidates. Candidates must be assessed objectively on the basis of suitability, competence and professional performance, while priority for the underrepresented sex applies only where candidates are equally qualified.

In addition, companies that fail to meet the objective must report the reasons for the shortfall and the measures being taken to address it. Member states must also provide for penalties that are effective, proportionate and dissuasive, which may include fines or the annulment of contested appointments.

For Cyprus, the bill comes against a still significant gap in corporate leadership. The European Institute for Gender Equality’s 2025 factsheet for Cyprus shows that women hold 11 per cent of board seats in the largest listed companies, while they account for 26 per cent of management positions more broadly.

This places the issue beyond formal compliance. Equal participation in economic decision-making, Christodoulou said, strengthens corporate governance, sustainable growth and the competitiveness of the economy, benefiting society as a whole.

She also thanked the Department of the Registrar of Companies and Intellectual Property, the Office of the Commissioner for Legislation and former Commissioner for Legislation Louisa Zanettou for their contribution to the preparation of the bill.

The next test will be implementation. While the bill sets a clear target, its impact will depend on how listed companies adapt their nomination procedures, how transparently appointments are made and how closely compliance is monitored once the law is in force.

Christodoulou said the government would continue working towards “a society of equal opportunities”, where women and men participate equally at all levels of decision-making.