GENDER BALANCE AND LEADERSHIP

THE IMPLEMENTATION OF DIRECTIVE (EU) 2022/2381 IN CROATIAN COMMERCIAL COMPANIES

Abstract

This paper aims to examine the process of implementing Directive (EU) 2022/2381 into the Croatian legislation via amending the Companies Act in 2024 in order to evaluate its significance for increasing gender balance in corporate leadership and its general relevance in the context of European regulatory and normative practice. Specifically, the focus will be on the importance of these regulations in the promotion of the European Union as an active global actor in the domain of inclusive governance, equal rights and socially sustainable business principles. The methodology of the research will consist in using a doctrinal approach based on the analysis of the relevant legislation, primarily Articles 272.s – 272. z. of the Companies Act as of 2024. The analysis will cover such issues as requirements for gender representation in the management and supervisory boards of listed companies, the presence of targets and exceptions, procedural methods and selection procedures in case the necessary level of representation is not achieved. Attention will be paid to the practical significance of the discussed regulation in terms of corporate governance practices. Based on the performed analysis, it can be concluded that the Croatian legislation in this regard fully meets the requirements and expectations formulated at the European level, thus testifying to the effectiveness of its efforts to shape the standards of corporate governance at the Member States’ level. In this regard, it is also possible to interpret the Directive as one of the measures aimed at supporting European values and ideas in relation to gender equality, balanced representation, and other aspects of socially sustainable business operations. On the other hand, there are certain difficulties associated with its implementation, primarily in achieving a balance between legislation and corporate governance practices. Overall, these legislative changes represent a significant contribution to the formation of modern corporate governance practices. Nevertheless, their full effectiveness will largely depend on continuous implementation, proper institutional support, and the creation of additional regulatory frameworks at both the national and supranational levels. In this regard, the presented paper is expected to contribute to further research of this complex issue.