Chile's Ministry of Finance reports Congress has passed More Women on Boards law introducing phased comply or explain board gender cap

Chile's Ministry of Finance announced that the National Congress has passed into law the “More Women on Boards” bill to raise women’s participation on the boards of open and special corporations supervised by the Financial Market Commission (CMF). The framework sets a suggested maximum share for the overrepresented sex on boards and applies a “comply or explain” model requiring public justification when a company does not follow the recommendation. The suggested cap ultimately moves to 60%, with gradual implementation that starts with suggested limits of 80% and then 70% before reaching 60%. CMF will monitor implementation and, from six years after the law is published, may determine that certain companies that did not adopt the suggested quota should face a mandatory quota on a temporary basis for four years. The law also includes measures to recognise companies with strong board gender equity indicators, including a public procurement recognition mechanism where early adoption can be considered as an additional criterion alongside the technical and economic evaluation used in tenders. A temporary advisory committee made up of public and private actors will be created to advise the ministries of Economy, Finance and Women on applying the law.