Listed companies have been to told to fill 40 per cent of their board seats with women, or else be fined
Sweden is planning to fine listed companies which fail to allot 40 per cent of board seats to women, its government said.
The Scandinavian nation is trying to frame a law that will ensure increased representation of women in board committees.
Thirty two per cent of board seats are occupied by women in Sweden at the momnet.
If the law is approved, the government can fine companies ranging between 250,000 and five million kronor ($29,400-$590,000, 26,200-520,000 euros), depending on the company's size.
Sweden has been at the forefront of gender equality in both public and private workplaces. But there is a gender disparity in boardrooms across the country, although it fares much better than other European countries.
"It's as much a question of competitiveness as of equality. Sweden has to be able to use all its skills," Industry Minister Makael Damberg told AFP.
The government is planning to implement the law by 2019.
Non-listed companies and firms that have less than 250 employees and an annual worldwide turnover of less than 50 million euros will be exempted from the law.
(WION with inputs from AFP)