Adherence to the quota principle is mandatory in municipally owned companies and recommended in bodies for exerting influence in wellbeing services counties (TAS 427/2022, issued 13 February 2023; TAS 182/2023, issued 29 March 2023)
The Ombudsman for Equality was asked to issue a statement on the Board composition of a municipally owned company in terms of the Act on Equality between Women and Men (Equality Act). The Ombudsman has also received an inquiry about the composition of a body for exerting influence in wellbeing services counties.
For the municipally owned company, the party contacting the Ombudsman wanted to know whether companies in which a municipality owns a majority share or exercises actual decision-making authority are required to follow the Equality Act's quota principle on minimum gender representation. The Ombudsman was also asked whether the subsidiaries of a group of companies owned by a municipality are required to comply with the Equality Act's quota principle in the same way.
The quota principle applies to the Board of a municipally majority-owned company
According to section 4a, subsection 1 of the Equality Act, the proportion of both women and men in government committees, advisory boards and other corresponding bodies, and in municipal bodies and bodies established for the purpose of inter-municipal cooperation must be at least 40 per cent, unless there are special reasons to the contrary. This provision does not apply to elected bodies, such as municipal councils.
The municipal executive board or other authority specified in the municipal rules of procedure must thus comply with the quota principle on gender representation when deciding on the Board composition of a company majority-owned by the municipality. The party affiliation or lack thereof of the chosen elected official is irrelevant in this regard.
The quota principle must be separately met by both the ordinary members and their deputies (KHO 1997:49). The party proposing the members must propose one woman and one man for each position.
The party preparing the institution of the body must ensure compliance with the quota principle. Once the candidates have been named, the party preparing the institution must strive to propose a composition that conforms to the quota principle. Minimum gender representation can only be derogated from for special reasons. If the quota is not observed, the reason for this must be justified in the appointment decision. (TAS 182/2023)
The composition provided for in the Equality Act is recommended for bodies for exerting influence in wellbeing services counties
Wellbeing services counties are new legal entities under public law that have been operating since the beginning of 2023. Wellbeing services counties comprise several municipalities and are tasked with duties previously performed by individual municipalities or joint municipal authorities in their areas.
Public administration activities are generally regulated by the "general administration acts", which include the Equality Act. The general administration acts always apply to the processing of administrative matters and to other official activities unless otherwise provided.
The wellbeing services counties have a variety of bodies for exerting influence, such as the youth council, council for elderly people and council for people with disabilities.
According to the legislative materials of the Act on Wellbeing Services Counties, the bodies for exerting influence in wellbeing services counties are not decision-making bodies referred to in section 35 of the Act, which consist of authorities charged with the exercise of public authority in the wellbeing services county. Therefore, bodies for exerting influence in wellbeing services counties are not bodies exercising public authority as referred to in subsection 1 and section 4a of the Equality Act, and the 40 per cent gender quota does not have to be applied to their composition. The legislative materials for the Act specify the express goal that both men and women be appointed to bodies for exerting influence in wellbeing services counties in the most equal proportions possible. (HE 241/2020 vp, s. 546)
Taking into account the obligation imposed by the Equality Act on authorities to promote equality between women and men in all of their activities, it is justified to strive for the most equal gender representation possible in the appointment of representatives to the youth council, council for older people and council for people with disabilities.
In seeking to achieve balanced gender representation, the Ombudsman for Equality considers the minimum representation provided for in the Equality Act to be an appropriate goal for bodies for exerting influence in wellbeing services counties. When various parties are requested to name their candidates for bodies for exerting influence in wellbeing services counties, they should be reminded of the goal of balanced representation of women and men.
24.04.2023
