Chile has taken a historic step toward gender equity in corporate leadership with the approval of the “More Women on Boards” law.
This new legislation, which applies to public, open, and special corporations regulated by the Financial Market Commission (CMF), is designed to increase the presence of women in boardrooms, promote fairer representation, and strengthen the quality of corporate decision-making.
At the heart of the law is the principle of balance. It introduces a maximum suggested quota of 60% for the gender with greater representation on company boards. This means that neither men nor women should hold more than 60% of seats, leaving space for a more equitable mix of perspectives at the highest levels of corporate governance.
To encourage flexibility, the law is based on a “comply or explain” model. Companies are invited to adopt the quota, but if they choose not to, they must provide a public explanation for their decision. The implementation of the law will be gradual, giving businesses time to adapt.
Suggested quotas will start at 80%, then move to 70%, and ultimately settle at 60%. Six years after the law’s publication, the CMF will conduct a review of its effectiveness.
For companies that continue to resist adopting the quota, the CMF may introduce a temporary mandatory measure, in force for four years, to ensure progress across the market. To reinforce adoption, the legislation also includes a system of recognition and incentives.
Companies that comply will be highlighted positively, enjoying reputation advantages and standing out as leaders in gender diversity.
Within the public procurement system, companies that embrace the quota ahead of schedule will be recognised as champions of gender equality and women’s leadership. Their progress on equity indicators may even be considered an additional factor in tender evaluations, giving them a competitive edge.
Government officials have stressed the law’s importance not only for gender equality but also for economic performance.
Javiera Petersen, Undersecretary of Economy and Small and Medium Enterprises, described the measure as the outcome of broad consensus between political actors and civil society groups. She underlined that more women in boardrooms is not only an issue of fairness, but also a response to market demand for more diverse and productive boards. Diversity, she noted, leads to better governance, innovation, and stronger business results.
Claudia Donaire, Acting Minister for Women and Gender Equity, called the law “a great day for Chile and a concrete step toward gender equality.” She emphasised that increasing the number of women in leadership is about more than representation – it is about boosting productivity and supporting national development.
To ensure effective roll out, the law establishes a temporary Advisory Committee composed of both public and private representatives. This group will advise the Ministries of Economy, Finance, and Women on the law’s application, reinforcing efforts to achieve gender balance in Chilean corporate governance.
By passing this law, Chile has positioned itself as a regional leader in advancing gender equity in corporate leadership.
The “More Women on Boards” initiative sends a powerful signal: inclusive leadership is not only a matter of justice, but also a driver of innovation, stronger business performance, and long-term economic growth.
“While the 30% Club has always championed voluntary action over mandatory quotas, we welcome the Chilean government’s recognition of gender balance as vital for both business and society. Since 2018, 30% Club Chile has been working hand in hand with women’s organizations and universities to prepare female leaders, and with the corporate community to increase women’s representation on boards and in C-suite. This new ‘comply or explain’ law has the potential to accelerate momentum and strengthen progress, crucial in an exponentially growing tech and innovation scene.”
— María Pía Aqueveque Jabbaz, Chair, 30% Club Chile
