Code of Practice for Corporate Governance
The Act applies to all public limited liability companies which are registered as such in the Register of Business Enterprises.
Norway has also addressed gender quotas in the Code of Practice for Corporate Governance, which is issued by the Norwegian Corporate Governance Board and contains guidance for companies required to report on their policies and practices for corporate governance by the Norwegian Accounting Act.
While not binding, the Code does require adherence through a “comply or explain” program, calling for all companies to either comply with the Code or publish reasons for failing to do so. The Code addresses gender equality by noting that, “composition of the board of directors as a whole should represent sufficient diversity of background and expertise to help ensure that the board carries out its work in a satisfactory manner. In this respect due attention should be paid to the balance between male and female members of the board.”
While the Code encourages diversity, its “comply or explain” requirement exerts less pressure on companies to increase female participation in the board room.