How can you implement penalties for gender bias without introducing a threshold for an acceptable division of representation? And once that threshold is established, how exactly does it differ from a quota?
Let’s say you expect boards in general to be 50% male/female.
In case where this is not the case, and where it has not been the case for a number of years you might launch an investigation.
It might be that there are reasonable reasons in this instance. For example, the company was cofounded by two women or men, it’s a small company, and the composition of the board has never changed etc.
It might be that the company has a board with frequently changing members, but always selects male members. In that case, it’s easier to argue that discrimination has taken place. At which point you might launch an investigation and apply penalties etc.
The proposal is that a poor ratio results in stricter scrutiny, not a penelty. They would still need to investigate and find other evidence of illegal bias.