By Gabriela Bassi

Law 15,177, which took effect on July 23, 2025, marks a significant milestone in Brazilian corporate governance by mandating that women hold at least 30% of board seats in state-owned enterprises, mixed-capital companies, their subsidiaries and controlled entities, as well as other companies where federal, state, or municipal governments hold a direct or indirect voting majority. Publicly traded companies may adopt this requirement voluntarily.

The rollout follows a phased approach: 10% of seats must be filled by women in the first election after the law’s enactment, 20% in the second election, and 30% from the third election onward.

Under the new legislation, 30% of the seats designated for women must go to women who self-identify as Black or have disabilities. Boards failing to meet these requirements will be barred from conducting business until they bring their composition into compliance.

From a governance standpoint, board diversity is increasingly viewed as essential for enhancing decision-making and bolstering organizational credibility. This legislation should drive companies to refine their appointment processes and cultivate female leaders ready to take on strategic roles. State-owned companies will face immediate changes in board selection, while publicly traded companies may find that voluntary compliance signals their commitment to governance excellence.

This legal shift represents far more than regulatory compliance—it’s a strategic opportunity. By embracing greater board diversity, companies can enhance their standing with investors, elevate their governance standards, and create sustainable long-term value.