A European Union proposal that 40 percent of company supervisory boards be made up of women will be amended to ease potential sanctions in an effort to win over EU officials, a person familiar with the matter said.

EU Justice Commissioner Viviane Reding will make minor changes to allow governments more flexibility on penalties against companies that don't meet the target by 2020, said the person, who declined to be identified because the matter is private. Under the draft rules, companies would also have to explain selection procedures if challenged by unsuccessful candidates who claim they were discriminated against.

U.K. business secretary Vince Cable and ministers from nine other countries wrote the European Commission last month seeking more time for national efforts aimed at encouraging female appointments to take effect. News of Reding's amendment was followed by a European Parliament committee opinion yesterday opposing appointment of Luxembourg's Yves Mersch to the European Central Bank's Executive Board. The committee said it was unhappy with the lack of female candidates for the job.