A European Union proposal that 40 percent of company supervisoryboards be made up of women will be amended to ease potentialsanctions in an effort to win over EU officials, a person familiarwith the matter said.

EU Justice Commissioner Viviane Reding will make minor changesto allow governments more flexibility on penalties againstcompanies that don't meet the target by 2020, said the person, whodeclined to be identified because the matter is private. Under thedraft rules, companies would also have to explain selectionprocedures if challenged by unsuccessful candidates who claim theywere discriminated against.

U.K. business secretary Vince Cable and ministers from nineother countries wrote the European Commission last month seekingmore time for national efforts aimed at encouraging femaleappointments to take effect. News of Reding's amendment wasfollowed by a European Parliament committee opinion yesterdayopposing appointment of Luxembourg's Yves Mersch to the EuropeanCentral Bank's Executive Board. The committee said it was unhappywith the lack of female candidates for the job.