Ah I see what you're saying. That's fair criticism, let me try again.
This does only apply to publicly traded companies, and lots of other employment legislation does similarly limit association within companies does it not? For instance, discrimination on the basis of race or gender in the hiring process is illegal (making exception on the basis of “bona-fide occupational qualifications”). Setting aside the gender component here, it would seem that this is settled law, does it not? It appears if the argument is restriction of free association, that ship sailed, and you do not have that right at work on an absolute basis.
Is it hypocritical? Yes. Without sounding like a broken record, I don't believe that only old white men are capable of being on boards, yet they're massively overrepresented, which tells me there's some other intrinsic issue with the system or society that is creating this environment. I support this measure as an attempt to rebalance the scales. To me, the ends justify the means. If it doesn't work out, it can of course be rolled back.
Hypocrisy isn't illegal. I'm not sure whether this runs afoul of any other legislation but I'd imagine that's been thought through.
To me, the argument is: "if I am a woman creating a company for women’s products and want an all woman board..." -- you're not. Statistically, nobody is. That's the problem. If they were, we wouldn't be having this conversation at all. And when that changes, we can absolutely revisit this.