Increasing Role of Women in Corporate World
· Every listed company shall appoint at
least one woman director within one year
· Every other public company having paid up share capital of Rupees 100 crores or more or turnover of Rupees 300
crore or more as on the last date of latest audited financial statements, shall also appoint at
least one woman director within 1 year
·
Compliance to provisions of 149(1) within 6 months of date of incorporation for companies which have been incorporated
under the Companies Act ,2013
·
In case of vacancy in the post of the
woman director, such post must be filled up within 3
months or next board meeting whichever is earlier.
[(Second
Proviso to Section 149(1) of the Companies Act, 2013 read with Rule 3 of the Companies (Appointment
and Qualification of Directors) Rules, 2014]
Existing
companies (under the previous companies act) have to comply with
the above requirements within one year and new companies (incorporated
under the new companies act) have to comply within 6 months from date of
incorporation. Any vacancy in the post of the woman director needs to be filled
in a strict time based framework.
These reforms have also been substituted
with punishment and penalty being handed out. Initiating
action for non- compliance, the Ministry
of Corporate Affairs (“MCA”) has asked many unlisted companies to explain why they have
not appointed women directors on their Boards as mandated under law.
Notices have also been served to over 700 listed
companies by the NSE and
BSE about the absence of Women Directors’. The Registrar of Companies (“RoCs”)
has started issuing show cause notices to
unlisted firms in this regard.
In recent times, experts have suggested that having women on the Board
of Directors (“Board”) makes it easier
to comply with the above given regulatory requirements as prescribed in the Companies
Act, 2013(Act, 2013) , along with
helping reduce the gender imbalance and
promoting diversity in the boardroom.
A greater
gender diversity at board level is a
desirable outcome for companies and businesses as women show a rational
attitude to boards and promoters thereby assisting the smooth functioning of
the business process and promoting the ease of business.
Many big corporations such
as Axis Bank , Cipla ,
Ultra-Tech Cement and Bio-Con have women
Directors’ and CEOs’(“Chief
Executive Officer”). Even so, the gender gap at the top is glaring
as only three out of 100 CEOs in India are women. The SEBI, in compliance with the
Companies Act 2013, had made it compulsory to have at least one
woman on the Board
way back in October 2014. Despite this, many companies including several
public sector companies are struggling to meet the norm.
Experts argue that women in top managerial roles apart
from adding the much needed gender diversity, also take a personal interest and drive programs and they are deeply invested in
the process .They add to the effectiveness of the boards and improve the
quality of discussions and decisions .
It is submitted that more and
more companies should hire women in Key Managerial Position (“KMP”) to bring in much needed
diversity and reduce the ever increasing gender gap that has been plaguing our
country.
According to a report, published by Thomson
and Reuters, women have for a very long time experienced a lot of atrocities at
workplace - second to
men, unequal remuneration, lack of representation, physical abuse amongst
other things.
Providing women with top jobs
apart from empowering women will allow them more representation in the
corporate world and their needs and requirements may get their due finally.
The latest amendment regarding
women directors’ in Act, 2013 is a welcome change in the corporate world.
Providing women with the top jobs like Director and CEO will afford women the
much needed empowerment and representation to help solve issues that have been
traditionally faced by women in the corporate world for many years’ since
Independence apart from providing Gender diversity at work place.
For more
information about Women Directors’ and other Company Law related provisions: http://www.nclt.in/
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