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provision for women directors has been mentioned in the landmark enactment, i.e,the Companies
Act,2013. thereby women on boards make more return.
A Critical Analysis Of The Need For Women Directors In Indian Companies
Indian polity is treated to be the most complicated one. Our constitution enshrines with the basic
rule that there should not be inequality which is persistent in the society. Predominantly inequality
exist between human beings on the basis of sex. Apart from sex the others would include caste,
creed, religion etc. Human fail to treat other human at par and most of all there continues a situation
that eradication of such gender inequality is highly unavoidable in a country like India. Equality
has to be maintained even in employment opportunities.
However the Indian constitution enshrines with provisions which deal with the importance placed
for women in workplaces too. And that women do have equal means of livelihood as compared to
that of men. Other recognition includes provision for equal pay for equal workcarried out by a
women, maternity relief and such other provisions.
Ill-treating women has always been a passion for men and tracing back such treatments makes us
get reminded of Sati, Child marriage, Female Infanticide etc. These sorts of treatment cannot be
stopped only by spreading awareness about the need for women empowerment. But this can be
achieved only by instilling the art of living in any women by making herself understand what she
is and the reason behind why she has been created on this earth. Not only does the Indian social
institution confine women rights but it’s sparsely spread across the globe. Now that women have
started proving themselves and they have initiated a step in being a part of art, science, literature,
space, army etc. one such initiative is that women being a part of corporate field. Legislature has
taken a very bold step in building up women participation by including provisions for women to
be a part of the board in the Companies Act, 2013.
Psychologically, it can be stated that when women are employed in a company there seems to be
lot of positive energy in the form of having more focus as well as diversity in the work to explore
more in the work place. Many fortune 500 companies show a drastic change in the increase in their
profits and their further expansion of their business.
Moreover countries such as Norway, Belgium, France, Iceland, Italy, European Union, Germany,
Spain, Malaysia, United Arab Emirates, Netherlands, Austria, Israel and Finlandhave shown that
due to the participation of women in their boards there has been increase in the income of the
companies.
Minimum number of three directors in case of a public company and two directors in case of a
private company and one in case of One Person Company.
A maximum of fifteen directors.
Further it is also stated that such class or classes of companies as mentioned above shall have at
least one women director.
Rule 3 of Companies (Appointment and Qualification of Directors) Rules, 2014 deals with women
director on the board. With regard to section 149, the following companies shall appoint at least
one women director on the board. Firstly, for every listed company and every other public
company having
The paid up share capital or turnover as stated above shall be the one which is mentioned in the
latest audited financial statement. Moreover any company which is incorporated under the new
companies Act shall comply with the above conditions within six months from the date of
incorporation. However, any company which has been incorporated under the old companies Act
shall comply with such conditions within one year from the date of incorporation.
In case if there is vacancy in the post of women director, such vacancy has to be filled as early as
possible and it should not be later than the next immediate board meeting or after three months
from the date of the post being vacant, i.e. whichever is later.
This small proportion of directors can be only on the boards of seven listed companies, which
further restricts options for companies on the lookout for women directors, this is according to
SEBI’s guidelines. Henceforth, need for women director in Indian companies has become
inevitable. This is a good sign for the corporate growth in the country. There are many reasons for
scarcity of representation of women in senior leadership positions. Experts say that women on
boards lead to more profitability and sustainability. Thus, the 2013 landmark enactment has paved
way for gender diversity and more women participation.
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