India is an ardent supporter of women empowerment and the same is reflected in the requirement of Companies Act and SEBI rules in terms of appointment of Women Directors on Board. Leading from front seen in the File Picture to encourage Women Entrepreneurs @ GES 2017- Prime Minister, Narendra Modi and the Advisor to the President of United States, Ivanka Trump visiting the Virtual Exhibition, at the Global Entrepreneurship Summit-2017.
Law catches up with companies on appointment of women directors on Board
In quest to ensure that listed companies must comply on appointing women board directors, a total 142 listed companies were fined, which included 54 and 88 number of companies including PSUs listed on National Stock Exchange and Bombay Stock Exchange respectively which had not appointed women directors as on 30.09.2017 have been levied fine for non-appointment of women directors, as per fine structure prescribed by SEBI, stated P.P. Chaudhary, Minister of State for Law & Justice / Corporate Affairs in written reply to a question in Lok Sabha on 22 December 2017.
Section 149 of Companies Act, 2013 (the Act) read with the corresponding rules requires every listed company and prescribed class of companies to have a women director. Section 172 of the Act lays down punishment for non-compliance. Registrar of Companies have filed prosecutions against 202 non-compliant public unlisted companies. In case of 36 unlisted PSUs reference have been made to administrative Ministries for ensuring compliances in this regard.
Securities and Exchange Board of India (SEBI) has also mandated under SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 for appointment of at least one woman director on the boards of listed companies.