>> Completed my Independent Director’s Certification from IICA <<

A BIG THANK YOU to International Directors Institute – Excellence in Corporate Governance:  https://internationaldirectorsinstitute.com/

A Board of Directors comprises individuals elected to represent a company, mandated by law in ensuring the organization’s success and alignment with stakeholders’ interests. Governed by the Companies Act, 2013, and an organization’s Articles of Association, the board’s structure, responsibilities, and powers are defined, including the appointment process, meeting frequency, and decision-making authority.

Need for Women Directors on the Board:

Recognizing the importance of gender diversity, regulatory bodies such as the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI) have mandated the appointment of women directors for certain classes of companies. This requirement applies to listed companies, public companies with significant capital or turnover, with a grace period of six months for compliance.

Non-compliance incurs penalties for defaulting companies and their officers, as stipulated by the Act and Regulations. SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015, further reinforce the necessity of women directors, with deadlines for compliance based on a company’s ranking.

Women directors are subject to the same regulations as their male counterparts concerning appointment, removal, and remuneration. Instances of non-compliance have led to penalties imposed by Registrars of Companies, signaling increased scrutiny from authorities.

Why There is a Need for Women Directors?

Gender diversity on corporate boards is a widely debated topic, aligning with principles of gender equality essential for societal progress and sustainability. The United Nations’ Sustainable Development Goals Report 2022 highlights the need for gender-inclusive policies and actions to address global employment disparities and promote women’s leadership in managerial positions.

Conclusion:

While legislative efforts aim to foster gender diversity in corporate governance, genuine transformation requires more than mere compliance. Women’s roles in societal advancement are paramount, characterized by their multifaceted contributions and unique perspectives. A gender-diverse workforce not only reflects societal inclusivity but also enhances decision-making and problem-solving capabilities, leveraging diverse viewpoints and market insights.