appointment of Woman Director companies act 2013

Posted on 28-03-2016        By ADMIN

appointmentof Woman Director

appointment of Woman Director: a step towardsempowerment of women n the corporate world

The principle of gender equality has beenenshrined in the Indian Constitution inits preamble, fundamental rights, fundamental duties and directive principlesof state policy, but despite such unambiguous equal rights given to both menand women Indian society is always male dominated. The work place is a settingwhere gender inequalities are easily noticed. Men always get the top positionsin companies whereas working women are frowned upon.

But with the modern era the status of women is changing. The Government ofIndia has propagated many laws for the empowerment of women. One suchrevolutionary initiation taken by the Government is the appointment of at leastone woman director in certain class of companies’ board of directors under theland mark legislation The Companies Act 2013. The second proviso to section 149(1) of the act makes it mandatory the every listed company shall appoint atleast one woman director within one year from the commencement of the secondproviso to Section 149(1) of the Act.

Every other public company having paid up share capital of Rs. 100 crores ormore or turnover of Rs. 300 crore or more as on the last date of latest auditedfinancial statements, shall also appoint at least one woman director within 1year from the commencement of second proviso to Section 149(1) of the Act.

A period of six months from the date of company’s incorporation has beenprovided to enable the companies incorporated under Companies Act, 2013 tocomply with this requirement. Therefore, the existing companies has to complythe above requirements within one year and new companies incorporated under thenew companies act has to comply within 6 months from the date of itsincorporation.

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