Over Years, we’ve seen more women step into boardrooms, but here’s the real question – are they leading, or just filling a legal quota? Laws like India’s Companies Act, 2013 and SEBI regulations require companies to have at least one woman director , but does that actually translate into real decision-making power? The problem isn’t just about numbers—it’s about what happens inside those boardrooms. Are women shaping corporate policies, or are they just present to tick a compliance box? As a token gesture. India has taken steps to push for gender diversity, with laws Like: Companies Act, 2013 (Section 149(1)) – Requires certain companies to appoint at least one woman director. SEBI (LODR) Regulations, 2015 – Strengthened corporate governance norms for gender diversity. Kotak Committee Report (2017) – Suggestion of least one independent woman director for top 500 listed companies. Globally, some countries have done some good job into this : France (Copé-Zimmermann Law, 2011) – Requires 40% women on boards or 250 employees as women in company Norway (Public Limited Liability Companies Act, 2005) – Mandates 40% gender diversity. UK (Hampton-Alexander Review) – Aims for 33% women in leadership roles.
Despite these mandates, compliance often remains superficial—companies appoint women directors just to meet statutory obligations, not to create a real impact. Gender biases, cultural barriers, and lack of strong support systems continue to limit women’s influence in boardrooms. The real question remains: Are women directors making an impact, or is their role symbolic?
THE REALITY OF WOMEN IN LEADERSHIP
Women now hold 20.2% of director positions in Fortune Global 200 companies. In India, representation on corporate boards has grown significantly, rising from just 6% in 2013 to 18% in 2022. Nearly 95% of NIFTY 500 companies now have at least one female board member. While these numbers indicate progress, they only tell part of the story. Women directors continue to struggle with deep-rooted biases, as traditional views on leadership often limit their authority. Despite being on the board, many women remain excluded from key decision-making roles, with less than 5% of Indian companies having female chairpersons. The challenges are not just about representation; women face significant hurdles such as networking gaps, difficulties in balancing work and personal life, and a lack of mentorship that prevents them from advancing further. One of the concerns is boardroom tokenism, where women directors are present in name but lack executive power, often side line in critical discussions. Moreover, while gender diversity laws exist, their enforcement remains weak due to the lack of judicial intervention. Few landmark cases have held companies accountable, and despite Section 450 of the Companies Act allowing penalties for non-compliance, no major fines have been imposed on top firms. This lack of enforcement raises concerns about whether companies are truly committed to diversity or merely fulfilling legal requirements on paper. However, research strongly suggests that gender-diverse boards bring clear benefits to businesses. Companies with more women in leadership tend to perform better financially, as diverse perspectives lead to improved decision-making and risk assessment. Women directors also contribute to stronger corporate governance, fostering transparency and ethical business practices. Additionally, gender-diverse teams drive higher levels of innovation, encouraging creativity and adaptability, which ultimately make businesses more competitive.
Globally, countries like France and Sweden have implemented strong gender quotas, with women making up over 40% of board positions. India has made progress but still lags behind. Real inclusion requires more than just legal mandates—it demands a cultural shift within corporate environments to support and empower women in leadership roles. Even highly qualified women continue to face multiple barriers. Gender bias and stereotypes about leadership often prevent women from being considered for key decision-making positions. The lack of mentorship means fewer role models to guide aspiring female leaders, while male-dominated professional networks make it harder for women to gain influence. Work-life balance remains another challenge, as women still shoulder a larger share of family responsibilities, limiting their career opportunities. To move beyond token representation, companies must take meaningful action. Investing in leadership development through mentorship programs and training initiatives can help women grow into influential business leaders. Organizations should focus on creating inclusive workplaces by offering flexible work policies, unbiased hiring practices, and equal pay. Instead of merely meeting quotas, businesses must integrate women into real decision-making roles and leadership positions. Regulatory bodies like SEBI and the Ministry of Corporate Affairs (MCA) need to strictly enforce compliance with diversity laws, imposing penalties on companies that fail to follow them. A third-party watchdog could also help monitor the effectiveness of these laws. Additionally, judicial intervention should play a stronger role, with more public interest litigations (PILs) challenging the weak enforcement of gender diversity policies. True progress will come when gender diversity is not just a regulatory requirement but an ingrained part of corporate culture—where women are valued not just for representation but for their leadership, vision, and impact.
Women’s representation on corporate boards is increasing, but true inclusion is still a work in progress. Legal mandates alone won’t solve the problem, corporate culture must change to create genuine opportunities for women to lead. By breaking biases, fostering mentorship, and ensuring equal leadership opportunities, businesses can unlock the full potential of women leaders—not just for diversity’s sake, but for better business and a stronger economy. While the Companies Act and SEBI regulations have opened doors for women in leadership, stronger legal enforcement and genuine boardroom inclusion are the real keys to change.
NOW QUESTION ARISES? SHOULD LEGAL MANDATES BE STRICTER, OR DO WE NEED A MINDSET SHIFT FOR CORPORATE INDIA?
Author Bio
