As per second Proviso to Section 149(1) read with Rule 3 of The Companies (Appointment and Qualification of directors) Rules, 2014 (Chapter 11), the following class of companies are required to appoint at least one Woman Director-
(i) every listed company;
(ii) every other public company having –
(a) paid–up share capital of 100 crore rupees or more; or
(b) turnover of 300 crore rupees or more.
For appointment of Women Director, paid up share capital or turnover, as the case may be, as on the last date of latest audited financial statements has to be taken into account.
Time Frame for appointment: The Companies which were incorporated under The Companies Act 1956 and companies which were covered by Section 149 (1) were provided with the time limit to comply with such provisions within a period of 6 months from the date of its incorporation. Further as per interpretation other existing Companies were required to appoint Women Director within a period of 1 year as mentioned under Section 149(2).
Intermittent Vacancy: In case of any intermittent vacancy of woman director the same has to be filled-up by the Board at the earliest but not later than immediate next Board meeting or three months from the date of such vacancy whichever is later (Rule 3 of Companies (Appointment and Qualification of Directors) Rules, 2014 hereinafter referred in this chapter as Rule).
Duties and Liabilities:
The following duties and liabilities have been imposed on the directors of companies, by the Companies Act of 2013: —
Qualification / Industry Experience: The Companies Act, 2013 does not prescribe any qualifications or minimum industry experience criteria for candidature as Women Director of any applicable company.
Essential requirements for appointment of Woman Director:
Thus the Government has now empowered women to participate as one of the Board Members of the company. This step towards gender discrimination is welcomed by many leading companies some of which appointment Woman Director immediately on commencement of Companies Act, 2013.
(In case of any inconsistency or clarification/ suggestions, Author can be contacted for further details at [email protected] )
Disclaimer: The views and opinions expressed in this article are those of the author. The legal information is not advice and should not be treated as such.