Women’s representation in Board of Directors in Companies

As of November 2024, India has 1,708 listed and 3,383 unlisted public companies with a paid-up capital of Rs. 100 crore or more or a turnover of Rs. 300 crore or more. These companies collectively have 34,121 directors, of which 6,639 are women. According to the Companies Act, 2013, companies in this category are required to have at least one woman director on their board. Companies that fail to comply face penalties under Section 172 of the Act. In the past three years, multiple companies have been penalized, with a total of Rs. 57.5 lakh in penalties collected. Prosecutions have been filed against several companies, but none in Andhra Pradesh. The government has not yet proposed additional measures to strengthen gender diversity mandates but emphasizes the importance of women’s participation in decision-making roles in these companies.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS

LOK SABHA
UNSTARRED QUESTION NO. 935
ANSWERED ON MONDAY, 02^nd DECEMBER 2024
AGRAHAYANA 11, 1946 (SAKA)

Women’s representation in Board of Directors in Companies

935. Shri Lavu Sri Krishna Devarayalu:
Shri S Venkatesan:

Will the Minister of CORPORATE AFFAIR be pleased to state:

a. the number of listed and unlisted public companies with paid-up capital of Rs. 100 crore or turnover of Rs. 300 crore in the country;

b. the total number of Directors in the Board of these companies and women Directors among them, company-wise;

c. the details of the number of companies nationwide and specifically in Andhra Pradesh that have been subjected to penal action for non-compliance of appointing a woman director on their board, along with year-wise details of penalties imposed and collected;

d. whether the Government has reviewed the impact of this mandate on gender diversity in corporate boards across the country and if so, the details thereof; and

e. whether there are any further plans to strengthen gender diversity initiatives within companies and if so, the details thereof?

ANSWER

Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways.

(Shri Harsh Malhotra)

(a) : As on 15.11.2024, there are 1,708 no. of Listed Companies and 3,383 no. of Unlisted Public Companies having a paid-up capital of Rs. 100 crore and more or turnover of Rs. 300 crore and more.

(b) : As per the Companies Act, 2013, private companies are required to have minimum 2 directors and public companies are required to have minimum 3 directors on their Board. As such the total no. of directors in the above-mentioned companies are 34,121 out of which 6,639 directors are women. List of these companies can be seen at the link : https://www.mca.gov.in/bin/dms/getdocument?mds=TBcEyK2hZgZSiV1 %252BDwMYTw%253D%253D&type=open and https://www.mca.gov.in/bin/dms/getdocument?mds=%252BD%252BoVG GX%252FaE2wYigRPBl%252BQ%253D%253D&type=open

(c) : As per Second proviso to sub-section (1) of section 149 of the Act a prescribed class of companies shall have at least one-woman director. As per Rule 3 of Companies (Appointment and Qualification of Directors) Rules, 2014, every listed company and every other public company having paid up share capital of Rs. 100 crore or more or having a turnover of Rs. 300 crore or more is required to appoint at least one-woman director on its board. In case a company makes default in complying with this provision of the Act, the company and every officer of the company who is in default is liable for penalty provided under section 172 of the Act.

Section 172 of the Act was a criminal offence till the Companies (Amendment) Act, 2020 on 28.9.2020. The violation of section 149 of the Act after notification is subject to adjudication. In case of non­payment of adjudication penalty, prosecution is filed by Registrar of Companies u/s 454 of the Act. Year-wise details of penalties imposed and collected, for the last 3 years is attached as per Annexure -I and the list of prosecutions filed are as per Annexure – II. Penal action has not been taken against any company registered in the State of Andhra Pradesh.

(d) & (e) : There were no provisions making it mandatory for a prescribed class of companies to have at least one-woman director, as mentioned above, in the Companies Act, 1956. The above-mentioned provisions in the Act have been inserted with a view to encourage the participation of women in the management and decision making process in the identified class of companies. There is no proposal to further amend the above provisions at present.

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Annexure – I

List of year-wise details of penalties imposed and collected for violation of Section 149 of the Companies Act, 2013.

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Annexure – II

List of the year-wise of prosecution filed for violation of Section 149 of the A Companies Act, 2013.

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