One of the highly significant things and provisions introduced
by the new Companies Act, 2013 of India, is mandatory inclusion of
at least one woman director to the Board of every prescribed class
of companies in India. This provision can be considered as being a
highly elegant and revolutionary initiation by the Government of
India, for the purposes of empowerment of women in the Indian
corporate world, thereby strengthening and promoting contributions
of women to the economic progress of the country.
Here, it may be mentioned that women have always supported men
and the society, for achieving well-rounded development and
progress, in every vital and most significant sphere of the
domestic and social life. Again, in the occupational and
professional domains, women have an ever-increasing participation
in almost all fields of the broad economic sectors of business and
commerce, professions, industries, and services, at the levels
varying from lower to higher hierarchies. In some well-developed
countries, where there are liberated outlooks and opulent
facilities for quality higher education and disciplinary training,
women have been emulating men, even in the fields of army and
defense, aviation, and space exploration. Thus, women in general,
certainly have great and admirable credit for contributing
remarkably to the domestic progress and prosperity, social
development, and economic progress and growth, in most of the fast
progressive countries of the world, essentially including India. As
India is one of the major and fast growing economies of the world,
this initiative for empowerment of women in the giant and pivotal
corporate world, is indeed, highly commendable. Thus, facilitating
the lawful entry of woman to the Board of Directors of prescribed
class of companies is surely a bright and prudent decision for
enhancement of the cherished contributions of women in the economic
progress and growth of the country.
The Board of Directors of a company is the vital governing body
and directors are ultimately responsible for stable, highly
efficient, and profitable running of the concerned company,
safeguarding the interests & progress of the company and its
stakeholders. This entry to the Board of Directors is now
well-facilitated and secured through second proviso of sub-section
1 of Section 149 of the new Indian Companies Act 2013. Through
promulgation of this innovative provision, the constantly changing
and dynamic Indian corporate world is now intelligently enabled to
widen its talent pool with inclusion of imaginative persons with
diversified backgrounds and viewpoints.
As per the new Companies Rules of 2014, the following categories
of companies are mandatorily compelled to appoint at least one
woman director to their respective board of directors:
Every listed Company
Every Other Public Limited Company which has
Paid-up Share Capital of One Hundred Crore Rupees or more;
Turnover of Three Hundred Crore Rupees or more
A Company, which has been incorporated under this Act and is
covered under provisions of second proviso to sub-section (1) of
Section 149, shall comply with this provision of women
directorship, within a period of six months, from the date of its
incorporation. And any intermittent vacancy of a woman director
shall be punctually filled-up by the concerned Board at the
earliest, but not later than the immediate next Board Meeting or a
period of three months from the date of such a vacancy, whichever
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
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