Role Of Women Directors In A Company
Jahangir Ali Shamma & Kartik Gupta
Amity Law School, Jaipur
The principle of gender inequality has been incorporated in the Indian constitution in its preamble, fundamental rights, and fundamental duties, but despite such equal rights given to both men and women. Indian society is always male dominated. Revolutionary initiative has been taken by government is appointment of at least one women directors in certain class of companies. Section 253-322 of the Companies act 1956 concern with appointment of directors and other aspects. Various reforms have been made in the framework of Board. Their focus lies on studying women position and so their attention goes to Clause 149(1) of Companies Act 2013.The clause 149(1) states that: Every corporation shall have a Board of Directors consisting of individuals as directors and shall have- At least three, two, one directors in the public, private and person company respectively and; A company may appoint maximum of fifteen directors after passing special resolution and shall have at least one women director. India is not the first country to do so many other countries like France, Spain, etc. have already implemented it. Psychotically, it can be stated that where women are involved, company seems to have positive energy and employees are more focused toward their respective work. In a last decade more than 500 company showed noticeable change in their profit and further expansion in their business. The absence of women on corporate boards is embarrassingly observable. Only 4% of women directors are listed in Indian companies. This insufficiency of women at peak level in business is now termed as a ‘brain drain’ and a crisis of talented retention. The authorities as well as government should understand the necessity and capability of women and promote gender equality. This paper includes various recommendations for insuring noticeable representation of women on boards. It also considers necessities of having a gender balanced board.