News: PSUs & Pvt firms with no woman director to be penalised


PSUs & Pvt firms with no woman director to be penalised

Penal action to be taken against Public Sector units and Pvt firms who have failed to appoint any women directors
PSUs & Pvt firms with no woman director to be penalised

As per media, a stern action awaits for Private firms and Public Sector Units, who have failed to appoint any women directors. Registrar of Companies have been given task to penalize after government discovered 65 public sector undertakings (PSUs) which do not have any senior women leadership. 

Unearthing of this fact led to inclusion of 1,355 private listed firms in default and soon action will be initiated against them as well. The government has asked Registrars of Companies (ROC) to take up the matter with the concerned ministries. 

Non-inclusion women directors is out and out failure of adherence Securities Exchange Board of India (Sebi) guideline where it mandated all listed firms to have at least one woman director on their boards from April 1, 2015. The directive was issued to ensure gender diversity in boardrooms.

In a written reply to Lok Sabha, Arjun Ram Meghwal, Minister of State for Corporate Affairs wrote that a total of 1,355 private listed companies were without a woman director while 292 unlisted firms have not appointed any woman on their boards. 

In a recent study done by a the global recruitment tendering platform  in 2016 , has projected India in the 26th position globally in terms of having women members as part of company's board of directors. The total composition of women in the board of directors remains at 7 percent. 

Companies Act of India of 2013 laid down explicit guidelines for qualifying companies to have mandatory appointments of women to the board of directors.  SEBI had given all companies a deadline of 31st March 2015 to appoint at least one female person as a member of the board of directors, later extending the time limit to June 2015.

One of the most common reasons attributed to the lack of women leadership visible in our corporations today is the small pipeline of talented women leaders

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Topics: Diversity

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