Fewer listed firms failing to get women directors, shows govt data

The number of listed companies which have failed to appoint a single woman director on their board has been on a declining trend since 2018-19, data shared by the Ministry of Corporate Affairs in response to a Lok Sabha question showed. Sebi had fined 20 companies till September for FY 2023-24 against 64 in 2019-20. In the pandemic years FY21 and FY22 the number of such listed companies which could not appoint at least one women director had also hit a high of 57 and 62 respectively. The Company Law requires that every listed company and every unlisted public company having paid-up share capital of Rs 100 crores or more or having turnover of Rs 300 crores or more must appoint at least one woman director on its Board. 

According to a Sebi circular which came into effect from September 30, 2018, the stock exchanges have been empowered to levy fine or take action in case of non-compliances relating to having a woman director in the Board. 

A statement laid by Finance Minister Nirmala Sitharaman in the Lok Sabha said, “All directors, including women directors are expected to fully participate in Board meetings. In case any director (is) absent from all Board Meetings held during a period of 12 months, the office of director stands vacated…”