No Woman Director in your Company? Be Prepared to Get Fined

BENAGLURU: The Securities and Exchange Board of India recently started to fine an amount of 50,000 to those companies that have not yet appointed a woman director among the board members.

As per the report of Rediff.com, about 2,690 companies till now have not appointed a woman director on their boards, even though the deadline for the appointment was noticed eight months ego. Hence the Central government started to give out show-cause notice on the liable companies.

The rule states that those companies that are registered under the under the Companies Act, 2013 ought to appoint a woman director by 1^st April 2015. Further reports suggest that 10,328 companies have been registered under the act and only 7,638 among them have implemented act, which in whole compiles 75 percent.

In brief the law states, each public companies, run by share capital of 100 crore (1 billion) or more or having a revenue of 300 crore (3 billion) or more, must have allotted at least one woman in their board by April 1.

The fining was followed by the Bombay Stock Exchange, which fined 370 companies for the same liabilities and the government warned further actions if the act is not implemented henceforth.

Partner--India Leadership team, Grant Thornton India LLP Harish H V said “The usual reasons (behind not appointing women directors) are that there are no appropriate women who could be taken on board. One should also look carefully at the numbers”

"It is clear that 75 percent have implemented the law.  One should examine how many of these companies that did not implement are operating fully and adhering to the other provisions, preparation of accounts, filing of returns, etc.”
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