The Companies Act, 2013 , a sub section and rule related to the mandatory appointment of Woman Director in the Board of Directors has been inserted. This not only empowers woman but also gives an equal opportunity to the woman who holds such qualification.
Applicable Section:- Section 149 of Companies Act, 2013
Applicable Rule: Rule 3 of The Companies (Appointment and Qualification of Directors ) Rules, 2014 Applicability (To appoint at least one Woman Director)
- All Listed Companies
- Other Public Companies – Paid up share capital of Rs. 100 crore or more OR Turnover of Rs. 300 crores more.
Note: Paid Up Share Capital and Turnover shall be taken into account as on last date of latest audited financial statements.
Period to appoint Woman Director:
When the section was first introduced the existing Company incorporated under Companies Act, 1956 and who falls under the criteria mentioned under rules were given a period of 6 months to comply with such provision. Further Other Existing Companies were given a period of 1 year to comply with such provision.
Consequences of Non Compliance:
Section 172 states that, if a company contravenes any of the provisions and for which no specific punishment is provided therein, the company and every officer of the company who is in default shall be punishable with fine which shall not be less than Rs. 50,000\- but which may extend to Rs. 5,00,000/-.