Government finds it difficult to appoint women directors: Nirmala Sitharaman

All the listed companies had to appoint one within a year, and others reporting minimum revenue of Rs 300 crore had three years to comply

jasleen

Jasleen Kaur | October 6, 2016 | New Delhi


#women directors   #SEBI   #FICCI   #Nirmala Sitharaman   #Companies Act  
Government finds it difficult to appoint women directors: Nirmala Sitharaman
Photo: Arun Kumar

 The government is finding it extremely difficult to appoint women on boards of companies, said minister of state for commerce and industry Nirmala Sitharaman.

Addressing a gathering of women entrepreneurs at Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday, the minister said the court might pull up the centre for not fulfilling the commitment.
 
 
 
The Securities and Exchange Board of India (SEBI) had asked companies to appoint at least one woman director before April 1, 2015, adhering to rules set by the Companies Act 2013.
 
According to the Act, all listed companies and public firms having paid-up share capital of Rs 100 crore or more had to have at least one woman director each on their boards. SEBI, the stock market regulator, incorporated this law into its norms in February 2014 and had set October 1, 2014 as the deadline. All the listed companies had to appoint one within a year, and others reporting minimum revenue of Rs 300 crore had three years to comply. It was aimed to improve gender diversity in boardrooms of public and private companies. While the move was welcomed by CPSEs as a measure to bridge the gender gap, CPSEs were not in a hurry to meet the deadline. 
 
Though the Act did not clarify whether the women directors on the board have to be ‘functional directors’ – implying they are hands-on officers and part of the company – or can be ‘independent’ ones as well. Experts had apprehensions as they believed most organisations would try and take the easier way out by appointing ‘independent’ directors on their board. 
 
In May 2016, 22 PSUs were fined for not appointing women directors. A total of 1,375 BSE-listed companies and 191 NSE-listed companies were fined for failing to appoint women directors on their respective boards. Out of these, two were public sector banks and 22 were central public sector undertakings.
 
 
According to the data from Prime Database, which lists information on capital market offerings, there are 1,418 women directors holding 1,755 board positions in companies listed on the National Stock Exchange (NSE).
 

Comments

 

Other News

Universal Basic Income: The way forward

9.44 The irresistible force of even as powerful an idea as UBI will run into the immovable object of a resistant, pesky reality. So, what is the way forward, always remembering that the yardstick for assessment is not whether UBI can be perfect or faultless but only whether it can impr

Should action be taken against hospitals which have hiked the heart surgery cost?

Should action be taken against hospitals which have hiked the heart surgery cost?

ONGC office wins sustainable building design award

 The state-of-the-art corporate office of oil and natural gas corporation (ONGC), Pandit Deen Dayal Uphadhayay Urja Bhawan,  in New Delhi has won leadership in energy and environmental design (LEED) India ‘platinum’ award by US green building council (USGBC), the highest recognition f

Mumbaiís changing campaign colours

Demonetisation was a factor as candidates in the fray for the Mumbai civic polls wooed people. Though the election commission doubled the expenditure limits from Rs 5 lakh to Rs 10 lakh, some candidates found the going hard as there was a weekly withdrawal limit of Rs 24,000. Rs 10 lakh is way ab

Make Godseís statement public, but donít idolise him

Nathuram Godse, who was brought up by his parents as a girl in the first few years of his life, has been reviled for decades for fatally shooting the apostle of peace Mahatma Gandhi. What Godse said during the Gandhi assassination trial has not been made public, giving rise to considerable speculation.

First coal rake flagged off from NTPCís coal block in Hazaribagh

The first coal rake of NTPC’s Pakri-Barwadih coal mine at Hazaribagh was flagged-off by finance minister Arun Jaitley, Jharkhand chief minister Raghubar Das, union minister of state for power, coal, N&RE and mines Piyush Goyal, and minister of state for civil aviation Jayant Sinha, at Ranchi on

Video

रामदेव को अब 2000 का नोट पसंद नहीं
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter