INTRODUCTION:
India has made progress in promoting gender diversity in corporate governance by requiring corporations to nominate female directors to their boards in recent years. This action was viewed as a step in the direction of fair representation and inclusivity in the decision-making process. But the path ahead for female directors of Indian-registered businesses is paved with obstacles that draw attention to more fundamental structural, sociological, and cultural problems.
• The male-dominated nature of corporate boards historically has made it difficult for female directors to make an impact. It could be difficult for them to properly implement their ideas or to get their views heard.
• It can be especially difficult for women to juggle the demands of a board post with other obligations, such those to their families and personal lives. This problem can discourage competent women from applying for or being hired for director positions.
• Compared to their male counterparts, women directors could be subject to greater scrutiny and expectations because they are frequently viewed as advocates for inclusivity and diversity in corporate governance.
• Despite the requirement for gender diversity on boards imposed by regulatory frameworks, women directors face challenging legal and regulatory environments. They are responsible for making sure corporate governance norms are followed and they have fiduciary duties. This entails tackling problems including conflicts of interest, financial reporting openness, and ethical practice observance.
THE NEED FOR INCLUSIVITY OF WOMEN DIRECTOR:
• Women directors enrich board meetings with their distinct perspectives, experiences, and insights, which broaden the scope of the debate and improve decision-making.
• The presence of a diverse range of genders on boards has been associated with higher financial performance, better risk management, and better governance procedures that reflect balanced decision-making and strategic oversight.
• In addition to improving the company's reputation and promoting sustainable business practices, female directors frequently place a high priority on ethical issues and corporate social responsibility.
REGULATORY FRAMEWORK IN ADDRESSING THE CHALLENGING ROLE OF WOMEN DIRECTOR IN INDIAN REGISTERED COMPANIES:
A number of legal and regulatory frameworks, such as the Companies Act of 2013, the Companies Rules, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, and guidelines from the Ministry of Corporate Affairs (MCA), have an impact on the difficult and crucial role that women play as directors in Indian registered companies. The following explains the difficulties faced by female directors in this situation:
Companies Act, 2013:
The Companies Act of 2013 brought about important changes to improve corporate governance. It requires specific classes of corporations to have a minimum of one female director on their boards: In accordance with Section 149(1) Every business that is listed. All other publicly traded companies having a minimum paid-up share capital of Rs. 100 crore or a minimum turnover of Rs. 300 crore.
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR):
An essential framework for the governance of listed businesses in India is the SEBI LODR Regulations. To improve the diversity and governance of the board, they require the appointment of female directors. Regulation 17(1)(a): Board Membership: Every listed business is required to have a minimum of one female director on its board. Lists of the Top 1000 and 500 Companies: The law was once intended to apply to the top 500 listed firms based on market capitalization; it was later expanded to include the top 1000 enterprises. These businesses need to have a minimum of one independent female director.
Companies (Appointment and Qualification of Directors) Rules, 2014:
Rule 3 requires that at least one woman director be appointed by all listed companies and other public companies having paid-up share capital of at least Rs. 100 crore or turnover of at least Rs. 300 crore. Within six months of their incorporation date or the date on which they become relevant, newly covered companies under this rule are required to comply. In order to ensure that women selected as directors fulfill specific criteria of competence and integrity, Rule 4 specifies the qualifications and disqualifications for the appointment of directors.
Ministry of Corporate Affairs (MCA):
The MCA keeps an eye on whether businesses are adhering to the SEBI LODR Regulations and the Companies Act, making sure that women are appointed as directors when necessary. MCA also carries out awareness initiatives and training programs to advance the competencies and skills of female directors and encourage their successful involvement on boards.
CONCLUSION:
A major step toward attaining gender diversity in corporate governance has been taken with the mandates of the businesses Act 2013, the Companies Rules 2014, and the SEBI (LODR) Regulations 2015 requiring women to serve as directors of Indian registered businesses. Nevertheless, there are several obstacles in the way of putting these laws into practice. These include locating a competent pool of applicants, steering clear of token gestures, getting beyond social and cultural hurdles, and making sure that compliance and enforcement are done well. Companies, authorities, and society as a whole must work together to create an inclusive atmosphere that recognizes and encourages the contributions made by women directors in order to address these issues. The intended benefits of these legal provisions can only be fully realized by such comprehensive initiatives, which would improve decision-making and governance in Indian enterprises. The composition of Audit Committee is yet to be seen the compulsory addition of a woman director member by the mandate of the statutory provision dealing with corporate governanc
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