Three Years For Public Cos to Hire Woman Director
1 yr time to hire woman director
Listed companies have been given a year to appoint at least one woman director on their board,while other public companies will have three years to comply with the new provision of the Companies Act. In the draft rules released for public comment, the ministry of corporate affairs has said the clock will start ticking from the time the rules come into force.It has further said public companies with share capital of at least Rs 100 crore,turnover of Rs 300 crore or more or outstanding loans and deposits that add up to 200 crore,will have to comply with new stipulation. This is the first time that the government has prescribed minimum woman representation on company boards,a move that is expected to make the top deck more gender sensitive.
But woman part, the more keenly watched rule in corporate boardrooms was the prescription of independent directors,who were so far limited to listed companies.Once the rules are notified,public companies with the same threshold as those for woman directors will have to ensure that at least onethird of their board consists of independent directors.
The draft rules have also stipulated who can be considered for such board-level appointments but has given a lot of choice to companies. An independent director shall possess appropriate balance of skills,experience and knowledge in one or more fields of finance, law, management, sales, marketing, administration, research, corporate governance, technical operations or other disciplines related to the company’s business, the draft suggested.
Times of India, New Delhi, 10-09-2013