Briefly explain the legal provisions regarding appointment of woman director in a public company.
CS Professional · Ethics, Governance and Sustainability · PYQS · December 2015
Briefly explain the legal provisions regarding appointment of woman director in a public company.
Answer & Explanation:
Section 149 along with Rule 3 of the Companies (Appointment and Qualification of Directors) Rules, 2014 prescribes that the following class of companies shall have at least one Woman Director from 1st April 2015- Every Listed Company Every other Public Company having paid-up capital of ₹100 crore rupees or more; or turnover of ₹300 crore rupees or more. A company shall comply with above provisions within a period of six months from the date of its incorporation. Any intermittent vacancy of a Woman Director shall be filled-up by the Board at the earliest but not later than immediate next Board meeting or three months from the date of such vacancy, whichever is later. The paid-up share capital or turnover, as the case may be, as on the last date of latest audited financial statements shall be taken into account. Section 149 came into force on 1-4-2014. The appointment of woman director was to be in place before 1-4-2015. SEBI vide its circular dated 17-4-2014 amended clause 49 of the Listing Agreement. The sub-clause IIA(1) of amended clause 49 provides that the Board of Directors of the company shall have at least one Woman Director.
Topics: Companies Act, 2013
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