The following class of companies shall appoint at least one woman director-
(i) every listed company;
(ii) every other public company having –
(a) paid–up share capital of one hundred crore rupees or more; or
(b) turnover of three hundred crore rupees or more
Provided that a company, which has been incorporated under Private Limited Company, Public Company and is covered under provisions shall comply with such provisions within a period of six months from the date of its incorporation
Provided further that 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.
Explanation.– For the purposes of this rule, it is hereby clarified that 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.
Know more about the procedure for adding or removing Director.
Duties and Liabilities of Woman Director
The following duties and liabilities have been imposed on the woman directors of companies, by the Companies Act of 2013:
- A woman director of a company shall act in accordance with the Articles of Association (AOA) of the company.
- A woman director of the company shall act in good faith, in order to promote the objects of the company, for the benefits of the company as a whole, and in the best interests of the stakeholders of the company.
- A woman director of a company shall exercise the duties with due and reasonable care, skill and diligence and shall exercise independent judgment.
- A woman director of a company shall not involve in a situation in which she may have a direct or indirect interest that conflicts, or possibly may conflict, with the interest of the company. Disclosures by a Woman Director of her Interest… click here to know more
- A director of a company shall not achieve or attempt to achieve any undue gain or advantage either to herself or to her relatives, partners, or associates and if such director is found guilty of making any undue gain, she shall be liable to pay an amount equal to that gain to the company.
- A director of a company shall not assign her office and any assignment so made shall be void.
Women Directors can hold a maximum of twenty directorships that includes the sub-limit often public companies. Any contravention on this part shall be punishable with fine which shall not be less than Rs.1,00,000/- but which may extend to Rs.5,00,000/-