Appointment of women director on listed company boards

SEBI has levied fines for listed companies which have not complied with the provisions of Companies Act, 2013 relating to mandatory appointment of women directors on their Boards by 31st March, 2015. The slab wise fines are as under:

1) For compliance between 1st April to 30th June, 2015, fine is Rs.50,000/-

2) For compliance between 1st July 2015 to 30th September 2015 fine is Rs.50,000/- plus Rs.1000/- per day upto the date of appointment;

3) For compliance after 1st October, 2015, Rs.142,000/- plus Rs.5000/- per day upto the date of appointment.

For non-compliances after 30th September, 2015 SEBI is free to initiate any other action against the company, their promoters, directors etc.

SEBI circular is available at http://www.sebi.gov.in/cms/sebi_data/attachdocs/1428497356451.pdf

3 Comments

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3 responses to “Appointment of women director on listed company boards

  1. SEBI ask optimum combination of executive and non-executive directors with at least one woman director.

    Woman Director is just one and minor aspect.

    • Unfortunately both SEBI and MCA did not clarify whether the woman director should be from promoter or independent side. With the result that practically every company is appointing some close relative to the Board. Yeah it does result in a gender mix on the Board but i doubt with any expected results.

      • SEBI is clear, Woman director form either side but in the “optimum mix”.
        Those appointed woman director from family may have breached “optimum mix”,
        and who did not, breached “woman director” condition.

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