The compulsion of having women directors on board

Companies in India that are governed by the Companies Act 2013 are expected to follow the guidelines that have been set forth regarding the board of Directors and other aspects. Certain clauses of the Act have been especially designed for strengthening the contributions by women in the board room. The companies need to comply with the particular requirement that is stated by the Companies Act wherein it is compulsory to have at least one woman Director on the Board. The prescribed class of companies have been directed by the CA2013 to stipulate the appointment of women Directors as a compulsion so as to allow the corporates in reaping the benefits of people coming from diversified backgrounds and those carrying different viewpoints.Companies that need to comply with the above mentioned requirement of women Directors on board, can be described in the following ways. Public companies who possess at least one hundred crore rupees paid–up share capital or a minimum turnover of three hundred crore rupees. All the listed companies functioning within the first year from the commencement of second provision as stated elaborately in the Act. These new compulsions can prove to be a great way of encouraging gender diversity at the corporate level.